Question 1

Classifying a cost as either direct or indirect depends upon ________.

Accepted Answer

A) the behavior 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 a particular cost object in an economically feasible way 
D) whether a cost is fixed or variable 
A) the behavior 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 a particular cost object in an economically feasible way 
D) whether a cost is fixed or variable

Question 2

Product costs used for government contracts generally include ________.

Accepted Answer

A) marketing costs,and customer service costs 
B) design costs and production costs 
C) all the costs for pricing and product-mix decisions 
D) production costs,distribution costs,marketing costs,and customer service costs 
A) marketing costs,and customer service costs 
B) design costs and production costs 
C) all the costs for pricing and product-mix decisions 
D) production costs,distribution costs,marketing costs,and customer service costs

Question 3

Which of the following might explain why one manager might assign certain costs to a cost object while a different manager might assign some different costs to that same cost object?

Accepted Answer

A) one manager might classify one cost as direct while another might classify that same cost as indirect 
B) For financial statement purposes,one manager might include all the costs of the value chain while the other might only only include GAAP cost 
C) one manager might value an inventory item for the balance sheet as the sum of all the value chain costs while another manager might choose to only recognize variable costs as inventoribale costs for GAAP purposes. 
D) one manager might be pricing a cost object while the other manager might be seeking the inventoriable cost 
A) one manager might classify one cost as direct while another might classify that same cost as indirect 
B) For financial statement purposes,one manager might include all the costs of the value chain while the other might only only include GAAP cost 
C) one manager might value an inventory item for the balance sheet as the sum of all the value chain costs while another manager might choose to only recognize variable costs as inventoribale costs for GAAP purposes. 
D) one manager might be pricing a cost object while the other manager might be seeking the inventoriable cost

Question 4

During 2018,Get There Corporation incurred manufacturing expenses of $200,000 to produce 40,000 finished units.It was determined that 35,000 units were sold by the end of November while 5,000 units remained in ending inventory.The storage cost for December is $0.5 per unit.
Required:
a.What is the cost of producing one unit?
b.What is the amount that will be reported on the income statement for cost of goods sold?
c.What is the cost incurred for storing the inventory?

Accepted Answer

a.$2000,000 / 40,000

Classifying a cost as either direct or indirect depends upon ________.

Product costs used for government contracts generally include ________.

Which of the following might explain why one manager might assign certain costs to a cost object while a different manager might assign some different costs to that same cost object?

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

Classifying a cost as either direct or indirect depends upon ________.

Product costs used for government contracts generally include ________.

Which of the following might explain why one manager might assign certain costs to a cost object while a different manager might assign some different costs to that same cost object?

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