Question 1

The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following costs is an example of product costs?

Accepted Answer

A)  selling commissions 
B)  nonfactory office salaries 
C)  direct materials 
D)  advertising expense 
A)  selling commissions 
B)  nonfactory office salaries 
C)  direct materials 
D)  advertising expense

Question 3

The precision of driver tracing depends upon

Accepted Answer

A)  physically observable relationships. 
B)  the strength of causal relationships described by the driver. 
C)  allocation estimations. 
D)  both b and c. 
A)  physically observable relationships. 
B)  the strength of causal relationships described by the driver. 
C)  allocation estimations. 
D)  both b and c.

Question 4

Expired costs used up in the generation of revenues are called __________ .

Accepted Answer

The answer of Expired costs used up in the generation...

Question 5

Which of the following is NOT an example of a difference between the income statement of a service organization and the income statement of a manufacturing organization?

Accepted Answer

A)  A service company will never have work in process. 
B)  The service company will not have a finished goods inventory. 
C)  Fulfillment costs may be added to cost of goods sold of a service company. 
D)  Research and development expenses are not usually a major component of a service organization. 
A)  A service company will never have work in process. 
B)  The service company will not have a finished goods inventory. 
C)  Fulfillment costs may be added to cost of goods sold of a service company. 
D)  Research and development expenses are not usually a major component of a service organization.

Question 6

Corlis Custom Builders designs decks, gazebos, and play equipment for residential homes. The following was provided for the year ended September 30, 2014:
   The average design fee is $700. There were 2,000 designs processed during the year.
Required:

Accepted Answer

The answer of Corlis Custom Builders designs decks, gazebos, and...

Question 7

In preparing an income statement, __________ and __________ costs are separated.
or

Accepted Answer

production; nonprodu

Question 8

Which type of inventory is normally sold to other organizations?

Accepted Answer

A)  direct materials 
B)  factory supplies 
C)  work in process 
D)  finished goods 
A)  direct materials 
B)  factory supplies 
C)  work in process 
D)  finished goods

Question 9

In an accounting information system, the inputs are usually

Accepted Answer

A)  financial statements. 
B)  analyzing data. 
C)  economic events. 
D)  performance reports. 
A)  financial statements. 
B)  analyzing data. 
C)  economic events. 
D)  performance reports.

Question 10

The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):

Accepted Answer

A)  cost objective 
B)  system 
C)  activity 
D)  cost driver 
A)  cost objective 
B)  system 
C)  activity 
D)  cost driver

Question 11

Conversion cost is the sum of direct materials and direct labor cost and prime cost is the sum of direct labor and overhead cost.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following costs would be included in value-chain product costs?

Accepted Answer

A)  research and development 
B)  production 
C)  customer service 
D)  all of the above 
A)  research and development 
B)  production 
C)  customer service 
D)  all of the above

Question 13

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows:
    Refer to Figure 2-15. What are the total manufacturing costs added?

Accepted Answer

A)  $18,500 
B)  $19,300 
C)  $29,000 
D)  $29,300 
A)  $18,500 
B)  $19,300 
C)  $29,000 
D)  $29,300

Question 14

Which of the following costs is a period cost for a manufacturing company?

Accepted Answer

A)  controller's salary 
B)  wages of machine operators 
C)  insurance on factory equipment 
D)  fringe benefits for factory employees 
A)  controller's salary 
B)  wages of machine operators 
C)  insurance on factory equipment 
D)  fringe benefits for factory employees

Question 15

Cost of goods sold equals cost of goods manufactured

Accepted Answer

A)  when finished goods inventories remain constant. 
B)  when work-in-process inventories remain constant. 
C)  plus beginning work-in-process inventory minus ending work-in-process inventory. 
D)  when materials inventories remain constant. 
A)  when finished goods inventories remain constant. 
B)  when work-in-process inventories remain constant. 
C)  plus beginning work-in-process inventory minus ending work-in-process inventory. 
D)  when materials inventories remain constant.

Question 16

In a company that supplies muffins to bakeries, which of the following would be considered an input?

Accepted Answer

A)  delivered muffins 
B)  flour 
C)  baking 
D)  none of these 
A)  delivered muffins 
B)  flour 
C)  baking 
D)  none of these

Question 17

Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?

Accepted Answer

A)  materials inventory 
B)  bonds payable 
C)  prepaid insurance 
D)  retained earnings 
A)  materials inventory 
B)  bonds payable 
C)  prepaid insurance 
D)  retained earnings

Question 18

The insurance paid on the factory is

Accepted Answer

A)  a direct cost if the cost object is the factory. 
B)  an indirect cost if the cost object is the product produced. 
C)  could be either a direct cost or an indirect cost, depending on the cost object. 
D)  all of the above. 
A)  a direct cost if the cost object is the factory. 
B)  an indirect cost if the cost object is the product produced. 
C)  could be either a direct cost or an indirect cost, depending on the cost object. 
D)  all of the above.

Question 19

The following information for the Sutton Glass Company has been provided:   What is the amount of direct materials used?

Accepted Answer

A)  $25,000 
B)  $30,000 
C)  $35,000 
D)  $100,000 
A)  $25,000 
B)  $30,000 
C)  $35,000 
D)  $100,000

Question 20

Inventory balances for the Beemer Enterprises in April 2014 are as follows:   During April, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
Prime costs for April were

Accepted Answer

A)  $102,000 
B)  $96,000 
C)  $87,000 
D)  $81,000 
A)  $102,000 
B)  $96,000 
C)  $87,000 
D)  $81,000

The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value.

Which of the following costs is an example of product costs?

The precision of driver tracing depends upon

Expired costs used up in the generation of revenues are called __________ .

Which of the following is NOT an example of a difference between the income statement of a service organization and the income statement of a manufacturing organization?

Corlis Custom Builders designs decks, gazebos, and play equipment for residential homes. The following was provided for the year ended September 30, 2014: The average design fee is $700. There were 2,000 designs processed during the year. Required:

In preparing an income statement, and costs are separated. or

Which type of inventory is normally sold to other organizations?

In an accounting information system, the inputs are usually

The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):

Conversion cost is the sum of direct materials and direct labor cost and prime cost is the sum of direct labor and overhead cost.

Which of the following costs would be included in value-chain product costs?

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows: Refer to Figure 2-15. What are the total manufacturing costs added?

Which of the following costs is a period cost for a manufacturing company?

Cost of goods sold equals cost of goods manufactured

In a company that supplies muffins to bakeries, which of the following would be considered an input?

Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?

The insurance paid on the factory is

The following information for the Sutton Glass Company has been provided: What is the amount of direct materials used?

Inventory balances for the Beemer Enterprises in April 2014 are as follows: During April, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. Prime costs for April were

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

The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value.

Which of the following costs is an example of product costs?

The precision of driver tracing depends upon

Expired costs used up in the generation of revenues are called __________ .

Which of the following is NOT an example of a difference between the income statement of a service organization and the income statement of a manufacturing organization?

Corlis Custom Builders designs decks, gazebos, and play equipment for residential homes. The following was provided for the year ended September 30, 2014: The average design fee is $700. There were 2,000 designs processed during the year. Required:

In preparing an income statement, __________ and __________ costs are separated. or

Which type of inventory is normally sold to other organizations?

In an accounting information system, the inputs are usually

The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):

Conversion cost is the sum of direct materials and direct labor cost and prime cost is the sum of direct labor and overhead cost.

Which of the following costs would be included in value-chain product costs?

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows: Refer to Figure 2-15. What are the total manufacturing costs added?

Which of the following costs is a period cost for a manufacturing company?

Cost of goods sold equals cost of goods manufactured

In a company that supplies muffins to bakeries, which of the following would be considered an input?

Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?

The insurance paid on the factory is

The following information for the Sutton Glass Company has been provided: What is the amount of direct materials used?

Inventory balances for the Beemer Enterprises in April 2014 are as follows: During April, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. Prime costs for April were

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

In preparing an income statement, and costs are separated. or