Question 1

Which of the following methods of assigning costs is based on convenience or some assumed linkage, and reduces the overall accuracy of the cost assignments?

Accepted Answer

A)  direct tracing 
B)  driver tracing 
C)  allocation 
D)  all of these 
A)  direct tracing 
B)  driver tracing 
C)  allocation 
D)  all of these

Question 2

Which of the following costs incurred by a furniture manufacturer would be a product cost?

Accepted Answer

A)  lumber 
B)  office salaries 
C)  commissions paid to sales staff 
D)  controller's salary 
A)  lumber 
B)  office salaries 
C)  commissions paid to sales staff 
D)  controller's salary

Question 3

Which of the following is NOT one of the features of an operational control information system?

Accepted Answer

A)  to assist in continuous improvement of all aspects of the business 
B)  to improve the value received by customers 
C)  to improve profits by improving value 
D)  to provide product cost information needed by management 
A)  to assist in continuous improvement of all aspects of the business 
B)  to improve the value received by customers 
C)  to improve profits by improving value 
D)  to provide product cost information needed by management

Question 4

A company has purchased some steel to use in the production of steel railings.If this steel has NOT been put into production, it would be classified as

Accepted Answer

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

Question 5

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 goods manufactured?

Accepted Answer

A)  $ 180,000 
B)  $ 186,000 
C)  $ 194,000 
D)  $ 196, 800 
A)  $ 180,000 
B)  $ 186,000 
C)  $ 194,000 
D)  $ 196, 800

Question 6

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 are the conversion costs per unit?

Accepted Answer

A)  $ 7.05 
B)  $ 8.8125 
C)  $ 12.1125 
D)  $ 14.7375 
A)  $ 7.05 
B)  $ 8.8125 
C)  $ 12.1125 
D)  $ 14.7375

Question 7

In a cost management system, the cost view does NOT include

Accepted Answer

A)  resources. 
B)  activities. 
C)  driver analysis. 
D)  products and customers. 
A)  resources. 
B)  activities. 
C)  driver analysis. 
D)  products and customers.

Question 8

In an accounting information system, which of the following is NOT a transformation process?

Accepted Answer

A)  collecting data 
B)  analyzing data 
C)  performance reports 
D)  summarizing data 
A)  collecting data 
B)  analyzing data 
C)  performance reports 
D)  summarizing data

Question 9

Which of the following is a service organization?

Accepted Answer

A)  grocery store 
B)  department store 
C)  cattle ranch 
D)  CPA firm 
A)  grocery store 
B)  department store 
C)  cattle ranch 
D)  CPA firm

Question 10

Assume the following information for Knight Corporation for the year ended December 31, 2011:   What is the cost of goods sold for the year ended December 31, 2006?

Accepted Answer

A)  $1,305 
B)  $1,605 
C)  $1,350 
D)  $1,650 
A)  $1,305 
B)  $1,605 
C)  $1,350 
D)  $1,650

Question 11

_______________ is(are) the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future benefit to the organization.

Accepted Answer

A)  Expenses 
B)  Cost 
C)  An activity 
D)  A loss 
A)  Expenses 
B)  Cost 
C)  An activity 
D)  A loss

Question 12

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

Accepted Answer

A)  driver tracing. 
B)  allocation. 
C)  estimation. 
D)  none of these. 
A)  driver tracing. 
B)  allocation. 
C)  estimation. 
D)  none of these.

Question 13

Hoiberg Corporation incurred the following costs:
   Required:
Calculate the following values:

Accepted Answer

The answer of Hoiberg Corporation incurred the following costs:
 ...

Question 14

Which of the following costs is an example of product costs?

Accepted Answer

A)  selling commissions 
B)  nonfactory office salaries 
C)  direct materials 
D)  advertising expense 
A)  selling commissions 
B)  nonfactory office salaries 
C)  direct materials 
D)  advertising expense

Question 15

Which of the following costs is an indirect product cost?

Accepted Answer

A)  property taxes on plant facilities 
B)  wages of assembly workers 
C)  materials used 
D)  president's salary 
A)  property taxes on plant facilities 
B)  wages of assembly workers 
C)  materials used 
D)  president's salary

Question 16

Assume the following data for Graham Services, an architecture firm, for February:   What is the cost of services sold for February?

Accepted Answer

A)  $370,000 
B)  $350,000 
C)  $360,000 
D)  $330,000 
A)  $370,000 
B)  $350,000 
C)  $360,000 
D)  $330,000

Question 17

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

Accepted Answer

A)  delivered garlic bread 
B)  flour 
C)  baking 
D)  none of these 
A)  delivered garlic bread 
B)  flour 
C)  baking 
D)  none of these

Question 18

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 sold?

Accepted Answer

A)  $ 565,000 
B)  $ 950,000 
C)  $ 965,000 
D)  $ 980,000 
A)  $ 565,000 
B)  $ 950,000 
C)  $ 965,000 
D)  $ 980,000

Question 19

Value-chain product costs include which of the following?

Accepted Answer

A)  customer service costs 
B)  marketing costs 
C)  research and development 
D)  all of these 
A)  customer service costs 
B)  marketing costs 
C)  research and development 
D)  all of these

Question 20

Which of the following is an example of a loss?

Accepted Answer

A)  the cost of a product delivered to a customer 
B)  the cost of a delivered advertising campaign 
C)  the cost of the purchase of equipment 
D)  the write-off of an obsolete product 
A)  the cost of a product delivered to a customer 
B)  the cost of a delivered advertising campaign 
C)  the cost of the purchase of equipment 
D)  the write-off of an obsolete product

Which of the following methods of assigning costs is based on convenience or some assumed linkage, and reduces the overall accuracy of the cost assignments?

Which of the following costs incurred by a furniture manufacturer would be a product cost?

Which of the following is NOT one of the features of an operational control information system?

A company has purchased some steel to use in the production of steel railings.If this steel has NOT been put into production, it would be classified as

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 goods manufactured?

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 are the conversion costs per unit?

In a cost management system, the cost view does NOT include

In an accounting information system, which of the following is NOT a transformation process?

Which of the following is a service organization?

Assume the following information for Knight Corporation for the year ended December 31, 2011: What is the cost of goods sold for the year ended December 31, 2006?

_______________ is(are) the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future benefit to the organization.

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

Hoiberg Corporation incurred the following costs: Required: Calculate the following values:

Which of the following costs is an example of product costs?

Which of the following costs is an indirect product cost?

Assume the following data for Graham Services, an architecture firm, for February: What is the cost of services sold for February?

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

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 sold?

Value-chain product costs include which of the following?

Which of the following is an example of a loss?

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

Which of the following methods of assigning costs is based on convenience or some assumed linkage, and reduces the overall accuracy of the cost assignments?

Which of the following costs incurred by a furniture manufacturer would be a product cost?

Which of the following is NOT one of the features of an operational control information system?

A company has purchased some steel to use in the production of steel railings.If this steel has NOT been put into production, it would be classified as

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 goods manufactured?

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 are the conversion costs per unit?

In a cost management system, the cost view does NOT include

In an accounting information system, which of the following is NOT a transformation process?

Which of the following is a service organization?

Assume the following information for Knight Corporation for the year ended December 31, 2011: What is the cost of goods sold for the year ended December 31, 2006?

_______________ is(are) the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future benefit to the organization.

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

Hoiberg Corporation incurred the following costs: Required: Calculate the following values:

Which of the following costs is an example of product costs?

Which of the following costs is an indirect product cost?

Assume the following data for Graham Services, an architecture firm, for February: What is the cost of services sold for February?

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

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 sold?

Value-chain product costs include which of the following?

Which of the following is an example of a loss?

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