Question 1

DeJager Company reported the following information about the production and sales of its only product:
  
-The contribution margin under variable costing would be

Accepted Answer

A)  $18,200. 
B)  $14,200. 
C)  $ 3,000. 
D)  $22,600. 
A)  $18,200. 
B)  $14,200. 
C)  $ 3,000. 
D)  $22,600. B

Question 2

Schultz Company reported the following information about the production and sales of its only product:
  
-The cost of goods sold under variable costing would be

Accepted Answer

A)  $112,000. 
B)  $126,000. 
C)  $ 89,600. 
D)  $ 72,800. 
A)  $112,000. 
B)  $126,000. 
C)  $ 89,600. 
D)  $ 72,800. C

Question 3

A company has the following information:
  
-The ending inventory under absorption costing would be

Accepted Answer

A)  $ 96,000. 
B)  $ 84,000. 
C)  $168,000. 
D)  $ 60,000. 
A)  $ 96,000. 
B)  $ 84,000. 
C)  $168,000. 
D)  $ 60,000. A

Question 4

Manufacturing costs are eventually reported on

Accepted Answer

A)  the income statement only. 
B)  the balance sheet only. 
C)  the income statement as cost of goods sold. 
D)  the balance sheet as cost of goods sold. 
A)  the income statement only. 
B)  the balance sheet only. 
C)  the income statement as cost of goods sold. 
D)  the balance sheet as cost of goods sold.

Question 5

Absorption costing net income for the year is

Accepted Answer

A)  $840,000. 
B)  $648,000. 
C)  $510,000. 
D)  $488,000. 
A)  $840,000. 
B)  $648,000. 
C)  $510,000. 
D)  $488,000.

Question 6

The following information refers to the Cowan Company's past year of operations.
       *Common overhead totals $50,000 and is divided equally between the two products.
**Common fixed selling totals $60,000 and is divided equally between the two products.
Budgeted fixed overhead for the year of $180,000 equalled actual fixed overhead. Fixed overhead is assigned to products using a plant-wide rate based on expected direct labour hours, which were 150,000. The company had 5,000 of Product B in inventory at the beginning of the year. These units had the same unit cost as the units produced during the year.
-The unit product cost for Product A using variable costing is

Accepted Answer

A)  $2.00. 
B)  $2.15. 
C)  $2.45. 
D)  $2.60. 
A)  $2.00. 
B)  $2.15. 
C)  $2.45. 
D)  $2.60.

Question 7

Selling and general administrative costs are

Accepted Answer

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

Question 8

In variable costing, costs are separated into the major categories of

Accepted Answer

A)  manufacturing and non-manufacturing. 
B)  manufacturing and fixed. 
C)  fixed and variable. 
D)  variable and non-manufacturing. 
A)  manufacturing and non-manufacturing. 
B)  manufacturing and fixed. 
C)  fixed and variable. 
D)  variable and non-manufacturing.

Question 9

Absorption costing classifies costs as either product costs or

Accepted Answer

A)  period costs. 
B)  fixed costs. 
C)  prime costs. 
D)  conversion costs. 
A)  period costs. 
B)  fixed costs. 
C)  prime costs. 
D)  conversion costs.

Question 10

When using the absorption approach to costing,

Accepted Answer

A)  all variable costs are inventoriable. 
B)  all indirect manufacturing costs are inventoriable. 
C)  all fixed costs are treated as period costs. 
D)  all direct manufacturing costs are treated as period costs. 
A)  all variable costs are inventoriable. 
B)  all indirect manufacturing costs are inventoriable. 
C)  all fixed costs are treated as period costs. 
D)  all direct manufacturing costs are treated as period costs.

Question 11

A cost accumulation system typically includes two processes:

Accepted Answer

A)  cost accumulation and cost allocation. 
B)  cost objectives and cost accounting. 
C)  cost accumulation and cost accounting. 
D)  cost allocation and cost application. 
A)  cost accumulation and cost allocation. 
B)  cost objectives and cost accounting. 
C)  cost accumulation and cost accounting. 
D)  cost allocation and cost application.

Question 12

A product-costing method that assigns all manufacturing costs to a product.

Accepted Answer

The answer of A product-costing method that assigns all manufacturing...

Question 13

Direct costs can be identified specifically and exclusively with a given cost objective in an economically feasible way.

Accepted Answer

A) True 
 B)False

Question 14

A production-volume variance is calculated as the applied volume minus the actual volume multiplied by the actual-overhead rate.

Accepted Answer

A) True 
 B)False

Question 15

DeJager Company reported the following information about the production and sales of its only product:
  
-The ending inventory under absorption costing would be

Accepted Answer

A)  $27,000. 
B)  $24,000. 
C)  $15,600. 
D)  $19,200. 
A)  $27,000. 
B)  $24,000. 
C)  $15,600. 
D)  $19,200.

Question 16

Expenses that are directly traceable to a given segment and would be avoided if the segment is eliminated.

Accepted Answer

The answer of Expenses that are directly traceable to a...

Question 17

Under variable costing, which manufacturing cost is expensed as a period cost?

Accepted Answer

A)  Fixed manufacturing overhead. 
B)  Direct materials. 
C)  Variable manufacturing overhead. 
D)  Direct labour. 
A)  Fixed manufacturing overhead. 
B)  Direct materials. 
C)  Variable manufacturing overhead. 
D)  Direct labour.

Question 18

Indicate whether each of the following costs is an Inventoriable cost (I) or a Period cost (P):

Accepted Answer

The answer of Indicate whether each of the following costs...

Question 19

Product costs are identified with goods produced or purchased for resale.

Accepted Answer

A) True 
 B)False

Question 20

An activity for which a separate measurement of costs is desired is called a

Accepted Answer

A)  cost objective. 
B)  period cost. 
C)  product cost. 
D)  cost accumulation system. 
A)  cost objective. 
B)  period cost. 
C)  product cost. 
D)  cost accumulation system.

DeJager Company reported the following information about the production and sales of its only product: -The contribution margin under variable costing would be

Schultz Company reported the following information about the production and sales of its only product: -The cost of goods sold under variable costing would be

A company has the following information: -The ending inventory under absorption costing would be

Manufacturing costs are eventually reported on

Absorption costing net income for the year is

Selling and general administrative costs are

In variable costing, costs are separated into the major categories of

Absorption costing classifies costs as either product costs or

When using the absorption approach to costing,

A cost accumulation system typically includes two processes:

A product-costing method that assigns all manufacturing costs to a product.

Direct costs can be identified specifically and exclusively with a given cost objective in an economically feasible way.

A production-volume variance is calculated as the applied volume minus the actual volume multiplied by the actual-overhead rate.

DeJager Company reported the following information about the production and sales of its only product: -The ending inventory under absorption costing would be

Expenses that are directly traceable to a given segment and would be avoided if the segment is eliminated.

Under variable costing, which manufacturing cost is expensed as a period cost?

Indicate whether each of the following costs is an Inventoriable cost (I) or a Period cost (P):

Product costs are identified with goods produced or purchased for resale.

An activity for which a separate measurement of costs is desired is called a

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

Exam 4: Cost Management Systems

DeJager Company reported the following information about the production and sales of its only product: -The contribution margin under variable costing would be

Schultz Company reported the following information about the production and sales of its only product: -The cost of goods sold under variable costing would be

A company has the following information: -The ending inventory under absorption costing would be

Manufacturing costs are eventually reported on

Absorption costing net income for the year is

Selling and general administrative costs are

In variable costing, costs are separated into the major categories of

Absorption costing classifies costs as either product costs or

When using the absorption approach to costing,

A cost accumulation system typically includes two processes:

A product-costing method that assigns all manufacturing costs to a product.

Direct costs can be identified specifically and exclusively with a given cost objective in an economically feasible way.

A production-volume variance is calculated as the applied volume minus the actual volume multiplied by the actual-overhead rate.

DeJager Company reported the following information about the production and sales of its only product: -The ending inventory under absorption costing would be

Expenses that are directly traceable to a given segment and would be avoided if the segment is eliminated.

Under variable costing, which manufacturing cost is expensed as a period cost?

Indicate whether each of the following costs is an Inventoriable cost (I) or a Period cost (P):

Product costs are identified with goods produced or purchased for resale.

An activity for which a separate measurement of costs is desired is called a

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters