Exam 2: Management Accounting: Cost Terms and Concepts

Components of a management accounting system Management accounting systems are made up of four interrelated systems. Identify those four systems, explain their function and describe how they collectively assist management in their decision making.

The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January: The manufacturing overhead is:

The monthly cost of renting manufacturing equipment is:

Costs that can be traced to a particular cost object are called:

Indirect material, indirect labour and other manufacturing costs that are neither direct labour nor direct material costs are classified as:

Barrister and Company began July with a finished goods inventory of $10 000. The cost of goods manufactured during the month was $85 000 and the ending finished goods inventory was $20 000. The cost of goods sold during July was:

Classifying responsibility centre costs as controllable or uncontrollable can enhance:

Costs that can be significantly influenced by a particular manager are:

Refer to the following data. The period costs are:

Kevin Smith is the production manager of Mydas Ltd, a company that manufactures a range of motor vehicles. His role includes overseeing the entire production process of Mydas Ltd's three product lines: family cars, sports cars, and motor cycles. Once completed, all the cars are shipped within Australia and to China and Korea by the company's shipping and transportation department. Identify two examples of controllable costs and two examples of uncontrollable costs for Kevin. Explain your answer.

When raw materials are purchased by a manufacturer, those costs will be recorded in the general ledger as:

Refer to the following data. The non-manufacturing costs are:

Manufacturing organisations have four inventory accounts―raw materials, work in process, cost of goods sold and finished goods.

The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January: The product costs are:

Sally Strong is the production manager of Eldervale Winery. Her role includes overseeing the production and bottling processes of Eldervale Winery's three product lines: sparkling wine, red wine and white wine. Which of the following is most likely an example of an uncontrollable cost for Sally?

Which of the following statements is correct in relation to determining whether a cost is direct or indirect?

Costs that managers cannot significantly influence are classified as uncontrollable costs.

Traditional cost management systems use production volume as the measure of activity. Modern systems might use which of the following as activity measures?

Direct and indirect cost classification is based on cost behaviour in relation to changes in the level of activity.

Depreciation of factory equipment would be classified as: