Question 1

Which of the following reflects what products costs for financial statement purposes may include?

Accepted Answer

A) All costs except marketing costs 
B) All costs included for pricing and product-mix decisions 
C) Production costs 
D) All costs allowed by government agencies 
A) All costs except marketing costs 
B) All costs included for pricing and product-mix decisions 
C) Production costs 
D) All costs allowed by government agencies

Question 2

Variable costing regards fixed manufacturing overhead as a(n):

Accepted Answer

A) product cost. 
B) period cost. 
C) inventoriable cost. 
D) administrative cost. 
A) product cost. 
B) period cost. 
C) inventoriable cost. 
D) administrative cost.

Question 3

What term is used to describe the assignment of direct costs to a particular cost object?

Accepted Answer

A) Assignment 
B) Allocation 
C) Accumulation 
D) Tracing 
A) Assignment 
B) Allocation 
C) Accumulation 
D) Tracing

Question 4

________ is the collection of cost data in some organised way by means of an accounting system.

Accepted Answer

A) Benchmarking 
B) Market research 
C) Cost accumulation 
D) Budgeting 
A) Benchmarking 
B) Market research 
C) Cost accumulation 
D) Budgeting

Question 5

For last year,Lewisburn Manufacturing reported the following:
$\begin{array}{|l|r|}
\hline \text { Revenue } & \$ 420,000 \
\hline \text { Beginning inventory of direct materials, January 1 } & 22,000 \
\hline \text { Purchases of direct materials } & 146,000 \
\hline \text { Ending inventory of direct materials, December 31 } & 16,000 \
\hline \text { Direct manufacturing labour } & 40,000 \
\hline \text { Indirect manufacturing costs } & 35,000 \
\hline \text { Beginning inventory of finished goods, January 1 } & 104,000 \
\hline \text { Cost of goods manufactured } & 36,000 \
\hline \text { Ending inventory of finished goods, December 31 } & 140,000\\hline 
\end{array}$
How much of the above would be considered period costs for Lewisburn Manufacturing?

Accepted Answer

A) $246 000 
B) $140 000 
C) $104 000 
D) $390 000 
A) $246 000 
B) $140 000 
C) $104 000 
D) $390 000

Question 6

Costs which are not economically feasible to trace but which are related to a cost object are known as:

Accepted Answer

A) variable costs. 
B) indirect costs. 
C) direct costs. 
D) fixed costs. 
A) variable costs. 
B) indirect costs. 
C) direct costs. 
D) fixed costs.

Question 7

Period costs are all costs in the income statement other than:

Accepted Answer

A) prime costs. 
B) indirect costs. 
C) fixed costs. 
D) cost of goods sold. 
A) prime costs. 
B) indirect costs. 
C) fixed costs. 
D) cost of goods sold.

Question 8

The main difference between variable costing and absorption costing is the way in which fixed manufacturing costs are accounted for.

Accepted Answer

A) True 
 B)False

Question 9

Accountants define a resource sacrificed or forgone to achieve a specific objective.

Accepted Answer

A) True 
 B)False

Question 10

Chapple Manufacturing provided the following information for last month:
$$\begin{array} { l r } 
\text { Sales } & \$ 12000 \
\text { Variable costs } & 4000 \
\text { Fixed costs } & 1000 \
\text { Operating profit } & \$ 7000
\end{array}$$
If sales double next month,what is the projected operating profit?

Accepted Answer

A) $19 000 
B) $15 000 
C) $18 000 
D) $14 000 
A) $19 000 
B) $15 000 
C) $18 000 
D) $14 000

Question 11

For retail sector companies,period costs in the income statement are all costs not related to the cost of goods purchased for resale.

Accepted Answer

A) True 
 B)False

Question 12

Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime.One week she worked 42 hours,which included 2 hours of overtime.Compensation would be reported as:

Accepted Answer

A) $400 of direct labour and $0 of manufacturing overhead. 
B) $430 of direct labour and $0 of manufacturing overhead. 
C) $420 of direct labour and $10 of manufacturing overhead. 
D) $400 of direct labour and $30 of manufacturing overhead. 
A) $400 of direct labour and $0 of manufacturing overhead. 
B) $430 of direct labour and $0 of manufacturing overhead. 
C) $420 of direct labour and $10 of manufacturing overhead. 
D) $400 of direct labour and $30 of manufacturing overhead.

Question 13

A retailer's inventory would normally include:

Accepted Answer

A) goods partially worked on but not yet fully completed. 
B) direct materials in stock and awaiting use in the manufacturing process. 
C) goods fully completed by the firm but not yet sold. 
D) products in their original form intended to be sold without changing their basic form. 
A) goods partially worked on but not yet fully completed. 
B) direct materials in stock and awaiting use in the manufacturing process. 
C) goods fully completed by the firm but not yet sold. 
D) products in their original form intended to be sold without changing their basic form.

Question 14

Combs,Inc. ,reports the following information for September sales:
 $$\begin{array} { l r } 
\text { Sales } & \$ 25000 \
\text { Variable costs } & 6000 \
\text { Fixed costs } & \underline { 8000 } \
\text { Operating profit } & \$ 11000
\end{array}$$ 
Required:
If sales double in October,what is the projected operating profit?

Accepted Answer

($25 000 ×

Question 15

Cost accumulation is the collection of cost data in some organised way by means of an:

Accepted Answer

A) accounting system. 
B) strategy. 
C) information system. 
D) cost driver. 
A) accounting system. 
B) strategy. 
C) information system. 
D) cost driver.

Question 16

The income under variable costing will always be the same as the income under absorption costing.

Accepted Answer

A) True 
 B)False

Question 17

For manufacturing sector companies,period costs in the income statement are all:

Accepted Answer

A) prime costs. 
B) non-manufacturing costs. 
C) fixed costs. 
D) indirect costs. 
A) prime costs. 
B) non-manufacturing costs. 
C) fixed costs. 
D) indirect costs.

Question 18

Answer the following questions using the information below:
 $\begin{array}{lr}
\text { Beginning finished goods, } 1 / 1 / 2018 & \$ 80000 \
\text { Ending firished goods, } 12 / 31 / 2018 & 67000 \
\text { Cost of goods sold } & 270000 \
\text { Sales revenue } & 500000 \
\text { Operating expenses } & 145000
\end{array}$
-What is operating profit for 2018?

Accepted Answer

A) $85 000 
B) $62 000 
C) $230 000 
D) $112 000 
A) $85 000 
B) $62 000 
C) $230 000 
D) $112 000

Question 19

What are costing systems that identify the cost of each activity,such as testing,design,or set-up called?

Accepted Answer

A) Activity-based costing systems 
B) Periodic systems 
C) Product systems 
D) Hybrid systems 
A) Activity-based costing systems 
B) Periodic systems 
C) Product systems 
D) Hybrid systems

Question 20

A manufacturing plant produces two product lines: football equipment and cricket equipment.Direct costs for the football equipment line are the:

Accepted Answer

A) salaries of the clerical staff that work in the company administrative offices. 
B) utilities paid for the manufacturing plant. 
C) beverages provided daily in the plant break room. 
D) monthly lease payments for a specialised piece of equipment needed to manufacture the football helmet. 
A) salaries of the clerical staff that work in the company administrative offices. 
B) utilities paid for the manufacturing plant. 
C) beverages provided daily in the plant break room. 
D) monthly lease payments for a specialised piece of equipment needed to manufacture the football helmet.

Which of the following reflects what products costs for financial statement purposes may include?

Variable costing regards fixed manufacturing overhead as a(n):

What term is used to describe the assignment of direct costs to a particular cost object?

________ is the collection of cost data in some organised way by means of an accounting system.

Costs which are not economically feasible to trace but which are related to a cost object are known as:

Period costs are all costs in the income statement other than:

The main difference between variable costing and absorption costing is the way in which fixed manufacturing costs are accounted for.

Accountants define a resource sacrificed or forgone to achieve a specific objective.

Chapple Manufacturing provided the following information for last month: Sales \ 12000 Variable costs 4000 Fixed costs 1000 Operating profit \ 7000 If sales double next month,what is the projected operating profit?

For retail sector companies,period costs in the income statement are all costs not related to the cost of goods purchased for resale.

Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime.One week she worked 42 hours,which included 2 hours of overtime.Compensation would be reported as:

A retailer's inventory would normally include:

Combs,Inc. ,reports the following information for September sales: Sales \ 25000 Variable costs 6000 Fixed costs Operating profit \ 11000 Required: If sales double in October,what is the projected operating profit?

Cost accumulation is the collection of cost data in some organised way by means of an:

The income under variable costing will always be the same as the income under absorption costing.

For manufacturing sector companies,period costs in the income statement are all:

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 80000 Ending firished goods, 12/31/2018 67000 Cost of goods sold 270000 Sales revenue 500000 Operating expenses 145000 -What is operating profit for 2018?

What are costing systems that identify the cost of each activity,such as testing,design,or set-up called?

A manufacturing plant produces two product lines: football equipment and cricket equipment.Direct costs for the football equipment line are the:

Management Accounting in Context

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 2: Different Costs for Different Purposes

Which of the following reflects what products costs for financial statement purposes may include?

Variable costing regards fixed manufacturing overhead as a(n):

What term is used to describe the assignment of direct costs to a particular cost object?

________ is the collection of cost data in some organised way by means of an accounting system.

Costs which are not economically feasible to trace but which are related to a cost object are known as:

Period costs are all costs in the income statement other than:

The main difference between variable costing and absorption costing is the way in which fixed manufacturing costs are accounted for.

Accountants define a resource sacrificed or forgone to achieve a specific objective.

Chapple Manufacturing provided the following information for last month: Sales \ 12000 Variable costs 4000 Fixed costs 1000 Operating profit \ 7000 If sales double next month,what is the projected operating profit?

For retail sector companies,period costs in the income statement are all costs not related to the cost of goods purchased for resale.

Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime.One week she worked 42 hours,which included 2 hours of overtime.Compensation would be reported as:

A retailer's inventory would normally include:

Combs,Inc. ,reports the following information for September sales: Sales \ 25000 Variable costs 6000 Fixed costs Operating profit \ 11000 Required: If sales double in October,what is the projected operating profit?

Cost accumulation is the collection of cost data in some organised way by means of an:

The income under variable costing will always be the same as the income under absorption costing.

For manufacturing sector companies,period costs in the income statement are all:

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 80000 Ending firished goods, 12/31/2018 67000 Cost of goods sold 270000 Sales revenue 500000 Operating expenses 145000 -What is operating profit for 2018?

What are costing systems that identify the cost of each activity,such as testing,design,or set-up called?

A manufacturing plant produces two product lines: football equipment and cricket equipment.Direct costs for the football equipment line are the:

Management Accounting in Context

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters