Exam 2: Basic Cost Management Concepts

The records of the Williamson Company show the following information: What was the cost of goods manufactured during the year?

The cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future benefit to the organization is/are called:

An example of a service, rather than a tangible product, would be

The following information pertains to Steel Wheels, Inc: What are the prime costs for the year?

With regards to products, perishability can be defined as

All of the following costs are included in factory overhead EXCEPT

Which of the following items is NEVER relevant to the cost flows of a service organization?

Cost management systems are made up of two subsystems: the __________ accounting system and the __________ control system.

Work in process consists of all partially completed units found in production at a given point in time.

Which of the following costs would NOT be included in calculating inventory values under the absorption-costing basis?

A cost used up in the production of revenues is a(n)

Figure 2-16 A small engine repair shop purchased materials costing $9,000 in July. The beginning inventory of material parts was $4,500 and the ending inventory of material parts was $4,000. Payments for direct labor for July totaled $27,000, secretarial costs were $2,000, and overhead of $5,000 was incurred. In addition, $5,000 was spent on advertising and $2,000 for the franchise name. Revenue for July was $50,000. Refer to Figure 2-16. What is the gross margin for July?

In a cost management system, the cost view does NOT include

Figure 2-11 Information from the records of the Abel Corporation for July 2014 was as follows: *variable overhead is $205,000, fixed overhead is $200,000 Refer to Figure 2-11. The prime costs are

A computerized information system that strives to input data once and to make it available to people across the company for different purposes is called a:

Inventory balances for Spiritlight Ventures for November 2014 are as follows: During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively. The cost of goods manufactured in November was

In a company that supplies muffins to bakeries, which of the following would NOT be considered a transforming process?

If the total warehousing cost for the year amounts to $450,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

All of Eva Enterprise's operations are housed in one building with the costs of occupying the building accumulated in a separate account. The total costs incurred in July amounted to $48,000. The company allocates these costs on the basis of square feet of floor space occupied. Administrative offices, sales offices, and factory operations occupy 9,000, 6,000, and 30,000 square feet, respectively. How much will be classified as a product cost for July?

The cost of goods manufactured represents the total manufacturing cost of goods completed during the current period.