Exam 2: Basic Cost Management Concepts

All of Jill Enterprise's operations are housed in one building with the costs of occupying the building accumulated in a separate account.The total costs incurred in May amounted to $24,000.The company allocates these costs on the basis of square feet of floor space occupied.Administrative offices, sales offices, and factory operations occupy 9,000, 6,000, and 30,000 square feet, respectively.How much will be classified as a product cost for May?

Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?

If beginning work-in-process inventory is $120,000, ending work-in-process inventory is $160,000, cost of goods manufactured is $400,000, and direct materials used are $100,000, what are the conversion costs?

A(n) _______________ is a set of interrelated parts that performs one or more processes to accomplish specific objectives.

The following information has been provided: What is the amount of direct materials used?

Which of the following is an example of an expense?

Traceability is a function of

The income statement prepared for external reporting is

In a functional-based management system, one is NOT likely to find

In an activity-based management system, one is NOT likely to find

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

Explain the differences between direct tracing, driver tracing, and allocation.

Which of the following costs incurred by a chair manufacturer would be traced to the product cost through direct tracing?

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

The precision of driving tracing depends upon

Which of the following is NOT a trait of a functional-based cost management system?

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows: - Refer to Figure 2-15.Tyler Enterprises' cost of goods manufactured in March is

Information about Carter Company for the year ending December 31, 2011, is as follows: Ending direct materials is 20 percent larger than beginning direct materials.Ending work in process is half of the beginning work in process.Ending finished goods increased by $8,000 during the year.Prime costs and conversion costs are 70 percent and 60 percent of total manufacturing costs added, respectively.Materials purchases are $113,200. Required: Note: Find the numbers for the income statement first.

Describe a cost management information system, its objectives, and major subsystems. The cost management information system is an accounting information subsystem that is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives. The objectives are as follows:

Which of the following costs would be included in traditional product costs used for external reporting?