Question 1

The most likely cost driver of direct labor costs is the ________.

Accepted Answer

A)  number of machine setups for the product 
B)  number of miles driven 
C)  number of production hours 
D)  number of machine hours 
A)  number of machine setups for the product 
B)  number of miles driven 
C)  number of production hours 
D)  number of machine hours

Question 2

Answer the following questions using the information below:
 $\begin{array}{lr}
\text { Beginuing finished goods, 1/1/2015 } & \$ 92,000 \
\text { Ending finished goods, 12/31/2015 } & 75,000 \
\text { Cost of goods sold } & 300,000 \
\text { Sales revenue } & 450,000 \
\text { Operating expenses } & 95,000
\end{array}$
-What is the cost of goods manufactured for 2015?

Accepted Answer

A)  $285,000 
B)  $277,000 
C)  $283,000 
D)  $350,000 
A)  $285,000 
B)  $277,000 
C)  $283,000 
D)  $350,000

Question 3

The following information pertains to the Emerald Corp: $$\begin{array} { l r } 
\text { Beginuning work-in-process inventory } & \$ 75,000 \
\text { Ending work-in-process inventory } & 85,000 \
\text { Beginuning finished goods inventory } & 175,000 \
\text { Ending finished goods inventory } & 200,000 \
\text { Cost of goods manufactured } & 1,200,000
\end{array}$$ What is cost of goods sold?

Accepted Answer

A)  $1,210,000 
B)  $1,175,000 
C)  $1,185,000 
D)  $1,225,000 
A)  $1,210,000 
B)  $1,175,000 
C)  $1,185,000 
D)  $1,225,000

Question 4

Which of the following is a fixed cost for an automobile manufacturing plant?

Accepted Answer

A)  administrative salaries 
B)  electricity used by assembly-line machines 
C)  sales commissions 
D)  tires 
A)  administrative salaries 
B)  electricity used by assembly-line machines 
C)  sales commissions 
D)  tires

Question 5

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)  goods returned after being sold to be re-worked on further improvements and quality 
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)  goods returned after being sold to be re-worked on further improvements and quality

Question 6

Answer the following questions using the information below:
The following information pertains to Razor's Corp:
 $$\begin{array} { l l } 
\text { Manufacturing costs } & \$ 135,000 \
\text { Units manufactured } & 15,000 \
\text { Units sold } & 12,000 \text { units sold for } \$ 15 \text { per unit } \
\text { Beginning inventory } & \$ 3,500
\end{array}$$
-What is the manufacturing cost for the ending finished goods inventory?

Accepted Answer

A)  $42,500 
B)  $25,500 
C)  $18,500 
D)  $30,500 
A)  $42,500 
B)  $25,500 
C)  $18,500 
D)  $30,500

Question 7

Answer the following questions using the information below:
The East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows:
 $\begin{array}{lr}
\text { Direct materials } & \$ 54 \
\text { Direct manufacturing labor } & 8 \
\text { Variable manufacturing overhead } & 11 \
\text { Fixed manufacturing overhead } & 25 \
\text { Sales commissions (2\% of sales) } & 5 \
\text { Administrative salaries } & 12 \
\quad \text { Total } & \$ 115
\end{array}$
-What are the inventoriable costs per unit associated with Product ORD210?

Accepted Answer

A)  $73 
B)  $87 
C)  $98 
D)  $62 
A)  $73 
B)  $87 
C)  $98 
D)  $62

Question 8

The determination of a cost as either direct or indirect depends upon the ________.

Accepted Answer

A)  accounting standards 
B)  tax system chosen 
C)  inventory valuation 
D)  cost object chosen 
A)  accounting standards 
B)  tax system chosen 
C)  inventory valuation 
D)  cost object chosen

Question 9

Costs are accounted for in two basic stages: assignment followed by accumulation.

Accepted Answer

A) True 
 B)False

Question 10

All manufacturing costs are period costs.

Accepted Answer

A) True 
 B)False

Question 11

Manufacturing-sector companies report ________.

Accepted Answer

A)  only merchandise inventory 
B)  only finished goods inventory 
C)  direct materials inventory, work-in-process inventory, and finished goods inventory accounts 
D)  direct materials inventory and finished goods inventory accounts only 
A)  only merchandise inventory 
B)  only finished goods inventory 
C)  direct materials inventory, work-in-process inventory, and finished goods inventory accounts 
D)  direct materials inventory and finished goods inventory accounts only

Question 12

For manufacturing firms,inventoriable costs include ________.

Accepted Answer

A)  plant supervisor salaries 
B)  research and development costs 
C)  costs of dealing with customers after the sale 
D)  distribution costs 
A)  plant supervisor salaries 
B)  research and development costs 
C)  costs of dealing with customers after the sale 
D)  distribution costs

Question 13

Answer the following questions using the information below:
 $\begin{array}{lr}
\text { Beginuing finished goods, 1/1/2015 } & \$ 92,000 \
\text { Ending finished goods, 12/31/2015 } & 75,000 \
\text { Cost of goods sold } & 300,000 \
\text { Sales revenue } & 450,000 \
\text { Operating expenses } & 95,000
\end{array}$
-What is the operating income for 2015?

Accepted Answer

A)  $75,000 
B)  $55,000 
C)  $62,000 
D)  $68,000 
A)  $75,000 
B)  $55,000 
C)  $62,000 
D)  $68,000

Question 14

What are the three types of manufacturing cost?

Accepted Answer

Direct materials costs are the acquisiti

Question 15

In determining product cost,what concerns does a manufacturing firm have when contracting with a government agency?

Accepted Answer

Government contracts often reimburse on

Question 16

Inventoriable costs and period costs flow through the income statement at a merchandising company similar to the way costs flow at a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 17

For a manufacturing-sector company,the cost of factory depreciation is classified as a ________.

Accepted Answer

A)  direct material cost 
B)  direct manufacturing labor cost 
C)  manufacturing overhead cost 
D)  period cost 
A)  direct material cost 
B)  direct manufacturing labor cost 
C)  manufacturing overhead cost 
D)  period cost

Question 18

When making decisions for product mix or and pricing,the focus should be on total costs and not unit costs.

Accepted Answer

A) True 
 B)False

Question 19

Archambeau Products Company manufactures office furniture.Recently,the company decided to develop a formal cost accounting system and classify all costs into three categories.Categorize each of the following items as being appropriate for (1)cost tracing to the finished furniture,(2)cost allocation of an indirect manufacturing cost to the finished furniture,or (3)as a nonmanufacturing item.
 $\begin{array}{lcccc} 
& \text { Cost } & \text { Cost } & \text { Nonmanu- } \
\text { Item } & \text { Tracing } & \text { Allocation } & \text { facturing }\
 \text { Carpenter wages}&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text { Depreciation - office building}&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text {Glue for assembly }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text {Lathe department supervisor }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text { Lathe depreciation}&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text {Lathe maintenance }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text {Lathe operator wages }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text { Lumber }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text {Samples for trade shows }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text {Metal brackets for drawers }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
 \text {Factory washroom supplies }&\_\_\_\_&\_\_\_\_&\_\_\_\_ \
\end{array}$

Accepted Answer

The answer of Archambeau Products Company manufactures office furniture.Recently,the company...

Question 20

Yahoo,an Internet search firm,would be classified as a(n)________.

Accepted Answer

A)  manufacturing-sector company 
B)  merchandising-sector company 
C)  service-sector company 
D)  financial services 
A)  manufacturing-sector company 
B)  merchandising-sector company 
C)  service-sector company 
D)  financial services

The most likely cost driver of direct labor costs is the ________.

Answer the following questions using the information below: Beginuing finished goods, 1/1/2015 \ 92,000 Ending finished goods, 12/31/2015 75,000 Cost of goods sold 300,000 Sales revenue 450,000 Operating expenses 95,000 -What is the cost of goods manufactured for 2015?

The following information pertains to the Emerald Corp: Beginuning work-in-process inventory \ 75,000 Ending work-in-process inventory 85,000 Beginuning finished goods inventory 175,000 Ending finished goods inventory 200,000 Cost of goods manufactured 1,200,000 What is cost of goods sold?

Which of the following is a fixed cost for an automobile manufacturing plant?

Finished goods inventory would normally include ________.

The determination of a cost as either direct or indirect depends upon the ________.

Costs are accounted for in two basic stages: assignment followed by accumulation.

All manufacturing costs are period costs.

Manufacturing-sector companies report ________.

For manufacturing firms,inventoriable costs include ________.

Answer the following questions using the information below: Beginuing finished goods, 1/1/2015 \ 92,000 Ending finished goods, 12/31/2015 75,000 Cost of goods sold 300,000 Sales revenue 450,000 Operating expenses 95,000 -What is the operating income for 2015?

What are the three types of manufacturing cost?

In determining product cost,what concerns does a manufacturing firm have when contracting with a government agency?

Inventoriable costs and period costs flow through the income statement at a merchandising company similar to the way costs flow at a manufacturing company.

For a manufacturing-sector company,the cost of factory depreciation is classified as a ________.

When making decisions for product mix or and pricing,the focus should be on total costs and not unit costs.

Yahoo,an Internet search firm,would be classified as a(n)________.

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

The most likely cost driver of direct labor costs is the ________.

Answer the following questions using the information below: Beginuing finished goods, 1/1/2015 \ 92,000 Ending finished goods, 12/31/2015 75,000 Cost of goods sold 300,000 Sales revenue 450,000 Operating expenses 95,000 -What is the cost of goods manufactured for 2015?

The following information pertains to the Emerald Corp: Beginuning work-in-process inventory \ 75,000 Ending work-in-process inventory 85,000 Beginuning finished goods inventory 175,000 Ending finished goods inventory 200,000 Cost of goods manufactured 1,200,000 What is cost of goods sold?

Which of the following is a fixed cost for an automobile manufacturing plant?

Finished goods inventory would normally include ________.

The determination of a cost as either direct or indirect depends upon the ________.

Costs are accounted for in two basic stages: assignment followed by accumulation.

All manufacturing costs are period costs.

Manufacturing-sector companies report ________.

For manufacturing firms,inventoriable costs include ________.

Answer the following questions using the information below: Beginuing finished goods, 1/1/2015 \ 92,000 Ending finished goods, 12/31/2015 75,000 Cost of goods sold 300,000 Sales revenue 450,000 Operating expenses 95,000 -What is the operating income for 2015?

What are the three types of manufacturing cost?

In determining product cost,what concerns does a manufacturing firm have when contracting with a government agency?

Inventoriable costs and period costs flow through the income statement at a merchandising company similar to the way costs flow at a manufacturing company.

For a manufacturing-sector company,the cost of factory depreciation is classified as a ________.

When making decisions for product mix or and pricing,the focus should be on total costs and not unit costs.

Yahoo,an Internet search firm,would be classified as a(n)________.

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