Question 1

The term that refers to the cost of goods brought to completion,whether they were started before or during the accounting period is:

Accepted Answer

A) cost of goods sold. 
B) cost of goods produced. 
C) cost of goods insured. 
D) cost of goods serviced. 
E) cost of goods manufactured. 
A) cost of goods sold. 
B) cost of goods produced. 
C) cost of goods insured. 
D) cost of goods serviced. 
E) cost of goods manufactured.

Question 2

Which of the following is not a characteristic of absorption costing?

Accepted Answer

A) It is only useful in long-term manufacturing decisions. 
B) Costs are absorbed into finished goods inventory. 
C) Measures the costs of all manufacturing resources to produce inventory. 
D) All manufacturing costs are included in inventoriable costs. 
E) It is not the required inventory method for external reporting in most countries. 
A) It is only useful in long-term manufacturing decisions. 
B) Costs are absorbed into finished goods inventory. 
C) Measures the costs of all manufacturing resources to produce inventory. 
D) All manufacturing costs are included in inventoriable costs. 
E) It is not the required inventory method for external reporting in most countries.

Question 3

Accounting systems report:

Accepted Answer

A) only the total cost amounts. 
B) only the average-cost per unit amounts. 
C) both total-cost amounts and average-cost per unit amounts. 
D) only average costs. 
E) no cost amount data. 
A) only the total cost amounts. 
B) only the average-cost per unit amounts. 
C) both total-cost amounts and average-cost per unit amounts. 
D) only average costs. 
E) no cost amount data.

Question 4

A BMW X6 sports activity coupe is an example of the ________ cost object at BMW.

Accepted Answer

A) product 
B) service 
C) project 
D) customer 
E) activity 
A) product 
B) service 
C) project 
D) customer 
E) activity

Question 5

The idle time associated with direct labor and indirect labor is a subclassification of indirect labor.

Accepted Answer

A) True 
 B)False

Question 6

All costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold are:

Accepted Answer

inventoria

Question 7

Write an essay and define relevant range.Discuss what the relevant range is and explain why it is important to managers?

Accepted Answer

The relevant range is known as the band

Question 8

The broader definition of a cost object is:

Accepted Answer

A) the higher proportion of costs that are direct costs and the managers are more confident in the accuracy of the cost amounts. 
B) the lower proportion of costs that are direct costs and the managers are more confident in the accuracy of the cost amounts. 
C) the higher proportion of costs that are indirect costs and the managers are less confident in the accuracy of cost amounts. 
D) the lower proportion of costs that are indirect costs and the managers are less confident in the accuracy of cost amounts. 
E) the managers are never confident in the accuracy of cost amounts. 
A) the higher proportion of costs that are direct costs and the managers are more confident in the accuracy of the cost amounts. 
B) the lower proportion of costs that are direct costs and the managers are more confident in the accuracy of the cost amounts. 
C) the higher proportion of costs that are indirect costs and the managers are less confident in the accuracy of cost amounts. 
D) the lower proportion of costs that are indirect costs and the managers are less confident in the accuracy of cost amounts. 
E) the managers are never confident in the accuracy of cost amounts.

Question 9

Management accountants help managers distinguish between relevant and irrelevant information.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is correct about indirect costs of a cost object?

Accepted Answer

A) Cost allocation is not used to describe the assignment of these costs to a particular cost object. 
B) Cost tracing is used to describe its assignment of these costs to a particular cost object. 
C) Can be traced to a cost object in an economically feasible way. 
D) Cannot be traced to a cost object in an economically feasible way. 
E) Cost assignment is not used in indirect costing methods. 
A) Cost allocation is not used to describe the assignment of these costs to a particular cost object. 
B) Cost tracing is used to describe its assignment of these costs to a particular cost object. 
C) Can be traced to a cost object in an economically feasible way. 
D) Cannot be traced to a cost object in an economically feasible way. 
E) Cost assignment is not used in indirect costing methods.

Question 11

Write a short essay and explain how technological advances have improved the accounting or finance manager's ability to track costs.Be specific.

Accepted Answer

Managers enjoy the advances in informati

Question 12

List the three key features of cost accounting and cost management.

Accepted Answer

The three features of cost accounting an

Question 13

Write a short essay and discuss some of the factors that affect the classification of direct and indirect costs.

