Question 1

Select the appropriate definition for each of the items listed below.
-A cost that is difficult to trace to a cost object

Accepted Answer

A) Period cost 
B) Direct cost 
C) Opportunity cost 
D) Variable cost 
E) Indirect cost
F)Fixed cost
G)Product cost 
A) Period cost 
B) Direct cost 
C) Opportunity cost 
D) Variable cost 
E) Indirect cost
F)Fixed cost
G)Product cost

Question 2

Which of the following is an example of a tangible product?

Accepted Answer

A) funeral care 
B) legal services 
C) furniture 
D) video rental 
A) funeral care 
B) legal services 
C) furniture 
D) video rental

Question 3

A cost object is any item,such as products,customers,departments,regions,and so on,for which costs are measured and assigned.

Accepted Answer

A) True 
 B)False

Question 4

Select the appropriate classification for each of the items listed below.
-Factory security costs

Accepted Answer

A) Product cost 
B) Period cost 
A) Product cost 
B) Period cost

Question 5

What is the formula to calculate gross margin?

Accepted Answer

A) sales revenue − selling and administrative expenses 
B) sales revenue − cost of goods sold 
C) cost of goods manufactured + beginning finished goods inventory − ending finished goods inventory 
D) total product costs + beginning work in process − ending work in process 
A) sales revenue − selling and administrative expenses 
B) sales revenue − cost of goods sold 
C) cost of goods manufactured + beginning finished goods inventory − ending finished goods inventory 
D) total product costs + beginning work in process − ending work in process

Question 6

Select the appropriate definition of each of the items listed below.
-The difference between sales revenue and cost of goods sold

Accepted Answer

A) Income statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income 
A) Income statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income

Question 7

Which of the following is characteristic of indirect costs?

Accepted Answer

A) Indirect costs can be easily and accurately traced to a cost object. 
B) Indirect costs are shared between or among more than one cost object. 
C) Indirect costs should always be assigned to a cost object. 
D) Indirect costs include all labour. 
A) Indirect costs can be easily and accurately traced to a cost object. 
B) Indirect costs are shared between or among more than one cost object. 
C) Indirect costs should always be assigned to a cost object. 
D) Indirect costs include all labour.

Question 8

What is the term for the cost of the partially completed goods at the end of the period?

Accepted Answer

A) the beginning work-in-process inventory 
B) the cost of goods manufactured 
C) the ending work-in-process inventory 
D) the ending finished goods inventory 
A) the beginning work-in-process inventory 
B) the cost of goods manufactured 
C) the ending work-in-process inventory 
D) the ending finished goods inventory

Question 9

Select the appropriate classification of the items listed below.
-Salary of chief executive officer

Accepted Answer

A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead 
A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead

Question 10

In July, Econo Company purchased materials costing $21,000 and incurred direct labour cost of $18,000. Overhead totalled $32,000 for the month. Information on inventories was as follows:
 $\begin{array}{lrr} 
& \text { July 1 } & \text { July 31 } \
\text { Materials } & \$ 6,200 & \$ 7,100 \
\text { Work in process } & \$ 700 & \$ 1,200 \
\text { Finished goods } & \$ 3,300 & \$ 2,700
\end{array}$
-Refer to the Figure.What was the cost of goods sold for July?

Accepted Answer

A) $69,600 
B) $70,200 
C) $71,100 
D) $71,300 
A) $69,600 
B) $70,200 
C) $71,100 
D) $71,300

Question 11

List the types of inventory accounts that a service business,retailer,and manufacturer would have in their accounting records.

Accepted Answer

Service businesses would have no invento

Question 12

Select the appropriate classification of the items listed below.
-Cost of shipping goods to customers

Accepted Answer

A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead 
A) Selling expense 
B) Administrative expense 
C) Direct materials 
D) Direct labour 
E) Overhead

Question 13

Blue Water Inc.had a gross margin for the month of February totalling $92,000.The company sold 6,000 units during the month at a sales price of $30 per unit.What was the amount of cost of goods sold for the month?

Accepted Answer

A) $42,000 
B) $88,000 
C) $100,000 
D) $158,000 
A) $42,000 
B) $88,000 
C) $100,000 
D) $158,000

Question 14

Select the appropriate definition for each of the items listed below.
-A cost that is not inventoried

Accepted Answer

A) Period cost 
B) Direct cost 
C) Opportunity cost 
D) Variable cost 
E) Indirect cost
F)Fixed cost
G)Product cost 
A) Period cost 
B) Direct cost 
C) Opportunity cost 
D) Variable cost 
E) Indirect cost
F)Fixed cost
G)Product cost

Question 15

Select the appropriate definition of each of the items listed below.
-Cost of partially completed goods

Accepted Answer

A) Income statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income 
A) Income statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income

Question 16

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Accepted Answer

A) True 
 B)False

Question 17

See the following separate cases.
Required: Solve for the missing amounts (A,B,C,and D).
 $\begin{array}{lrr} 
& \text { Case \#1 } & \text { Case \#2 } \
\text { Purchase of materials } & \$ 5,000 & \mathrm{C} \
\text { Materials inventory (beginning bal ance) } & \mathrm{A} & 220\
\text { Materials inventory (ending balance) } & 1,000 & 350 \
\text { Direct labour } & 7,000 & 4,250 \
\text { Factory supervision } & 1,500 & 1,100\
\text { Factory supplies } & 1,250 & 900 \
\text { Total manufacturing costs } & 14,500 & \mathrm{D} \
\text { Work-in-process inventory (beginning bal ance) } & 1,200 & 1,230\
\text { Work-in-process inventory (ending balance) } & B & 650 \
\text { Cost of goods manufactured } & 14,600 & 10,200
\end{array}$

Accepted Answer

The answer of See the following separate cases.
Required: Solve for...

Question 18

Select the appropriate classification for each of the following costs.
-Product shipping costs

Accepted Answer

A) Period 
B) Product 
A) Period 
B) Product

Question 19

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles.
-Controller's salary costs

Accepted Answer

A) Direct materials 
B) Direct labour 
C) Overhead 
D) Selling expense 
E) Administrative expense 
A) Direct materials 
B) Direct labour 
C) Overhead 
D) Selling expense 
E) Administrative expense

Question 20

Select the appropriate definition for each of the items listed below.
-(direct materials + direct labour)/units produced

Accepted Answer

A) Per-unit prime cost 
B) Per-unit conversion cost 
C) Per-unit cost of goods manufactured 
A) Per-unit prime cost 
B) Per-unit conversion cost 
C) Per-unit cost of goods manufactured

Select the appropriate definition for each of the items listed below. -A cost that is difficult to trace to a cost object

Which of the following is an example of a tangible product?

A cost object is any item,such as products,customers,departments,regions,and so on,for which costs are measured and assigned.

Select the appropriate classification for each of the items listed below. -Factory security costs

What is the formula to calculate gross margin?

Select the appropriate definition of each of the items listed below. -The difference between sales revenue and cost of goods sold

Which of the following is characteristic of indirect costs?

What is the term for the cost of the partially completed goods at the end of the period?

Select the appropriate classification of the items listed below. -Salary of chief executive officer

List the types of inventory accounts that a service business,retailer,and manufacturer would have in their accounting records.

Select the appropriate classification of the items listed below. -Cost of shipping goods to customers

Blue Water Inc.had a gross margin for the month of February totalling $92,000.The company sold 6,000 units during the month at a sales price of $30 per unit.What was the amount of cost of goods sold for the month?

Select the appropriate definition for each of the items listed below. -A cost that is not inventoried

Select the appropriate definition of each of the items listed below. -Cost of partially completed goods

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Select the appropriate classification for each of the following costs. -Product shipping costs

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Controller's salary costs

Select the appropriate definition for each of the items listed below. -(direct materials + direct labour)/units produced

Introduction to Managerial Accounting

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 2: Basic Managerial Accounting Concepts

Select the appropriate definition for each of the items listed below. -A cost that is difficult to trace to a cost object

Which of the following is an example of a tangible product?

A cost object is any item,such as products,customers,departments,regions,and so on,for which costs are measured and assigned.

Select the appropriate classification for each of the items listed below. -Factory security costs

What is the formula to calculate gross margin?

Select the appropriate definition of each of the items listed below. -The difference between sales revenue and cost of goods sold

Which of the following is characteristic of indirect costs?

What is the term for the cost of the partially completed goods at the end of the period?

Select the appropriate classification of the items listed below. -Salary of chief executive officer

List the types of inventory accounts that a service business,retailer,and manufacturer would have in their accounting records.

Select the appropriate classification of the items listed below. -Cost of shipping goods to customers

Blue Water Inc.had a gross margin for the month of February totalling $92,000.The company sold 6,000 units during the month at a sales price of $30 per unit.What was the amount of cost of goods sold for the month?

Select the appropriate definition for each of the items listed below. -A cost that is not inventoried

Select the appropriate definition of each of the items listed below. -Cost of partially completed goods

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Select the appropriate classification for each of the following costs. -Product shipping costs

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Controller's salary costs

Select the appropriate definition for each of the items listed below. -(direct materials + direct labour)/units produced

Introduction to Managerial Accounting

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters