Question 1

DeJager Company reported the following information about the production and sales of its only product:
  
-The gross profit under absorption costing would be

Accepted Answer

A)  $26,600. 
B)  $18,200. 
C)  $ -0-. 
D)  $ 7,000. 
A)  $26,600. 
B)  $18,200. 
C)  $ -0-. 
D)  $ 7,000.

Question 2

Prime costs include direct labour and factory overhead.

Accepted Answer

A) True 
 B)False

Question 3

Hopson Manufacturing uses an actual cost system for product costing. The company's income statement for 2006 is presented below:   a. When absorption costing was used, how much fixed manufacturing overhead was deferred in finished goods inventory?
b. Recast the income statement for 2006 using variable costing.
c. Reconcile variable costing income and absorption costing income.

Accepted Answer

a. Fixed Overhead Cost Per Unit = $48,00

Question 4

Schultz Company reported the following information about the production and sales of its only product:
  
-The ending inventory under absorption costing would be

Accepted Answer

A)  $54,000. 
B)  $48,000. 
C)  $31,200. 
D)  $38,400. 
A)  $54,000. 
B)  $48,000. 
C)  $31,200. 
D)  $38,400.

Question 5

Absorption-costing income is not affected by production volume.

Accepted Answer

A) True 
 B)False

Question 6

An example of direct labour would be

Accepted Answer

A)  janitor's wages. 
B)  factory foreman's wages. 
C)  machine operator's wages. 
D)  plant guard's wages. 
A)  janitor's wages. 
B)  factory foreman's wages. 
C)  machine operator's wages. 
D)  plant guard's wages.

Question 7

A manufacturer has three inventories as compared to a merchandiser, which has only one.

Accepted Answer

A) True 
 B)False

Question 8

Schultz Company reported the following information about the production and sales of its only product:
  
-The cost of producing one unit of product using variable costing would be

Accepted Answer

A)  $64. 
B)  $80. 
C)  $90. 
D)  $52. 
A)  $64. 
B)  $80. 
C)  $90. 
D)  $52.

Question 9

Which of the following would NOT be an example of a cost objective?

Accepted Answer

A)  A department 
B)  A product 
C)  A territory 
D)  A parcel of land 
A)  A department 
B)  A product 
C)  A territory 
D)  A parcel of land

Question 10

Fixed manufacturing overhead is excluded from the cost of products under absorption costing.

Accepted Answer

A) True 
 B)False

Question 11

DeJager Company reported the following information about the production and sales of its only product:
  
-The cost of goods sold under variable costing would be

Accepted Answer

A)  $56,000. 
B)  $63,000. 
C)  $44,800. 
D)  $36,400. 
A)  $56,000. 
B)  $63,000. 
C)  $44,800. 
D)  $36,400.

Question 12

Schultz Company reported the following information about the production and sales of its only product:
  
-The ending inventory under variable costing would be

Accepted Answer

A)  $48,000. 
B)  $54,000. 
C)  $38,400. 
D)  $31,200. 
A)  $48,000. 
B)  $54,000. 
C)  $38,400. 
D)  $31,200.

Question 13

There is no difference between variable-costing and absorption-costing income if the inventory level does not change.

Accepted Answer

A) True 
 B)False

Question 14

Fixed manufacturing overhead assigned to production using a predetermined fixed overhead rate.

Accepted Answer

Applied fi

Question 15

The sum of direct labour and factory overhead costs is equal to

Accepted Answer

A)  conversion costs. 
B)  prime costs. 
C)  period costs. 
D)  indirect costs. 
A)  conversion costs. 
B)  prime costs. 
C)  period costs. 
D)  indirect costs.

Question 16

Costs identified with goods produced or purchased for resale are called

Accepted Answer

A)  product costs. 
B)  period costs. 
C)  prime costs. 
D)  conversion costs. 
A)  product costs. 
B)  period costs. 
C)  prime costs. 
D)  conversion costs.

Question 17

The costing method, which excludes fixed manufacturing overhead from the cost of products.

Accepted Answer

The answer of The costing method, which excludes fixed manufacturing...

Question 18

Cost accounting is that part of the accounting system that measures costs for the purposes of management decision making and financial reporting.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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

Question 20

Which of the following would probably NOT be considered a direct material?

Accepted Answer

A)  Lumber 
B)  Steel 
C)  Glue 
D)  Subassemblies 
A)  Lumber 
B)  Steel 
C)  Glue 
D)  Subassemblies

DeJager Company reported the following information about the production and sales of its only product: -The gross profit under absorption costing would be

Prime costs include direct labour and factory overhead.

Schultz Company reported the following information about the production and sales of its only product: -The ending inventory under absorption costing would be

Absorption-costing income is not affected by production volume.

An example of direct labour would be

A manufacturer has three inventories as compared to a merchandiser, which has only one.

Schultz Company reported the following information about the production and sales of its only product: -The cost of producing one unit of product using variable costing would be

Which of the following would NOT be an example of a cost objective?

Fixed manufacturing overhead is excluded from the cost of products under absorption costing.

DeJager Company reported the following information about the production and sales of its only product: -The cost of goods sold under variable costing would be

Schultz Company reported the following information about the production and sales of its only product: -The ending inventory under variable costing would be

There is no difference between variable-costing and absorption-costing income if the inventory level does not change.

Fixed manufacturing overhead assigned to production using a predetermined fixed overhead rate.

The sum of direct labour and factory overhead costs is equal to

Costs identified with goods produced or purchased for resale are called

The costing method, which excludes fixed manufacturing overhead from the cost of products.

Cost accounting is that part of the accounting system that measures costs for the purposes of management decision making and financial reporting.

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

Which of the following would probably NOT be considered a direct material?

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

DeJager Company reported the following information about the production and sales of its only product: -The gross profit under absorption costing would be

Prime costs include direct labour and factory overhead.

Schultz Company reported the following information about the production and sales of its only product: -The ending inventory under absorption costing would be

Absorption-costing income is not affected by production volume.

An example of direct labour would be

A manufacturer has three inventories as compared to a merchandiser, which has only one.

Schultz Company reported the following information about the production and sales of its only product: -The cost of producing one unit of product using variable costing would be

Which of the following would NOT be an example of a cost objective?

Fixed manufacturing overhead is excluded from the cost of products under absorption costing.

DeJager Company reported the following information about the production and sales of its only product: -The cost of goods sold under variable costing would be

Schultz Company reported the following information about the production and sales of its only product: -The ending inventory under variable costing would be

There is no difference between variable-costing and absorption-costing income if the inventory level does not change.

Fixed manufacturing overhead assigned to production using a predetermined fixed overhead rate.

The sum of direct labour and factory overhead costs is equal to

Costs identified with goods produced or purchased for resale are called

The costing method, which excludes fixed manufacturing overhead from the cost of products.

Cost accounting is that part of the accounting system that measures costs for the purposes of management decision making and financial reporting.

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

Which of the following would probably NOT be considered a direct material?

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