Question 1

The additional cost incurred as the cost driver increases by one unit 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 2

Prime cost and conversion cost share what common element of total cost?

Accepted Answer

A) Direct labor. 
B) Direct materials. 
C) Variable overhead. 
D) Fixed overhead. 
A) Direct labor. 
B) Direct materials. 
C) Variable overhead. 
D) Fixed overhead.

Question 3

Which one of the following would not be found in a merchandising company?

Accepted Answer

A) Beginning inventory. 
B) Cost of goods sold. 
C) Ending inventory. 
D) Gross profit. 
E) Work-in-process. 
A) Beginning inventory. 
B) Cost of goods sold. 
C) Ending inventory. 
D) Gross profit. 
E) Work-in-process.

Question 4

The total manufacturing cost consists of the costs for materials used, labor, and ________.

Accepted Answer

A) Overhead cost 
B) Average cost 
C) Step cost 
D) Prime cost 
A) Overhead cost 
B) Average cost 
C) Step cost 
D) Prime cost

Question 5

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 6

For the month of April, conversion cost incurred was:

Accepted Answer

A) $75,000. 
B) $66,000. 
C) $70,000. 
D) $39,000. 
A) $75,000. 
B) $66,000. 
C) $70,000. 
D) $39,000.

Question 7

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 8

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 9

The Gray Company has a staff of five clerks in its general accounting department. Three clerks who work during the day perform sundry accounting tasks; the two clerks who work in the evening are responsible for (1) collecting the cost data for the various jobs in process, (2) verifying manufacturing material and labor reports, and (3) supplying production reports to the supervisors by the next morning. The salaries of these two clerks who work at night should be classified as:

Accepted Answer

A) Period costs. 
B) Direct costs. 
C) Product costs. 
D) Indirect costs. 
A) Period costs. 
B) Direct costs. 
C) Product costs. 
D) Indirect costs.

Question 10

Which of the following is not a product cost?

Accepted Answer

A) Direct materials costs 
B) Selling costs 
C) Direct labor costs 
D) Factory overhead costs 
A) Direct materials costs 
B) Selling costs 
C) Direct labor costs 
D) Factory overhead costs

Question 11

Direct materials and direct labor costs total $70,000 and factory overhead costs total $100 per machine hour. If 200 machine hours were used for Job #333, what is the total manufacturing cost for Job #333?

Accepted Answer

A) $20,000 
B) $70,200 
C) $70,000 
D) $90,000 
E) $100,000 
A) $20,000 
B) $70,200 
C) $70,000 
D) $90,000 
E) $100,000

Question 12

Which of the following should be considered a structural cost driver?

Accepted Answer

A) Scale. 
B) Experience. 
C) Complexity. 
D) Technology. 
E) All of the above. 
A) Scale. 
B) Experience. 
C) Complexity. 
D) Technology. 
E) All of the above.

Question 13

The main objective(s) of internal accounting controls is/are:

Accepted Answer

A) To increase customer satisfaction. 
B) To increase revenue. 
C) To prevent or detect errors and fraudulent acts. 
D) To facilitate new product lines. 
E) To increase employee morale. 
A) To increase customer satisfaction. 
B) To increase revenue. 
C) To prevent or detect errors and fraudulent acts. 
D) To facilitate new product lines. 
E) To increase employee morale.

Question 14

A group of related products may be referenced as:

Accepted Answer

A) Cost objects 
B) Cost drivers 
C) Value streams 
D) Cost pools 
A) Cost objects 
B) Cost drivers 
C) Value streams 
D) Cost pools

Question 15

Any product, service, or organizational unit to which costs are assigned for some management purpose is a (n):

Accepted Answer

A) Cost object. 
B) Direct cost. 
C) Indirect cost. 
D) Cost driver. 
E) Allocation base. 
A) Cost object. 
B) Direct cost. 
C) Indirect cost. 
D) Cost driver. 
E) Allocation base.

Question 16

In order to assure that accounting information is accurate and to avoid potentially costly mistakes in the decision making process, firms should:

Accepted Answer

A) Design and monitor an effective system of internal accounting controls. 
B) Have the internal auditors and controller each check the accounting data before it is released to management. 
C) Purchase an accounting system that is designed specifically for the industry in which the firm conducts business. 
D) None of the above. 
A) Design and monitor an effective system of internal accounting controls. 
B) Have the internal auditors and controller each check the accounting data before it is released to management. 
C) Purchase an accounting system that is designed specifically for the industry in which the firm conducts business. 
D) None of the above.

Question 17

Total manufacturing cost is calculated to be:

Accepted Answer

A) $306,000. 
B) $26,000. 
C) $110,000. 
D) $331,000. 
E) $111,000. 
A) $306,000. 
B) $26,000. 
C) $110,000. 
D) $331,000. 
E) $111,000.

Question 18

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 19

Factory overhead costs for a given period were 3 times as much as the direct material costs. Prime costs totaled $2,000. Conversion costs totaled $3,280. What are the direct labor costs for the period?

Accepted Answer

A) $1,220. 
B) $1,360. 
C) $1,410. 
D) $1,540. 
A) $1,220. 
B) $1,360. 
C) $1,410. 
D) $1,540.

Question 20

All indirect manufacturing costs are commonly combined into a single cost pool called:

Accepted Answer

A) Activity cost pools. 
B) Value streams. 
C) Resources. 
D) Overhead. 
E) Other manufacturing costs. 
A) Activity cost pools. 
B) Value streams. 
C) Resources. 
D) Overhead. 
E) Other manufacturing costs.

The additional cost incurred as the cost driver increases by one unit is:

Prime cost and conversion cost share what common element of total cost?

Which one of the following would not be found in a merchandising company?

The total manufacturing cost consists of the costs for materials used, labor, and ________.

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

For the month of April, conversion cost incurred was:

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?

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?

Which of the following is not a product cost?

Direct materials and direct labor costs total $70,000 and factory overhead costs total $100 per machine hour. If 200 machine hours were used for Job #333, what is the total manufacturing cost for Job #333?

Which of the following should be considered a structural cost driver?

The main objective(s) of internal accounting controls is/are:

A group of related products may be referenced as:

Any product, service, or organizational unit to which costs are assigned for some management purpose is a (n):

In order to assure that accounting information is accurate and to avoid potentially costly mistakes in the decision making process, firms should:

Total manufacturing cost is calculated to be:

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 3 times as much as the direct material costs. Prime costs totaled $2,000. Conversion costs totaled $3,280. What are the direct labor costs for the period?

All indirect manufacturing costs are commonly combined into a single cost pool called:

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

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

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Exam 3: Basic Cost Management Concepts

The additional cost incurred as the cost driver increases by one unit is:

Prime cost and conversion cost share what common element of total cost?

Which one of the following would not be found in a merchandising company?

The total manufacturing cost consists of the costs for materials used, labor, and ________.

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

For the month of April, conversion cost incurred was:

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?

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?

Which of the following is not a product cost?

Direct materials and direct labor costs total $70,000 and factory overhead costs total $100 per machine hour. If 200 machine hours were used for Job #333, what is the total manufacturing cost for Job #333?

Which of the following should be considered a structural cost driver?

The main objective(s) of internal accounting controls is/are:

A group of related products may be referenced as:

Any product, service, or organizational unit to which costs are assigned for some management purpose is a (n):

In order to assure that accounting information is accurate and to avoid potentially costly mistakes in the decision making process, firms should:

Total manufacturing cost is calculated to be:

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 3 times as much as the direct material costs. Prime costs totaled $2,000. Conversion costs totaled $3,280. What are the direct labor costs for the period?

All indirect manufacturing costs are commonly combined into a single cost pool called:

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

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