Question 1

Under GAAP,only ________ can be assigned to inventories in the financial statements.

Accepted Answer

A)  manufacturing costs 
B)  period costs 
C)  cost of goods sold 
D)  historical costs 
A)  manufacturing costs 
B)  period costs 
C)  cost of goods sold 
D)  historical costs

Question 2

Which of the following statements is true of direct costs?

Accepted Answer

A)  A direct cost of one cost object is a true sense of the budgeted costs. 
B)  All variable costs are direct costs. 
C)  A direct cost of one cost object can be an indirect cost of another cost object. 
D)  All fixed costs are direct costs. 
A)  A direct cost of one cost object is a true sense of the budgeted costs. 
B)  All variable costs are direct costs. 
C)  A direct cost of one cost object can be an indirect cost of another cost object. 
D)  All fixed costs are direct costs.

Question 3

XIAN Manufacturing produces a unique valve,and has the capacity to produce 50,000 valves annually.Currently XIAN produces 40,000 valves and is thinking about increasing production to 45,000 valves next year.What is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change?

Accepted Answer

A)  Total manufacturing costs will increase and unit manufacturing costs will stay the same. 
B)  Total manufacturing costs will increase and unit manufacturing costs will decrease. 
C)  Total manufacturing costs will stay the same and unit manufacturing costs will stay the same. 
D)  Total manufacturing costs will increase and unit manufacturing costs will also increase. 
A)  Total manufacturing costs will increase and unit manufacturing costs will stay the same. 
B)  Total manufacturing costs will increase and unit manufacturing costs will decrease. 
C)  Total manufacturing costs will stay the same and unit manufacturing costs will stay the same. 
D)  Total manufacturing costs will increase and unit manufacturing costs will also increase.

Question 4

Each of the following items pertains to one of these companies: Bedell Electronics (a manufacturing company),Gregory Food Retailers (a merchandising company),and Larson Real Estate (a service sector company).Classify each item as either inventoriable (I)costs or period (P)costs.
 $\begin{array} { |l|l|l|  }
\hline && \text { Inventoriable (I) costs }\&&\text { or period }(P) \text { costs }\
\hline  a.&\text { Salary of Bedell Electronics president }&\
\hline b.&\text { Depreciation on Bedell Electronics assembly }&\&\text { equipment }\
\hline c.&\text { Salaries of Bedell's assembly line workers }&\
\hline d.&\text { Purchase of frozen food for sale to customers by}&\&\text {Gregory Food Retailers }\
\hline e.&\text {Salaries of frozen food personnel at Gregory Food  }&\&\text {Retailing }\
\hline f.&\text {Depreciation on freezers at Gregory Food Retailing }&\
\hline g.&\text { Salary of a receptionist at Larson Real Estate}&\
\hline h.&\text { Depreciation on a computer at Larson Real Estate}&\
\hline i .&\text { Salary of a real estate agent at Larson Real Estate}&\\hline
\end{array}$

Accepted Answer

The answer of Each of the following items pertains to...

Under GAAP,only ________ can be assigned to inventories in the financial statements.

Which of the following statements is true of direct costs?

The Manager and Management Accounting

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

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

Filters

Exam 2: An Introduction to Cost Terms and Purposes

Under GAAP,only ________ can be assigned to inventories in the financial statements.

Which of the following statements is true of direct costs?

The Manager and Management Accounting

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

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

Filters