Question 1

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

Question 2

Which type of inventory is normally sold to other organizations?

Accepted Answer

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

Question 3

Which of the following costs would be included as part of direct materials in the production of an automobile?

Accepted Answer

A)  glue for a sticker applied to the automobile 
B)  steel 
C)  gasoline used to fuel machines in production 
D)  none of these 
A)  glue for a sticker applied to the automobile 
B)  steel 
C)  gasoline used to fuel machines in production 
D)  none of these

Question 4

The difference between a supply and an indirect material is that

Accepted Answer

A)  supplies are not necessary for production. 
B)  indirect materials are not physically part of the product. 
C)  supplies are not necessary for production and are not physically part of the product. 
D)  supplies are necessary for production and are not physically part of the product. 
A)  supplies are not necessary for production. 
B)  indirect materials are not physically part of the product. 
C)  supplies are not necessary for production and are not physically part of the product. 
D)  supplies are necessary for production and are not physically part of the product.

Question 5

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows:
  *variable overhead is $205,000, fixed overhead is $200,000
 
- Refer to Figure 2-11.The prime costs are

Accepted Answer

A)  $210,000 
B)  $264,000 
C)  $300,000 
D)  $564,000 
A)  $210,000 
B)  $264,000 
C)  $300,000 
D)  $564,000

Question 6

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

Accepted Answer

A)  $397,500. 
B)  $390,000. 
C)  $367,500. 
D)  $405,000. 
A)  $397,500. 
B)  $390,000. 
C)  $367,500. 
D)  $405,000.

Question 7

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

Question 8

Assume the following data for Gross, Inc., for February:   What is the cost of goods manufactured for February?

Accepted Answer

A)  $470,000 
B)  $420,000 
C)  $460,000 
D)  $430,000 
A)  $470,000 
B)  $420,000 
C)  $460,000 
D)  $430,000

Question 9

_______________ refers to the assignment of indirect costs to cost objects.

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 10

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

Accepted Answer

A)  $92,500 
B)  $90,000 
C)  $87,500 
D)  $97,500 
A)  $92,500 
B)  $90,000 
C)  $87,500 
D)  $97,500

Question 11

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows:
    
-Refer to Figure 2-15.What is the cost of goods sold?

Accepted Answer

A)  $ 36,500 
B)  $ 29,400 
C)  $ 28,600 
D)  $ 29,500 
A)  $ 36,500 
B)  $ 29,400 
C)  $ 28,600 
D)  $ 29,500

Question 12

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows:
  *variable overhead is $205,000, fixed overhead is $200,000
 
- Refer to Figure 2-11.The conversion cost is

Accepted Answer

A)  $960,000 
B)  $1,179,000 
C)  $705,000 
D)  $564,000 
A)  $960,000 
B)  $1,179,000 
C)  $705,000 
D)  $564,000

Question 13

Intangibility of services means that

Accepted Answer

A)  products cannot be seen, tasted, heard or felt before the purchase. 
B)  products cannot be stored. 
C)  exchange takes place in direct contact. 
D)  both a and c. 
A)  products cannot be seen, tasted, heard or felt before the purchase. 
B)  products cannot be stored. 
C)  exchange takes place in direct contact. 
D)  both a and c.

Question 14

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

Accepted Answer

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

Question 15

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 16

In a company that supplies garlic bread to pizza restaurants, delivered garlic bread to pizza restaurants would be a(n)

Accepted Answer

A)  interrelated part. 
B)  input. 
C)  output. 
D)  process. 
A)  interrelated part. 
B)  input. 
C)  output. 
D)  process.

Question 17

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

Accepted Answer

A)  driver tracing 
B)  direct tracing 
C)  allocation 
D)  arbitration 
A)  driver tracing 
B)  direct tracing 
C)  allocation 
D)  arbitration

Question 18

Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object?

Accepted Answer

A)  driver tracing 
B)  direct tracing 
C)  allocation 
D)  arbitration 
A)  driver tracing 
B)  direct tracing 
C)  allocation 
D)  arbitration

Question 19

An example of a nonproduction cost is

Accepted Answer

A)  wages paid to assembly-line employees. 
B)  manufacturing supplies. 
C)  insurance on manufacturing facilities. 
D)  the treasurer's salary. 
A)  wages paid to assembly-line employees. 
B)  manufacturing supplies. 
C)  insurance on manufacturing facilities. 
D)  the treasurer's salary.

Question 20

When calculating the absorption-costing income for external reporting, all

Accepted Answer

A)  manufacturing costs ultimately become nonmanufacturing costs. 
B)  manufacturing costs are product costs and product costs are never expensed. 
C)  costs of selling manufactured products are classified as product costs. 
D)  selling and administrative costs are classified as nonmanufacturing costs. 
A)  manufacturing costs ultimately become nonmanufacturing costs. 
B)  manufacturing costs are product costs and product costs are never expensed. 
C)  costs of selling manufactured products are classified as product costs. 
D)  selling and administrative costs are classified as nonmanufacturing costs.

Direct costs

Which type of inventory is normally sold to other organizations?

Which of the following costs would be included as part of direct materials in the production of an automobile?

The difference between a supply and an indirect material is that

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows: *variable overhead is $205,000, fixed overhead is $200,000 - Refer to Figure 2-11.The prime costs are

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

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

Assume the following data for Gross, Inc., for February: What is the cost of goods manufactured for February?

_______________ refers to the assignment of indirect costs to cost objects.

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows: -Refer to Figure 2-15.What is the cost of goods sold?

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows: *variable overhead is $205,000, fixed overhead is $200,000 - Refer to Figure 2-11.The conversion cost is

Intangibility of services means that

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

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

In a company that supplies garlic bread to pizza restaurants, delivered garlic bread to pizza restaurants would be a(n)

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object?

An example of a nonproduction cost is

When calculating the absorption-costing income for external reporting, all

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

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

Direct costs

Which type of inventory is normally sold to other organizations?

Which of the following costs would be included as part of direct materials in the production of an automobile?

The difference between a supply and an indirect material is that

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows: *variable overhead is $205,000, fixed overhead is $200,000 - Refer to Figure 2-11.The prime costs are

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

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

Assume the following data for Gross, Inc., for February: What is the cost of goods manufactured for February?

_______________ refers to the assignment of indirect costs to cost objects.

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows: -Refer to Figure 2-15.What is the cost of goods sold?

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows: *variable overhead is $205,000, fixed overhead is $200,000 - Refer to Figure 2-11.The conversion cost is

Intangibility of services means that

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

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

In a company that supplies garlic bread to pizza restaurants, delivered garlic bread to pizza restaurants would be a(n)

Which cost assignment method would likely assign the cost of an assembly-line supervisor when the assembly line is the cost object?

Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object?

An example of a nonproduction cost is

When calculating the absorption-costing income for external reporting, all

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

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