Exam 16: Cost Concepts and Cost Allocation

A projected cost for the future is a

The job order cost card reflects the product cost per unit.

The presentation of merchandise inventory and cost of goods sold in the financial statements of merchandising companies most nearly resembles the presentation of __________ inventory and cost of goods sold in the financial statements of manufacturing companies.

Calculation of a product's overhead rate is done during the accounting period.

Completed but unsold units for a manufacturing firm would be included in which of the following accounts?

At the end of an accounting period,the balance in the Finished Goods Inventory account is made up of the costs of products completed but not sold as of that date.

For a manufactured product,all costs incurred to get the product ready for sale are included in the inventory value of the product.

Product unit cost comprises only direct materials and direct labor costs.

Which of the following financial statements is unique to a production-oriented company?

The following information was taken from the cost records of the Krameer Company: Estimated overhead \ 180,000 Actual overhead \ 178,000 Estimated direct labor hours 24,000 Actual direct labor hours 25,000 If overhead is applied based on direct labor hours,the company's overapplied or underapplied overhead was

An understated cost driver level will cause an understatement of the predetermined overhead rate.

Depreciation expense could be

The factory personnel whose wages are traceable directly to a product include

Indirect costs incurred are charged directly to the Work in Process Inventory account.

Which of the following is not a product cost?

Which of the following accounts would be adjusted by the disposal of an immaterial amount of overapplied overhead?

Total fixed costs remain constant within a defined time period or range of activity.

If overhead is applied on the basis of direct labor hours,and actual hours worked are less than budgeted,which of the following is true,assuming estimated overhead is correct?

Materials costs flow from the Materials Inventory to the Work in Process Inventory to the Cost of Goods Sold account.

By using a predetermined overhead rate and an allocation base,such as direct labor dollars or hours,one can assign overhead costs by debiting the Overhead account and crediting the Work in Process Inventory account.