Question 1

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

Question 2

Which of the following are production costs?

Accepted Answer

A) selling costs, administrative costs, and period costs 
B) indirect materials, indirect labour, and administrative costs 
C) direct materials, direct labour, and selling costs 
D) direct materials, direct labour, and overhead 
A) selling costs, administrative costs, and period costs 
B) indirect materials, indirect labour, and administrative costs 
C) direct materials, direct labour, and selling costs 
D) direct materials, direct labour, and overhead

Question 3

A company's beginning work-in-process inventory is $120,000,its ending work-in-process inventory is $160,000,its cost of goods manufactured is $400,000,and its direct materials used are $100,000.What are the conversion costs?

Accepted Answer

A) $140,000 
B) $280,000 
C) $300,000 
D) $340,000 
A) $140,000 
B) $280,000 
C) $300,000 
D) $340,000

Question 4

ComPrint Co. had the following beginning and ending inventory balances for the year ended December 31:$$\begin{array} { l c c } 
& \text { January 1 } & \text { December } 31 \
\text { Materials } & \$ 10,000 & \$ 8,000 \
\text { Work in Process } & \$ 18,000 & \$ 17,000 \
\text { Finished Goods } & \$ 21,000 & \$ 16,500
\end{array}$$
In addition, direct labour costs of $30,000 were incurred, overhead equalled $42,000, materials purchased were $27,000, and selling and administrative costs were $22,000. ComPrint Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit.
 
-Refer to the Figure.What was the amount of cost of goods sold for the year?

Accepted Answer

A) $97,500 
B) $102,000 
C) $106,500 
D) $128,500 
A) $97,500 
B) $102,000 
C) $106,500 
D) $128,500

Question 5

Select the appropriate definition for each of the items listed below.
-The cost of units unfinished at the end of the current period

Accepted Answer

A) Work-in-process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs 
A) Work-in-process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs

Question 6

The cost of maintenance personnel in a factory building would be classified as direct labour.

Accepted Answer

A) True 
 B)False

Question 7

Denim used when making jeans would normally be classified as a variable cost.

Accepted Answer

A) True 
 B)False

Question 8

Period costs are those costs associated with the manufacture of goods or the providing of services.

Accepted Answer

A) True 
 B)False

Question 9

Select the appropriate classification for each of the items listed below.
-Factory supervisor's salary

Accepted Answer

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

Question 10

Select the appropriate item for each of the definitions listed below.
-Number of units sold multiplied by sales price per unit

Accepted Answer

A) Gross margin 
B) Selling expenses 
C) Sales revenue 
D) Cost of goods sold 
E) Operating income 
A) Gross margin 
B) Selling expenses 
C) Sales revenue 
D) Cost of goods sold 
E) Operating income

Question 11

Which of the following is a period cost?

Accepted Answer

A) direct materials 
B) indirect labour 
C) indirect materials 
D) depreciation on an office building 
A) direct materials 
B) indirect labour 
C) indirect materials 
D) depreciation on an office building

Question 12

What is the definition of assigning costs?

Accepted Answer

A) the way costs are measured and recorded 
B) the way companies can tell what money was spent 
C) the allocation applied to a cost object using a reasonable method 
D) the benefit given up when one choice is made over another 
A) the way costs are measured and recorded 
B) the way companies can tell what money was spent 
C) the allocation applied to a cost object using a reasonable method 
D) the benefit given up when one choice is made over another

Question 13

TechCom Inc. manufactures laptops. Last month, direct materials (e.g., computer components) costing $600,000 were put into production. Direct labour of $900,000 was incurred, overhead equalled $500,000, and selling and administrative costs totalled $400,000. The company manufactured 10,000 laptops during the month. Assume the company had no beginning or ending work-in-process balances.
-Refer to the Figure.What was the per-unit conversion cost last month?

Accepted Answer

A) $100.00 
B) $140.00 
C) $162.50 
D) $218.00 
A) $100.00 
B) $140.00 
C) $162.50 
D) $218.00

Question 14

Costs incurred to produce future benefits are usually liabilities.

Accepted Answer

A) True 
 B)False

Question 15

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles.
-Cost of carbon frames used in the production process

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 16

Select the appropriate definition for each of the items listed below.
-A benefit given up when one alternative is chosen over another

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 17

What is the behaviour pattern of a variable cost?

Accepted Answer

A) It increases in total as output increases. 
B) It remains constant in total at all levels of output. 
C) It increases per unit as output increases. 
D) It decreases per unit as output increases. 
A) It increases in total as output increases. 
B) It remains constant in total at all levels of output. 
C) It increases per unit as output increases. 
D) It decreases per unit as output increases.

Question 18

What is characteristic of a period cost?

Accepted Answer

A) They include selling costs and administrative costs. 
B) They are used to compute product cost. 
C) They can be included in overhead costs. 
D) They are carried in inventory until the goods are sold. 
A) They include selling costs and administrative costs. 
B) They are used to compute product cost. 
C) They can be included in overhead costs. 
D) They are carried in inventory until the goods are sold.

Question 19

Screws used in the manufacture of cabinets are an example of a variable cost.

Accepted Answer

A) True 
 B)False

Question 20

Select the appropriate definition of each of the items listed below.
-Gross margin − selling and administrative expenses

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

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

Which of the following are production costs?

A company's beginning work-in-process inventory is $120,000,its ending work-in-process inventory is $160,000,its cost of goods manufactured is $400,000,and its direct materials used are $100,000.What are the conversion costs?

Select the appropriate definition for each of the items listed below. -The cost of units unfinished at the end of the current period

The cost of maintenance personnel in a factory building would be classified as direct labour.

Denim used when making jeans would normally be classified as a variable cost.

Period costs are those costs associated with the manufacture of goods or the providing of services.

Select the appropriate classification for each of the items listed below. -Factory supervisor's salary

Select the appropriate item for each of the definitions listed below. -Number of units sold multiplied by sales price per unit

Which of the following is a period cost?

What is the definition of assigning costs?

Costs incurred to produce future benefits are usually liabilities.

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Cost of carbon frames used in the production process

Select the appropriate definition for each of the items listed below. -A benefit given up when one alternative is chosen over another

What is the behaviour pattern of a variable cost?

What is characteristic of a period cost?

Screws used in the manufacture of cabinets are an example of a variable cost.

Select the appropriate definition of each of the items listed below. -Gross margin − selling and administrative expenses

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. -(direct labour + overhead)/units produced

Which of the following are production costs?

A company's beginning work-in-process inventory is $120,000,its ending work-in-process inventory is $160,000,its cost of goods manufactured is $400,000,and its direct materials used are $100,000.What are the conversion costs?

Select the appropriate definition for each of the items listed below. -The cost of units unfinished at the end of the current period

The cost of maintenance personnel in a factory building would be classified as direct labour.

Denim used when making jeans would normally be classified as a variable cost.

Period costs are those costs associated with the manufacture of goods or the providing of services.

Select the appropriate classification for each of the items listed below. -Factory supervisor's salary

Select the appropriate item for each of the definitions listed below. -Number of units sold multiplied by sales price per unit

Which of the following is a period cost?

What is the definition of assigning costs?

Costs incurred to produce future benefits are usually liabilities.

Select the appropriate classification for each of the costs incurred by a manufacturer of bicycles. -Cost of carbon frames used in the production process

Select the appropriate definition for each of the items listed below. -A benefit given up when one alternative is chosen over another

What is the behaviour pattern of a variable cost?

What is characteristic of a period cost?

Screws used in the manufacture of cabinets are an example of a variable cost.

Select the appropriate definition of each of the items listed below. -Gross margin − selling and administrative expenses

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