Question 1

Conversion costs are:

Accepted Answer

A) direct material,direct labor,and manufacturing overhead. 
B) direct material and direct labor. 
C) direct labor and manufacturing overhead. 
D) prime costs. 
E) period costs. 
A) direct material,direct labor,and manufacturing overhead. 
B) direct material and direct labor. 
C) direct labor and manufacturing overhead. 
D) prime costs. 
E) period costs.

Question 2

Which of the following would likely be a suitable cost driver for the amount of direct materials used?

Accepted Answer

A) The number of units sold. 
B) The number of direct labor hours worked. 
C) The number of machine hours worked. 
D) The number of units produceD. 
E) The number of employees working in the factory. 
A) The number of units sold. 
B) The number of direct labor hours worked. 
C) The number of machine hours worked. 
D) The number of units produceD. 
E) The number of employees working in the factory.

Question 3

As activity decreases,unit variable cost:

Accepted Answer

A) increases proportionately with activity. 
B) decreases proportionately with activity. 
C) remains constant. 
D) increases by a fixed amount. 
E) decreases by a fixed amount. 
A) increases proportionately with activity. 
B) decreases proportionately with activity. 
C) remains constant. 
D) increases by a fixed amount. 
E) decreases by a fixed amount.

Question 4

Which of the following is not a period cost?

Accepted Answer

A) Legal costs. 
B) Public relations costs. 
C) Sales commissions. 
D) Wages of assembly-line workers. 
E) The salary of a company's chief financial officer (CFO). 
A) Legal costs. 
B) Public relations costs. 
C) Sales commissions. 
D) Wages of assembly-line workers. 
E) The salary of a company's chief financial officer (CFO).

Question 5

Which of the following would not be characterized as a cost object?

Accepted Answer

A) An automobile manufactured by General Motors. 
B) The New York Fire Department. 
C) A Burger King restaurant located in Cleveland,Ohio. 
D) A Delta Airlines flight from Atlanta to Miami. 
E) All of these are examples of cost objects. 
A) An automobile manufactured by General Motors. 
B) The New York Fire Department. 
C) A Burger King restaurant located in Cleveland,Ohio. 
D) A Delta Airlines flight from Atlanta to Miami. 
E) All of these are examples of cost objects.

Question 6

Glass Industries reported the following data for the year just ended: sales revenue,$1,750,000;cost of goods sold,$980,000;cost of goods manufactured,$560,000;and selling and administrative expenses,$170,000.Glass' gross margin would be:

Accepted Answer

A) $940,000. 
B) $1,190,000. 
C) $1,020,000. 
D) $380,000. 
E) $770,000. 
A) $940,000. 
B) $1,190,000. 
C) $1,020,000. 
D) $380,000. 
E) $770,000.

Question 7

Inventoriable costs are expensed when incurred.

Accepted Answer

A) True 
 B)False

Question 8

For the year just ended,Cole Corporation's manufacturing costs (raw materials used,direct labor,and manufacturing overhead)totaled $1,500,000.Beginning and ending work-in-process inventories were $60,000 and $90,000,respectively.Cole's balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000.On the basis of this information,how much would the company report as cost of goods manufactured (CGM)and cost of goods sold (CGS)?

Accepted Answer

A) CGM,$1,430,000;CGS,$1,460,000. 
B) CGM,$1,470,000;CGS,$1,540,000. 
C) CGM,$1,530,000;CGS,$1,460,000. 
D) CGM,$1,570,000;CGS,$1,540,000. 
E) Some other amounts. 
A) CGM,$1,430,000;CGS,$1,460,000. 
B) CGM,$1,470,000;CGS,$1,540,000. 
C) CGM,$1,530,000;CGS,$1,460,000. 
D) CGM,$1,570,000;CGS,$1,540,000. 
E) Some other amounts.

Question 9

Pumpkin Enterprises began operations on January 1,20x1,with all of its activities conducted from a single facility.The company's accountant concluded that the year's building depreciation should be allocated as follows: selling activities,20%;administrative activities,35%;and manufacturing activities,45%.If Pumpkin sold 60% of 20x1 production during that year,what percentage of the depreciation would appear (either directly or indirectly)on the 20x1 income statement?

Accepted Answer

A) 27%. 
B) 45%. 
C) 55%. 
D) 82%. 
E) 100%. 
A) 27%. 
B) 45%. 
C) 55%. 
D) 82%. 
E) 100%.

Question 10

The true statement about cost behavior is that:

Accepted Answer

A) variable costs change on a per-unit basis and change in total as activity changes. 
B) fixed costs are constant on a per-unit basis and change in total as activity changes. 
C) fixed costs are constant on a per-unit basis and constant in total as activity changes. 
D) fixed costs change on a per-unit basis and are constant in total as activity changes. 
E) variable costs are constant on a per-unit basis and are constant in total as activity changes. 
A) variable costs change on a per-unit basis and change in total as activity changes. 
B) fixed costs are constant on a per-unit basis and change in total as activity changes. 
C) fixed costs are constant on a per-unit basis and constant in total as activity changes. 
D) fixed costs change on a per-unit basis and are constant in total as activity changes. 
E) variable costs are constant on a per-unit basis and are constant in total as activity changes.

Question 11

Hamilton Company had the following inventory balances at the beginning and end of the year:
A.Calculate cost of goods manufactured.
B.Calculate cost of goods sold.
C.Determine Hamilton's net income.

Accepted Answer

@#IMG-DLM& 
During the year,the company purchased

Question 12

Costs that are expensed when incurred are called:

Accepted Answer

A) product costs. 
B) direct costs. 
C) inventoriable costs. 
D) period costs. 
E) indirect costs. 
A) product costs. 
B) direct costs. 
C) inventoriable costs. 
D) period costs. 
E) indirect costs.

Question 13

The accounting records of Diego Company revealed the following costs,among others:  
Costs that would be considered in the calculation of manufacturing overhead total:

Accepted Answer

A) $149,000. 
B) $171,000. 
C) $186,000. 
D) $442,000. 
E) some other amount. 
A) $149,000. 
B) $171,000. 
C) $186,000. 
D) $442,000. 
E) some other amount.

Question 14

Which of the following is a product cost?

Accepted Answer

A) Glass in an automobile. 
B) Advertising. 
C) The salary of the vice president-finance. 
D) Rent on a factory. 
E) Both "A" and "D." 
A) Glass in an automobile. 
B) Advertising. 
C) The salary of the vice president-finance. 
D) Rent on a factory. 
E) Both "A" and "D."

Question 15

Which of the following would not be classified as a product cost?

Accepted Answer

A) Direct materials. 
B) Direct labor. 
C) Indirect materials. 
D) Insurance on a manufacturing plant. 
E) Sales commissions. 
A) Direct materials. 
B) Direct labor. 
C) Indirect materials. 
D) Insurance on a manufacturing plant. 
E) Sales commissions.

Question 16

Fixed costs are costs that:

Accepted Answer

A) vary directly with changes in activity. 
B) vary inversely with changes in activity. 
C) remain constant on a per-unit basis. 
D) remain constant as activity changes. 
E) increase on a per-unit basis as activity increases. 
A) vary directly with changes in activity. 
B) vary inversely with changes in activity. 
C) remain constant on a per-unit basis. 
D) remain constant as activity changes. 
E) increase on a per-unit basis as activity increases.

Question 17

If direct materials used during the year were $135,000,what was cost of goods manufactured?

Accepted Answer

A) $140,500. 
B) $539,000. 
C) $409,500. 
D) $544,500. 
E) some other amount. 
A) $140,500. 
B) $539,000. 
C) $409,500. 
D) $544,500. 
E) some other amount.

Question 18

As activity increases,unit variable cost:

Accepted Answer

A) increases proportionately with activity. 
B) decreases proportionately with activity. 
C) remains constant. 
D) increases by a fixed amount. 
E) decreases by a fixed amount. 
A) increases proportionately with activity. 
B) decreases proportionately with activity. 
C) remains constant. 
D) increases by a fixed amount. 
E) decreases by a fixed amount.

Question 19

Depreciation of factory equipment would be classified as:

Accepted Answer

A) operating cost. 
B) "other" cost. 
C) manufacturing overhead. 
D) period cost. 
E) administrative cost. 
A) operating cost. 
B) "other" cost. 
C) manufacturing overhead. 
D) period cost. 
E) administrative cost.

Question 20

Which of the following is an example of a fixed cost?

Accepted Answer

A) Paper used in the manufacture of textbooks. 
B) Property taxes paid by a firm to the City of Los Angeles. 
C) The wages of part-time workers who are paid $8 per hour. 
D) Gasoline consumed by salespersons' cars. 
E) Surgical supplies used in a hospital's operating room. 
A) Paper used in the manufacture of textbooks. 
B) Property taxes paid by a firm to the City of Los Angeles. 
C) The wages of part-time workers who are paid $8 per hour. 
D) Gasoline consumed by salespersons' cars. 
E) Surgical supplies used in a hospital's operating room.

Conversion costs are:

Which of the following would likely be a suitable cost driver for the amount of direct materials used?

As activity decreases,unit variable cost:

Which of the following is not a period cost?

Which of the following would not be characterized as a cost object?

Glass Industries reported the following data for the year just ended: sales revenue,$1,750,000;cost of goods sold,$980,000;cost of goods manufactured,$560,000;and selling and administrative expenses,$170,000.Glass' gross margin would be:

Inventoriable costs are expensed when incurred.

The true statement about cost behavior is that:

Hamilton Company had the following inventory balances at the beginning and end of the year: A.Calculate cost of goods manufactured. B.Calculate cost of goods sold. C.Determine Hamilton's net income.

Costs that are expensed when incurred are called:

The accounting records of Diego Company revealed the following costs,among others: Costs that would be considered in the calculation of manufacturing overhead total:

Which of the following is a product cost?

Which of the following would not be classified as a product cost?

Fixed costs are costs that:

If direct materials used during the year were $135,000,what was cost of goods manufactured?

As activity increases,unit variable cost:

Depreciation of factory equipment would be classified as:

Which of the following is an example of a fixed cost?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 2: Basic Cost Management Concepts and Accounting for Mass Customization Operations

Conversion costs are:

Which of the following would likely be a suitable cost driver for the amount of direct materials used?

As activity decreases,unit variable cost:

Which of the following is not a period cost?

Which of the following would not be characterized as a cost object?

Glass Industries reported the following data for the year just ended: sales revenue,$1,750,000;cost of goods sold,$980,000;cost of goods manufactured,$560,000;and selling and administrative expenses,$170,000.Glass' gross margin would be:

Inventoriable costs are expensed when incurred.

The true statement about cost behavior is that:

Hamilton Company had the following inventory balances at the beginning and end of the year: A.Calculate cost of goods manufactured. B.Calculate cost of goods sold. C.Determine Hamilton's net income.

Costs that are expensed when incurred are called:

The accounting records of Diego Company revealed the following costs,among others: Costs that would be considered in the calculation of manufacturing overhead total:

Which of the following is a product cost?

Which of the following would not be classified as a product cost?

Fixed costs are costs that:

If direct materials used during the year were $135,000,what was cost of goods manufactured?

As activity increases,unit variable cost:

Depreciation of factory equipment would be classified as:

Which of the following is an example of a fixed cost?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters