Question 1

An integrated cost management system receives information from and provides information to only the controller of a company.

Accepted Answer

A) True 
 B)False

Question 2

The most likely method to assign the cost of an assembly-line supervisor when the assembly line is the cost object is the:

Accepted Answer

A)  driver tracing method 
B)  arbitration method 
C)  allocation method 
D)  direct tracing method 
A)  driver tracing method 
B)  arbitration method 
C)  allocation method 
D)  direct tracing method

Question 3

Period costs do NOT include

Accepted Answer

A)  order-getting costs. 
B)  order-filling costs. 
C)  order-making costs. 
D)  all of the above are period costs. 
A)  order-getting costs. 
B)  order-filling costs. 
C)  order-making costs. 
D)  all of the above are period costs.

Question 4

Prime product costs include

Accepted Answer

A)  only factory overhead. 
B)  only direct labor. 
C)  direct labor and factory overhead. 
D)  direct materials and direct labor. 
A)  only factory overhead. 
B)  only direct labor. 
C)  direct labor and factory overhead. 
D)  direct materials and direct labor.

Question 5

Product costs are converted from cost to expense when

Accepted Answer

A)  units are completed. 
B)  materials are purchased. 
C)  units are sold. 
D)  materials are requisitioned. 
A)  units are completed. 
B)  materials are purchased. 
C)  units are sold. 
D)  materials are requisitioned.

Question 6

Which cost assignment method would likely assign the cost of heating in a plant that makes beds and dressers when the bed product line is the cost object?

Accepted Answer

A)  driver tracing 
B)  direct tracing 
C)  allocation 
D)  arbitration 
A)  driver tracing 
B)  direct tracing 
C)  allocation 
D)  arbitration

Question 7

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Accepted Answer

A)  financial accounting information system 
B)  operational control information system 
C)  cost accounting information system 
D)  all of the above 
A)  financial accounting information system 
B)  operational control information system 
C)  cost accounting information system 
D)  all of the above

Question 8

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
    Refer to Figure 2-15. What is the gross margin (profit)?

Accepted Answer

A)  $11,500 
B)  $11,600 
C)  $ 4,500 
D)  $ 4,600 
A)  $11,500 
B)  $11,600 
C)  $ 4,500 
D)  $ 4,600

Question 9

Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future loss to the company.

Accepted Answer

A) True 
 B)False

Question 10

Cost management systems can be broadly classified as traditional or activity based.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a trait of a functional-based cost management system?

Accepted Answer

A)  unit-based drivers 
B)  tracing intensive 
C)  use of both financial and nonfinancial measures of performance 
D)  detailed activity information 
A)  unit-based drivers 
B)  tracing intensive 
C)  use of both financial and nonfinancial measures of performance 
D)  detailed activity information

Question 12

In a functional-based management system, one is NOT likely to find

Accepted Answer

A)  unit- and non-unit-based cost drivers. 
B)  maximization of individual unit performance. 
C)  narrow and rigid product costing. 
D)  allocation intensive cost assignment. 
A)  unit- and non-unit-based cost drivers. 
B)  maximization of individual unit performance. 
C)  narrow and rigid product costing. 
D)  allocation intensive cost assignment.

Question 13

__________ income is the difference between gross margin and selling and administrative expenses.

Accepted Answer

The answer of __________ income is the difference between gross...

Question 14

Services differ from tangible products on three dimension: intangibility, perishability, and inseparability.

Accepted Answer

A) True 
 B)False

Question 15

The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.

Accepted Answer

A) True 
 B)False

Question 16

The income statement prepared for external parties is frequently referred to as absorption-costing income, or full costing income.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  resources. 
B)  activities. 
C)  driver analysis. 
D)  performance analysis. 
A)  resources. 
B)  activities. 
C)  driver analysis. 
D)  performance analysis.

Question 18

The cost of units completed during a period is called

Accepted Answer

A)  cost of goods sold. 
B)  cost of goods manufactured. 
C)  current manufacturing costs. 
D)  finished goods inventory. 
A)  cost of goods sold. 
B)  cost of goods manufactured. 
C)  current manufacturing costs. 
D)  finished goods inventory.

Question 19

The difference between a supply and an indirect material is that

Accepted Answer

A)  supplies are not necessary for production. 
B)  indirect materials are not physically part of the product. 
C)  supplies are not necessary for production and are not physically part of the product. 
D)  supplies are necessary for production and are not physically part of the product. 
A)  supplies are not necessary for production. 
B)  indirect materials are not physically part of the product. 
C)  supplies are not necessary for production and are not physically part of the product. 
D)  supplies are necessary for production and are not physically part of the product.

Question 20

Describe a cost management information system, its objectives, and major subsystems.

Accepted Answer

The cost management information system i

An integrated cost management system receives information from and provides information to only the controller of a company.

The most likely method to assign the cost of an assembly-line supervisor when the assembly line is the cost object is the:

Period costs do NOT include

Prime product costs include

Product costs are converted from cost to expense when

Which cost assignment method would likely assign the cost of heating in a plant that makes beds and dressers when the bed product line is the cost object?

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows: Refer to Figure 2-15. What is the gross margin (profit)?

Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future loss to the company.

Cost management systems can be broadly classified as traditional or activity based.

Which of the following is a trait of a functional-based cost management system?

In a functional-based management system, one is NOT likely to find

__________ income is the difference between gross margin and selling and administrative expenses.

Services differ from tangible products on three dimension: intangibility, perishability, and inseparability.

The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.

The income statement prepared for external parties is frequently referred to as absorption-costing income, or full costing income.

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

The cost of units completed during a period is called

The difference between a supply and an indirect material is that

Describe a cost management information system, its objectives, and major subsystems.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 2: Basic Cost Management Concepts

An integrated cost management system receives information from and provides information to only the controller of a company.

The most likely method to assign the cost of an assembly-line supervisor when the assembly line is the cost object is the:

Period costs do NOT include

Prime product costs include

Product costs are converted from cost to expense when

Which cost assignment method would likely assign the cost of heating in a plant that makes beds and dressers when the bed product line is the cost object?

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows: Refer to Figure 2-15. What is the gross margin (profit)?

Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future loss to the company.

Cost management systems can be broadly classified as traditional or activity based.

Which of the following is a trait of a functional-based cost management system?

In a functional-based management system, one is NOT likely to find

__________ income is the difference between gross margin and selling and administrative expenses.

Services differ from tangible products on three dimension: intangibility, perishability, and inseparability.

The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.

The income statement prepared for external parties is frequently referred to as absorption-costing income, or full costing income.

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

The cost of units completed during a period is called

The difference between a supply and an indirect material is that

Describe a cost management information system, its objectives, and major subsystems.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters