Question 1

Write a brief summary and discuss the concepts of how managers assign costs to the same cost objects.

Accepted Answer

Managers consider the purpose of the cos

Question 2

The costing systems that managers use to identify the cost of each activity such as testing,design,or set-up are called:

Accepted Answer

A) product-based costing systems. 
B) action-based costing systems. 
C) managerial-based costing systems. 
D) activity-based costing systems. 
E) resource-based costing systems. 
A) product-based costing systems. 
B) action-based costing systems. 
C) managerial-based costing systems. 
D) activity-based costing systems. 
E) resource-based costing systems.

Question 3

The two main ways managers use cost information are when they ________ decisions;and,________ decisions.

Accepted Answer

A) make;implement 
B) create;brainstorm 
C) control;create 
D) brainstorm;control 
E) control;accumulate 
A) make;implement 
B) create;brainstorm 
C) control;create 
D) brainstorm;control 
E) control;accumulate

Question 4

A sunk cost:

Accepted Answer

A) is a cost that occurs in the present. 
B) is not categorized as a cost. 
C) is a relevant cost. 
D) is a cost that occurred in the past. 
E) is expected to occur in the future. 
A) is a cost that occurs in the present. 
B) is not categorized as a cost. 
C) is a relevant cost. 
D) is a cost that occurred in the past. 
E) is expected to occur in the future.

Question 5

When 40,000 units are produced,fixed costs are $16 per unit.Therefore,when 80,000 units are produced,fixed costs will:

Accepted Answer

A) increase to $32 per unit. 
B) remain at $16 per unit. 
C) decrease to $8 per unit. 
D) total $640,000. 
E) total $540,000. 
A) increase to $32 per unit. 
B) remain at $16 per unit. 
C) decrease to $8 per unit. 
D) total $640,000. 
E) total $540,000.

Question 6

Managers compute the unit cost by:

Accepted Answer

A) multiplying total cost by the number of units. 
B) dividing total cost by the number of units. 
C) dividing variable cost by the number of units. 
D) adding variable cost to fixed cost. 
E) adding variable,direct,and indirect costs. 
A) multiplying total cost by the number of units. 
B) dividing total cost by the number of units. 
C) dividing variable cost by the number of units. 
D) adding variable cost to fixed cost. 
E) adding variable,direct,and indirect costs.

Question 7

Evans Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plant in Virginia.They include:
Cost Object #1: The real estate dwelling(s)(physical buildings and equipment)
Cost Object #2: The use of buildings and equipment
Cost Object #3: The use and availability of manufacturing labor
The following manufacturing overhead cost categories are found in the accounting records:
a.Depreciation on buildings and equipment
b.Machine lubricants
c.Insurance for property
d.Supervisors salaries
e.Fringe benefits
f.Property taxes
g.Utilities
Required:
Assign each of the above costs to the most appropriate cost object.

Accepted Answer

Cost Object #1 includes catego

Question 8

Write a brief summary and explain why managers account for inventoriable and period costs.Explain the differences between inventoriable and period costs.

Accepted Answer

The inventoriable costs are all costs of

Question 9

Write a brief essay and explain why managers use variable costing and why they use absorption costing when they account for fixed manufacturing costs.Discuss the differences between variable costing and absorption costing.

Accepted Answer

Managers differentiate between variable

Question 10

Write a brief essay and discuss how manufacturing-sector companies inventory their products.

Accepted Answer

Manufacturing-sector companies purchase

Question 11

Conversion costs represent all manufacturing costs incurred to convert direct materials into finished goods.

Accepted Answer

A) True 
 B)False

Question 12

Mrs.Jones earns $25.00 per hour for straight time worked in the office;and,she earns $40.00 per hour when she works overtime.In week one of the new pay period,she reported that she worked 48 hours,which included 8 hours of overtime.Compute Mrs.Jones's total compensation:

Accepted Answer

A) $1,000 
B) $1,220 
C) $1,300 
D) $1,320 
E) $1,425 
A) $1,000 
B) $1,220 
C) $1,300 
D) $1,320 
E) $1,425

Question 13

In finished goods inventory:

Accepted Answer

A) direct materials are in stock and awaiting use in the manufacturing process. 
B) goods are partially worked on but not yet fully completed. 
C) goods are fully completed but not yet sold. 
D) products are in their original form intended to be sold but the basic form is changed basic form. 
E) goods are partially completed and sold as is. 
A) direct materials are in stock and awaiting use in the manufacturing process. 
B) goods are partially worked on but not yet fully completed. 
C) goods are fully completed but not yet sold. 
D) products are in their original form intended to be sold but the basic form is changed basic form. 
E) goods are partially completed and sold as is.

Question 14

Cost tracing:

Accepted Answer

A) describes the assignment of direct costs to a particular cost object. 
B) is the cost incurred which is a predicted or forecasted cost. 
C) is the collection of data in some organized way. 
D) is used to describe the assignment of indirect costs to a particular cost object. 
E) encompasses both cost tracing and allocating indirect costs to a cost object. 
A) describes the assignment of direct costs to a particular cost object. 
B) is the cost incurred which is a predicted or forecasted cost. 
C) is the collection of data in some organized way. 
D) is used to describe the assignment of indirect costs to a particular cost object. 
E) encompasses both cost tracing and allocating indirect costs to a cost object.

Write a brief summary and discuss the concepts of how managers assign costs to the same cost objects.

The costing systems that managers use to identify the cost of each activity such as testing,design,or set-up are called:

The two main ways managers use cost information are when they decisions;and, decisions.

A sunk cost:

When 40,000 units are produced,fixed costs are $16 per unit.Therefore,when 80,000 units are produced,fixed costs will:

Managers compute the unit cost by:

Write a brief summary and explain why managers account for inventoriable and period costs.Explain the differences between inventoriable and period costs.

Write a brief essay and explain why managers use variable costing and why they use absorption costing when they account for fixed manufacturing costs.Discuss the differences between variable costing and absorption costing.

Write a brief essay and discuss how manufacturing-sector companies inventory their products.

Conversion costs represent all manufacturing costs incurred to convert direct materials into finished goods.

Mrs.Jones earns $25.00 per hour for straight time worked in the office;and,she earns $40.00 per hour when she works overtime.In week one of the new pay period,she reported that she worked 48 hours,which included 8 hours of overtime.Compute Mrs.Jones's total compensation:

In finished goods inventory:

Cost tracing:

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

Write a brief summary and discuss the concepts of how managers assign costs to the same cost objects.

The costing systems that managers use to identify the cost of each activity such as testing,design,or set-up are called:

The two main ways managers use cost information are when they ________ decisions;and,________ decisions.

A sunk cost:

When 40,000 units are produced,fixed costs are $16 per unit.Therefore,when 80,000 units are produced,fixed costs will:

Managers compute the unit cost by:

Write a brief summary and explain why managers account for inventoriable and period costs.Explain the differences between inventoriable and period costs.

Write a brief essay and explain why managers use variable costing and why they use absorption costing when they account for fixed manufacturing costs.Discuss the differences between variable costing and absorption costing.

Write a brief essay and discuss how manufacturing-sector companies inventory their products.

Conversion costs represent all manufacturing costs incurred to convert direct materials into finished goods.

Mrs.Jones earns $25.00 per hour for straight time worked in the office;and,she earns $40.00 per hour when she works overtime.In week one of the new pay period,she reported that she worked 48 hours,which included 8 hours of overtime.Compute Mrs.Jones's total compensation:

In finished goods inventory:

Cost tracing:

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

The two main ways managers use cost information are when they decisions;and, decisions.