Question 1

The variable cost per unit of a product should stay the same throughout the relevant range of production.

Accepted Answer

A) True 
 B)False

Question 2

Prime costs consist of direct and indirect manufacturing labour.

Accepted Answer

A) True 
 B)False

Question 3

Use the information below to answer the following question(s).
Ontario Industries Inc.had the following activities during the year:
  
-What is the amount of Ontario Industries Inc.'s ending finished goods inventory?

Accepted Answer

A) $55,000 
B) $75,000 
C) $70,000 
D) $65,000 
E) $60,000 
A) $55,000 
B) $75,000 
C) $70,000 
D) $65,000 
E) $60,000

Question 4

Use the information below to answer the following question(s).
Montreal Industries Inc.had the following activities during the year:
  
-What is Montreal's cost of direct materials used during the year?

Accepted Answer

A) $204,000 
B) $178,000 
C) $128,000 
D) $24,000 
E) $218,000 
A) $204,000 
B) $178,000 
C) $128,000 
D) $24,000 
E) $218,000

Question 5

Which of the following statements would be correct in a manufacturing business?

Accepted Answer

A) Completed goods are not normally included in the finished goods inventory. 
B) Completed goods are part of the work in process category. 
C) Work-in-process inventory,at the end of the accounting period,includes direct materials but not direct labour. 
D) Materials put into production are classified as work-in-process inventory. 
E) There can be no beginning finished goods inventory. 
A) Completed goods are not normally included in the finished goods inventory. 
B) Completed goods are part of the work in process category. 
C) Work-in-process inventory,at the end of the accounting period,includes direct materials but not direct labour. 
D) Materials put into production are classified as work-in-process inventory. 
E) There can be no beginning finished goods inventory.

Question 6

Wheel and Tire Manufacturing currently produces 1,000 tires per month.The following per unit data apply for sales to regular customers:
 
The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires.What is the total cost of producing 2,000 tires?

Accepted Answer

A) $39,000 
B) $78,000 
C) $68,000 
D) $62,000 
A) $39,000 
B) $78,000 
C) $68,000 
D) $62,000

Question 7

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 variable costs per unit associated with Product ORD203?

Accepted Answer

A) $60 
B) $83 
C) $66 
D) $48 
E) $12 
A) $60 
B) $83 
C) $66 
D) $48 
E) $12

Question 8

What are the differences between direct costs and indirect costs? Give an example of each.

Accepted Answer

Direct costs are costs that can be trace

Question 9

Classifying a cost as either direct or indirect depends upon

Accepted Answer

A) the behaviour of the cost in response to volume changes. 
B) whether the cost is expensed in the period in which it is incurred. 
C) whether the cost can be traced to the cost object. 
D) whether an expenditure is avoidable or not in the future. 
E) the inventory classification system. 
A) the behaviour of the cost in response to volume changes. 
B) whether the cost is expensed in the period in which it is incurred. 
C) whether the cost can be traced to the cost object. 
D) whether an expenditure is avoidable or not in the future. 
E) the inventory classification system.

Question 10

Which of the following is TRUE of period costs?

Accepted Answer

A) They are also called fixed costs. 
B) They are part of the cost of goods sold. 
C) They are expected to benefit future periods. 
D) They are costs incurred to generate revenue in a specific time period except the cost of manufacturing accumulated as cost of goods sold. 
E) For merchandising sector companies they include all costs not related to the cost of goods purchased for resale. 
A) They are also called fixed costs. 
B) They are part of the cost of goods sold. 
C) They are expected to benefit future periods. 
D) They are costs incurred to generate revenue in a specific time period except the cost of manufacturing accumulated as cost of goods sold. 
E) For merchandising sector companies they include all costs not related to the cost of goods purchased for resale.

Question 11

A department could be considered a cost object.

Accepted Answer

A) True 
 B)False

Question 12

Answer the following question(s)using the information below.
The following information pertains to Alleigh's Mannequins:
  
-What is the amount of ending finished goods inventory?

Accepted Answer

A) $42,500 
B) $24,750 
C) $25,000 
D) $25,425 
E) $42,500. 
A) $42,500 
B) $24,750 
C) $25,000 
D) $25,425 
E) $42,500.

Question 13

Farley Muffler Inc.received the following monthly report from its newly hired accountant,who quit after only a week on the job.

Required:
a.Prepare a cost of goods manufactured schedule.
b.Prepare an income statement in good form.

Accepted Answer

The answer of Farley Muffler Inc.received the following monthly report...

Question 14

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 15

The following information pertains to Tom's Country Wood Shop:
 
What is the cost of goods manufactured for 2015?

Accepted Answer

A) $56,500 
B) $31,500 
C) $50,500 
D) $61,500 
E) $66,500 
A) $56,500 
B) $31,500 
C) $50,500 
D) $61,500 
E) $66,500

Question 16

Finished goods inventory would normally include

Accepted Answer

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

Question 17

Gimble Manufacturing Inc.makes vibration control springs for heating,ventilating,and air conditioning (HVAC)equipment.Materials cost $52 per spring set,and the machinists are paid $44 per hour.A machinist can produce four sets of springs per hour.Fixed manufacturing costs for springs are $5,000 per period.Non-manufacturing spring set costs are fixed at $11,000 per period.Each spring set sells for $75 and Gimble sells on average 4,000 spring sets per period.
Required:
a.Competition has entered the market and is selling spring sets for an introductory price of $66.Can Gimble Manufacturing Inc.meet this price and still make a profit?
b.How would your answer to requirement a.change if Gimble sells on average 8,000 spring sets per period.
c.What should Gimble Manufacturing Inc.'s management do in the short-run and for the long-term if it appears that $66 is going to be the new market price for the future.

Accepted Answer

a.
 @#IMG-DLM& 
b.
 @#IMG-DLM& c.The spring sets have a unit

Question 18

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 gross profit?

Accepted Answer

A) $995,000 
B) $1,000,000 
C) $1,791,000 
D) $796,000 
E) $896,000 
A) $995,000 
B) $1,000,000 
C) $1,791,000 
D) $796,000 
E) $896,000

Question 19

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 this year's operating income if the company plans to produce and sell 60,000 units.

Accepted Answer

A) $120,000 
B) $0 
C) $ 
D) $ 
E) $ 
A) $120,000 
B) $0 
C) $ 
D) $ 
E) $

Question 20

Products,services,departments,and customers may be cost objects.

Accepted Answer

A) True 
 B)False

The variable cost per unit of a product should stay the same throughout the relevant range of production.

Prime costs consist of direct and indirect manufacturing labour.

Use the information below to answer the following question(s). Ontario Industries Inc.had the following activities during the year: -What is the amount of Ontario Industries Inc.'s ending finished goods inventory?

Use the information below to answer the following question(s). Montreal Industries Inc.had the following activities during the year: -What is Montreal's cost of direct materials used during the year?

Which of the following statements would be correct in a manufacturing business?

Wheel and Tire Manufacturing currently produces 1,000 tires per month.The following per unit data apply for sales to regular customers: The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires.What is the total cost of producing 2,000 tires?

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 variable costs per unit associated with Product ORD203?

What are the differences between direct costs and indirect costs? Give an example of each.

Classifying a cost as either direct or indirect depends upon

Which of the following is TRUE of period costs?

A department could be considered a cost object.

Answer the following question(s)using the information below. The following information pertains to Alleigh's Mannequins: -What is the amount of ending finished goods inventory?

Farley Muffler Inc.received the following monthly report from its newly hired accountant,who quit after only a week on the job. Required: a.Prepare a cost of goods manufactured schedule. b.Prepare an income statement in good form.

The following information pertains to Tom's Country Wood Shop: What is the cost of goods manufactured for 2015?

Finished goods inventory would normally include

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 gross profit?

Products,services,departments,and customers may be cost objects.

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

The variable cost per unit of a product should stay the same throughout the relevant range of production.

Prime costs consist of direct and indirect manufacturing labour.

Use the information below to answer the following question(s). Ontario Industries Inc.had the following activities during the year: -What is the amount of Ontario Industries Inc.'s ending finished goods inventory?

Use the information below to answer the following question(s). Montreal Industries Inc.had the following activities during the year: -What is Montreal's cost of direct materials used during the year?

Which of the following statements would be correct in a manufacturing business?

Wheel and Tire Manufacturing currently produces 1,000 tires per month.The following per unit data apply for sales to regular customers: The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires.What is the total cost of producing 2,000 tires?

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 variable costs per unit associated with Product ORD203?

What are the differences between direct costs and indirect costs? Give an example of each.

Classifying a cost as either direct or indirect depends upon

Which of the following is TRUE of period costs?

A department could be considered a cost object.

Answer the following question(s)using the information below. The following information pertains to Alleigh's Mannequins: -What is the amount of ending finished goods inventory?

Farley Muffler Inc.received the following monthly report from its newly hired accountant,who quit after only a week on the job. Required: a.Prepare a cost of goods manufactured schedule. b.Prepare an income statement in good form.

The following information pertains to Tom's Country Wood Shop: What is the cost of goods manufactured for 2015?

Finished goods inventory would normally include

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 gross profit?

Products,services,departments,and customers may be cost objects.

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