Question 1

Indirect costs can be identified specifically with a given cost objective in an uneconomical way.

Accepted Answer

A) True 
 B)False

Question 2

Costs identified with goods produced or purchased for resale.

Accepted Answer

The answer of Costs identified with goods produced or purchased...

Question 3

Direct labour costs plus factory overhead costs.

Accepted Answer

The answer of Direct labour costs plus factory overhead costs....

Question 4

The part of the accounting system that measures costs for the purposes of management decision making and financial reporting is referred to as

Accepted Answer

A)  period costing. 
B)  cost accounting. 
C)  system accounting. 
D)  product costing. 
A)  period costing. 
B)  cost accounting. 
C)  system accounting. 
D)  product costing.

Question 5

Which of the following is NOT a product cost?

Accepted Answer

A)  Indirect labour 
B)  Raw materials used 
C)  Insurance on the plant 
D)  Advertising expense 
A)  Indirect labour 
B)  Raw materials used 
C)  Insurance on the plant 
D)  Advertising expense

Question 6

Ginsberg Limited has provided the following information for the year ended April 30, 20X1.   Required:
a. What is the ending finished-goods inventory cost under variable costing?
b. What is the ending finished-goods inventory cost under absorption costing?

Accepted Answer

a. ($77,500 + $49,800 + $35,100)/11,200

Question 7

A company has the following information:
  
-The cost of goods sold under variable costing would be

Accepted Answer

A)  $84,000. 
B)  $192,000. 
C)  $96,000. 
D)  $168,000. 
A)  $84,000. 
B)  $192,000. 
C)  $96,000. 
D)  $168,000.

Question 8

Variable costing is also referred to as the contribution approach.

Accepted Answer

A) True 
 B)False

Question 9

The three major categories of manufacturing costs are direct materials, direct labour and factory overhead.

Accepted Answer

A) True 
 B)False

Question 10

How many inventory accounts does a merchandiser usually have?

Accepted Answer

A)  One 
B)  Two 
C)  Three 
D)  Four 
A)  One 
B)  Two 
C)  Three 
D)  Four

Question 11

The only difference between variable and absorption costing is the accounting for

Accepted Answer

A)  direct labour. 
B)  fixed manufacturing overhead. 
C)  direct materials. 
D)  variable manufacturing overhead. 
A)  direct labour. 
B)  fixed manufacturing overhead. 
C)  direct materials. 
D)  variable manufacturing overhead.

Question 12

All costs other than direct material and direct labour that are associated with the manufacturing process are called

Accepted Answer

A)  prime costs. 
B)  factory-overhead costs. 
C)  conversion costs. 
D)  product costs. 
A)  prime costs. 
B)  factory-overhead costs. 
C)  conversion costs. 
D)  product costs.

Question 13

The three major categories of manufacturing costs are

Accepted Answer

A)  prime costs, direct materials and factory overhead. 
B)  direct labour, factory overhead and direct materials. 
C)  indirect labour, indirect materials and conversion costs. 
D)  prime costs, period costs, and product costs. 
A)  prime costs, direct materials and factory overhead. 
B)  direct labour, factory overhead and direct materials. 
C)  indirect labour, indirect materials and conversion costs. 
D)  prime costs, period costs, and product costs.

Question 14

All costs other than direct material or direct labour that are associated with the manufacturing process.

Accepted Answer

Factory-ov

Question 15

Schultz Company reported the following information about the production and sales of its only product:
  
-The operating income (loss) under variable costing would be

Accepted Answer

A)  $ 28,400. 
B)  $ 16,400. 
C)  $( 6,000). 
D)  $(15,600). 
A)  $ 28,400. 
B)  $ 16,400. 
C)  $( 6,000). 
D)  $(15,600).

Question 16

The following information refers to the Cowan Company's past year of operations.
       *Common overhead totals $50,000 and is divided equally between the two products.
**Common fixed selling totals $60,000 and is divided equally between the two products.
Budgeted fixed overhead for the year of $180,000 equalled actual fixed overhead. Fixed overhead is assigned to products using a plant-wide rate based on expected direct labour hours, which were 150,000. The company had 5,000 of Product B in inventory at the beginning of the year. These units had the same unit cost as the units produced during the year.
-The unit product cost for Product A using absorption costing is

Accepted Answer

A)  $2.15. 
B)  $2.45. 
C)  $2.60. 
D)  $2.80. 
A)  $2.15. 
B)  $2.45. 
C)  $2.60. 
D)  $2.80.

Question 17

The Majors Company has gathered the following information for the year ended December 31, 20X3.   There were no beginning or ending inventories.
Required:
Calculate the following:
a. Prime cost
b. Conversion cost
c. Total product cost
d. Total period cost

Accepted Answer

a. $129,000 + $76,000 = $205,0

Question 18

A sacrifice or giving up of resources for a particular purpose.

Accepted Answer

The answer of A sacrifice or giving up of resources...

Question 19

A company has the following information:
  
-The fixed factory overhead incurred was

Accepted Answer

A)  $66,000. 
B)  $32,000. 
C)  $ -0-. 
D)  $24,000. 
A)  $66,000. 
B)  $32,000. 
C)  $ -0-. 
D)  $24,000.

Question 20

Which of the following is NOT a factory overhead cost?

Accepted Answer

A)  Wages of machine operators 
B)  Wages of supervisors 
C)  Amortization of the machinery 
D)  Factory utilities 
A)  Wages of machine operators 
B)  Wages of supervisors 
C)  Amortization of the machinery 
D)  Factory utilities

Indirect costs can be identified specifically with a given cost objective in an uneconomical way.

Costs identified with goods produced or purchased for resale.

Direct labour costs plus factory overhead costs.

The part of the accounting system that measures costs for the purposes of management decision making and financial reporting is referred to as

Which of the following is NOT a product cost?

Ginsberg Limited has provided the following information for the year ended April 30, 20X1. Required: a. What is the ending finished-goods inventory cost under variable costing? b. What is the ending finished-goods inventory cost under absorption costing?

A company has the following information: -The cost of goods sold under variable costing would be

Variable costing is also referred to as the contribution approach.

The three major categories of manufacturing costs are direct materials, direct labour and factory overhead.

How many inventory accounts does a merchandiser usually have?

The only difference between variable and absorption costing is the accounting for

All costs other than direct material and direct labour that are associated with the manufacturing process are called

The three major categories of manufacturing costs are

All costs other than direct material or direct labour that are associated with the manufacturing process.

Schultz Company reported the following information about the production and sales of its only product: -The operating income (loss) under variable costing would be

The Majors Company has gathered the following information for the year ended December 31, 20X3. There were no beginning or ending inventories. Required: Calculate the following: a. Prime cost b. Conversion cost c. Total product cost d. Total period cost

A sacrifice or giving up of resources for a particular purpose.

A company has the following information: -The fixed factory overhead incurred was

Which of the following is NOT a factory overhead cost?

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

Exam 4: Cost Management Systems

Indirect costs can be identified specifically with a given cost objective in an uneconomical way.

Costs identified with goods produced or purchased for resale.

Direct labour costs plus factory overhead costs.

The part of the accounting system that measures costs for the purposes of management decision making and financial reporting is referred to as

Which of the following is NOT a product cost?

Ginsberg Limited has provided the following information for the year ended April 30, 20X1. Required: a. What is the ending finished-goods inventory cost under variable costing? b. What is the ending finished-goods inventory cost under absorption costing?

A company has the following information: -The cost of goods sold under variable costing would be

Variable costing is also referred to as the contribution approach.

The three major categories of manufacturing costs are direct materials, direct labour and factory overhead.

How many inventory accounts does a merchandiser usually have?

The only difference between variable and absorption costing is the accounting for

All costs other than direct material and direct labour that are associated with the manufacturing process are called

The three major categories of manufacturing costs are

All costs other than direct material or direct labour that are associated with the manufacturing process.

Schultz Company reported the following information about the production and sales of its only product: -The operating income (loss) under variable costing would be

The Majors Company has gathered the following information for the year ended December 31, 20X3. There were no beginning or ending inventories. Required: Calculate the following: a. Prime cost b. Conversion cost c. Total product cost d. Total period cost

A sacrifice or giving up of resources for a particular purpose.

A company has the following information: -The fixed factory overhead incurred was

Which of the following is NOT a factory overhead cost?

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters