Question 1

The following information for the Sutton Glass Company has been provided:   What is the amount of direct materials used?

Accepted Answer

A)  $25,000 
B)  $30,000 
C)  $35,000 
D)  $100,000 
A)  $25,000 
B)  $30,000 
C)  $35,000 
D)  $100,000

Question 2

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

Accepted Answer

A)  the wood and upholstery materials that are in the final piece 
B)  the depreciation paid on factory equipment t 
C)  he labor of the worker assembling the piece of furniture 
D)  the labor of the woodworker who finishes the wood of the piece 
A)  the wood and upholstery materials that are in the final piece 
B)  the depreciation paid on factory equipment t 
C)  he labor of the worker assembling the piece of furniture 
D)  the labor of the woodworker who finishes the wood of the piece

Question 3

The income statement prepared for external parties is frequently referred to as absorption-costing income, or full costing income.

Accepted Answer

A) True 
 B)False

Question 4

Figure 2-11
Information from the records of the Abel Corporation for July 2016 was as follows:
   Inventories
    
-Refer to Figure 2-11. The variable product costs are

Accepted Answer

A)  $969,000 
B)  $769,000 
C)  $764,000 
D)  $1,179,000 
A)  $969,000 
B)  $769,000 
C)  $764,000 
D)  $1,179,000

Question 5

With regard to services, inseparability means that

Accepted Answer

A)  products cannot be stored. 
B)  direct contact must take place for an exchange. 
C)  products have a physical presence. 
D)  none of the above apply to inseparability. 
A)  products cannot be stored. 
B)  direct contact must take place for an exchange. 
C)  products have a physical presence. 
D)  none of the above apply to inseparability.

Question 6

The sum of the total additions to work in process during a period is

Accepted Answer

A)  total manufacturing costs added. 
B)  factory overhead applied. 
C)  material used. 
D)  cost of goods manufactured. 
A)  total manufacturing costs added. 
B)  factory overhead applied. 
C)  material used. 
D)  cost of goods manufactured.

Question 7

The optimal level in the trade-off between measurement and error costs is when

Accepted Answer

A)  measurement costs are greater than error costs. 
B)  measurement costs and error costs are minimized. 
C)  measurement costs are less than error costs. 
D)  the total of measurement costs and error costs are maximized. 
A)  measurement costs are greater than error costs. 
B)  measurement costs and error costs are minimized. 
C)  measurement costs are less than error costs. 
D)  the total of measurement costs and error costs are maximized.

Question 8

Figure 2-12
Information from the records of the Conundrum Company for September 2016 was as follows:
   Inventories
   Conundrum Corporation produced 20,000 units.
-Refer to Figure 2-12. What are the conversion costs per unit?

Accepted Answer

A)  $7.05 
B)  $8.8125 
C)  $12.1125 
D)  $14.7375 
A)  $7.05 
B)  $8.8125 
C)  $12.1125 
D)  $14.7375

Question 9

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

Accepted Answer

A)  materials inventory 
B)  cost of goods available for sale 
C)  cost of goods manufactured 
D)  finished goods inventory 
A)  materials inventory 
B)  cost of goods available for sale 
C)  cost of goods manufactured 
D)  finished goods inventory

Question 10

An example of a period cost is

Accepted Answer

A)  president's salary. 
B)  insurance on factory equipment. 
C)  property taxes on factory building. 
D)  wages of factory custodians. 
A)  president's salary. 
B)  insurance on factory equipment. 
C)  property taxes on factory building. 
D)  wages of factory custodians.

Question 11

Value-chain product costs include which of the following?

Accepted Answer

A)  customer service costs 
B)  marketing costs 
C)  research and development 
D)  all of the above 
A)  customer service costs 
B)  marketing costs 
C)  research and development 
D)  all of the above

Question 12

Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

Accepted Answer

A) True 
 B)False

Question 13

The least accurate but easiest to apply method of cost assignment is the method.

Accepted Answer

The answer of The least accurate but easiest to apply...

Question 14

means the consumer cannot see, hear, feel, or taste a service before it is bought.

Accepted Answer

The answer of means the consumer cannot see, hear, feel,...

Question 15

Which of the following costs incurred by a furniture manufacturer would be a product cost?

Accepted Answer

A)  office salaries 
B)  lumber 
C)  commissions paid to sales staff 
D)  controller's salary 
A)  office salaries 
B)  lumber 
C)  commissions paid to sales staff 
D)  controller's salary

Question 16

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

Accepted Answer

A)  $1,179,000 
B)  $969,000 
C)  $615,000 
D)  $764,000 
A)  $1,179,000 
B)  $969,000 
C)  $615,000 
D)  $764,000

Question 17

Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs.

Accepted Answer

The answer of Costs necessary to market and distribute a...

Question 18

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

Accepted Answer

A) True 
 B)False

Question 19

The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

Accepted Answer

A) True 
 B)False

Question 20

High quality cost management systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?

Accepted Answer

A)  increases speed by ignoring non-financial information 
B)  reduces duplicate data storage and use of data 
C)  improves timeliness of reports 
D)  increases the efficiency of generating reliable and accurate information 
A)  increases speed by ignoring non-financial information 
B)  reduces duplicate data storage and use of data 
C)  improves timeliness of reports 
D)  increases the efficiency of generating reliable and accurate information

The following information for the Sutton Glass Company has been provided: What is the amount of direct materials used?

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

The income statement prepared for external parties is frequently referred to as absorption-costing income, or full costing income.

Figure 2-11 Information from the records of the Abel Corporation for July 2016 was as follows: Inventories -Refer to Figure 2-11. The variable product costs are

With regard to services, inseparability means that

The sum of the total additions to work in process during a period is

The optimal level in the trade-off between measurement and error costs is when

Figure 2-12 Information from the records of the Conundrum Company for September 2016 was as follows: Inventories Conundrum Corporation produced 20,000 units. -Refer to Figure 2-12. What are the conversion costs per unit?

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

An example of a period cost is

Value-chain product costs include which of the following?

Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

The least accurate but easiest to apply method of cost assignment is the method.

means the consumer cannot see, hear, feel, or taste a service before it is bought.

Which of the following costs incurred by a furniture manufacturer would be a product cost?

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

Costs necessary to market and distribute a product or service are often referred to as order- and order- costs.

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

High quality cost management systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?

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

The following information for the Sutton Glass Company has been provided: What is the amount of direct materials used?

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

The income statement prepared for external parties is frequently referred to as absorption-costing income, or full costing income.

Figure 2-11 Information from the records of the Abel Corporation for July 2016 was as follows: Inventories -Refer to Figure 2-11. The variable product costs are

With regard to services, inseparability means that

The sum of the total additions to work in process during a period is

The optimal level in the trade-off between measurement and error costs is when

Figure 2-12 Information from the records of the Conundrum Company for September 2016 was as follows: Inventories Conundrum Corporation produced 20,000 units. -Refer to Figure 2-12. What are the conversion costs per unit?

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

An example of a period cost is

Value-chain product costs include which of the following?

Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

The least accurate but easiest to apply method of cost assignment is the method.

means the consumer cannot see, hear, feel, or taste a service before it is bought.

Which of the following costs incurred by a furniture manufacturer would be a product cost?

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

Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs.

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.

High quality cost management systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?

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

Costs necessary to market and distribute a product or service are often referred to as order- and order- costs.