Exam 1: A: Basic Cost Management Concepts

Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object?

All of Jill Enterprise's operations are housed in one building,with the costs of occupying the building accumulated in a separate account.The total costs incurred in May amounted to $24,000.The company allocates these costs on the basis of square metres of floor space occupied.Administrative offices,sales offices,and factory operations occupy 9,000,6,000,and 30,000 square metres,respectively.How much will be classified as a product cost for May?

In a cost management system,what does the cost view NOT include?

Which of the following activities is found LEAST often within the controller's department?

What is the state of the service sector in Canada today?

What is the term for the assignment of indirect costs to cost objects?

Which of the following is NOT an example of a possible cost object?

Which of the following are expensed in the period in which they are incurred?

Services differ from tangible products in all of the following dimensions except which one?

If beginning work-in-process inventory is $120,000,ending work-in-process inventory is $160,000,cost of goods manufactured is $400,000,and direct materials used are $100,000,what are the conversion costs?

What has the increased importance of costing activities in the value chain and determining the cost of different suppliers and customers led to?

Which is not a designation an accountant certified to possess the minimal professional qualifications for an external auditor hold?

The manager has to decide what tasks are needed and how they should be accomplished.What is this an example of?

What accounting information subsystem is devoted to providing information for external users?

Which of the following sets of duties is usually assigned to the controller?

Selected data concerning the past year’s operations of the Karl Enterprises are as follows: Selling and administrative expenses \ 75,000 Direct materials used 265,000 Direct labour (25,000 hours) 300,000 Factory overhead application rate 16 per DLH $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$ Beginning Ending Direct materials \ 50,000 \ 45,000 Work in process 75,000 90,000 Finished goods 40,000 25,000 -Refer to the figure.What is the cost of goods manufactured?

What function does the internal auditor perform?

In a company that supplies garlic bread to pizza restaurants,which of the following would be considered a transforming process?

If the total warehousing cost for the year amounts to $350,000,and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials,how much of the cost would be charged as a product cost?

Which of the following is NOT an advance in information technology that affects firms?