Exam 4: Cost Management Systems

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 B using variable costing is

An example of a product cost is

All manufacturing costs are assigned to the product under which method of product costing?

Which of the following accounts would appear in the current asset section of a merchandiser's balance sheet?

Any activity for which a separate measurement of costs is desired.

Which of the following is NOT a period cost?

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

Which format does the CICA Handbook advocate for reporting income?

Farmers Corporation purchased $170,000 of direct materials and incurred $48,000 of direct labour costs during the year. Indirect labour amounted to $5,000, while indirect materials totalled $6,000. Other operating expenses pertaining to the factory included utilities of $6,400, maintenance of $9,200, supplies of $3,600, amortization of $30,200, and property taxes of $5,800. The only inventory was $13,600 of finished goods at year-end. Required: a. Compute the cost of goods manufactured. b. Compute the cost of goods sold.

The contribution approach is a method of internal reporting that emphasizes the distinction between variable and fixed costs for the purpose of better decision making.

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. -Variable cost of goods sold for the year is

Variable costing is commonly called

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

Which of the following accounts would NOT be included in the current asset section of a manufacturer's balance sheet?

Which of the following statements is NOT true?

In variable costing, inventories are valued at standard variable costs.

Period costs are inventoriable and are expensed when the inventory is sold.

Variable costing regards fixed manufacturing overhead as

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

Absorption costing is more widely used than variable costing.