Exam 2: Basic Cost Management Concepts

Factors that cause changes in resource usage, activity usage, costs and revenues are called

In choosing a cost management system, the controller must balance the total costs of implementing such systems. What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?

Which of the following costs would be included as part of direct labor?

Foremost Corporation incurred the following costs: Required: Calculate the following values:

Morton Manufacturing shows cost of goods sold for the month of March was $90,000. The finished goods inventory was $15,000 on March 1 and $17,500 on March 31. Beginning and ending work-in-process inventories were $20,000 and $25,000, respectively. What was the cost of goods manufactured during March?

The direct costs of operating a college computer center would NOT include

Intangibility of services means that

Define activity-based management. In your answer, present the activity-based management model in good form.

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 conversion cost is

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

If beginning work-in-process inventory is $160,000, ending work-in-process inventory is $180,000, cost of goods manufactured is $500,000, and direct materials used are $130,000, what are the conversion costs?

The following information pertains to the Montpelier Company: Required: Determine the following values:

Which of the following expenses incurred by a department store is a direct cost for the women's shoe department?

The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

Which of the following would NOT be included in the conversion cost of an automobile?

Selected data concerning the past year's operations of the Motor City Corporation are as follows: The cost of direct materials purchased is

Which of the following is an example of a possible cost object?

Which of the following is a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control of activities?

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 variable product costs are

A traditional cost accounting system assumes that all costs can be classified as fixed with respect to changes in the units or volume produced.