Exam 2: Basic Cost Management Concepts

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. If production increased to 32,000 units next year, what is the effect on variable product costs per unit and total product costs per unit respectively?

An example of a nonproduction cost is

The cost accounting system that emphasizes tracing over allocation is called an activity-based accounting system.

Which of the following costs would be considered a direct material?

The records of the Williamson Company show the following information:

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

Selected data concerning the past year's operations of the Motor City Corporation are as follows: The cost of direct materials purchased is

Inventory balances for Marshall, Inc., in June 2016 are as follows: During June, purchases of direct materials were $1,500. Direct labor and factory overhead costs were $2,500 and $3,500, respectively. Conversion costs for June were

The following costs were incurred by the Awesome Company: a. Direct materials used b. Cost of goods manufactured c. Cost of goods sold d. Operating income

An example of a tangible product, rather than a service, would be

A cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control activities is called the:

Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?

Which of the following costs would be included in traditional product costs used for external reporting?

The resources given up that are expected to bring a current or future benefit to the organization are called __________ .

In a traditional manufacturing company, product costs include

The value chain is the set of activities required to design, develop, produce, market, deliver and provide post-sales service for the products and services sold to customers.

The direct costs of operating a college computer center would NOT include

Which of the following costs is an indirect product cost?

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

The records of Custom Choppers, Inc. for September 2016 shows the following information: