Question 1

A(n)____ cost increases or decreases in intervals as activity changes.

Accepted Answer

A) historical cost 
B) fixed cost 
C) step cost 
D) budgeted cost 
A) historical cost 
B) fixed cost 
C) step cost 
D) budgeted cost C

Question 2

Jackson Company.
Jackson Company manufactures wood file cabinets.The following information is available for June of the current year.

Begining  Ending    Raw material inventory    $6,000     $7,500   Work in process inventory  17,300      11,700 Finished goods inventory21,000    16,300
The direct labor rate is $9.60 per hour and overhead for the month was $9,600.
Refer to Jackson Company.If there were 1,500 direct labor hours and $21,000 of raw material purchased,Cost of Goods Manufactured is:

Accepted Answer

A) $49,100. 
B) $45,000. 
C) $51,000. 
D) $49,500. 
A) $49,100. 
B) $45,000. 
C) $51,000. 
D) $49,500. A

Question 3

Bridges Corporation
The following information has been taken from the cost records of Bridges Corporation for the past year:
Raw material used in production                                                $336
Total manufacturing costs charged to production during            711
the year (includes direct material, direct labor, and
 overhead equal to 50% of direct labor cost)
Cost of goods available for sale                                                  851
Selling and Administrative expenses                                           35
Inventories
Begining  Ending    Raw material  $80     $90   Work in process85      25 Finished goods80    105
Refer to Bridges Company.Cost of Goods Sold was

Accepted Answer

A) $711 
B) $746 
C) $796 
D) $816 
A) $711 
B) $746 
C) $796 
D) $816 B

Question 4

Richards Company
The following information has been taken from the cost records of Richards Company for the past year:
Raw material used in production                                                $326
Total manufacturing costs charged to production during            686
the year (includes direct material, direct labor, and
 overhead equal to 60% of direct labor cost)
Cost of goods available for sale                                                  826
Selling and Administrative expenses                                           25
Inventories
BeginingEnding    Raw material  75 $85   Work in process80 30 Finished goods90110
Refer to Richards Company.Cost of Goods Manufactured was

Accepted Answer

A) $636. 
B) $716. 
C) $736. 
D) $766. 
A) $636. 
B) $716. 
C) $736. 
D) $766.

Question 5

Using the information below,prepare a Schedule of Cost of Goods Manufactured (in good form)for the Cayton Company for June 20y0:

Begining  Ending    Raw material inventory    $8,500     $9,700   Work in process inventory  20,400      25,800 Finished goods inventory31,350    21,375
Additional information: purchases of raw material were $51,900;21,560 direct labor hours were worked at $12.50 per hour;overhead costs were $39,800.

Accepted Answer

The answer of Using the information below,prepare a Schedule of...

Question 6

Jackson Company.
Jackson Company manufactures wood file cabinets.The following information is available for June of the current year.

Begining  Ending    Raw material inventory    $6,000     $7,500   Work in process inventory  17,300      11,700 Finished goods inventory21,000    16,300
The direct labor rate is $9.60 per hour and overhead for the month was $9,600.
Refer to Jackson Company.If there were 1,500 direct labor hours and $21,000 of raw material purchased,how much is Cost of Goods Sold?

Accepted Answer

A) $64,500. 
B) $59,800. 
C) $38,800. 
D) $53,800. 
A) $64,500. 
B) $59,800. 
C) $38,800. 
D) $53,800.

Question 7

Costs that are incurred to improve quality by precluding defects and improper processing are referred to as ____________________ costs.

Accepted Answer

The answer of Costs that are incurred to improve quality...

Question 8

A selling cost is a(n)
product cost      period cost           inventoriable cost

Accepted Answer

A) yes yes no 
B) yes no no 
C) no yes no 
D) no yes yes 
A) yes yes no 
B) yes no no 
C) no yes no 
D) no yes yes

Question 9

Davis Company manufactures desks.The beginning balance of Raw Material Inventory was $4,500;raw material purchases of $29,600 were made during the month.At month end,$7,700 of raw material was on hand.Raw material used during the month was

Accepted Answer

A) $26,400. 
B) $34,100. 
C) $37,300. 
D) $29,600. 
A) $26,400. 
B) $34,100. 
C) $37,300. 
D) $29,600.

Question 10

The following information is for the Pawnee Manufacturing Company for November.
inventories
Begining  Ending    Raw material     $19,750     $15,400   Work in process inventory  35,350      32,200 Finished goods inventory21,300    27,900              Direct Labor (21,000 DLH @ $13)                                    Raw Material Purchases       $155,000      Insurance-Office       2,750                Indirect Labor       11,600       Office Supplies Expense       1,050               Factory Supplies Used       475       Insurance-Factory       1,825               Other Expenses:              Depr. Office Equipment       3,900               Depr.-Factory Equipment       18,100       Repair/Maintenance-Factory       7,800       
Prepare a statement of Cost of Goods Manufactured and a statement of Cost of Goods Sold in good form.

Accepted Answer

The answer of The following information is for the Pawnee...

Question 11

A predictor which has an absolute cause and effect relationship to a cost is referred to a cost driver.

Accepted Answer

A) True 
 B)False

Question 12

Jackson Company.
Jackson Company manufactures wood file cabinets.The following information is available for June of the current year.

Begining  Ending    Raw material inventory    $6,000     $7,500   Work in process inventory  17,300      11,700 Finished goods inventory21,000    16,300
The direct labor rate is $9.60 per hour and overhead for the month was $9,600.
Refer to Jackson Company.Compute total manufacturing costs for June,if there were 1,500 direct labor hours and $21,000 of raw material was purchased.

Accepted Answer

A) $58,500 
B) $46,500 
C) $43,500 
D) $43,100 
A) $58,500 
B) $46,500 
C) $43,500 
D) $43,100

Question 13

Define the relevant range and explain its significance.

Accepted Answer

The relevant range is that range of acti

Question 14

All costs related to the manufacturing function in a company are

Accepted Answer

A) prime costs. 
B) direct costs. 
C) product costs. 
D) conversion costs. 
A) prime costs. 
B) direct costs. 
C) product costs. 
D) conversion costs.

Question 15

Stayton Enterprises
Inventories:  April 1   April 30 Raw material $20,000 $17,000  Work in process 12,000 8,000    Finished goods  30,000 39,000   Additional information for March:     Raw material purchased $45,000   Direct labor payroll  $36,000     Direct labor rate per hour  $ 8.00     Overhead rate per direct labor hour $ 10.00 
Refer to Stayton Enterprises.For April,Cost of Goods Manufactured was

Accepted Answer

A) $141,000 
B) $133,000. 
C) $125,000. 
D) $121,000. 
A) $141,000 
B) $133,000. 
C) $125,000. 
D) $121,000.

Question 16

In a service industry,direct materials are usually insignificant in amount and can not easily be traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 17

Retailers generally have a much higher degree of conversion than do manufacturing or professional firms.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following always has a direct cause-effect relationship to a cost?
Predictor     Cost driver

Accepted Answer

A) yes yes 
B) yes no 
C) no yes 
D) no no 
A) yes yes 
B) yes no 
C) no yes 
D) no no

Question 19

Which of the following replaces the retailing component "Purchases" in computing Cost of Goods Sold for a manufacturing company?

Accepted Answer

A) direct material used 
B) cost of goods manufactured 
C) total prime cost 
D) cost of goods available for sale 
A) direct material used 
B) cost of goods manufactured 
C) total prime cost 
D) cost of goods available for sale

Question 20

A cost driver

Accepted Answer

A) causes fixed costs to rise because of production changes. 
B) has a direct cause-effect relationship to a cost. 
C) can predict the cost behavior of a variable,but not a fixed,cost. 
D) is an overhead cost that causes distribution costs to change in distinct increments with changes in production volume. 
A) causes fixed costs to rise because of production changes. 
B) has a direct cause-effect relationship to a cost. 
C) can predict the cost behavior of a variable,but not a fixed,cost. 
D) is an overhead cost that causes distribution costs to change in distinct increments with changes in production volume.

A(n)____ cost increases or decreases in intervals as activity changes.

Costs that are incurred to improve quality by precluding defects and improper processing are referred to as ____________________ costs.

A selling cost is a(n) product cost period cost inventoriable cost

Davis Company manufactures desks.The beginning balance of Raw Material Inventory was $4,500;raw material purchases of $29,600 were made during the month.At month end,$7,700 of raw material was on hand.Raw material used during the month was

A predictor which has an absolute cause and effect relationship to a cost is referred to a cost driver.

Define the relevant range and explain its significance.

All costs related to the manufacturing function in a company are

In a service industry,direct materials are usually insignificant in amount and can not easily be traced to a cost object.

Retailers generally have a much higher degree of conversion than do manufacturing or professional firms.

Which of the following always has a direct cause-effect relationship to a cost? Predictor Cost driver

Which of the following replaces the retailing component "Purchases" in computing Cost of Goods Sold for a manufacturing company?

A cost driver

Introduction to Cost Accounting

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

	Begining	Ending
Raw material inventory	$6,000	$7,500
Work in process inventory	17,300	11,700
Finished goods inventory	21,000	16,300

	Begining	Ending
Raw material inventory	$8,500	$9,700
Work in process inventory	20,400	25,800
Finished goods inventory	31,350	21,375

inventories	Begining	Ending
Raw material	$19,750	$15,400
Work in process inventory	35,350	32,200
Finished goods inventory	21,300	27,900

Direct Labor (21,000 DLH @ $13)
Raw Material Purchases	$155,000	Insurance-Office	2,750
Indirect Labor	11,600	Office Supplies Expense	1,050
Factory Supplies Used	475	Insurance-Factory	1,825
Other Expenses:		Depr. Office Equipment	3,900
Depr.-Factory Equipment	18,100	Repair/Maintenance-Factory	7,800

Inventories:	April 1	April 30
Raw material	$20,000	$17,000
Work in process	12,000	8,000
Finished goods	30,000	39,000
Additional information for March:
Raw material purchased	$45,000
Direct labor payroll	$36,000
Direct labor rate per hour	$ 8.00
Overhead rate per direct labor hour	$ 10.00

Exam 2: Cost Terminology and Cost Behaviors

A(n)____ cost increases or decreases in intervals as activity changes.

Costs that are incurred to improve quality by precluding defects and improper processing are referred to as ____________________ costs.

A selling cost is a(n) product cost period cost inventoriable cost

Davis Company manufactures desks.The beginning balance of Raw Material Inventory was $4,500;raw material purchases of $29,600 were made during the month.At month end,$7,700 of raw material was on hand.Raw material used during the month was

A predictor which has an absolute cause and effect relationship to a cost is referred to a cost driver.

Define the relevant range and explain its significance.

All costs related to the manufacturing function in a company are

In a service industry,direct materials are usually insignificant in amount and can not easily be traced to a cost object.

Retailers generally have a much higher degree of conversion than do manufacturing or professional firms.

Which of the following always has a direct cause-effect relationship to a cost? Predictor Cost driver

Which of the following replaces the retailing component "Purchases" in computing Cost of Goods Sold for a manufacturing company?

A cost driver

Introduction to Cost Accounting

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters