Question 1

Selling and administrative expenses are calculated to be:

Accepted Answer

A) $4,000. 
B) $9,000. 
C) $11,000. 
D) $12,000. 
E) $16,000. 
A) $4,000. 
B) $9,000. 
C) $11,000. 
D) $12,000. 
E) $16,000.

Question 2

Consider the following for Columbia Street Manufacturing:   What are the cost of goods manufactured and cost of goods sold?

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 3

Which of the following is not an example of a product cost?

Accepted Answer

A) Salary of manufacturing supervisor 
B) Power for equipment 
C) Depreciation on company-owned sales outlets 
D) Depreciation on company-owned manufacturing plant 
A) Salary of manufacturing supervisor 
B) Power for equipment 
C) Depreciation on company-owned sales outlets 
D) Depreciation on company-owned manufacturing plant

Question 4

For the month of April, prime cost incurred was:

Accepted Answer

A) $75,000. 
B) $66,000. 
C) $65,000. 
D) $62,000. 
A) $75,000. 
B) $66,000. 
C) $65,000. 
D) $62,000.

Question 5

Which of the following is an example of an indirect cost?

Accepted Answer

A) Cost of downtime 
B) Cost of labor 
C) Cost of materials 
D) Cost of packaging materials 
A) Cost of downtime 
B) Cost of labor 
C) Cost of materials 
D) Cost of packaging materials

Question 6

The change in total cost associated with each change in the quantity of the cost driver is:

Accepted Answer

A) Average cost. 
B) Controllable cost. 
C) Variable cost. 
D) Unit cost. 
A) Average cost. 
B) Controllable cost. 
C) Variable cost. 
D) Unit cost.

Question 7

Materials purchases are calculated to be:

Accepted Answer

A) $143,000. 
B) $156,000. 
C) $91,000. 
D) $169,000. 
E) $140,000. 
A) $143,000. 
B) $156,000. 
C) $91,000. 
D) $169,000. 
E) $140,000.

Question 8

Which one of the following is not a type of cost driver?

Accepted Answer

A) Structural cost driver. 
B) Executional cost driver. 
C) Volume-Based cost driver. 
D) Differential cost driver. 
E) Activity-Based cost driver. 
A) Structural cost driver. 
B) Executional cost driver. 
C) Volume-Based cost driver. 
D) Differential cost driver. 
E) Activity-Based cost driver.

Question 9

What should be the amount of direct materials available for use?

Accepted Answer

A) $112,000. 
B) $183,000. 
C) $189,000. 
D) $204,000. 
A) $112,000. 
B) $183,000. 
C) $189,000. 
D) $204,000.

Question 10

The following information was taken from the accounting records of Tomek Manufacturing Company. Unfortunately, some of the data were destroyed by a computer malfunction.   Required: Calculate the unknowns indicated by question marks.

Accepted Answer

Answer may

Question 11

A manager of a small manufacturing firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?

Accepted Answer

A) Direct materials. 
B) Product design cost. 
C) Office expenses. 
D) Selling expenses. 
E) Advertising expense. 
A) Direct materials. 
B) Product design cost. 
C) Office expenses. 
D) Selling expenses. 
E) Advertising expense.

Question 12

The three attributes of cost information include accuracy, timeliness, and

Accepted Answer

A) reliability. 
B) relevance. 
C) cost-benefit. 
D) understandability. 
A) reliability. 
B) relevance. 
C) cost-benefit. 
D) understandability.

Question 13

Direct labor used is calculated to be:

Accepted Answer

A) $306,000. 
B) $26,000. 
C) $110,000. 
D) $84,000. 
E) $111,000. 
A) $306,000. 
B) $26,000. 
C) $110,000. 
D) $84,000. 
E) $111,000.

Question 14

Factory overhead costs for a given period were 1.5 times as much as the direct material costs. Prime costs totaled $15,500. Conversion costs totaled $22,725. What are the direct labor costs for the period?

Accepted Answer

A) $1,200. 
B) $1,050. 
C) $1,075. 
D) $1,155. 
A) $1,200. 
B) $1,050. 
C) $1,075. 
D) $1,155.

Question 15

Strategic analysis uses which of the following to help a firm improve its competitive position through an analysis of product and production complexity?

Accepted Answer

A) Differential cost drivers. 
B) Discretionary cost drivers. 
C) Structural cost drivers. 
D) Marginal cost drivers. 
A) Differential cost drivers. 
B) Discretionary cost drivers. 
C) Structural cost drivers. 
D) Marginal cost drivers.

Question 16

Factory overhead costs for a given period were 2 times as much as the direct material costs. Prime costs totaled $8,000. Conversion costs totaled $11,350. What are the direct labor costs for the period?

Accepted Answer

A) $4,650. 
B) $3,560. 
C) $4,200. 
D) $3,860. 
A) $4,650. 
B) $3,560. 
C) $4,200. 
D) $3,860.

Question 17

Which of the following tend to be non-differential in the short term since they cannot be changed, but are more likely to be differential in the long term?

Accepted Answer

A) Fixed costs. 
B) Variable costs. 
C) Mixed costs. 
D) Semivariable costs. 
A) Fixed costs. 
B) Variable costs. 
C) Mixed costs. 
D) Semivariable costs.

Question 18

Consider the following for Guardian Manufacturing Company:   What are the cost of goods manufactured and cost of goods sold?

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 19

Which of the following would not be considered a cost pool?

Accepted Answer

A) Inventory manager 
B) Revenue 
C) Engineering department 
D) Direct materials cost 
A) Inventory manager 
B) Revenue 
C) Engineering department 
D) Direct materials cost

Question 20

Cost of goods sold is calculated to be:

Accepted Answer

A) $32,000. 
B) $30,000. 
C) $33,000. 
D) $38,000. 
E) $27,000. 
A) $32,000. 
B) $30,000. 
C) $33,000. 
D) $38,000. 
E) $27,000.

Selling and administrative expenses are calculated to be:

Consider the following for Columbia Street Manufacturing: What are the cost of goods manufactured and cost of goods sold?

Which of the following is not an example of a product cost?

For the month of April, prime cost incurred was:

Which of the following is an example of an indirect cost?

The change in total cost associated with each change in the quantity of the cost driver is:

Materials purchases are calculated to be:

Which one of the following is not a type of cost driver?

What should be the amount of direct materials available for use?

The following information was taken from the accounting records of Tomek Manufacturing Company. Unfortunately, some of the data were destroyed by a computer malfunction. Required: Calculate the unknowns indicated by question marks.

A manager of a small manufacturing firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?

The three attributes of cost information include accuracy, timeliness, and

Direct labor used is calculated to be:

Factory overhead costs for a given period were 1.5 times as much as the direct material costs. Prime costs totaled $15,500. Conversion costs totaled $22,725. What are the direct labor costs for the period?

Strategic analysis uses which of the following to help a firm improve its competitive position through an analysis of product and production complexity?

Factory overhead costs for a given period were 2 times as much as the direct material costs. Prime costs totaled $8,000. Conversion costs totaled $11,350. What are the direct labor costs for the period?

Which of the following tend to be non-differential in the short term since they cannot be changed, but are more likely to be differential in the long term?

Consider the following for Guardian Manufacturing Company: What are the cost of goods manufactured and cost of goods sold?

Which of the following would not be considered a cost pool?

Cost of goods sold is calculated to be:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 3: Basic Cost Management Concepts

Selling and administrative expenses are calculated to be:

Consider the following for Columbia Street Manufacturing: What are the cost of goods manufactured and cost of goods sold?

Which of the following is not an example of a product cost?

For the month of April, prime cost incurred was:

Which of the following is an example of an indirect cost?

The change in total cost associated with each change in the quantity of the cost driver is:

Materials purchases are calculated to be:

Which one of the following is not a type of cost driver?

What should be the amount of direct materials available for use?

The following information was taken from the accounting records of Tomek Manufacturing Company. Unfortunately, some of the data were destroyed by a computer malfunction. Required: Calculate the unknowns indicated by question marks.

A manager of a small manufacturing firm is interested in knowing what the company's product costs are. Which of the following would be considered a product cost for the manager's company?

The three attributes of cost information include accuracy, timeliness, and

Direct labor used is calculated to be:

Factory overhead costs for a given period were 1.5 times as much as the direct material costs. Prime costs totaled $15,500. Conversion costs totaled $22,725. What are the direct labor costs for the period?

Strategic analysis uses which of the following to help a firm improve its competitive position through an analysis of product and production complexity?

Factory overhead costs for a given period were 2 times as much as the direct material costs. Prime costs totaled $8,000. Conversion costs totaled $11,350. What are the direct labor costs for the period?

Which of the following tend to be non-differential in the short term since they cannot be changed, but are more likely to be differential in the long term?

Consider the following for Guardian Manufacturing Company: What are the cost of goods manufactured and cost of goods sold?

Which of the following would not be considered a cost pool?

Cost of goods sold is calculated to be:

Cost Management and Strategy

Implementing Strategy: the Value Chain, the Balanced Scorecard, and the Strategy Map

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit Cvp Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters