Exam 2: Product Costing Systems: Concepts and Design Issues

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Use the following to answer questions: -The difference between the variable ending inventory cost and the absorption ending inventory cost is:

(Multiple Choice)

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Question 21

Below is presented information regarding the production process Chen Manufacturing for years 1 and 2 Required: (a) Prepare income statements for both years using absorption costing (b) Prepare income statements for both years using variable costing (c) Comment on the different operating income figures. Explain the management implications of any differences in operating profits between the two methods.

(Essay)

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Question 22

Electricity and welding materials used by robotic welders would be considered unit-level costs.

(True/False)

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Question 23

Inventoriable cost is another term for product costs.

(True/False)

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Question 24

Which of the following describes the formula for cost of goods manufactured?

(Multiple Choice)

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Question 25

Conversion costs equal direct materials and manufacturing overhead costs.

(True/False)

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Question 26

After materials enter the production process, those used in products are called direct materials.

(True/False)

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Question 27

Use the following to answer questions: -The throughput ending inventory is:

(Multiple Choice)

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Question 28

A committed cost may be changed quickly and easily.

(True/False)

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Question 29

The cost of direct materials placed into production is computed by adding the cost of purchases to the ending inventory of raw materials.

(True/False)

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Question 30

Gross margin is sales less variable production costs.

(True/False)

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Question 31

The basic formula used to compute cost of goods sold is beginning inventory plus purchases plus ending inventory.

(True/False)

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Question 32

Opportunity cost is the current value of the foregone, next best alternative use of whatever is supplied or used.

(True/False)

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Question 33

Theoretically, the cost of employer paid health insurance premiums for direct labor personnel should be considered a manufacturing overhead cost.

(True/False)

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Question 34

As the volume of production increases, fixed costs per unit remain unchanged, while variable costs per unit will decrease.

(True/False)

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Question 35

Depreciation on forklifts used to transport materials should be accounted for as:

(Multiple Choice)

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Question 36

Prime costs include direct materials and direct labor costs.

(True/False)

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Question 37

Use the following to answer questions: -The variable ending inventory is:

(Multiple Choice)

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Question 38

Hurwitz Corporation had the following activities during 2007: Required: (a) Prepare a schedule of cost of goods manufactured for 2007. (b) Prepare a schedule of cost of goods sold for 2007. (c) Prepare an income statement for 2007.

(Essay)

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Question 39

Under throughput costing:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 117

Use the following to answer questions: -The difference between the variable ending inventory cost and the absorption ending inventory cost is:

Electricity and welding materials used by robotic welders would be considered unit-level costs.

Inventoriable cost is another term for product costs.

Which of the following describes the formula for cost of goods manufactured?

Conversion costs equal direct materials and manufacturing overhead costs.

After materials enter the production process, those used in products are called direct materials.

Use the following to answer questions: -The throughput ending inventory is:

A committed cost may be changed quickly and easily.

The cost of direct materials placed into production is computed by adding the cost of purchases to the ending inventory of raw materials.

Gross margin is sales less variable production costs.

The basic formula used to compute cost of goods sold is beginning inventory plus purchases plus ending inventory.

Opportunity cost is the current value of the foregone, next best alternative use of whatever is supplied or used.

Theoretically, the cost of employer paid health insurance premiums for direct labor personnel should be considered a manufacturing overhead cost.

As the volume of production increases, fixed costs per unit remain unchanged, while variable costs per unit will decrease.

Depreciation on forklifts used to transport materials should be accounted for as:

Prime costs include direct materials and direct labor costs.

Use the following to answer questions: -The variable ending inventory is:

Hurwitz Corporation had the following activities during 2007: Required: (a) Prepare a schedule of cost of goods manufactured for 2007. (b) Prepare a schedule of cost of goods sold for 2007. (c) Prepare an income statement for 2007.

Under throughput costing:

Cost Management and Strategic Decision Making Evaluating Opportunities and Leading Change

Cost Accumulation for Job-Shop and Batch Production Operations

Activity-Based Costing Systems

Activity-Based Management

Managing Customer Profitability

Managing Quality and Time to Create Value

Process-Costing Systems

Joint-Process Costing

Managing and Allocating Support-Service Costs

Cost Estimation

Financial and Cost-Volume-Profit Models

Cost Management and Decision Making

Strategic Issues in Making Long-Term Capital Investment Decisions

Budgeting and Financial Planning

Standard Costing, Variance Analysis, and Kaizen Costing

Flexible Budgets, Overhead Cost Management, and Activity-Based Budgeting

Organizational Design, Responsibility Accounting, and Evaluation of Divisional Performance

Transfer Pricing

Performance Measurement Systems Glossary Photo Credits

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