Question 1

In a company that supplies garlic bread to pizza restaurants, which of the following would NOT be considered a transforming process?

Accepted Answer

A)  delivered garlic bread 
B)  baking 
C)  packaging 
D)  mixing 
A)  delivered garlic bread 
B)  baking 
C)  packaging 
D)  mixing

Question 2

In choosing a cost management system, the controller must balance the total costs of implementing such systems.What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?

Accepted Answer

Error costs and measurement costs must b

Question 3

An example of a tangible product, rather than a service, would be

Accepted Answer

A)  housekeeping. 
B)  insurance coverage. 
C)  paper. 
D)  medical exam. 
A)  housekeeping. 
B)  insurance coverage. 
C)  paper. 
D)  medical exam.

Question 4

Home Designs Company designs decks, gazebos, and play equipment for residential homes.The following was provided for the year ended June 30, 2011:
   The average design fee is $700.There were 2,000 designs processed during the year.
Required:

Accepted Answer

The answer of Home Designs Company designs decks, gazebos, and...

Question 5

Prime product costs include

Accepted Answer

A)  only factory overhead. 
B)  only direct labor. 
C)  direct labor and factory overhead. 
D)  direct materials and direct labor. 
A)  only factory overhead. 
B)  only direct labor. 
C)  direct labor and factory overhead. 
D)  direct materials and direct labor.

Question 6

Selling and administrative costs are classified as

Accepted Answer

A)  product costs. 
B)  conversion costs. 
C)  period costs. 
D)  factory overhead. 
A)  product costs. 
B)  conversion costs. 
C)  period costs. 
D)  factory overhead.

Question 7

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 gross margin (profit)?

Accepted Answer

A)  $11,500 
B)  $11,600 
C)  $ 4,500 
D)  $ 4,600 
A)  $11,500 
B)  $11,600 
C)  $ 4,500 
D)  $ 4,600

Question 8

Error costs can be defined as

Accepted Answer

A)  the costs associated with the measurements required by the cost management system. 
B)  unit costs assigned based on activities. 
C)  the costs associated with making poor decisions based on bad cost information. 
D)  none of these 
A)  the costs associated with the measurements required by the cost management system. 
B)  unit costs assigned based on activities. 
C)  the costs associated with making poor decisions based on bad cost information. 
D)  none of these

Question 9

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

Accepted Answer

A)  unit-based drivers 
B)  tracing intensive 
C)  use of both financial and nonfinancial measures of performance 
D)  detailed activity information 
A)  unit-based drivers 
B)  tracing intensive 
C)  use of both financial and nonfinancial measures of performance 
D)  detailed activity information

Question 10

Wages paid to a janitor in the factory would be classified as

Accepted Answer

A)  direct labor. 
B)  direct janitor salaries. 
C)  supervisor salaries. 
D)  factory overhead. 
A)  direct labor. 
B)  direct janitor salaries. 
C)  supervisor salaries. 
D)  factory overhead.

Question 11

The _______________ is an accounting information subsystem that is primarily concerned with producing outputs for external users.

Accepted Answer

A)  cost management information system 
B)  computer system 
C)  internal accounting system 
D)  financial accounting information system 
A)  cost management information system 
B)  computer system 
C)  internal accounting system 
D)  financial accounting information system

Question 12

An example of a period cost is

Accepted Answer

A)  insurance on factory equipment. 
B)  president's salary. 
C)  property taxes on factory building. 
D)  wages of factory custodians. 
A)  insurance on factory equipment. 
B)  president's salary. 
C)  property taxes on factory building. 
D)  wages of factory custodians.

Question 13

The following information pertains to Fry Enterprises:   What are the prime costs for the year?

Accepted Answer

A)  $360,000 
B)  $480,000 
C)  $270,000 
D)  $300,000 
A)  $360,000 
B)  $480,000 
C)  $270,000 
D)  $300,000

Question 14

Which of the following is a major subsystem of the cost accounting information system?

Accepted Answer

A)  ERP 
B)  operational control information system 
C)  OLAP 
D)  EDI 
A)  ERP 
B)  operational control information system 
C)  OLAP 
D)  EDI

Question 15

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Accepted Answer

A)  factory supplies used 
B)  canvas used in sail 
C)  depreciation of factory buildings 
D)  indirect materials 
A)  factory supplies used 
B)  canvas used in sail 
C)  depreciation of factory buildings 
D)  indirect materials

Question 16

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Accepted Answer

A)  financial accounting information system 
B)  operational control information system 
C)  cost accounting information system 
D)  all of these 
A)  financial accounting information system 
B)  operational control information system 
C)  cost accounting information system 
D)  all of these

Question 17

Services differ from tangible products in which of the following dimensions?

Accepted Answer

A)  intangibility 
B)  inseparability 
C)  perishability 
D)  all of these 
A)  intangibility 
B)  inseparability 
C)  perishability 
D)  all of these

Question 18

If the total warehousing cost for the year amounts to $350,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

Accepted Answer

A)  $70,000 
B)  $140,000 
C)  $210,000 
D)  $350,000 
A)  $70,000 
B)  $140,000 
C)  $210,000 
D)  $350,000

Question 19

Assume the following information:   The ending direct materials inventory is

Accepted Answer

A)  $175,000. 
B)  $ 75,000. 
C)  $ 50,000. 
D)  $100,000. 
A)  $175,000. 
B)  $ 75,000. 
C)  $ 50,000. 
D)  $100,000.

Question 20

Selected data concerning the past year's operations of the Wood Corporation are as follows:     The cost of goods sold is

Accepted Answer

A)  $1,630,000. 
B)  $1,880,000. 
C)  $1,600,000. 
D)  $1,650,000. 
A)  $1,630,000. 
B)  $1,880,000. 
C)  $1,600,000. 
D)  $1,650,000.

In a company that supplies garlic bread to pizza restaurants, which of the following would NOT be considered a transforming process?

In choosing a cost management system, the controller must balance the total costs of implementing such systems.What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?

An example of a tangible product, rather than a service, would be

Home Designs Company designs decks, gazebos, and play equipment for residential homes.The following was provided for the year ended June 30, 2011: The average design fee is $700.There were 2,000 designs processed during the year. Required:

Prime product costs include

Selling and administrative costs are classified as

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 gross margin (profit)?

Error costs can be defined as

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

Wages paid to a janitor in the factory would be classified as

The _______________ is an accounting information subsystem that is primarily concerned with producing outputs for external users.

An example of a period cost is

The following information pertains to Fry Enterprises: What are the prime costs for the year?

Which of the following is a major subsystem of the cost accounting information system?

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Services differ from tangible products in which of the following dimensions?

If the total warehousing cost for the year amounts to $350,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

Assume the following information: The ending direct materials inventory is

Selected data concerning the past year's operations of the Wood Corporation are as follows: The cost of goods sold is

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

In a company that supplies garlic bread to pizza restaurants, which of the following would NOT be considered a transforming process?

In choosing a cost management system, the controller must balance the total costs of implementing such systems.What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?

An example of a tangible product, rather than a service, would be

Home Designs Company designs decks, gazebos, and play equipment for residential homes.The following was provided for the year ended June 30, 2011: The average design fee is $700.There were 2,000 designs processed during the year. Required:

Prime product costs include

Selling and administrative costs are classified as

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 gross margin (profit)?

Error costs can be defined as

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

Wages paid to a janitor in the factory would be classified as

The _______________ is an accounting information subsystem that is primarily concerned with producing outputs for external users.

An example of a period cost is

The following information pertains to Fry Enterprises: What are the prime costs for the year?

Which of the following is a major subsystem of the cost accounting information system?

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Services differ from tangible products in which of the following dimensions?

If the total warehousing cost for the year amounts to $350,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

Assume the following information: The ending direct materials inventory is

Selected data concerning the past year's operations of the Wood Corporation are as follows: The cost of goods sold is

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