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

A fixed cost remains unchanged in total for a given time period,despite wide changes in the related level
of total activity or volume of output produced.

Accepted Answer

A) True 
 B)False

Question 3

Assigning indirect costs is easier than assigning direct costs.

Accepted Answer

A) True 
 B)False

Question 4

Product costs for financial statements are:

Accepted Answer

A) inventoriable costs for external reporting purposes 
B) exchange costs incurred during transportation 
C) only the costs incurred along the supply chain 
D) opportunity costs incurred for the decisions forgone 
A) inventoriable costs for external reporting purposes 
B) exchange costs incurred during transportation 
C) only the costs incurred along the supply chain 
D) opportunity costs incurred for the decisions forgone

Question 5

Puritan Apparels is a clothing manufacturer.Unit costs associated with one of its products,Product FGS1156 are as follows:
 
What are the inventoriable costs per unit associated with Product FGS1156?

Accepted Answer

A) $196 
B) $165 
C) $178 
D) $143 
A) $196 
B) $165 
C) $178 
D) $143

Question 6

Operating income is sales revenue minus operating expenses.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following cost is included in cost of goods sold?

Accepted Answer

A) customer service cost 
B) manufacturing labor cost 
C) distribution cost 
D) marketing cost 
A) customer service cost 
B) manufacturing labor cost 
C) distribution cost 
D) marketing cost

Question 8

Under GAAP,for the purposes of calculating inventory costs,product costs include ________.

Accepted Answer

A) all costs incurred along the value chain 
B) design costs 
C) only inventoriable costs 
D) only research and development costs 
A) all costs incurred along the value chain 
B) design costs 
C) only inventoriable costs 
D) only research and development costs

Question 9

On the assembly floor,Jennifer is paid a regular rate of $25 an hour for straight-time assuming 8 working hours a day and five working days in a week.She is paid 1.5 times her regular rate for overtime hours.One week she worked 48 hours.
Required:
a.What is Jennifer's total compensation for the week?
b.What amount of compensation would be reported as direct manufacturing labor?
c.What amount of compensation would be reported as manufacturing overhead?

Accepted Answer

a.Total compensation = Direct labor (40

Question 10

Cost allocation is ________.

Accepted Answer

A) the process of tracking both direct and indirect costs associated with a cost object 
B) the process of determining the opportunity cost of a cost object chosen 
C) the assignment of indirect costs to the chosen cost object 
D) made based on material acquisition document 
A) the process of tracking both direct and indirect costs associated with a cost object 
B) the process of determining the opportunity cost of a cost object chosen 
C) the assignment of indirect costs to the chosen cost object 
D) made based on material acquisition document

Question 11

Which of the following is not reported on the income statement of a manufacturing firm?

Accepted Answer

A) cost of goods sold 
B) administrative and selling expenses 
C) work in progress 
D) marketing and distribution costs 
A) cost of goods sold 
B) administrative and selling expenses 
C) work in progress 
D) marketing and distribution costs

Question 12

Using the following information find the unknown amounts.Assume each set of information is an independent case.

Accepted Answer

@#IMG-DLM&_TB5540_00_TB5540_00 b.Direct

Question 13

Total manufacturing costs equal ________.

Accepted Answer

A) direct materials plus prime costs 
B) direct materials plus conversion costs 
C) direct manufacturing labor costs plus sunk costs 
D) direct manufacturing labor costs plus conversion costs 
A) direct materials plus prime costs 
B) direct materials plus conversion costs 
C) direct manufacturing labor costs plus sunk costs 
D) direct manufacturing labor costs plus conversion costs

Question 14

What is gross margin for 2018?

Accepted Answer

A) $212,000 
B) $228,000 
C) $244,000 
D) $122,000 
A) $212,000 
B) $228,000 
C) $244,000 
D) $122,000

Question 15

Manufacturing overhead costs in an automobile manufacturing plant most likely include ________.

Accepted Answer

A) labor costs of the painting department 
B) indirect material costs such as lubricants 
C) leather seat costs 
D) tire costs 
A) labor costs of the painting department 
B) indirect material costs such as lubricants 
C) leather seat costs 
D) tire costs

Question 16

Manufacturing companies hold only one type of inventory: direct material.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would be considered an actual cost of a current period?

Accepted Answer

A) The $25 of materials in a manufactured chair that is ready to be shipped to the customer 
B) The $22 of direct material cost per unit assumed in the actual budget of a manufacturer of chairs 
C) The expected cost of materials for a chair as a result of engineering specifications 
D) The average of historical material cost data for a chair manufactured in several past accounting periods 
A) The $25 of materials in a manufactured chair that is ready to be shipped to the customer 
B) The $22 of direct material cost per unit assumed in the actual budget of a manufacturer of chairs 
C) The expected cost of materials for a chair as a result of engineering specifications 
D) The average of historical material cost data for a chair manufactured in several past accounting periods

Question 18

Which of the following formulas determine cost of goods sold in a manufacturing entity?

Accepted Answer

A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold 
B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
C) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold 
B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods sold 
C) Cost of goods manufactured - Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold 
D) Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory = Cost of goods sold

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.

Accepted Answer

@#IMG-DLM&_TB5540_00

Question 20

The cost system of Charlton Frabricators indicates that a product cost $30 to make in house.Of that $30 cost,$7 consists of plant costs that have already been paid for.A supplier proposes to make the same product for $26 but Charlton's plant will have idle time and because of budgetary constraints,will not be retooled to take advantage of that idle time.Should the product be outsourced to the supplier?

Accepted Answer

A) No because the relevant cost for making the product is only $23 . 
B) Yes because the Supplier can produce the product for $4.00 less per unit than Charlton can. 
C) Yes because the Supplier can produce the product for $11.00 less per unit than Charlton can. 
D) No because the plant can be utilized for other purposes and either save the company even more money or produce additional revenue. 
A) No because the relevant cost for making the product is only $23 . 
B) Yes because the Supplier can produce the product for $4.00 less per unit than Charlton can. 
C) Yes because the Supplier can produce the product for $11.00 less per unit than Charlton can. 
D) No because the plant can be utilized for other purposes and either save the company even more money or produce additional revenue.

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

A fixed cost remains unchanged in total for a given time period,despite wide changes in the related level of total activity or volume of output produced.

Assigning indirect costs is easier than assigning direct costs.

Product costs for financial statements are:

Puritan Apparels is a clothing manufacturer.Unit costs associated with one of its products,Product FGS1156 are as follows: What are the inventoriable costs per unit associated with Product FGS1156?

Operating income is sales revenue minus operating expenses.

Which of the following cost is included in cost of goods sold?

Under GAAP,for the purposes of calculating inventory costs,product costs include ________.

Cost allocation is ________.

Which of the following is not reported on the income statement of a manufacturing firm?

Using the following information find the unknown amounts.Assume each set of information is an independent case.

Total manufacturing costs equal ________.

What is gross margin for 2018?

Manufacturing overhead costs in an automobile manufacturing plant most likely include ________.

Manufacturing companies hold only one type of inventory: direct material.

Which of the following would be considered an actual cost of a current period?

Which of the following formulas determine cost of goods sold in a manufacturing entity?

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.

A fixed cost remains unchanged in total for a given time period,despite wide changes in the related level of total activity or volume of output produced.

Assigning indirect costs is easier than assigning direct costs.

Product costs for financial statements are:

Puritan Apparels is a clothing manufacturer.Unit costs associated with one of its products,Product FGS1156 are as follows: What are the inventoriable costs per unit associated with Product FGS1156?

Operating income is sales revenue minus operating expenses.

Which of the following cost is included in cost of goods sold?

Under GAAP,for the purposes of calculating inventory costs,product costs include ________.

Cost allocation is ________.

Which of the following is not reported on the income statement of a manufacturing firm?

Using the following information find the unknown amounts.Assume each set of information is an independent case.

Total manufacturing costs equal ________.

What is gross margin for 2018?

Manufacturing overhead costs in an automobile manufacturing plant most likely include ________.

Manufacturing companies hold only one type of inventory: direct material.

Which of the following would be considered an actual cost of a current period?

Which of the following formulas determine cost of goods sold in a manufacturing entity?

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