Question 1

Error costs can be defined as

Accepted Answer

A)  the costs associated with the measurements required by the cost management system. 
B)  unit costs assigned based on activities. 
C)  the costs associated with making poor decisions based on bad cost information. 
D)  none of these 
A)  the costs associated with the measurements required by the cost management system. 
B)  unit costs assigned based on activities. 
C)  the costs associated with making poor decisions based on bad cost information. 
D)  none of these

Question 2

The records for the previous year for Sarasota Boat Builders, Inc., shows the following data::     The cost of goods sold is

Accepted Answer

A)  $1,630,000. 
B)  $1,880,000. 
C)  $1,600,000. 
D)  $1,650,000. 
A)  $1,630,000. 
B)  $1,880,000. 
C)  $1,600,000. 
D)  $1,650,000.

Question 3

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

Accepted Answer

A)  allocation-intensive 
B)  narrow and rigid product costing 
C)  non-unit-based drivers 
D)  focus on managing costs 
A)  allocation-intensive 
B)  narrow and rigid product costing 
C)  non-unit-based drivers 
D)  focus on managing costs

Question 4

Assume the following data for Rodriguez Services, an accounting firm, for November:   What is the cost of services sold for November?

Accepted Answer

A)  $370,000 
B)  $350,000 
C)  $360,000 
D)  $330,000 
A)  $370,000 
B)  $350,000 
C)  $360,000 
D)  $330,000

Question 5

Which of the following is a service organization?

Accepted Answer

A)  grocery store 
B)  CPA firm 
C)  cattle ranch 
D)  department store 
A)  grocery store 
B)  CPA firm 
C)  cattle ranch 
D)  department store

Question 6

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 goods manufactured?

Accepted Answer

A)  $180,000 
B)  $186,000 
C)  $194,000 
D)  $196,800 
A)  $180,000 
B)  $186,000 
C)  $194,000 
D)  $196,800

Question 7

The sum of direct labor and factory overhead is referred to as

Accepted Answer

A)  period costs. 
B)  conversion costs. 
C)  prime costs. 
D)  direct product costs. 
A)  period costs. 
B)  conversion costs. 
C)  prime costs. 
D)  direct product costs.

Question 8

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 total product cost is

Accepted Answer

A)  $1,179,000 
B)  $ 969,000 
C)  $ 615,000 
D)  $ 764,000 
A)  $1,179,000 
B)  $ 969,000 
C)  $ 615,000 
D)  $ 764,000

Question 9

Which of the following costs is NOT a product cost?

Accepted Answer

A)  rent on an office building 
B)  indirect labor 
C)  repairs on manufacturing equipment 
D)  steel used in inventory items produced 
A)  rent on an office building 
B)  indirect labor 
C)  repairs on manufacturing equipment 
D)  steel used in inventory items produced

Question 10

A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into production, it would be classified as

Accepted Answer

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

Question 11

Which of the following costs is NOT a period cost?

Accepted Answer

A)  receptionist's salary 
B)  steel used in steel railings 
C)  depreciation on sales staffs' cars 
D)  sales commission 
A)  receptionist's salary 
B)  steel used in steel railings 
C)  depreciation on sales staffs' cars 
D)  sales commission

Question 12

Which of the following would be associated with a functional-based cost accounting information system?

Accepted Answer

A)  setup costs assigned to products using the number of setups as the driver 
B)  materials handling costs assigned to products using the number of moves as the activity driver 
C)  customer service costs assigned to products using the number of complaints as the activity driver 
D)  purchasing costs assigned to products using number of direct labor hours as the activity driver 
A)  setup costs assigned to products using the number of setups as the driver 
B)  materials handling costs assigned to products using the number of moves as the activity driver 
C)  customer service costs assigned to products using the number of complaints as the activity driver 
D)  purchasing costs assigned to products using number of direct labor hours as the activity driver

Question 13

The resources given up that are expected to bring a current or future benefit to the organization are called __________ .

Accepted Answer

The answer of The resources given up that are expected...

Question 14

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

Accepted Answer

A) True 
 B)False

Question 15

The assignment of indirect costs to cost objects is referred to as:

Accepted Answer

A)  Allocation 
B)  Direct tracing 
C)  Physical observation 
D)  Cost management 
A)  Allocation 
B)  Direct tracing 
C)  Physical observation 
D)  Cost management

Question 16

The ending work-in-process inventory is deducted on the

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  statement of cost of goods manufactured. 
D)  statement of cash flows. 
A)  balance sheet. 
B)  income statement. 
C)  statement of cost of goods manufactured. 
D)  statement of cash flows.

Question 17

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

Accepted Answer

A)  $1,115,000 
B)  $ 965,000 
C)  $ 955,000 
D)  $ 950,000 
A)  $1,115,000 
B)  $ 965,000 
C)  $ 955,000 
D)  $ 950,000

Question 18

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

Accepted Answer

A)  driver tracing. 
B)  allocation. 
C)  estimation. 
D)  none of these. 
A)  driver tracing. 
B)  allocation. 
C)  estimation. 
D)  none of these.

Question 19

Direct costs

Accepted Answer

A)  are incurred for the benefit of the business as a whole. 
B)  would continue even if a particular product were discontinued. 
C)  are those costs that can be easily and accurately traced to a cost object. 
D)  can be assigned to products only by a process of allocation. 
A)  are incurred for the benefit of the business as a whole. 
B)  would continue even if a particular product were discontinued. 
C)  are those costs that can be easily and accurately traced to a cost object. 
D)  can be assigned to products only by a process of allocation.

Question 20

Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs.
or

Accepted Answer

getting; f

Error costs can be defined as

The records for the previous year for Sarasota Boat Builders, Inc., shows the following data:: The cost of goods sold is

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

Assume the following data for Rodriguez Services, an accounting firm, for November: What is the cost of services sold for November?

Which of the following is a service organization?

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 goods manufactured?

The sum of direct labor and factory overhead is referred to as

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 total product cost is

Which of the following costs is NOT a product cost?

A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into production, it would be classified as

Which of the following costs is NOT a period cost?

Which of the following would be associated with a functional-based cost accounting information system?

The resources given up that are expected to bring a current or future benefit to the organization are called __________ .

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

The assignment of indirect costs to cost objects is referred to as:

The ending work-in-process inventory is deducted on the

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

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

Direct costs

Costs necessary to market and distribute a product or service are often referred to as order- and order- costs. or

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

Error costs can be defined as

The records for the previous year for Sarasota Boat Builders, Inc., shows the following data:: The cost of goods sold is

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

Assume the following data for Rodriguez Services, an accounting firm, for November: What is the cost of services sold for November?

Which of the following is a service organization?

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 goods manufactured?

The sum of direct labor and factory overhead is referred to as

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 total product cost is

Which of the following costs is NOT a product cost?

A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into production, it would be classified as

Which of the following costs is NOT a period cost?

Which of the following would be associated with a functional-based cost accounting information system?

The resources given up that are expected to bring a current or future benefit to the organization are called __________ .

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

The assignment of indirect costs to cost objects is referred to as:

The ending work-in-process inventory is deducted on the

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

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

Direct costs

Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs. or

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

Costs necessary to market and distribute a product or service are often referred to as order- and order- costs. or