Question 1

Which of the following items would NOT appear on an income statement of a service organization?

Accepted Answer

A)  selling expenses 
B)  cost of goods sold 
C)  administrative expenses 
D)  gross margin 
A)  selling expenses 
B)  cost of goods sold 
C)  administrative expenses 
D)  gross margin B

Question 2

Cost management systems are made up of two subsystems: the accounting system and the
control system.

Accepted Answer

cost; operational

Question 3

Gross margin, also called gross profit, is the difference between sales and costs of goods sold.

Accepted Answer

A) True 
 B)False  True

Question 4

All of Eva 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 July amounted to $48,000. 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 July?

Accepted Answer

A)  $9,600 
B)  $6,400 
C)  $16,000 
D)  $32,000 
A)  $9,600 
B)  $6,400 
C)  $16,000 
D)  $32,000

Question 5

Which of the following costs would be included as part of factory overhead?

Accepted Answer

A)  depreciation of plant equipment 
B)  direct labor 
C)  depreciation on the corporation's office building 
D)  paper used in the production of books 
A)  depreciation of plant equipment 
B)  direct labor 
C)  depreciation on the corporation's office building 
D)  paper used in the production of books

Question 6

Which of the following is an example of a possible cost object?

Accepted Answer

A)  a product 
B)  a customer 
C)  a department 
D)  all of the above 
A)  a product 
B)  a customer 
C)  a department 
D)  all of the above

Question 7

The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making.

Accepted Answer

A) True 
 B)False

Question 8

Services differ from tangible products in which of the following dimensions?

Accepted Answer

A)  intangibility 
B)  inseparability 
C)  perishability 
D)  all of the above 
A)  intangibility 
B)  inseparability 
C)  perishability 
D)  all of the above

Question 9

Wages paid to a janitor in the factory would be classified as

Accepted Answer

A)  direct labor. 
B)  direct janitor salaries. 
C)  supervisor salaries. 
D)  factory overhead. 
A)  direct labor. 
B)  direct janitor salaries. 
C)  supervisor salaries. 
D)  factory overhead.

Question 10

Figure 2-13
Inventory balances for the Jameson Company in October 2016 are as follows:
   During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
-Refer to Figure 2-13. What is the cost of goods manufactured?

Accepted Answer

A)  $180,000 
B)  $186,000 
C)  $194,000 
D)  $196,800 
A)  $180,000 
B)  $186,000 
C)  $194,000 
D)  $196,800

Question 11

Figure 2-13
Inventory balances for the Jameson Company in October 2016 are as follows:
   During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
-Refer to Figure 2-13. What is the cost of materials used in production?

Accepted Answer

A)  $36,000 
B)  $42,000 
C)  $47,800 
D)  $54,000 
A)  $36,000 
B)  $42,000 
C)  $47,800 
D)  $54,000

Question 12

A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into production, it would be classified as

Accepted Answer

A)  finished goods inventory. 
B)  factory supplies. 
C)  work-in-process inventory. 
D)  direct materials inventory. 
A)  finished goods inventory. 
B)  factory supplies. 
C)  work-in-process inventory. 
D)  direct materials inventory.

Question 13

All of the following costs are included in factory overhead EXCEPT

Accepted Answer

A)  factory supplies. 
B)  indirect labor. 
C)  plant foreman's salary. 
D)  direct labor. 
A)  factory supplies. 
B)  indirect labor. 
C)  plant foreman's salary. 
D)  direct labor.

Question 14

The three methods of cost assignment are direct tracing, driver tracing, and allocation.

Accepted Answer

A) True 
 B)False

Question 15

Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future loss to the company.

Accepted Answer

A) True 
 B)False

Question 16

Describe a cost management information system, its objectives, and major subsystems.

Accepted Answer

The cost management information system i

Question 17

Gross margin is the difference between and the cost of goods or services sold.

Accepted Answer

The answer of Gross margin is the difference between and...

Question 18

Which of the following would be associated with a functional-based cost accounting information system?

Accepted Answer

A)  setup costs assigned to products using the number of setups as the driver 
B)  materials handling costs assigned to products using the number of moves as the activity driver 
C)  customer service costs assigned to products using the number of complaints as the activity driver 
D)  purchasing costs assigned to products using number of direct labor hours as the activity driver 
A)  setup costs assigned to products using the number of setups as the driver 
B)  materials handling costs assigned to products using the number of moves as the activity driver 
C)  customer service costs assigned to products using the number of complaints as the activity driver 
D)  purchasing costs assigned to products using number of direct labor hours as the activity driver

Question 19

In a company that supplies muffins to bakeries, delivered muffins to bakeries would be a(n)

Accepted Answer

A)  interrelated part. 
B)  input. 
C)  output. 
D)  process. 
A)  interrelated part. 
B)  input. 
C)  output. 
D)  process.

Question 20

Figure 2-13
Inventory balances for the Jameson Company in October 2016 are as follows:
   During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively.
-Refer to Figure 2-13. What are the total manufacturing costs added to production in the period?

Accepted Answer

A)  $186,000 
B)  $180,000 
C)  $144,000 
D)  $174,200 
A)  $186,000 
B)  $180,000 
C)  $144,000 
D)  $174,200

Which of the following items would NOT appear on an income statement of a service organization?

Cost management systems are made up of two subsystems: the accounting system and the control system.

Gross margin, also called gross profit, is the difference between sales and costs of goods sold.

Which of the following costs would be included as part of factory overhead?

Which of the following is an example of a possible cost object?

The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making.

Services differ from tangible products in which of the following dimensions?

Wages paid to a janitor in the factory would be classified as

Figure 2-13 Inventory balances for the Jameson Company in October 2016 are as follows: During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. -Refer to Figure 2-13. What is the cost of goods manufactured?

Figure 2-13 Inventory balances for the Jameson Company in October 2016 are as follows: During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. -Refer to Figure 2-13. What is the cost of materials used in production?

A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into production, it would be classified as

All of the following costs are included in factory overhead EXCEPT

The three methods of cost assignment are direct tracing, driver tracing, and allocation.

Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future loss to the company.

Describe a cost management information system, its objectives, and major subsystems.

Gross margin is the difference between and the cost of goods or services sold.

Which of the following would be associated with a functional-based cost accounting information system?

In a company that supplies muffins to bakeries, delivered muffins to bakeries would be a(n)

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility, Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 2: Basic Cost Management Concepts

Which of the following items would NOT appear on an income statement of a service organization?

Cost management systems are made up of two subsystems: the accounting system and the control system.

Gross margin, also called gross profit, is the difference between sales and costs of goods sold.

Which of the following costs would be included as part of factory overhead?

Which of the following is an example of a possible cost object?

The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making.

Services differ from tangible products in which of the following dimensions?

Wages paid to a janitor in the factory would be classified as

Figure 2-13 Inventory balances for the Jameson Company in October 2016 are as follows: During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. -Refer to Figure 2-13. What is the cost of goods manufactured?

Figure 2-13 Inventory balances for the Jameson Company in October 2016 are as follows: During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and $84,000, respectively. -Refer to Figure 2-13. What is the cost of materials used in production?

A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into production, it would be classified as

All of the following costs are included in factory overhead EXCEPT

The three methods of cost assignment are direct tracing, driver tracing, and allocation.

Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future loss to the company.

Describe a cost management information system, its objectives, and major subsystems.

Gross margin is the difference between and the cost of goods or services sold.

Which of the following would be associated with a functional-based cost accounting information system?

In a company that supplies muffins to bakeries, delivered muffins to bakeries would be a(n)

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility, Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters