Question 1

Rent for the building that contains the manufacturing and engineering departments can all be charged as manufacturing overhead costs.

Accepted Answer

A) True 
 B)False

Question 2

Variable costs

Accepted Answer

A)  are always indirect costs. 
B)  increase in total when the actual level of activity increases. 
C)  include most personnel costs and depreciation on machinery. 
D)  can always be traced directly to the cost object. 
E)  change in relation to selling price. 
A)  are always indirect costs. 
B)  increase in total when the actual level of activity increases. 
C)  include most personnel costs and depreciation on machinery. 
D)  can always be traced directly to the cost object. 
E)  change in relation to selling price.

Question 3

An appropriate cost driver for shipping costs might be the number of units shipped.

Accepted Answer

A) True 
 B)False

Question 4

Use the information below to answer the following question(s).
Macadamia Co. produced and sold 40,000 units last year. Per unit revenue and costs were as follows:
   Fixed manufacturing overhead and administrative salaries are fixed costs. The per unit amounts are based on last year's production.
-Calculate last year's operating income when the company produced and sold 40,000 units.

Accepted Answer

A)  $0 
B)  $ 
C)  $ 
D)  $ 
E)  $ 
A)  $0 
B)  $ 
C)  $ 
D)  $ 
E)  $

Question 5

Explain the difference between an inventoriable cost and a period cost. What potential problems does an inaccurate classification of product and period costs cause?

Accepted Answer

Inventoriable costs are all costs of a p

Rent for the building that contains the manufacturing and engineering departments can all be charged as manufacturing overhead costs.

Variable costs

An appropriate cost driver for shipping costs might be the number of units shipped.

Explain the difference between an inventoriable cost and a period cost. What potential problems does an inaccurate classification of product and period costs cause?

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

Exam 2: An Introduction to Cost Terms and Purposes

Rent for the building that contains the manufacturing and engineering departments can all be charged as manufacturing overhead costs.

Variable costs

An appropriate cost driver for shipping costs might be the number of units shipped.

Explain the difference between an inventoriable cost and a period cost. What potential problems does an inaccurate classification of product and period costs cause?

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