Question 1

The tuition that will be paid next semester by a college student who pursues a degree is a(n):

Accepted Answer

A) sunk cost. 
B) out-of-pocket cost. 
C) indirect cost. 
D) average cost. 
E) marginal cost. 
A) sunk cost. 
B) out-of-pocket cost. 
C) indirect cost. 
D) average cost. 
E) marginal cost.

Question 2

The costs that follow all have applicability for a manufacturing enterprise.Which of the choices listed correctly denotes the costs' applicability for a service provider?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 3

Carolina Plating Company reported a cost of goods manufactured of $520,000,with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000,respectively.If supplemental information disclosed raw materials used in production of $80,000,direct labor of $140,000,and manufacturing overhead of $240,000,the company's beginning work in process must have been:

Accepted Answer

A) $130,000. 
B) $10,000. 
C) $66,000. 
D) $390,000. 
E) some other amount. 
A) $130,000. 
B) $10,000. 
C) $66,000. 
D) $390,000. 
E) some other amount.

Question 4

Indirect labor is not a component of manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 5

If raw materials used during the year were $135,000 what was the amount of raw materials purchased during the year?

Accepted Answer

A) $129,200. 
B) $140,800. 
C) $135,000. 
D) $146,600. 
E) some other amount. 
A) $129,200. 
B) $140,800. 
C) $135,000. 
D) $146,600. 
E) some other amount.

Question 6

If the cost of goods manufactured for the year was $565,000,what was the amount of direct materials used during the year?

Accepted Answer

A) $155,500. 
B) $140,500. 
C) $150,000. 
D) $145,500. 
E) some other amount. 
A) $155,500. 
B) $140,500. 
C) $150,000. 
D) $145,500. 
E) some other amount.

Question 7

Mideast Motors manufactures automobiles.Which of the following would not be classified as direct materials by the company?

Accepted Answer

A) Wheel lubricant. 
B) Tires. 
C) Interior leather. 
D) CD player. 
E) Sheet metal used in the automobile's body. 
A) Wheel lubricant. 
B) Tires. 
C) Interior leather. 
D) CD player. 
E) Sheet metal used in the automobile's body.

Question 8

Which of the following is a period cost?

Accepted Answer

A) Direct material. 
B) Advertising expense. 
C) Indirect Labor. 
D) Miscellaneous supplies used in production activities. 
E) Both "B" and "C." 
A) Direct material. 
B) Advertising expense. 
C) Indirect Labor. 
D) Miscellaneous supplies used in production activities. 
E) Both "B" and "C."

Question 9

The salary that is sacrificed by a college student who pursues a degree full time is a(n):

Accepted Answer

A) sunk cost. 
B) out-of-pocket cost. 
C) opportunity cost. 
D) differential cost. 
E) marginal cost. 
A) sunk cost. 
B) out-of-pocket cost. 
C) opportunity cost. 
D) differential cost. 
E) marginal cost.

Question 10

An employee accidentally overstated the year's advertising expense by $50,000.Which of the following correctly depicts the effect of this error?

Accepted Answer

A) Cost of goods manufactured will be overstated by $50,000. 
B) Cost of goods sold will be overstated by $50,000. 
C) Both cost of goods manufactured and cost of goods sold will be overstated by $50,000. 
D) Cost of goods sold will be overstated by $50,000,and cost of goods manufactured will be understated by $50,000. 
E) None of thesE. 
A) Cost of goods manufactured will be overstated by $50,000. 
B) Cost of goods sold will be overstated by $50,000. 
C) Both cost of goods manufactured and cost of goods sold will be overstated by $50,000. 
D) Cost of goods sold will be overstated by $50,000,and cost of goods manufactured will be understated by $50,000. 
E) None of thesE.

Question 11

Prime costs are comprised of:

Accepted Answer

A) direct materials and manufacturing overhead. 
B) direct labor and manufacturing overhead. 
C) direct materials,direct labor,and manufacturing overhead. 
D) direct materials and direct labor. 
E) direct materials and indirect materials. 
A) direct materials and manufacturing overhead. 
B) direct labor and manufacturing overhead. 
C) direct materials,direct labor,and manufacturing overhead. 
D) direct materials and direct labor. 
E) direct materials and indirect materials.

Question 12

Costs that can be easily traced to a specific department are called:

Accepted Answer

A) direct costs. 
B) indirect costs. 
C) product costs. 
D) manufacturing costs. 
E) processing costs. 
A) direct costs. 
B) indirect costs. 
C) product costs. 
D) manufacturing costs. 
E) processing costs.

Question 13

Which of the following equations is used to calculate cost of goods sold during the period?

Accepted Answer

A) Beginning finished goods + cost of goods manufactured + ending finished goods. 
B) Beginning finished goods - ending finished goods. 
C) Beginning finished goods + cost of goods manufactured. 
D) Beginning finished goods + cost of goods manufactured - ending finished goods. 
E) Beginning finished goods + ending finished goods - cost of goods manufactured. 
A) Beginning finished goods + cost of goods manufactured + ending finished goods. 
B) Beginning finished goods - ending finished goods. 
C) Beginning finished goods + cost of goods manufactured. 
D) Beginning finished goods + cost of goods manufactured - ending finished goods. 
E) Beginning finished goods + ending finished goods - cost of goods manufactured.

Question 14

Which of the following statements is true?

Accepted Answer

A) The word "cost" has the same meaning in all situations in which it is used. 
B) Cost data,once classified and recorded for a specific application,are appropriate for use in any application. 
C) Different cost concepts and classifications are used for different purposes. 
D) All organizations incur the same types of costs. 
E) Costs incurred in one year are always meaningful in the following year. 
A) The word "cost" has the same meaning in all situations in which it is used. 
B) Cost data,once classified and recorded for a specific application,are appropriate for use in any application. 
C) Different cost concepts and classifications are used for different purposes. 
D) All organizations incur the same types of costs. 
E) Costs incurred in one year are always meaningful in the following year.

Question 15

The accounting records of Georgia Company revealed the following costs: direct materials used,$250,000;direct labor,$425,000;manufacturing overhead,$375,000;and selling and administrative expenses,$220,000.Georgia's product costs total:

Accepted Answer

A) $1,050,000. 
B) $830,000. 
C) $895,000. 
D) $1,270,000. 
E) some other amount. 
A) $1,050,000. 
B) $830,000. 
C) $895,000. 
D) $1,270,000. 
E) some other amount.

Question 16

The accounting records of Bronco Company revealed the following information:  
Bronco's cost of goods manufactured is:

Accepted Answer

A) $519,000. 
B) $522,000. 
C) $568,000. 
D) $571,000. 
E) some other amount. 
A) $519,000. 
B) $522,000. 
C) $568,000. 
D) $571,000. 
E) some other amount.

Question 17

The following equation -- Beginning finished goods + cost of goods manufactured - ending finished goods -- is used to calculate cost of goods sold during the period.

Accepted Answer

A) True 
 B)False

Question 18

Companies that engage in mass customization:

Accepted Answer

A) tend to have a relatively low production volume. 
B) tend to have a high production volume that involves highly standardized end-products. 
C) tend to have a high production volume,many standardized components,and customer-specified combinations of components. 
D) tend to have a high production volume,many unique components,and customer-specified combinations of components. 
E) could be typified by the refining operations of Shell Oil. 
A) tend to have a relatively low production volume. 
B) tend to have a high production volume that involves highly standardized end-products. 
C) tend to have a high production volume,many standardized components,and customer-specified combinations of components. 
D) tend to have a high production volume,many unique components,and customer-specified combinations of components. 
E) could be typified by the refining operations of Shell Oil.

Question 19

The accounting records of Dolphin Company revealed the following information:  
Dolphin's cost of goods sold is:

Accepted Answer

A) $508,000. 
B) $529,000. 
C) $531,000. 
D) $553,000. 
E) some other amount. 
A) $508,000. 
B) $529,000. 
C) $531,000. 
D) $553,000. 
E) some other amount.

Question 20

A suitable cost driver for the amount of direct materials used is the number of direct labor hours worked.

Accepted Answer

A) True 
 B)False

The tuition that will be paid next semester by a college student who pursues a degree is a(n):

The costs that follow all have applicability for a manufacturing enterprise.Which of the choices listed correctly denotes the costs' applicability for a service provider?

Indirect labor is not a component of manufacturing overhead.

If raw materials used during the year were $135,000 what was the amount of raw materials purchased during the year?

If the cost of goods manufactured for the year was $565,000,what was the amount of direct materials used during the year?

Mideast Motors manufactures automobiles.Which of the following would not be classified as direct materials by the company?

Which of the following is a period cost?

The salary that is sacrificed by a college student who pursues a degree full time is a(n):

An employee accidentally overstated the year's advertising expense by $50,000.Which of the following correctly depicts the effect of this error?

Prime costs are comprised of:

Costs that can be easily traced to a specific department are called:

Which of the following equations is used to calculate cost of goods sold during the period?

Which of the following statements is true?

The accounting records of Georgia Company revealed the following costs: direct materials used,$250,000;direct labor,$425,000;manufacturing overhead,$375,000;and selling and administrative expenses,$220,000.Georgia's product costs total:

The accounting records of Bronco Company revealed the following information: Bronco's cost of goods manufactured is:

The following equation -- Beginning finished goods + cost of goods manufactured - ending finished goods -- is used to calculate cost of goods sold during the period.

Companies that engage in mass customization:

The accounting records of Dolphin Company revealed the following information: Dolphin's cost of goods sold is:

A suitable cost driver for the amount of direct materials used is the number of direct labor hours worked.

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

The tuition that will be paid next semester by a college student who pursues a degree is a(n):

The costs that follow all have applicability for a manufacturing enterprise.Which of the choices listed correctly denotes the costs' applicability for a service provider?

Indirect labor is not a component of manufacturing overhead.

If raw materials used during the year were $135,000 what was the amount of raw materials purchased during the year?

If the cost of goods manufactured for the year was $565,000,what was the amount of direct materials used during the year?

Mideast Motors manufactures automobiles.Which of the following would not be classified as direct materials by the company?

Which of the following is a period cost?

The salary that is sacrificed by a college student who pursues a degree full time is a(n):

An employee accidentally overstated the year's advertising expense by $50,000.Which of the following correctly depicts the effect of this error?

Prime costs are comprised of:

Costs that can be easily traced to a specific department are called:

Which of the following equations is used to calculate cost of goods sold during the period?

Which of the following statements is true?

The accounting records of Georgia Company revealed the following costs: direct materials used,$250,000;direct labor,$425,000;manufacturing overhead,$375,000;and selling and administrative expenses,$220,000.Georgia's product costs total:

The accounting records of Bronco Company revealed the following information: Bronco's cost of goods manufactured is:

The following equation -- Beginning finished goods + cost of goods manufactured - ending finished goods -- is used to calculate cost of goods sold during the period.

Companies that engage in mass customization:

The accounting records of Dolphin Company revealed the following information: Dolphin's cost of goods sold is:

A suitable cost driver for the amount of direct materials used is the number of direct labor hours worked.

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