Exam 3: Basic Cost Management Concepts

Fisher,Inc.recently lost a portion of its records in an office fire.The following information was salvaged from the accounting records. Direct labor cost incurred during the period amounted to 1.5 times the factory overhead.The CFO of Fisher,Inc.has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount in the finished goods inventory at December 31,2010?

Assume the following information pertaining to Moonbeam Company: Costs incurred during the period are as follows: Materials purchases are calculated to be:

Which of the following is normally considered to be a product cost?

Assume the following information pertaining to Moonbeam Company: Costs incurred during the period are as follows: Cost of goods sold is calculated to be:

Direct materials and direct labor costs total $70,000 and factory overhead costs total $100 per machine hour.If 300 machine hours were used for Job #222,what is the total manufacturing cost for Job #222?

Advanced Technical Services,Ltd.has many products and services in the medical field.The Clinical Division of the company does research and testing of consumer products on human participants in controlled clinical studies. Required: Determine for each cost below whether it is best classified as a fixed,variable,or step-fixed cost. (1)Director's salary (2)Part-time help (3)Payment on purchase of medical equipment (4)Allocation of company-wide advertising (5)Patches used on participants' arms during the study (6)Stipends paid to participants

Which of the following should be considered with structural cost drivers?

If finished goods inventory has increased during the period,which of the following is always true?

The cost of goods that were finished and transferred out of work-in-process during the current period is:

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

Assume the following information pertaining to Cub Company: Cost of goods manufactured is calculated to be:

Tierney Construction,Inc.recently lost a portion of its financial records in an office theft.The following accounting information remained in the office files: Direct labor cost incurred during the period amounted to 2.5 times the factory overhead.The CFO of Tierney Construction,Inc.has asked you to recalculate the following accounts and to report to him by the end of tomorrow. What should be the amount of direct materials purchased?

Direct materials and direct labor costs total $40,000 and factory overhead costs total $100 per machine hour.If 200 machine hours were used for Job #202,what is the total manufacturing cost for Job #202?

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

Stephenson Company's computer system recently crashed,erasing much of the Company's financial data.The following accounting information was discovered soon afterwards on the CFO's backup computer disk. Direct labor cost incurred during the period amounted to 1.5 times the factory overhead.The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end.What should be the amount of direct materials purchased?

The following information was taken from the accounting records of Elliott Manufacturing Corp.Unfortunately,some of the data were destroyed by a computer malfunction. Cost of goods sold is calculated to be:

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

When production levels are expected to decline within a relevant range,what effects would be anticipated with respect to each of the following?

Consider the following for Neil Wood Manufacturing: What are the cost of goods manufactured and cost of goods sold?

The term relevant range as used in cost accounting means the range over which: