Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  $50.00 
B)  $50.85 
C)  $17.65 
D)  $85.00 
E)  $49.50 
A)  $50.00 
B)  $50.85 
C)  $17.65 
D)  $85.00 
E)  $49.50

Question 3

Which one of the following is a variable cost in a grocery store?

Accepted Answer

A)  rent 
B)  president's salary 
C)  inventory of vegetables 
D)  property taxes 
E)  administrative salaries 
A)  rent 
B)  president's salary 
C)  inventory of vegetables 
D)  property taxes 
E)  administrative salaries

Question 4

Use the information below to answer the following question(s).
Montreal Industries Inc. had the following activities during the year::
  
-Goods available for sale that are not in ending inventory

Accepted Answer

A)  are included in goods available for sale in the next year. 
B)  are included in the work-in-process inventory at the end of the year. 
C)  are not accounted for until the next year. 
D)  are incorporated in the cost of goods sold amount. 
E)  are included in beginning inventory. 
A)  are included in goods available for sale in the next year. 
B)  are included in the work-in-process inventory at the end of the year. 
C)  are not accounted for until the next year. 
D)  are incorporated in the cost of goods sold amount. 
E)  are included in beginning inventory.

Question 5

Cost allocation is

Accepted Answer

A)  the process of tracking both direct and indirect costs associated to a cost object. 
B)  the process of determining the actual cost of the cost object. 
C)  the assignment of indirect costs to the chosen cost object. 
D)  a function of cost tracing. 
E)  the assignment of direct costs to the chosen cost object. 
A)  the process of tracking both direct and indirect costs associated to a cost object. 
B)  the process of determining the actual cost of the cost object. 
C)  the assignment of indirect costs to the chosen cost object. 
D)  a function of cost tracing. 
E)  the assignment of direct costs to the chosen cost object.

Question 6

When a manager is making a decision based on cost figures, it is preferable that he (she) thinks in terms of unit costs.

Accepted Answer

A) True 
 B)False

Question 7

Use the information below to answer the following question(s).
Consider the following data of the Vancouver Company for the year 20X4:
  
-What is the unit cost for the direct materials for 20X4 assuming direct materials costs are for the production of 1,014,000 units?

Accepted Answer

A)  $0.80 
B)  $0.95 
C)  $1.00 
D)  $1.08 
E)  $1.11 
A)  $0.80 
B)  $0.95 
C)  $1.00 
D)  $1.08 
E)  $1.11

Question 8

A cost object is anything for which a separate measurement of costs is desired.

Accepted Answer

A) True 
 B)False

Question 9

Unit costs and average costs are really the same thing.

Accepted Answer

A) True 
 B)False

Question 10

Changes in particular cost drivers automatically result in decreases in overall costs.

Accepted Answer

A) True 
 B)False

Question 11

Costs are accounted for in two basic stages: assignment followed by accumulation.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  $120 
B)  $140 
C)  $50 
D)  $88 
E)  $70 
A)  $120 
B)  $140 
C)  $50 
D)  $88 
E)  $70

Question 13

Answer the following question(s) 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?

Accepted Answer

A)  $102 
B)  $48 
C)  $52 
D)  $32 
E)  $36 
A)  $102 
B)  $48 
C)  $52 
D)  $32 
E)  $36

Question 14

Improvements in information-gathering technologies are making it possible to trace more costs as direct.

Accepted Answer

A) True 
 B)False

Question 15

Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:
   Required:
a. Prepare a cost of goods manufactured schedule for the quarter.
b. Prepare a cost of goods sold schedule for the quarter.

Accepted Answer

The answer of Messinger Manufacturing Company had the following account...

Question 16

Use the information below to answer the following question(s).
Montreal Industries Inc. had the following activities during the year::
  
-Manufacturing-sector companies report on the balance sheet

Accepted Answer

A)  only merchandise inventory. 
B)  only finished goods inventory. 
C)  direct materials inventory, work-in-process inventory, and finished goods inventory accounts. 
D)  no inventory accounts. 
E)  only work in progress inventory. 
A)  only merchandise inventory. 
B)  only finished goods inventory. 
C)  direct materials inventory, work-in-process inventory, and finished goods inventory accounts. 
D)  no inventory accounts. 
E)  only work in progress inventory.

Question 17

Answer the following question(s) using the information below.
The West Company manufactures several different products. Unit costs associated with Product ORD203 are as follows:
  
-What are the inventoriable costs per unit associated with Product ORD203?

Accepted Answer

A)  $60 
B)  $66 
C)  $48 
D)  $83 
E)  $92 
A)  $60 
B)  $66 
C)  $48 
D)  $83 
E)  $92

Question 18

Eschliman Manufacturing Company had the following account balances for the quarter ending September 30, unless otherwise noted:
   Required:
a. Prepare a cost of goods manufactured schedule for the quarter.
b. Prepare a cost of goods sold schedule for the quarter.

Accepted Answer

The answer of Eschliman Manufacturing Company had the following account...

Question 19

Service-sector companies provide services or intangible products to their customers.

Accepted Answer

A) True 
 B)False

Question 20

Springfield Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labour, and indirect manufacturing costs. Total indirect manufacturing costs for January were $300 million, and were allocated to each product on the basis of direct manufacturing labour costs of each line. Summary data for January for the most popular electronic storage device, the Big Bertha, was:
   Required:
a. Compute the total manufacturing cost per unit for each product produced in January.
b. Suppose production will be reduced to 30,000 units in February. If indirect manufacturing costs include fixed costs then explain if the total cost per unit be higher or lower than in January.

Accepted Answer

a. Unit costs for January were:
 @#IMG-DLM& b. Uni

Exam 2: An Introduction to Cost Terms and Purposes

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

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

Which one of the following is a variable cost in a grocery store?

Use the information below to answer the following question(s). Montreal Industries Inc. had the following activities during the year:: -Goods available for sale that are not in ending inventory

Cost allocation is

When a manager is making a decision based on cost figures, it is preferable that he (she) thinks in terms of unit costs.

Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 20X4: -What is the unit cost for the direct materials for 20X4 assuming direct materials costs are for the production of 1,014,000 units?

A cost object is anything for which a separate measurement of costs is desired.

Unit costs and average costs are really the same thing.

Changes in particular cost drivers automatically result in decreases in overall costs.

Costs are accounted for in two basic stages: assignment followed by accumulation.

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

Answer the following question(s) 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?

Improvements in information-gathering technologies are making it possible to trace more costs as direct.

Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted: Required: a. Prepare a cost of goods manufactured schedule for the quarter. b. Prepare a cost of goods sold schedule for the quarter.

Use the information below to answer the following question(s). Montreal Industries Inc. had the following activities during the year:: -Manufacturing-sector companies report on the balance sheet

Answer the following question(s) using the information below. The West Company manufactures several different products. Unit costs associated with Product ORD203 are as follows: -What are the inventoriable costs per unit associated with Product ORD203?

Eschliman Manufacturing Company had the following account balances for the quarter ending September 30, unless otherwise noted: Required: a. Prepare a cost of goods manufactured schedule for the quarter. b. Prepare a cost of goods sold schedule for the quarter.

Service-sector companies provide services or intangible products to their customers.

The Accountants Vital Role in Decision Making

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters