Question 1

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 2

Costing systems that identify the cost of each activity such as testing,design,or setup are called management-based costing systems.

Accepted Answer

A) True 
 B)False

Question 3

Inventoriable costs for merchandising companies are held in the work-in-process account.

Accepted Answer

A) True 
 B)False

Question 4

Eichhorn Company's Process Engineering department has the responsibility of rearranging the individual work tasks for each assembly line worker,with the goal of utilizing each worker as much as possible.Currently,on average,each assembly line worker only has tasks that require 47 minutes per hour,and the plant manager wants this increased by at least 10 %.The company builds the Eichhorn Rocket Roadster,which is selling out of dealers' showrooms faster than the company's assembly plants can produce them.If production can't be increased,then sales will soon suffer.
Required:
Explain the effect on total costs of production,using the number of engineering changes (from Process Engineering)and at least two other cost drivers.Choose the cost driver that you think is most logical in the circumstances,and begin your answer with a brief explanation of a cost driver.

Accepted Answer

A cost driver is any factor that affects

Question 5

Which of the following formulas determine cost of goods sold in a manufacturing entity?

Accepted Answer

A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold 
B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
C) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
E) Beginning work-in-process inventory - Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold 
B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
C) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
E) Beginning work-in-process inventory - Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold

Question 6

Work-in-process consists of partially completed goods not yet ready for sale.

Accepted Answer

A) True 
 B)False

Question 7

A cost object is always either a product or a service.

Accepted Answer

A) True 
 B)False

Question 8

Costs of Sales is another way of phrasing Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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 variable costs per unit associated with Product ICT101?

Accepted Answer

A) $18 
B) $22 
C) $88 
D) $92 
E) $28 
A) $18 
B) $22 
C) $88 
D) $92 
E) $28

Question 11

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 12

Use the information below to answer the following question(s).
The following information pertains to Payton's Shoe Manufacturing:
   99,500 pairs of shoes are sold during the year for $18.
-What is the amount of Payton's ending finished goods inventory?

Accepted Answer

A) $99,500 
B) $8,000 
C) $5,000 
D) $500 
E) $0 
A) $99,500 
B) $8,000 
C) $5,000 
D) $500 
E) $0

Question 13

Cost assignment is

Accepted Answer

A) always arbitrary. 
B) linking actual costs to cost objects. 
C) the same as cost accumulation. 
D) finding the difference between budgeted and actual costs. 
E) the same as cost conversion. 
A) always arbitrary. 
B) linking actual costs to cost objects. 
C) the same as cost accumulation. 
D) finding the difference between budgeted and actual costs. 
E) the same as cost conversion.

Question 14

Use the information below to answer the following question(s).
Big Island Coffee Co.produced and sold 120,000 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 120,000 units.

Accepted Answer

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

Question 15

Wages paid to machine operators on an assembly line are an example of which type of cost?

Accepted Answer

A) direct manufacturing labour costs 
B) direct manufacturing overhead costs 
C) direct materials costs 
D) indirect manufacturing overhead costs 
E) indirect material costs 
A) direct manufacturing labour costs 
B) direct manufacturing overhead costs 
C) direct materials costs 
D) indirect manufacturing overhead costs 
E) indirect material costs

Question 16

Fixed costs

Accepted Answer

A) may include either direct or indirect costs. 
B) vary with production or sales volumes. 
C) include parts and materials used to manufacture a product. 
D) can be adjusted in the short run to meet actual demands. 
E) remain fixed regardless of the relevant range of production. 
A) may include either direct or indirect costs. 
B) vary with production or sales volumes. 
C) include parts and materials used to manufacture a product. 
D) can be adjusted in the short run to meet actual demands. 
E) remain fixed regardless of the relevant range of production.

Question 17

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 period costs per unit associated with Product ICT101?

Accepted Answer

A) $4 
B) $16 
C) $20 
D) $52 
A) $4 
B) $16 
C) $20 
D) $52

Question 18

A relevant range is the range of the cost driver in which a specific relationship between cost and driver is valid.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Goods available for sale that are not in ending inventory

Costing systems that identify the cost of each activity such as testing,design,or setup are called management-based costing systems.

Inventoriable costs for merchandising companies are held in the work-in-process account.

Which of the following formulas determine cost of goods sold in a manufacturing entity?

Work-in-process consists of partially completed goods not yet ready for sale.

A cost object is always either a product or a service.

Costs of Sales is another way of phrasing Cost of Goods Sold.

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

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 variable costs per unit associated with Product ICT101?

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). The following information pertains to Payton's Shoe Manufacturing: 99,500 pairs of shoes are sold during the year for $18. -What is the amount of Payton's ending finished goods inventory?

Cost assignment is

Wages paid to machine operators on an assembly line are an example of which type of cost?

Fixed costs

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 period costs per unit associated with Product ICT101?

A relevant range is the range of the cost driver in which a specific relationship between cost and driver is valid.

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?

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

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

Analysis of Cost Behaviour

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

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 2: An Introduction to Cost Terms and Purposes

Goods available for sale that are not in ending inventory

Costing systems that identify the cost of each activity such as testing,design,or setup are called management-based costing systems.

Inventoriable costs for merchandising companies are held in the work-in-process account.

Which of the following formulas determine cost of goods sold in a manufacturing entity?

Work-in-process consists of partially completed goods not yet ready for sale.

A cost object is always either a product or a service.

Costs of Sales is another way of phrasing Cost of Goods Sold.

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

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 variable costs per unit associated with Product ICT101?

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). The following information pertains to Payton's Shoe Manufacturing: 99,500 pairs of shoes are sold during the year for $18. -What is the amount of Payton's ending finished goods inventory?

Cost assignment is

Wages paid to machine operators on an assembly line are an example of which type of cost?

Fixed costs

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 period costs per unit associated with Product ICT101?

A relevant range is the range of the cost driver in which a specific relationship between cost and driver is valid.

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?

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

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

Analysis of Cost Behaviour

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

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters