Question 1

Where is the ending work-in-process inventory deducted?

Accepted Answer

A) on the balance sheet 
B) on the statement of cost of goods manufactured 
C) on the income statement 
D) on the statement of cash flows 
A) on the balance sheet 
B) on the statement of cost of goods manufactured 
C) on the income statement 
D) on the statement of cash flows

Question 2

What costs are included in prime product costs?

Accepted Answer

A) factory overhead only 
B) direct labour only 
C) direct labour and factory overhead 
D) direct materials and direct labour 
A) factory overhead only 
B) direct labour only 
C) direct labour and factory overhead 
D) direct materials and direct labour

Question 3

What is NOT a characteristic of continuous improvement?

Accepted Answer

A) It's critical in a dynamic environment. 
B) It's important to finding and maintaining a competitive advantage. 
C) It's an effort to find ways to increase overall efficiency,improve quality,and reduce costs. 
D) It's often too costly to implement. 
A) It's critical in a dynamic environment. 
B) It's important to finding and maintaining a competitive advantage. 
C) It's an effort to find ways to increase overall efficiency,improve quality,and reduce costs. 
D) It's often too costly to implement.

Question 4

Information from the records of the Scully Company for July was as follows:
$\begin{array}{llr}
  \text { Sales } &\$307,500\
 \text { Selling and administrative expenses } &52,500\
 \text {Direct materials used  } &66,000\
 \text { Direct labour } &75,000\
 \text {  Variable factory overhead} &50,000\
 \text {Factory overhead  } &51,250\
\end{array}$
  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Inventories }$
$\begin{array}{lrr}
&\text {July 1}&\text {July 31}\
\text { Direct materials } & \$ 8,000 & \$ 10,500 \
\text { Work in process } & 18,750 & 21,000 \
\text { Finished goods } & 17,250 & 14,250
\end{array}$
 Scully Corporation produced 20,000 units.
-Refer to the figure.What is the total product cost per unit?

Accepted Answer

A) $12.1125 
B) $12.175 
C) $12.2375 
D) $14.7375 
A) $12.1125 
B) $12.175 
C) $12.2375 
D) $14.7375

Question 5

Which of the following is NOT one of the features of an operational control information system?

Accepted Answer

A) to assist in continuous improvement of all aspects of the business 
B) to improve the value received by customers 
C) to improve profits by improving value 
D) to provide product cost information needed by management 
A) to assist in continuous improvement of all aspects of the business 
B) to improve the value received by customers 
C) to improve profits by improving value 
D) to provide product cost information needed by management

Question 6

In an activity-based management system,what is one NOT likely to find?

Accepted Answer

A) tracing of costs to activities 
B) only unit-based drivers 
C) broad flexible product costing 
D) system-wide performance maximization 
A) tracing of costs to activities 
B) only unit-based drivers 
C) broad flexible product costing 
D) system-wide performance maximization

Question 7

Which of the following is an example of an expense?

Accepted Answer

A) the cost of a product delivered to a customer 
B) the cost of a proposed advertising campaign 
C) the cost of the purchase of equipment 
D) the write-off of an obsolete product 
A) the cost of a product delivered to a customer 
B) the cost of a proposed advertising campaign 
C) the cost of the purchase of equipment 
D) the write-off of an obsolete product

Question 8

What is the term for software that has integrated system capability using real-time data?

Accepted Answer

A) enterprise resource planning software 
B) on-line analytic programs 
C) computer-assisted engineering software 
D) just-in-time system 
A) enterprise resource planning software 
B) on-line analytic programs 
C) computer-assisted engineering software 
D) just-in-time system

Question 9

What statement is NOT true regarding the insurance paid on a factory?

Accepted Answer

A) It is a direct cost if the cost object is the factory. 
B) It is an indirect cost if the cost object is the product produced. 
C) It is a direct cost if the cost object is the accounting department. 
D) It is an indirect cost if the cost object is the production department. 
A) It is a direct cost if the cost object is the factory. 
B) It is an indirect cost if the cost object is the product produced. 
C) It is a direct cost if the cost object is the accounting department. 
D) It is an indirect cost if the cost object is the production department.

Question 10

What is the name of the position that is responsible for supervising all accounting departments?

Accepted Answer

A) vice president of finance 
B) internal auditor 
C) treasurer 
D) controller 
A) vice president of finance 
B) internal auditor 
C) treasurer 
D) controller

Question 11

Information from the records of Place,Inc.,for December is as follows: $\begin{array}{lr}
\text { Sales } & \$ 820,000 \
\text { Selling and administrative expenses } & 140,000 \
\text { Direct materials purchases } & 176,000 \
\text { Direct labour } & 200,000 \
\text { Factory overhead } & 270,000 \
\text { Direct materials, December 1 } & 24,000 \
\text { Work in process, December 1 } & 50,000 \
\text { Finished goods, December 1 } & 46,000 \
\text { Direct materials, December 31 } & 28,000 \
\text { Work in process, December 31 } & 56,000 \
\text { Finished goods, December 31 } & 38,000
\end{array}$ What is the net income for the month of December?

Accepted Answer

A) $36,000 
B) $180,000 
C) $636,000 
D) $644,000 
A) $36,000 
B) $180,000 
C) $636,000 
D) $644,000

Question 12

Which of the following is an example of a nonproduction cost?

Accepted Answer

A) wages paid to assembly-line employees 
B) manufacturing supplies 
C) insurance on manufacturing facilities 
D) the treasurer's salary 
A) wages paid to assembly-line employees 
B) manufacturing supplies 
C) insurance on manufacturing facilities 
D) the treasurer's salary

Question 13

What is a disadvantage of assigning costs evenly over all cost objects?

Accepted Answer

A) Not all costs will be assigned. 
B) Total costs will be distorted. 
C) Consumption patterns of other cost objects may differ. 
D) Calculations are difficult to complete. 
A) Not all costs will be assigned. 
B) Total costs will be distorted. 
C) Consumption patterns of other cost objects may differ. 
D) Calculations are difficult to complete.

Question 14

Inventory balances for Ray,Inc.,in March are as follows: $\begin{array}{lrr}
&\text { March 1}&\text { March 31}\
\text { Raw materials } & \$ 1,125 & \$ 875 \
\text { Work in process } & 2,000 & 1,550 \
\text { Finished goods } & 4,500 & 3,750
\end{array}$ During March,purchases of direct materials were $1,500.Direct labour and factory overhead costs were $2,500 and $3,500,respectively.
What were the conversion costs for March?

Accepted Answer

A) $6,000 
B) $7,500 
C) $7,750 
D) $8,200 
A) $6,000 
B) $7,500 
C) $7,750 
D) $8,200

Question 15

In a functional-based management system,which of the following is one NOT likely to find?

Accepted Answer

A) unit- and non-unit-based cost drivers 
B) maximization of individual unit performance 
C) narrow and rigid product costing 
D) allocation intensive cost assignment 
A) unit- and non-unit-based cost drivers 
B) maximization of individual unit performance 
C) narrow and rigid product costing 
D) allocation intensive cost assignment

Question 16

What is the term for the setting of objectives and the identification of methods to achieve those objectives?

Accepted Answer

A) planning 
B) controlling 
C) performance evaluation 
D) decision making 
A) planning 
B) controlling 
C) performance evaluation 
D) decision making

Question 17

What is the Canadian designation held by those who provide assurance services?

Accepted Answer

A) Chartered Accountants 
B) Certified Financial Accountants 
C) Chartered Public Accountants 
D) Certified Management Accountants 
A) Chartered Accountants 
B) Certified Financial Accountants 
C) Chartered Public Accountants 
D) Certified Management Accountants

Question 18

Which of the following actions does NOT improve time performance?

Accepted Answer

A) redesigning products 
B) adding processes in production 
C) minimizing waste 
D) eliminating non-value-added activities 
A) redesigning products 
B) adding processes in production 
C) minimizing waste 
D) eliminating non-value-added activities

Question 19

Which of the following statements would be associated with both a functional-based cost accounting information system and an activity-based cost information system?

Accepted Answer

A) Overhead is assigned on a plant-wide rate based on direct labour hours. 
B) Customer service costs are assigned to products using number of complaints as the activity driver. 
C) Direct labour cost is assigned to products using direct tracing. 
D) Direct materials costs are allocated to product. 
A) Overhead is assigned on a plant-wide rate based on direct labour hours. 
B) Customer service costs are assigned to products using number of complaints as the activity driver. 
C) Direct labour cost is assigned to products using direct tracing. 
D) Direct materials costs are allocated to product.

Question 20

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

Accepted Answer

A) driver tracing 
B) direct tracing 
C) allocation 
D) arbitration 
A) driver tracing 
B) direct tracing 
C) allocation 
D) arbitration

Where is the ending work-in-process inventory deducted?

What costs are included in prime product costs?

What is NOT a characteristic of continuous improvement?

Which of the following is NOT one of the features of an operational control information system?

In an activity-based management system,what is one NOT likely to find?

Which of the following is an example of an expense?

What is the term for software that has integrated system capability using real-time data?

What statement is NOT true regarding the insurance paid on a factory?

What is the name of the position that is responsible for supervising all accounting departments?

Which of the following is an example of a nonproduction cost?

What is a disadvantage of assigning costs evenly over all cost objects?

In a functional-based management system,which of the following is one NOT likely to find?

What is the term for the setting of objectives and the identification of methods to achieve those objectives?

What is the Canadian designation held by those who provide assurance services?

Which of the following actions does NOT improve time performance?

Which of the following statements would be associated with both a functional-based cost accounting information system and an activity-based cost information system?

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 1: A: Basic Cost Management Concepts

Where is the ending work-in-process inventory deducted?

What costs are included in prime product costs?

What is NOT a characteristic of continuous improvement?

Which of the following is NOT one of the features of an operational control information system?

In an activity-based management system,what is one NOT likely to find?

Which of the following is an example of an expense?

What is the term for software that has integrated system capability using real-time data?

What statement is NOT true regarding the insurance paid on a factory?

What is the name of the position that is responsible for supervising all accounting departments?

Which of the following is an example of a nonproduction cost?

What is a disadvantage of assigning costs evenly over all cost objects?

In a functional-based management system,which of the following is one NOT likely to find?

What is the term for the setting of objectives and the identification of methods to achieve those objectives?

What is the Canadian designation held by those who provide assurance services?

Which of the following actions does NOT improve time performance?

Which of the following statements would be associated with both a functional-based cost accounting information system and an activity-based cost information system?

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters