Question 1

Which of the following is/are abenefit of normal costing?

Accepted Answer

A) Normal costing enable companies to smooth out,or normalize,seasonal production fluctuations. 
B) Under normal costing,a firm can quickly calculate the cost of items manufactured. 
C) Under normal costing,a firm uses a predetermined overhead rate in applying overhead to each unit as the firm produces it throughout the year,rather than wait for the actual overhead rate to be determined at the end of the year. 
D) All of the answers are correct. 
A) Normal costing enable companies to smooth out,or normalize,seasonal production fluctuations. 
B) Under normal costing,a firm can quickly calculate the cost of items manufactured. 
C) Under normal costing,a firm uses a predetermined overhead rate in applying overhead to each unit as the firm produces it throughout the year,rather than wait for the actual overhead rate to be determined at the end of the year. 
D) All of the answers are correct.

Question 2

Which of the following statements reflects the basic cost flow equation?

Accepted Answer

A) Beginning Balance plus Transfers In equals Transfers Out plus Ending Balance. 
B) Beginning Balance minus Transfers In equals Transfers Out minus Ending Balance. 
C) Beginning Balance plus Transfers In equals Transfers Out minus Ending Balance. 
D) Beginning Balance minus Transfers In equals Transfers Out plus Ending Balance. 
A) Beginning Balance plus Transfers In equals Transfers Out plus Ending Balance. 
B) Beginning Balance minus Transfers In equals Transfers Out minus Ending Balance. 
C) Beginning Balance plus Transfers In equals Transfers Out minus Ending Balance. 
D) Beginning Balance minus Transfers In equals Transfers Out plus Ending Balance.

Question 3

Which of the following is notone of the three major manufacturing cost categories?

Accepted Answer

A) Direct materials costs that can be easily traced to a product 
B) Direct labor costs of workers who transform materials into finished products and whose time can be easily traced to a product 
C) Manufacturing overhead costs which represents all other manufacturing costs that do not fit into the other categories 
D) Opportunity costs which are the manufacturing costs forgone by accepting another production alternative 
A) Direct materials costs that can be easily traced to a product 
B) Direct labor costs of workers who transform materials into finished products and whose time can be easily traced to a product 
C) Manufacturing overhead costs which represents all other manufacturing costs that do not fit into the other categories 
D) Opportunity costs which are the manufacturing costs forgone by accepting another production alternative

Question 4

Companies concerned about quality production do not treat waste or spoiled goods as a normal cost of production and remove all waste and spoilage costs from the product cost.Some companies have found that waste or spoilage costs range from

Accepted Answer

A) 1 to 5 percent of their total product costs. 
B) 5 to 10 percent of their total product costs. 
C) 10 to 20 percent of their total product costs. 
D) 20 to 30 percent of their total product costs. 
A) 1 to 5 percent of their total product costs. 
B) 5 to 10 percent of their total product costs. 
C) 10 to 20 percent of their total product costs. 
D) 20 to 30 percent of their total product costs.

Question 5

In a normal costing system,how is the predetermined variable manufacturing overhead rate calculated?

Accepted Answer

A) Divide actual variable manufacturing overhead by the normal (or estimated)activity level. 
B) Divide estimated variable manufacturing overhead by the actual activity level. 
C) Divide estimated variable manufacturing overhead by the normal (or estimated)activity level. 
D) Divide actual variable manufacturing overhead by the actual activity level. 
A) Divide actual variable manufacturing overhead by the normal (or estimated)activity level. 
B) Divide estimated variable manufacturing overhead by the actual activity level. 
C) Divide estimated variable manufacturing overhead by the normal (or estimated)activity level. 
D) Divide actual variable manufacturing overhead by the actual activity level.

Which of the following is/are abenefit of normal costing?

Which of the following statements reflects the basic cost flow equation?

Which of the following is notone of the three major manufacturing cost categories?

Companies concerned about quality production do not treat waste or spoiled goods as a normal cost of production and remove all waste and spoilage costs from the product cost.Some companies have found that waste or spoilage costs range from

In a normal costing system,how is the predetermined variable manufacturing overhead rate calculated?

Fundamental Concepts

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 2: Measuring Product Costs

Which of the following is/are abenefit of normal costing?

Which of the following statements reflects the basic cost flow equation?

Which of the following is notone of the three major manufacturing cost categories?

Companies concerned about quality production do not treat waste or spoiled goods as a normal cost of production and remove all waste and spoilage costs from the product cost.Some companies have found that waste or spoilage costs range from

In a normal costing system,how is the predetermined variable manufacturing overhead rate calculated?

Fundamental Concepts

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters