Exam 2: Basic Cost Management Concepts

Which of the following costs would be considered a direct material?

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows: - Refer to Figure 2-15.What are the total manufacturing costs added?

Figure 2-16 An appliance repair shop purchased materials costing $9,000 in May.The beginning inventory of material parts was $4,500 and the ending inventory of material parts was $4,000.Payments for direct labor for May totaled $27,000, secretarial costs were $2,000, and overhead of $5,000 was incurred.In addition, $5,000 was spent on advertising and $2,000 for the franchise name.Revenue for May was $50,000. - Refer to Figure 2-16.What is the gross margin for May?

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 are the total manufacturing costs added?

High quality cost management systems should have an organization-wide perspective.Which of the following would NOT be a benefit of a cost management system?

Conversion costs do NOT include

Newton Company recently had a fire in its accounting office, destroying most of its records.Only the following information could be salvaged for 2011: The cost of direct materials used in production during 2011 is

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

Factors that cause changes in resource usage, activity usage, costs and revenues are called

Figure 2-14 Selected data concerning the past year's operations of the Karl Enterprises are as follows: - Refer to Figure 2-14.What is the cost of goods manufactured?

Which of the following costs would be included as part of direct labor?

In a company that supplies garlic bread to pizza restaurants, which of the following would be considered a transforming process?

The ____________ is a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control activities.

The following information pertains to Davis, Inc.: Required: Determine the following values:

Big Foot Athletics designs and manufactures running shoes.A new model of shoes, Fast Track, has been developed and is ready for production. Required: Which costs will the production manager collect from the value chain, and how would these costs be used in different decisions?

Which of the following costs is a period cost?

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.If production increased to 32,000 units next year, what is the effect on variable product costs per unit and total product costs per unit respectively?

The direct costs of operating a university computer center would NOT include

The overall objective of accounting information systems is to

Figure 2-16 An appliance repair shop purchased materials costing $9,000 in May.The beginning inventory of material parts was $4,500 and the ending inventory of material parts was $4,000.Payments for direct labor for May totaled $27,000, secretarial costs were $2,000, and overhead of $5,000 was incurred.In addition, $5,000 was spent on advertising and $2,000 for the franchise name.Revenue for May was $50,000. - Refer to Figure 2-16.What is the cost of services sold for May?