Accepted Answer

Some of the factors that affect the clas

Question 14

The cost of goods sold is the cost of finished goods inventory sold to customers:

Accepted Answer

A) before the previous accounting period. 
B) after the previous accounting period. 
C) during a future accounting period. 
D) during the current accounting period. 
E) during the previous accounting period. 
A) before the previous accounting period. 
B) after the previous accounting period. 
C) during a future accounting period. 
D) during the current accounting period. 
E) during the previous accounting period.

Question 15

One highlight of indirect costs of a cost object is that it can be traced in an economically feasible way.

Accepted Answer

A) True 
 B)False

Question 16

Depending on the purpose,a manager can assign different costs to the same cost object.

Accepted Answer

A) True 
 B)False

Question 17

Although labor cost classifications vary among companies,many companies use multiple labor cost categories.

Accepted Answer

A) True 
 B)False

Question 18

Indirect costs of a cost object can be traced to a specific cost object and direct costs of a cost object cannot be traced to a specific cost object.

Accepted Answer

A) True 
 B)False

Question 19

Ms.Taylor works at an assembly plant that produces footballs.She earns $18.00 an hour for straight-time and $36 per hour when she works overtime.She reported that she worked 46 hours during the previous reporting period,which included 6 hours of overtime.
Required:
Compute the total compensation for the week;the amount of compensation that was reported as direct manufacturing labor;the amount of compensation that is reported as a manufacturing overhead cost.

Accepted Answer

A) $900;$810;$80 
B) $926;$822;$88 
C) $936;$828;$108 
D) $942;$832;$116 
E) $950;$860;$124 
A) $900;$810;$80 
B) $926;$822;$88 
C) $936;$828;$108 
D) $942;$832;$116 
E) $950;$860;$124

Question 20

For the purpose of calculating inventory,product costs include only:

Accepted Answer

A) direct costs. 
B) indirect costs. 
C) variable costs. 
D) inventoriable (manufacturing)costs. 
E) mixed costs. 
A) direct costs. 
B) indirect costs. 
C) variable costs. 
D) inventoriable (manufacturing)costs. 
E) mixed costs.

The term that refers to the cost of goods brought to completion,whether they were started before or during the accounting period is:

Which of the following is not a characteristic of absorption costing?

Accounting systems report:

A BMW X6 sports activity coupe is an example of the ________ cost object at BMW.

The idle time associated with direct labor and indirect labor is a subclassification of indirect labor.

All costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold are:

Write an essay and define relevant range.Discuss what the relevant range is and explain why it is important to managers?

The broader definition of a cost object is:

Management accountants help managers distinguish between relevant and irrelevant information.

Which of the following is correct about indirect costs of a cost object?

Write a short essay and explain how technological advances have improved the accounting or finance manager's ability to track costs.Be specific.

List the three key features of cost accounting and cost management.

Write a short essay and discuss some of the factors that affect the classification of direct and indirect costs.

The cost of goods sold is the cost of finished goods inventory sold to customers:

One highlight of indirect costs of a cost object is that it can be traced in an economically feasible way.

Depending on the purpose,a manager can assign different costs to the same cost object.

Although labor cost classifications vary among companies,many companies use multiple labor cost categories.

Indirect costs of a cost object can be traced to a specific cost object and direct costs of a cost object cannot be traced to a specific cost object.

For the purpose of calculating inventory,product costs include only:

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

The term that refers to the cost of goods brought to completion,whether they were started before or during the accounting period is:

Which of the following is not a characteristic of absorption costing?

Accounting systems report:

A BMW X6 sports activity coupe is an example of the ________ cost object at BMW.

The idle time associated with direct labor and indirect labor is a subclassification of indirect labor.

All costs of a product that are considered as assets in the balance sheet when they are incurred and that become cost of goods sold only when the product is sold are:

Write an essay and define relevant range.Discuss what the relevant range is and explain why it is important to managers?

The broader definition of a cost object is:

Management accountants help managers distinguish between relevant and irrelevant information.

Which of the following is correct about indirect costs of a cost object?

Write a short essay and explain how technological advances have improved the accounting or finance manager's ability to track costs.Be specific.

List the three key features of cost accounting and cost management.

Write a short essay and discuss some of the factors that affect the classification of direct and indirect costs.

The cost of goods sold is the cost of finished goods inventory sold to customers:

One highlight of indirect costs of a cost object is that it can be traced in an economically feasible way.

Depending on the purpose,a manager can assign different costs to the same cost object.

Although labor cost classifications vary among companies,many companies use multiple labor cost categories.

Indirect costs of a cost object can be traced to a specific cost object and direct costs of a cost object cannot be traced to a specific cost object.

For the purpose of calculating inventory,product costs include only:

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