Question 1

Unit costs are found in:

Accepted Answer

A) only the production department. 
B) only the sales department. 
C) all areas of the value chain. 
D) only in the marketing department. 
E) only in the human resource department. 
A) only the production department. 
B) only the sales department. 
C) all areas of the value chain. 
D) only in the marketing department. 
E) only in the human resource department.

Question 2

Fixed costs can be changed quickly to match the amount of resources that are needed or used in the organization.

Accepted Answer

A) True 
 B)False

Question 3

As information gathering technology improves,companies can add more and more direct-cost categories.

Accepted Answer

A) True 
 B)False

Question 4

An example of a mixed cost is:

Accepted Answer

A) monthly rent payments. 
B) manager's salary. 
C) monthly electric bill. 
D) direct materials. 
E) none of these are mixed costs. 
A) monthly rent payments. 
B) manager's salary. 
C) monthly electric bill. 
D) direct materials. 
E) none of these are mixed costs.

Question 5

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

Accepted Answer

A) $120,000 
B) $125,000 
C) $130,000 
D) $135,000 
E) $140,000 
A) $120,000 
B) $125,000 
C) $130,000 
D) $135,000 
E) $140,000

Question 6

Write an essay and discuss how technology has impacted a manager's ability to track direct costs.Be specific.

Accepted Answer

Technological advances have improved the

Question 7

Pricing and product-mix decisions include:

Accepted Answer

A) manufacturing costs only. 
B) design costs plus manufacturing costs. 
C) all costs incurred along the value chain. 
D) distribution costs only. 
E) production costs only. 
A) manufacturing costs only. 
B) design costs plus manufacturing costs. 
C) all costs incurred along the value chain. 
D) distribution costs only. 
E) production costs only.

Question 8

Cost accumulation:

Accepted Answer

A) is the cost incurred. 
B) is a collection of cost data in an organized way by means of a cost object. 
C) predicts,or forecasts,costs. 
D) measures the desired costs. 
E) describes the assignment of indirect costs to a particular cost object. 
A) is the cost incurred. 
B) is a collection of cost data in an organized way by means of a cost object. 
C) predicts,or forecasts,costs. 
D) measures the desired costs. 
E) describes the assignment of indirect costs to a particular cost object.

Question 9

A manager at an airline must purchase individual annual licenses and pay registration costs for each airplane in the fleet of airplanes they operate at the airport.What type of cost is/are the registration and license costs for the miles flown each year for each individual airplane?

Accepted Answer

A) Fixed and variable cost for the miles flown by each individual plane. 
B) Mixed cost for the miles flown by all planes each year. 
C) Fixed cost for the miles flown by each individual plane. 
D) Variable cost for the miles flown by each individual plane. 
E) Licenses and registrations are not considered costs to the airline. 
A) Fixed and variable cost for the miles flown by each individual plane. 
B) Mixed cost for the miles flown by all planes each year. 
C) Fixed cost for the miles flown by each individual plane. 
D) Variable cost for the miles flown by each individual plane. 
E) Licenses and registrations are not considered costs to the airline.

Question 10

________ ________ is the wage rate paid to workers for both direct labor and indirect labor in excess of their straight-time wage rates.

Accepted Answer

A) Overtime payout 
B) One payment 
C) Overtime premium 
D) Premier pay 
E) Objection pay 
A) Overtime payout 
B) One payment 
C) Overtime premium 
D) Premier pay 
E) Objection pay

Question 11

Which of the following is not true about payroll fringe costs?

Accepted Answer

A) Managers do not need to classify payroll fringe costs. 
B) Contracts and laws should be as specific as possible regarding definitions and measurements. 
C) Disputes arise about whether they should be included as part of direct labor costs when calculating percentage of direct labor. 
D) Managers classify them as part of direct labor costs to make direct labor costs a higher percentage of total costs. 
E) Tax authorities argue that the costs are part of overhead. 
A) Managers do not need to classify payroll fringe costs. 
B) Contracts and laws should be as specific as possible regarding definitions and measurements. 
C) Disputes arise about whether they should be included as part of direct labor costs when calculating percentage of direct labor. 
D) Managers classify them as part of direct labor costs to make direct labor costs a higher percentage of total costs. 
E) Tax authorities argue that the costs are part of overhead.

Question 12

The managers at BMW utilize their knowledge about costs to make decisions about product innovation,quality,and customer service.

Accepted Answer

A) True 
 B)False

Question 13

When are inventoried unit costs expensed?

Accepted Answer

A) Unit costs are never expensed. 
B) Expensed before units are sold. 
C) Not expensed until the units are sold. 
D) Expensed when they are in production. 
E) These costs are period costs not unit costs. 
A) Unit costs are never expensed. 
B) Expensed before units are sold. 
C) Not expensed until the units are sold. 
D) Expensed when they are in production. 
E) These costs are period costs not unit costs.

