Question 1

In preparing an income statement, and costs are separated.

Accepted Answer

production

Question 2

The assignment of indirect costs to cost objects is referred to as:

Accepted Answer

A)  Allocation 
B)  Direct tracing 
C)  Physical observation 
D)  Cost management 
A)  Allocation 
B)  Direct tracing 
C)  Physical observation 
D)  Cost management

Question 3

Define activity-based management. In your answer, present the activity-based management model in good form.

Accepted Answer

Activity-based management focuses on the

Question 4

Which of the following is a trait of a functional-based cost management system?

Accepted Answer

A)  unit-based drivers 
B)  tracing intensive 
C)  use of both financial and nonfinancial measures of performance 
D)  detailed activity information 
A)  unit-based drivers 
B)  tracing intensive 
C)  use of both financial and nonfinancial measures of performance 
D)  detailed activity information

Question 5

Which of the following costs is an example of product costs?

Accepted Answer

A)  selling commissions 
B)  nonfactory office salaries 
C)  direct materials 
D)  advertising expense 
A)  selling commissions 
B)  nonfactory office salaries 
C)  direct materials 
D)  advertising expense

Question 6

Figure 2-11
Information from the records of the Abel Corporation for July 2016 was as follows:
   Inventories
    
-Refer to Figure 2-11. The conversion cost is

Accepted Answer

A)  $960,000 
B)  $1,179,000 
C)  $705,000 
D)  $564,000 
A)  $960,000 
B)  $1,179,000 
C)  $705,000 
D)  $564,000

Question 7

Direct costs

Accepted Answer

A)  are incurred for the benefit of the business as a whole. 
B)  would continue even if a particular product were discontinued. 
C)  are those costs that can be easily and accurately traced to a cost object. 
D)  can be assigned to products only by a process of allocation. 
A)  are incurred for the benefit of the business as a whole. 
B)  would continue even if a particular product were discontinued. 
C)  are those costs that can be easily and accurately traced to a cost object. 
D)  can be assigned to products only by a process of allocation.

Question 8

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of
some underlying "true cost".

Accepted Answer

A) True 
 B)False

Question 9

A traditional cost accounting system assumes that all costs can be classified as fixed with respect to changes in the units or volume produced.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is NOT an example of a difference between the income statement of a service organization and the income statement of a manufacturing organization?

Accepted Answer

A)  A service company will never have work in process. 
B)  The service company will not have a finished goods inventory. 
C)  Fulfillment costs may be added to cost of goods sold of a service company. 
D)  Research and development expenses are not usually a major component of a service organization. 
A)  A service company will never have work in process. 
B)  The service company will not have a finished goods inventory. 
C)  Fulfillment costs may be added to cost of goods sold of a service company. 
D)  Research and development expenses are not usually a major component of a service organization.

Question 11

are generally materials necessary for production that do not become part of the finished product or are not used to provide a service.

Accepted Answer

The answer of are generally materials necessary for production that...

Question 12

Figure 2-14
The following is the data for Lauren Enterprises:  
-Refer to Figure 2-14. What is the cost of goods manufactured?

Accepted Answer

A)  $1,115,000 
B)  $965,000 
C)  $955,000 
D)  $950,000 
A)  $1,115,000 
B)  $965,000 
C)  $955,000 
D)  $950,000

Question 13

Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2016 is as follows:
   Inventories
    
-Refer to Figure 2-15. Chrome Ponies Enterprises' cost of goods manufactured in June is

Accepted Answer

A)  $29,300. 
B)  $29,700. 
C)  $29,200. 
D)  $29,000. 
A)  $29,300. 
B)  $29,700. 
C)  $29,200. 
D)  $29,000.

Question 14

A computerized information system that strives to input data once and to make it available to people across the company for different purposes is called a:

Accepted Answer

A)  cost management information system 
B)  enterprise resource planning system 
C)  internal accounting system 
D)  financial accounting information system 
A)  cost management information system 
B)  enterprise resource planning system 
C)  internal accounting system 
D)  financial accounting information system

Question 15

Factors that cause changes in resource usage, activity usage, costs and revenues are called

Accepted Answer

A)  indirect costs. 
B)  drivers. 
C)  assignments. 
D)  cost objects. 
A)  indirect costs. 
B)  drivers. 
C)  assignments. 
D)  cost objects.

Question 16

The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value.

Accepted Answer

A) True 
 B)False

Question 17

Order-getting costs would NOT include

Accepted Answer

A)  marketing costs. 
B)  customer service costs. 
C)  advertising. 
D)  salaries of sales personnel. 
A)  marketing costs. 
B)  customer service costs. 
C)  advertising. 
D)  salaries of sales personnel.

Question 18

Conversion costs do NOT include

Accepted Answer

A)  direct materials. 
B)  direct labor. 
C)  factory overhead. 
D)  any of these costs. 
A)  direct materials. 
B)  direct labor. 
C)  factory overhead. 
D)  any of these costs.

Question 19

Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2016 is as follows:
   Inventories
    
-Refer to Figure 2-15. What is the gross margin (profit)?

Accepted Answer

A)  $11,500 
B)  $11,600 
C)  $4,500 
D)  $4,600 
A)  $11,500 
B)  $11,600 
C)  $4,500 
D)  $4,600

Question 20

If the total warehousing cost for the year amounts to $450,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

Accepted Answer

A)  $90,000 
B)  $180,000 
C)  $270,000 
D)  $450,000 
A)  $90,000 
B)  $180,000 
C)  $270,000 
D)  $450,000

In preparing an income statement, and costs are separated.

The assignment of indirect costs to cost objects is referred to as:

Define activity-based management. In your answer, present the activity-based management model in good form.

Which of the following is a trait of a functional-based cost management system?

Which of the following costs is an example of product costs?

Figure 2-11 Information from the records of the Abel Corporation for July 2016 was as follows: Inventories -Refer to Figure 2-11. The conversion cost is

Direct costs

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

A traditional cost accounting system assumes that all costs can be classified as fixed with respect to changes in the units or volume produced.

Which of the following is NOT an example of a difference between the income statement of a service organization and the income statement of a manufacturing organization?

are generally materials necessary for production that do not become part of the finished product or are not used to provide a service.

Figure 2-14 The following is the data for Lauren Enterprises: -Refer to Figure 2-14. What is the cost of goods manufactured?

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2016 is as follows: Inventories -Refer to Figure 2-15. Chrome Ponies Enterprises' cost of goods manufactured in June is

A computerized information system that strives to input data once and to make it available to people across the company for different purposes is called a:

Factors that cause changes in resource usage, activity usage, costs and revenues are called

The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value.

Order-getting costs would NOT include

Conversion costs do NOT include

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2016 is as follows: Inventories -Refer to Figure 2-15. What is the gross margin (profit)?

If the total warehousing cost for the year amounts to $450,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

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

In preparing an income statement, and costs are separated.

The assignment of indirect costs to cost objects is referred to as:

Define activity-based management. In your answer, present the activity-based management model in good form.

Which of the following is a trait of a functional-based cost management system?

Which of the following costs is an example of product costs?

Figure 2-11 Information from the records of the Abel Corporation for July 2016 was as follows: Inventories -Refer to Figure 2-11. The conversion cost is

Direct costs

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

A traditional cost accounting system assumes that all costs can be classified as fixed with respect to changes in the units or volume produced.

Which of the following is NOT an example of a difference between the income statement of a service organization and the income statement of a manufacturing organization?

are generally materials necessary for production that do not become part of the finished product or are not used to provide a service.

Figure 2-14 The following is the data for Lauren Enterprises: -Refer to Figure 2-14. What is the cost of goods manufactured?

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2016 is as follows: Inventories -Refer to Figure 2-15. Chrome Ponies Enterprises' cost of goods manufactured in June is

A computerized information system that strives to input data once and to make it available to people across the company for different purposes is called a:

Factors that cause changes in resource usage, activity usage, costs and revenues are called

The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value.

Order-getting costs would NOT include

Conversion costs do NOT include

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2016 is as follows: Inventories -Refer to Figure 2-15. What is the gross margin (profit)?

If the total warehousing cost for the year amounts to $450,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

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