Exam 2: Basic Cost Management Concepts

Cost of goods sold equals cost of goods manufactured

The system that focuses on the management of activities with the objective of improving the value received by the customer and the profit received by providing this value is called.

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 total variable costs per unit?

The ending work-in-process inventory is deducted on the

Which cost assignment method would likely assign the cost of heating in a plant that makes beds and dressers when the bed product line is the cost object?

In a company that supplies muffins to bakeries, which of the following would be considered an input?

Describe several of the major differences between a functional-based cost management system and an activity-based cost management system.

Which of the following costs would be included as part of direct materials in the production of an automobile?

Conversion cost is the sum of direct materials and direct labor cost and prime cost is the sum of direct labor and overhead cost.

One or more of the following is (are) a cost accounting system(s) that use(s) only unit-based activity drivers to assign costs to cost objects.

Figure 2-15 Information from the records of Chrome Ponies Enterprises for June 2016 is as follows: Inventories -Refer to Figure 2-15. What was the cost of materials used in production?

The Sumter Company recently had a fire in its accounting office, destroying most of its records. Only the following information could be salvaged for 2016: The cost of direct materials used in production during 2016 is

Which of the following costs would be included in value-chain product costs?

Prime product costs include

Production costs are costs associated with manufacturing goods or providing services and are classified as direct materials, direct labor, and overhead.

The most precise of the three methods of cost assignment is direct tracing since it relies on observable causal relationships.

The overall objective of accounting information is to provide information to .

Which of the following is NOT an objective of the operational control system?

Which is NOT a benefit of an activity-based cost management system?

If beginning work-in-process inventory is $160,000, ending work-in-process inventory is $180,000, cost of goods manufactured is $500,000, and direct materials used are $130,000, what are the conversion costs?