Exam 2: Basic Cost Management Concepts

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 is the cost of materials used in production?

Which of the following is NOT an objective of the operational control system?

A subsystem of the accounting information system designed to satisfy costing, controlling and decision making objectives is called the __________ system.

Generally, more managerial objectives can be met with an activity-based system than with a _________ system.

Information about Mobile Enterprises for the year ending December 31, 2014, is as follows:

Figure 2-12 Information from the records of the Conundrum Company for September 2014 was as follows: Conundrum Corporation produced 20,000 units. Refer to Figure 2-12. What are the conversion costs per unit?

Figure 2-14 The following is the data for Lauren Enterprises: Refer to Figure 2-14. What is the cost of goods sold?

The following information is from the records of Stretch Limousines, Inc.: The ending direct materials inventory is

The overall objective of accounting information is to provide information to __________.

The resources given up that are expected to bring a current or future benefit to the organization are represented by:

The cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers relative to their control of activities is the __________ information system.

Which of the following costs is a period cost?

Which of the following costs incurred by a furniture manufacturer would be a product cost?

Gross margin is the difference between __________ and the cost of goods or services sold.

The three methods of cost assignment are direct tracing, driver tracing, and allocation.

__________ are generally materials necessary for production that do not become part of the finished product or are not used to provide a service.

Which of the following is NOT a trait of a functional-based cost management system?

Assume the following information for the Blue Knights Corporation for the year ended December 31, 2014: What is the cost of goods sold for the year ended December 31, 2014?

Selling and administrative costs are classified as

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