Question 1

The costs of direct materials are classified as:

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D D

Question 2

The difference between the variable ending inventory cost and the absorption ending inventory cost is:

Accepted Answer

A) 800 units times $15 per unit indirect manufacturing cost. 
B) 800 units times $10 per unit material cost. 
C) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost. 
D) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost plus $16.67 per unit indirect operating costs. 
A) 800 units times $15 per unit indirect manufacturing cost. 
B) 800 units times $10 per unit material cost. 
C) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost. 
D) 800 units times $20 per unit variable conversion cost plus $15 per unit indirect manufacturing cost plus $16.67 per unit indirect operating costs. A

Question 3

The amount of direct materials issued to production is found by

Accepted Answer

A) subtracting ending work in process from total work in process during the period. 
B) adding beginning direct materials inventory and the delivered cost of direct materials. 
C) subtracting ending direct materials from direct materials available for production. 
D) adding delivered cost of materials,labor,and manufacturing overheaD. 
A) subtracting ending work in process from total work in process during the period. 
B) adding beginning direct materials inventory and the delivered cost of direct materials. 
C) subtracting ending direct materials from direct materials available for production. 
D) adding delivered cost of materials,labor,and manufacturing overheaD. C

Question 4

An opportunity cost is

Accepted Answer

A) a cost that is charged against revenue in an accounting period. 
B) the foregone benefit from the best alternative course of action. 
C) the excess of operating revenues over operating costs. 
D) the cost assigned to the products sold during the perioD. 
A) a cost that is charged against revenue in an accounting period. 
B) the foregone benefit from the best alternative course of action. 
C) the excess of operating revenues over operating costs. 
D) the cost assigned to the products sold during the perioD.

Question 5

Which of the following statements is (are)false? (1).In general,the term expense is used for managerial purposes,while the term cost refers to external financial reports.(2).An opportunity cost is the benefit forgone by selecting one alternative over another.

Accepted Answer

A) Only (1)is false. 
B) Only (2)is false. 
C) Both (1)and (2)are false. 
D) Neither (1)nor (2)are false. 
A) Only (1)is false. 
B) Only (2)is false. 
C) Both (1)and (2)are false. 
D) Neither (1)nor (2)are false.

Question 6

Laner Company has the following data for the production and sale of 2,000 units.   What is the contribution margin per unit?

Accepted Answer

A) $70 
B) $320 
C) $370 
D) $430 
A) $70 
B) $320 
C) $370 
D) $430

Question 7

The difference between variable costs and fixed costs is (CMA adapted)

Accepted Answer

A) Unit variable costs fluctuate and unit fixed costs remain constant. 
B) Unit variable costs are fixed over the relevant range and unit fixed costs are variable. 
C) Total variable costs are constant over the relevant range,while fixed costs change in the long-term. 
D) Total variable costs are variable over the relevant range but fixed in the long-term,while fixed costs never change. 
A) Unit variable costs fluctuate and unit fixed costs remain constant. 
B) Unit variable costs are fixed over the relevant range and unit fixed costs are variable. 
C) Total variable costs are constant over the relevant range,while fixed costs change in the long-term. 
D) Total variable costs are variable over the relevant range but fixed in the long-term,while fixed costs never change.

Question 8

Variable marketing and administrative costs are included in determining full absorption costs.The two costs are included in full cost and not in determining full absorption costs.

Accepted Answer

A) True 
 B)False

Question 9

An expense is an expired cost matched with revenues in a specific accounting period.This statement is the definition of expense.

Accepted Answer

A) True 
 B)False

Question 10

Which terms below correctly describe the cost of the black paint used to paint the dots on a pair of dice?

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D

Question 11

Makwa Industries has developed two new products but has only enough plant capacity to introduce one product during the current year.The following data will assist management in deciding which product should be selected.Makwa's fixed overhead includes rent and utilities,equipment depreciation,and supervisory salaries.Selling and administrative expenses are not allocated to individual products.   Research and development costs for Makwa's two new products are

Accepted Answer

A) Prime costs. 
B) Conversion costs. 
C) Opportunity costs. 
D) Sunk costs. 
A) Prime costs. 
B) Conversion costs. 
C) Opportunity costs. 
D) Sunk costs.

Question 12

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows:   What are the estimated conversion costs per unit?

Accepted Answer

A) $35 
B) $41 
C) $44 
D) $48 
A) $35 
B) $41 
C) $44 
D) $48

Question 13

Which of the following should be considered part of a manufacturing company's direct labor cost?

Accepted Answer

A) Factory supervisor's salary 
B) Forklift operator's hourly wages 
C) Employer-paid health insurance on factory assemblers' wages 
D) Cost of idle time 
A) Factory supervisor's salary 
B) Forklift operator's hourly wages 
C) Employer-paid health insurance on factory assemblers' wages 
D) Cost of idle time

Question 14

Accounting systems typically record opportunity costs as assets and treat them as intangible items on the financial statements.Opportunity costs are not reflected in the accounting system-they are what did not happen.

Accepted Answer

A) True 
 B)False

Question 15

The Work-in-Process Inventory of the Rapid Fabricating Corp.was $3,000 higher on December 31,2012 than it was on January 1,2012.This implies that in 2012

Accepted Answer

A) cost of goods manufactured was higher than cost of goods sold. 
B) cost of goods manufactured was less than total manufacturing costs. 
C) manufacturing costs were higher than cost of goods sold. 
D) manufacturing costs were less than cost of goods manufactureD. 
A) cost of goods manufactured was higher than cost of goods sold. 
B) cost of goods manufactured was less than total manufacturing costs. 
C) manufacturing costs were higher than cost of goods sold. 
D) manufacturing costs were less than cost of goods manufactureD.

Question 16

Total cost of goods purchased minus beginning merchandise inventory plus ending merchandise inventory equals cost of goods sold.Purchases plus beginning inventory minus ending inventory equals cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 17

Makwa Industries has developed two new products but has only enough plant capacity to introduce one product during the current year.The following data will assist management in deciding which product should be selected.Makwa's fixed overhead includes rent and utilities,equipment depreciation,and supervisory salaries.Selling and administrative expenses are not allocated to individual products.   The total overhead cost of $27 for Makwa's Product W is a

Accepted Answer

A) Sunk cost. 
B) Opportunity cost. 
C) Variable cost. 
D) Mixed cost. 
A) Sunk cost. 
B) Opportunity cost. 
C) Variable cost. 
D) Mixed cost.

Question 18

Calculate the conversion costs from the following information:

Accepted Answer

A) $3,000 
B) $4,000 
C) $4,500 
D) $5,000 
A) $3,000 
B) $4,000 
C) $4,500 
D) $5,000

Question 19

The beginning Finished Goods Inventory plus the cost of goods manufactured equals

Accepted Answer

A) ending finished goods inventory. 
B) cost of goods sold for the period. 
C) total work-in-process during the period. 
D) total cost of goods manufactured for the perioD. 
E) cost of goods available for sale for the period. 
A) ending finished goods inventory. 
B) cost of goods sold for the period. 
C) total work-in-process during the period. 
D) total cost of goods manufactured for the perioD. 
E) cost of goods available for sale for the period.

Question 20

Which of the following statements is (are)true? (1).An asset is a cost that will be matched with revenues in a future accounting period.(2).Opportunity costs are recorded as intangible assets in the current accounting period.

Accepted Answer

A) Only (1)is true. 
B) Only (2)is true. 
C) Both (1)and (2)are true. 
D) Neither (1)nor (2)are true. 
A) Only (1)is true. 
B) Only (2)is true. 
C) Both (1)and (2)are true. 
D) Neither (1)nor (2)are true.

The costs of direct materials are classified as:

The difference between the variable ending inventory cost and the absorption ending inventory cost is:

The amount of direct materials issued to production is found by

An opportunity cost is

Which of the following statements is (are)false? (1).In general,the term expense is used for managerial purposes,while the term cost refers to external financial reports.(2).An opportunity cost is the benefit forgone by selecting one alternative over another.

Laner Company has the following data for the production and sale of 2,000 units. What is the contribution margin per unit?

The difference between variable costs and fixed costs is (CMA adapted)

Variable marketing and administrative costs are included in determining full absorption costs.The two costs are included in full cost and not in determining full absorption costs.

An expense is an expired cost matched with revenues in a specific accounting period.This statement is the definition of expense.

Which terms below correctly describe the cost of the black paint used to paint the dots on a pair of dice?

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: What are the estimated conversion costs per unit?

Which of the following should be considered part of a manufacturing company's direct labor cost?

Accounting systems typically record opportunity costs as assets and treat them as intangible items on the financial statements.Opportunity costs are not reflected in the accounting system-they are what did not happen.

The Work-in-Process Inventory of the Rapid Fabricating Corp.was $3,000 higher on December 31,2012 than it was on January 1,2012.This implies that in 2012

Total cost of goods purchased minus beginning merchandise inventory plus ending merchandise inventory equals cost of goods sold.Purchases plus beginning inventory minus ending inventory equals cost of goods sold.

Calculate the conversion costs from the following information:

The beginning Finished Goods Inventory plus the cost of goods manufactured equals

Which of the following statements is (are)true? (1).An asset is a cost that will be matched with revenues in a future accounting period.(2).Opportunity costs are recorded as intangible assets in the current accounting period.

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters

Exam 2: Cost Concepts and Behavior

The costs of direct materials are classified as:

The difference between the variable ending inventory cost and the absorption ending inventory cost is:

The amount of direct materials issued to production is found by

An opportunity cost is

Which of the following statements is (are)false? (1).In general,the term expense is used for managerial purposes,while the term cost refers to external financial reports.(2).An opportunity cost is the benefit forgone by selecting one alternative over another.

Laner Company has the following data for the production and sale of 2,000 units. What is the contribution margin per unit?

The difference between variable costs and fixed costs is (CMA adapted)

Variable marketing and administrative costs are included in determining full absorption costs.The two costs are included in full cost and not in determining full absorption costs.

An expense is an expired cost matched with revenues in a specific accounting period.This statement is the definition of expense.

Which terms below correctly describe the cost of the black paint used to paint the dots on a pair of dice?

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: What are the estimated conversion costs per unit?

Which of the following should be considered part of a manufacturing company's direct labor cost?

Accounting systems typically record opportunity costs as assets and treat them as intangible items on the financial statements.Opportunity costs are not reflected in the accounting system-they are what did not happen.

The Work-in-Process Inventory of the Rapid Fabricating Corp.was $3,000 higher on December 31,2012 than it was on January 1,2012.This implies that in 2012

Total cost of goods purchased minus beginning merchandise inventory plus ending merchandise inventory equals cost of goods sold.Purchases plus beginning inventory minus ending inventory equals cost of goods sold.

Calculate the conversion costs from the following information:

The beginning Finished Goods Inventory plus the cost of goods manufactured equals

Which of the following statements is (are)true? (1).An asset is a cost that will be matched with revenues in a future accounting period.(2).Opportunity costs are recorded as intangible assets in the current accounting period.

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters