Exam 2: Basic Cost Management Concepts

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2016 is as follows: Inventories -Refer to Figure 2-15. What are the total manufacturing costs added?

Which of the following items is NEVER relevant to the cost flows of a service organization?

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. The prime costs per unit for September were

Which of the following is a service organization?

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

income is the difference between gross margin and selling and administrative expenses.

Assume the following information for the Blue Knights Corporation for the year ended December 31, 2016: What is the cost of goods sold for the year ended December 31, 2016?

In an accounting information system, the inputs are usually

Cost assignment is one of the key processes of the cost accounting system.

Corlis Custom Builders designs decks, gazebos, and play equipment for residential homes. The following was provided for the year ended September 30, 2016: The average design fee is $700. There were 2,000 designs processed during the year. Required: a. Prepare a statement of cost of services sold. b. Prepare an income statement. c. Discuss three differences between services and tangible products.

Big Foot Athletics designs and manufactures running shoes. A new model of shoes, Fast Track, has been developed and is ready for production. Required: Which costs will the production manager collect from the value chain, and how would these costs be used in different decisions? a. traditional product costs b. operating product costs c. value-chain product costs

The overall objective of accounting information systems is to

Figure 2-16 A small engine repair shop purchased materials costing $9,000 in July. The beginning inventory of material parts was $4,500 and the ending inventory of material parts was $4,000. Payments for direct labor for July totaled $27,000, secretarial costs were $2,000, and overhead of $5,000 was incurred. In addition, $5,000 was spent on advertising and $2,000 for the franchise name. Revenue for July was $50,000. -Refer to Figure 2-16. What is the gross margin for July?

The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):

The income statement prepared for external reporting is

Which of the following is an example of an expense?

Error costs are costs associated with measurements required by the cost management system and measurement costs are the costs associated with making poor decisions.

Selling and administrative costs are classified as

Which of the following is NOT one of the features of an operational control information system?

Which of the following is an example of a loss?