Exam 2: Basic Cost Management Concepts

The income statement prepared for external reporting is

Which of the following costs is an indirect product cost?

Which of the following is an example of an expense?

Which of the following costs would be included as part of direct materials in the production of an automobile?

Error costs are costs associated with measurements required by the cost management system and measurement costs are the costs associated with making poor decisions.

The overall objective of accounting information systems is to

Which of the following items would NOT appear on an income statement of a service organization?

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

Which of the following costs is a product cost?

Which of the following costs would be included as part of factory overhead?

Value-chain product costs include which of the following?

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

The sum of the total additions to work in process during a period is

Product value-chain costs assist managers in meeting which of the following objectives?

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows: Refer to Figure 2-15. What was the cost of materials used in production?

The value chain is the set of activities required to design, develop, produce, market, deliver and provide post-sales service for the products and services sold to customers.

__________ means the consumer cannot see, hear, feel, or taste a service before it is bought.

The following costs were incurred by the Awesome Company: Required: Calculate the following values:

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2014 is as follows: Refer to Figure 2-15. Chrome Ponies Enterprises' cost of goods manufactured in June is

Figure 2-13 Inventory balances for the Jameson Company in October 2014 are as follows: During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. Refer to Figure 2-13. What are the total manufacturing costs added to production in the period?