Question 1

The variable operating income is:

Accepted Answer

A) $120,000 
B) $140,000 
C) $104,000 
D) $128,000 
A) $120,000 
B) $140,000 
C) $104,000 
D) $128,000

Question 2

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 difference between the $100 estimated selling price for Product W and its total cost of $88 represents

Accepted Answer

A) Contribution margin per unit. 
B) Gross margin per unit. 
C) Variable cost per unit. 
D) Operating profit per unit. 
A) Contribution margin per unit. 
B) Gross margin per unit. 
C) Variable cost per unit. 
D) Operating profit per unit.

Question 3

The absorption cost of goods sold is:

Accepted Answer

A) $246,667 
B) $120,000 
C) $180,000 
D) $40,000 
A) $246,667 
B) $120,000 
C) $180,000 
D) $40,000

Question 4

Total work-in-process during the period is the sum of the beginning work-in-process inventory and the total manufacturing costs incurred during the period.This is the correct formula for total work-in-process.

Accepted Answer

A) True 
 B)False

Question 5

The three categories of product costs are direct materials,direct labor,and manufacturing overhead.This statement is the definition of product cost.

Accepted Answer

A) True 
 B)False

Question 6

Seiler Company has the following information:   What was the cost of goods available for sale for the period?

Accepted Answer

A) $16,800 
B) $16,500 
C) $16,100 
D) $15,100 
A) $16,800 
B) $16,500 
C) $16,100 
D) $15,100

Question 7

How would a 5% sales commission paid to sales personnel be classified in a manufacturing company?

Accepted Answer

A) Fixed,period cost. 
B) Fixed,product cost. 
C) Variable,period cost. 
D) Variable,product cost. 
A) Fixed,period cost. 
B) Fixed,product cost. 
C) Variable,period cost. 
D) Variable,product cost.

Question 8

Seiler Company has the following information:   What was the direct labor for the period?

Accepted Answer

A) $5,500. 
B) $5,800. 
C) $6,300. 
D) $6,800. 
A) $5,500. 
B) $5,800. 
C) $6,300. 
D) $6,800.

Question 9

The Southeastern Company's manufacturing costs for the third quarter of 2008 were as follows: (CPA adapted)   What amount should be considered product costs for external reporting purposes?

Accepted Answer

A) $700,000 
B) $800,000 
C) $880,000 
D) $898,000 
A) $700,000 
B) $800,000 
C) $880,000 
D) $898,000

Question 10

Which one of the following costs is classified as a period cost? (CIA adapted)

Accepted Answer

A) The wages of the workers on the shipping docks who load completed products onto outgoing trucks. 
B) The wages of a worker paid for idle time resulting from a machine breakdown in the molding department. 
C) The payments for employee (fringe)benefits paid on behalf of the workers in the manufacturing plant. 
D) The wages paid to workers for reworking defective products that failed the quality inspection upon completion. 
A) The wages of the workers on the shipping docks who load completed products onto outgoing trucks. 
B) The wages of a worker paid for idle time resulting from a machine breakdown in the molding department. 
C) The payments for employee (fringe)benefits paid on behalf of the workers in the manufacturing plant. 
D) The wages paid to workers for reworking defective products that failed the quality inspection upon completion.

Question 11

Pete's Pizza Place has four pizza makers and ten other employees who take orders from customers and perform other tasks.The four pizza makers and the other employees are paid an hourly wage.How would one classify (1)the wages paid to the pizza makers and other employees and (2)materials (e.g. ,cheeses,sauce,etc. )used to make the pizza? Assume the activity is the number of pizzas made.

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 12

Marketing costs include all of the following except:

Accepted Answer

A) Advertising. 
B) Shipping costs. 
C) Sales commissions. 
D) Legal and accounting fees. 
A) Advertising. 
B) Shipping costs. 
C) Sales commissions. 
D) Legal and accounting fees.

Question 13

Given the following information for a retail company,what is the total cost of goods purchased for the period?

Accepted Answer

A) $298,800 
B) $290,800 
C) $282,100 
D) $304,000 
A) $298,800 
B) $290,800 
C) $282,100 
D) $304,000

Question 14

Prime cost consists of direct materials combined with:

Accepted Answer

A) direct labor. 
B) manufacturing overhead. 
C) indirect materials. 
D) cost of goods manufactureD.Direct materials and direct labor = Prime costs. 
A) direct labor. 
B) manufacturing overhead. 
C) indirect materials. 
D) cost of goods manufactureD.Direct materials and direct labor = Prime costs.

Question 15

Cheboygan Company has the following unit costs:   Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the operating profit using a contribution margin income statement?

Accepted Answer

A) $170,000 
B) $240,000 
C) $290,000 
D) $360,000 
A) $170,000 
B) $240,000 
C) $290,000 
D) $360,000

Question 16

Cheboygan Company has the following unit costs:   Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the contribution margin?

Accepted Answer

A) $170,000 
B) $240,000 
C) $290,000 
D) $360,000 
A) $170,000 
B) $240,000 
C) $290,000 
D) $360,000

Question 17

An example of a period cost is:

Accepted Answer

A) fire insurance on a factory building. 
B) salary of a factory supervisor. 
C) direct materials. 
D) rent on a headquarters building. 
A) fire insurance on a factory building. 
B) salary of a factory supervisor. 
C) direct materials. 
D) rent on a headquarters building.

Question 18

Cheboygan Company has the following unit costs:   Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the operating profit under full absorption costing?

Accepted Answer

A) $170,000 
B) $240,000 
C) $290,000 
D) $360,000 
A) $170,000 
B) $240,000 
C) $290,000 
D) $360,000

Question 19

The variable cost of goods sold is:

Accepted Answer

A) $110,000 
B) $120,000 
C) $144,000 
D) $40,000 
A) $110,000 
B) $120,000 
C) $144,000 
D) $40,000

Question 20

The following information was collected from the accounting records of the CJG 65 for 3,000 units:   What is CJG's total cost per unit?

Accepted Answer

A) $180. 
B) $200. 
C) $210. 
D) $250. 
A) $180. 
B) $200. 
C) $210. 
D) $250.

The variable operating income is:

The absorption cost of goods sold is:

Total work-in-process during the period is the sum of the beginning work-in-process inventory and the total manufacturing costs incurred during the period.This is the correct formula for total work-in-process.

The three categories of product costs are direct materials,direct labor,and manufacturing overhead.This statement is the definition of product cost.

Seiler Company has the following information: What was the cost of goods available for sale for the period?

How would a 5% sales commission paid to sales personnel be classified in a manufacturing company?

Seiler Company has the following information: What was the direct labor for the period?

The Southeastern Company's manufacturing costs for the third quarter of 2008 were as follows: (CPA adapted) What amount should be considered product costs for external reporting purposes?

Which one of the following costs is classified as a period cost? (CIA adapted)

Marketing costs include all of the following except:

Given the following information for a retail company,what is the total cost of goods purchased for the period?

Prime cost consists of direct materials combined with:

Cheboygan Company has the following unit costs: Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the operating profit using a contribution margin income statement?

Cheboygan Company has the following unit costs: Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the contribution margin?

An example of a period cost is:

Cheboygan Company has the following unit costs: Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the operating profit under full absorption costing?

The variable cost of goods sold is:

The following information was collected from the accounting records of the CJG 65 for 3,000 units: What is CJG's total cost per unit?

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

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Exam 2: Cost Concepts and Behavior

The variable operating income is:

The absorption cost of goods sold is:

Total work-in-process during the period is the sum of the beginning work-in-process inventory and the total manufacturing costs incurred during the period.This is the correct formula for total work-in-process.

The three categories of product costs are direct materials,direct labor,and manufacturing overhead.This statement is the definition of product cost.

Seiler Company has the following information: What was the cost of goods available for sale for the period?

How would a 5% sales commission paid to sales personnel be classified in a manufacturing company?

Seiler Company has the following information: What was the direct labor for the period?

The Southeastern Company's manufacturing costs for the third quarter of 2008 were as follows: (CPA adapted) What amount should be considered product costs for external reporting purposes?

Which one of the following costs is classified as a period cost? (CIA adapted)

Marketing costs include all of the following except:

Given the following information for a retail company,what is the total cost of goods purchased for the period?

Prime cost consists of direct materials combined with:

Cheboygan Company has the following unit costs: Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the operating profit using a contribution margin income statement?

Cheboygan Company has the following unit costs: Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the contribution margin?

An example of a period cost is:

Cheboygan Company has the following unit costs: Cheboygan produced and sold 10,000 units.If the product sells for $100,what is the operating profit under full absorption costing?

The variable cost of goods sold is:

The following information was collected from the accounting records of the CJG 65 for 3,000 units: What is CJG's total cost per unit?

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