Exam 2: An Introduction to Cost Terms and Purposes

Answer the following questions using the information below: The Singer Company manufactures several different products. Unit costs associated with Product ICT101 are as follows: -What are the period costs per unit associated with Product ICT101?

Which of the following statements is FALSE?

Answer the following questions using the information below: Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers: -The plant has capacity for 3,000 axles and is considering expanding production to 3,000 axles. What is the total cost of producing 3,000 axles?

Which of the following does NOT affect the direct/indirect classification of a cost?

Answer the following questions using the information below: Pederson Company reported the following: -What is the average manufacturing cost per unit?

Archambeau Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1)cost tracing to the finished furniture, (2)cost allocation of an indirect manufacturing cost to the finished furniture, or (3)as a nonmanufacturing item.

Acquisition costs of direct materials include freight-in charges, sales taxes, and custom duties.

Amber Manufacturing provided the following information for last month: If sales double next month, what is the projected operating income?

The cost of electricity used in the production of multiple products would be classified as a indirect cost.

Inventoriable costs are reported as an expense when incurred and expensed on the income statement when the product is sold.

Inventory of a manufacturing firm includes goods partially worked on but NOT yet fully completed.

Answer the following questions using the information below: The Singer Company manufactures several different products. Unit costs associated with Product ICT101 are as follows: -What are the fixed costs per unit associated with Product ICT101?

Answer the following questions using the information below: The following information pertains to Alleigh's Mannequins: -What is the average manufacturing cost per unit?

Finished goods inventory would normally include:

What is the meaning of the term "cost object"? Give an example of a cost object that would be used in a manufacturing company, a merchandising company, and a service sector company?

For a automobile manufacturer, period costs include the cost of:

Answer the following questions using the information below: For last year, Lewisburn Manufacturing reported the following: -How much of the above would be considered period costs for Lewisburn Manufacturing?

Product cost for pricing and product-mix decisions may include all costs EXCEPT:

Manufacturing sector firms normally hold three types of inventory: direct materials inventory, work-in-process inventory, and finished goods inventory.

A plant manufactures several different products. The wages of the plant supervisor can be classified as a(n):