Exam 2: An Introduction to Cost Terms and Purposes

Recall that managers use a cost system to determine the costs of various cost objects.List and discuss how managers use the two basic stages in this process to determine the cost.

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Question 1

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The two stages that managers use are accumulation and assignment.In the first stage,managers accumulate costs.For example,they collect,or accumulate,the cost data that they use in an accounting system.In the second stage,assignment,managers assign the accumulated costs in various categories.

Ice Manufacturing reported the following information: Required: Compute the cost of goods sold.

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Question 2

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Cost tracing is used to describe the assignment of indirect costs to a particular cost object.

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Question 3

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False

Answer the question using the information provided below: The manager at the Carburetor Factory buys a custom carburetor at $50.00 each for each of its custom vehicles.Compute the total fixed cost per custom carburetor if 1,500,and 1,000 custom carburetors are produced.

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Question 4

Write a brief summary and explain how the impact of a financial crisis impacts how managers at global companies account for fixed costs.Be specific.

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Question 5

Whatever the purpose,the trace direct costs and allocates indirect costs to products.

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Question 6

Which of the following is not a true statement about variable costs?

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Question 7

Accountants measure the cost of direct materials or advertising at manufacturing plants by using the monetary amount paid to acquire them.

(True/False)

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Question 8

Write a short essay and explain why it is important for managers to assign costs accurately to cost objects.What are some of the challenges that managers face when they allocate costs to cost objects?

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Question 9

Budgeted costs are also known as predicted or forecasted costs (future costs).

(True/False)

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Question 10

Which of the following statements about the direct or indirect cost classification is not true?

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Question 11

The predicted,or forecasted costs,are:

(Multiple Choice)

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Question 12

A/an cost is the cost incurred;and they are distinguished from a cost;which is a predicted,forecasted,or future cost.

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Question 13

Managers achieve clarity about direct labor costs because it may prevent disputes regarding cost reimbursement contracts,income tax payments,and labor union matters.

(True/False)

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Question 14

The cost incurred is:

(Multiple Choice)

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Question 15

Write a short essay and discuss whether or not managers should assume that individual cost items are inherently fixed or variable? Why are some costs fixed and other costs variable costs?

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Question 16

In government contracts,product costs include:

(Multiple Choice)

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Question 17

Budgeted costs include:

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Question 18

Managers use their knowledge about costs to help guide their decisions about product innovation,quality,and customer service.

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Question 19

Which of the following is not a prominent labor component of overhead?

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Question 20

Showing 1 - 20 of 134

Recall that managers use a cost system to determine the costs of various cost objects.List and discuss how managers use the two basic stages in this process to determine the cost.

Ice Manufacturing reported the following information: Required: Compute the cost of goods sold.

Cost tracing is used to describe the assignment of indirect costs to a particular cost object.

Answer the question using the information provided below: The manager at the Carburetor Factory buys a custom carburetor at $50.00 each for each of its custom vehicles.Compute the total fixed cost per custom carburetor if 1,500,and 1,000 custom carburetors are produced.

Write a brief summary and explain how the impact of a financial crisis impacts how managers at global companies account for fixed costs.Be specific.

Whatever the purpose,the trace direct costs and allocates indirect costs to products.

Which of the following is not a true statement about variable costs?

Accountants measure the cost of direct materials or advertising at manufacturing plants by using the monetary amount paid to acquire them.

Write a short essay and explain why it is important for managers to assign costs accurately to cost objects.What are some of the challenges that managers face when they allocate costs to cost objects?

Budgeted costs are also known as predicted or forecasted costs (future costs).

Which of the following statements about the direct or indirect cost classification is not true?

The predicted,or forecasted costs,are:

A/an cost is the cost incurred;and they are distinguished from a cost;which is a predicted,forecasted,or future cost.

Managers achieve clarity about direct labor costs because it may prevent disputes regarding cost reimbursement contracts,income tax payments,and labor union matters.

The cost incurred is:

Write a short essay and discuss whether or not managers should assume that individual cost items are inherently fixed or variable? Why are some costs fixed and other costs variable costs?

In government contracts,product costs include:

Budgeted costs include:

Managers use their knowledge about costs to help guide their decisions about product innovation,quality,and customer service.

Which of the following is not a prominent labor component of overhead?

The Manager and Management Accounting

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 2: An Introduction to Cost Terms and Purposes

Recall that managers use a cost system to determine the costs of various cost objects.List and discuss how managers use the two basic stages in this process to determine the cost.

Ice Manufacturing reported the following information: Required: Compute the cost of goods sold.

Cost tracing is used to describe the assignment of indirect costs to a particular cost object.

Answer the question using the information provided below: The manager at the Carburetor Factory buys a custom carburetor at $50.00 each for each of its custom vehicles.Compute the total fixed cost per custom carburetor if 1,500,and 1,000 custom carburetors are produced.

Write a brief summary and explain how the impact of a financial crisis impacts how managers at global companies account for fixed costs.Be specific.

Whatever the purpose,the ________ ________ trace direct costs and allocates indirect costs to products.

Which of the following is not a true statement about variable costs?

Accountants measure the cost of direct materials or advertising at manufacturing plants by using the monetary amount paid to acquire them.

Write a short essay and explain why it is important for managers to assign costs accurately to cost objects.What are some of the challenges that managers face when they allocate costs to cost objects?

Budgeted costs are also known as predicted or forecasted costs (future costs).

Which of the following statements about the direct or indirect cost classification is not true?

The predicted,or forecasted costs,are:

A/an ________ cost is the cost incurred;and they are distinguished from a ________ cost;which is a predicted,forecasted,or future cost.

Managers achieve clarity about direct labor costs because it may prevent disputes regarding cost reimbursement contracts,income tax payments,and labor union matters.

The cost incurred is:

Write a short essay and discuss whether or not managers should assume that individual cost items are inherently fixed or variable? Why are some costs fixed and other costs variable costs?

In government contracts,product costs include:

Budgeted costs include:

Managers use their knowledge about costs to help guide their decisions about product innovation,quality,and customer service.

Which of the following is not a prominent labor component of overhead?

The Manager and Management Accounting

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Whatever the purpose,the trace direct costs and allocates indirect costs to products.

A/an cost is the cost incurred;and they are distinguished from a cost;which is a predicted,forecasted,or future cost.