Exam 3: Basic Cost Management Concepts

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 used?

How will unit (average)cost of manufacturing (materials,labor and overhead)usually change if the production level rises?

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 of net sales?

Since indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object,the management accountant will:

Certain workers are assigned the task of unpacking production materials received from suppliers.These workers place the material in a storage area pending subsequent use in the production process.The labor cost of such workers is normally classified as:

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?