Exam 2: Basic Cost Management Concepts

_______________ is (are) a cost accounting system that uses only unit-based activity drivers to assign costs to cost objects.

Which of the following costs is NOT a period cost?

A cost used up in the production of revenues is a(n)

Inventory balances for Ray, Inc., in March 2011 are as follows: During March, purchases of direct materials were $1,500.Direct labor and factory overhead costs were $2,500 and $3,500, respectively. Conversion costs for March were

Product value-chain costs assist managers in meeting which of the following objectives?

Which of the following would NOT be included in the conversion cost of an automobile?

Figure 2-12 Information from the records of the Scully Company for July 2011 was as follows: Scully Corporation produced 20,000 units. - Refer to Figure 2-12.What is the total product cost per unit?

Inventory balances for the James Enterprises in February 2011 are as follows: During February, purchases of direct materials were $36,000.Direct labor and factory overhead costs were $60,000 and $84,000, respectively. Prime costs for February were

_______________ are expensed in the period in which they are incurred.

What is a disadvantage of assigning costs evenly over all cost objects?

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 variable product costs are

In an accounting information system, the inputs are usually

Which of the following items would NOT appear on an income statement of a service organization?

The optimal level in the trade-off between measurement and error costs is when

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

Which of the following costs is NOT a product cost?

Which cost assignment method would likely assign the cost of heating in a plant that makes chairs and go-carts when the chair product line is the cost object?

Which of the following is NOT an example of a difference between the income statement of a service organization and the income statement of a manufacturing organization?

In a traditional manufacturing company, product costs include

Figure 2-13 Inventory balances for the James Enterprises in February 2011 are as follows: During February, 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?