Question 14

Indirect costs such as rent,telephone,and depreciation are always costs of the period in which they are incurred and are not associated with inventories.

Accepted Answer

A) True 
 B)False

Question 15

The difference between total revenues and total variable costs is the ________ ________.

Accepted Answer

A) common margin 
B) carrying margin 
C) continental margin 
D) continuing margin 
E) contribution margin 
A) common margin 
B) carrying margin 
C) continental margin 
D) continuing margin 
E) contribution margin

Question 16

Write a short essay and explain why managers are concerned about the flow of inventoriable and period costs in manufacturing and merchandising settings.How do managers determine the flow of these costs?

Accepted Answer

Managers differentiate between the flow

Question 17

Managers must know how revenues and costs vary with changes in:

Accepted Answer

A) costs. 
B) profits. 
C) revenues. 
D) decisions. 
E) output levels. 
A) costs. 
B) profits. 
C) revenues. 
D) decisions. 
E) output levels.

Question 18

A key aspect of making decisions is:

Accepted Answer

A) analyzing relevant information. 
B) analyzing irrelevant information. 
C) analyzing unimportant information. 
D) analyzing only future information. 
E) analyzing only past information. 
A) analyzing relevant information. 
B) analyzing irrelevant information. 
C) analyzing unimportant information. 
D) analyzing only future information. 
E) analyzing only past information.

Question 19

Under GAAP,only manufacturing costs can be assigned to inventories in the financial statements.

Accepted Answer

A) True 
 B)False

Question 20

In ________ ________,the operating income depends only on the level of sales and it is invariant to the quantity produced.

Accepted Answer

A) method costing 
B) invariable costing 
C) variable costing 
D) continued costing 
E) lateral costing 
A) method costing 
B) invariable costing 
C) variable costing 
D) continued costing 
E) lateral costing

Unit costs are found in:

Fixed costs can be changed quickly to match the amount of resources that are needed or used in the organization.

As information gathering technology improves,companies can add more and more direct-cost categories.

An example of a mixed cost is:

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

Write an essay and discuss how technology has impacted a manager's ability to track direct costs.Be specific.

Pricing and product-mix decisions include:

Cost accumulation:

A manager at an airline must purchase individual annual licenses and pay registration costs for each airplane in the fleet of airplanes they operate at the airport.What type of cost is/are the registration and license costs for the miles flown each year for each individual airplane?

is the wage rate paid to workers for both direct labor and indirect labor in excess of their straight-time wage rates.

Which of the following is not true about payroll fringe costs?

The managers at BMW utilize their knowledge about costs to make decisions about product innovation,quality,and customer service.

When are inventoried unit costs expensed?

Indirect costs such as rent,telephone,and depreciation are always costs of the period in which they are incurred and are not associated with inventories.

The difference between total revenues and total variable costs is the .

Write a short essay and explain why managers are concerned about the flow of inventoriable and period costs in manufacturing and merchandising settings.How do managers determine the flow of these costs?

Managers must know how revenues and costs vary with changes in:

A key aspect of making decisions is:

Under GAAP,only manufacturing costs can be assigned to inventories in the financial statements.

In ,the operating income depends only on the level of sales and it is invariant to the quantity produced.

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

Unit costs are found in:

Fixed costs can be changed quickly to match the amount of resources that are needed or used in the organization.

As information gathering technology improves,companies can add more and more direct-cost categories.

An example of a mixed cost is:

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

Write an essay and discuss how technology has impacted a manager's ability to track direct costs.Be specific.

Pricing and product-mix decisions include:

Cost accumulation:

A manager at an airline must purchase individual annual licenses and pay registration costs for each airplane in the fleet of airplanes they operate at the airport.What type of cost is/are the registration and license costs for the miles flown each year for each individual airplane?

________ ________ is the wage rate paid to workers for both direct labor and indirect labor in excess of their straight-time wage rates.

Which of the following is not true about payroll fringe costs?

The managers at BMW utilize their knowledge about costs to make decisions about product innovation,quality,and customer service.

When are inventoried unit costs expensed?

Indirect costs such as rent,telephone,and depreciation are always costs of the period in which they are incurred and are not associated with inventories.

The difference between total revenues and total variable costs is the ________ ________.

Write a short essay and explain why managers are concerned about the flow of inventoriable and period costs in manufacturing and merchandising settings.How do managers determine the flow of these costs?

Managers must know how revenues and costs vary with changes in:

A key aspect of making decisions is:

Under GAAP,only manufacturing costs can be assigned to inventories in the financial statements.

In ________ ________,the operating income depends only on the level of sales and it is invariant to the quantity produced.

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

is the wage rate paid to workers for both direct labor and indirect labor in excess of their straight-time wage rates.

The difference between total revenues and total variable costs is the .

In ,the operating income depends only on the level of sales and it is invariant to the quantity produced.