Exam 2: Basic Cost Management Concepts

Which of the following costs is NOT a period cost?

Cost management information benefits production, marketing, and customer service systems as well as being a crucial part of managerial decision making.

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Inventory balances for Spiritlight Ventures for November 2016 are as follows: During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively. The cost of goods manufactured in November was

What is a disadvantage of assigning costs evenly over all cost objects?

The accounting information subsystem that is primarily concerned with producing outputs for external users is called:

The following information is from the records of Stretch Limousines, Inc.:

Traceability is a function of

A cost used up in the production of revenues is a(n)

In a company that supplies muffins to bakeries, which of the following would NOT be considered a transforming process?

The difference between a supply and an indirect material is that

The following information has been provided for Hopen Enterprises: What is the amount of factory overhead?

In deciding whether to implement a(n) cost management system, managers must evaluate the trade- off between costs of measurement and cost of errors.

Which type of inventory is normally sold to other organizations?

The cost of goods sold for the Immaculate Corporation for the month of April 2016 was $450,000. Work-in-process inventory at the end of April was 95 percent of the work-in-process inventory at the beginning of the month. Overhead is 80 percent of the direct labor cost. During the month, $110,000 of direct materials were purchased. Revenues for Immaculate were $600,000, and the selling and administrative costs were $70,000. Other information about Immaculate's inventories and production for April was as follows: Required: a. Prepare a cost of goods manufactured and cost of goods sold statements. b. Prepare an income statement. c. What are the prime costs, conversion costs, and period costs?

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object?

The cost of goods manufactured represents the total manufacturing cost of goods completed during the current period.

Morton Manufacturing shows cost of goods sold for the month of March was $90,000. The finished goods inventory was $15,000 on March 1 and $17,500 on March 31. Beginning and ending work-in-process inventories were $20,000 and $25,000, respectively. What was the cost of goods manufactured during March?

In an activity-based management system, one is NOT likely to find