Question 1

Which of the following methods is required for external financial reporting?

Accepted Answer

A)  Contribution approach 
B)  Variable costing 
C)  Direct costing 
D)  Absorption approach 
A)  Contribution approach 
B)  Variable costing 
C)  Direct costing 
D)  Absorption approach

Question 2

Factory overhead includes

Accepted Answer

A)  direct materials and direct labour. 
B)  prime costs. 
C)  indirect and direct labour. 
D)  indirect labour and indirect materials. 
A)  direct materials and direct labour. 
B)  prime costs. 
C)  indirect and direct labour. 
D)  indirect labour and indirect materials.

Question 3

Which of the following is NOT an inventory account?

Accepted Answer

A)  Direct labour 
B)  Direct materials 
C)  Work in process 
D)  Finished goods 
A)  Direct labour 
B)  Direct materials 
C)  Work in process 
D)  Finished goods

Question 4

Which of the following would appear on an income statement of both a retailer and a manufacturer?

Accepted Answer

A)  Direct labour 
B)  Selling expenses 
C)  Beginning finished goods inventory 
D)  Factory overhead 
A)  Direct labour 
B)  Selling expenses 
C)  Beginning finished goods inventory 
D)  Factory overhead

Question 5

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 B using absorption costing is

Accepted Answer

A)  $3.16. 
B)  $2.80. 
C)  $2.60. 
D)  $2.45. 
A)  $3.16. 
B)  $2.80. 
C)  $2.60. 
D)  $2.45.

Question 6

Direct labour costs plus direct materials costs.

Accepted Answer

The answer of Direct labour costs plus direct materials costs....

Question 7

Schultz Company reported the following information about the production and sales of its only product:
  
-The operating income (loss) under absorption costing would be

Accepted Answer

A)  $ 33,200. 
B)  $ 16,400. 
C)  $( 6,000). 
D)  $(20,000). 
A)  $ 33,200. 
B)  $ 16,400. 
C)  $( 6,000). 
D)  $(20,000).

Question 8

A company has the following information:
  
-The net income under variable costing would be

Accepted Answer

A)  $32,000. 
B)  $44,000. 
C)  $50,000. 
D)  $66,000. 
A)  $32,000. 
B)  $44,000. 
C)  $50,000. 
D)  $66,000.

Question 9

Which of the following is NOT a factor in determining whether a cost is direct or indirect?

Accepted Answer

A)  The cost can be identified specifically with a given cost objective. 
B)  The identification of the cost is economically feasible. 
C)  The cost objective used. 
D)  The manager's preference. 
A)  The cost can be identified specifically with a given cost objective. 
B)  The identification of the cost is economically feasible. 
C)  The cost objective used. 
D)  The manager's preference.

Question 10

A period cost

Accepted Answer

A)  is identified with goods produced or purchased for resale. 
B)  is accumulated in work-in-process. 
C)  is shown on the balance sheet. 
D)  is expensed as incurred. 
A)  is identified with goods produced or purchased for resale. 
B)  is accumulated in work-in-process. 
C)  is shown on the balance sheet. 
D)  is expensed as incurred.

Question 11

The following information was taken from the records of the Greiner Company for the year ended December 31, 20X3. There were no beginning or ending inventories.   Prepare an income statement for the year ended December 31, 20X3 for the Greiner Company using both the absorption approach and the contribution approach.

Accepted Answer

The answer of The following information was taken from the...

Question 12

A company has the following information:
  
-Raw materials purchased during the current period were

Accepted Answer

A)  $50,000. 
B)  $64,000. 
C)  $36,000. 
D)  not determinable. 
A)  $50,000. 
B)  $64,000. 
C)  $36,000. 
D)  not determinable.

Question 13

The costing method, which capitalizes fixed manufacturing overhead as product cost.

Accepted Answer

The answer of The costing method, which capitalizes fixed manufacturing...

Question 14

All of the following are inventoriable costs under variable costing EXCEPT

Accepted Answer

A)  direct materials. 
B)  direct labour. 
C)  variable manufacturing overhead. 
D)  fixed manufacturing overhead. 
A)  direct materials. 
B)  direct labour. 
C)  variable manufacturing overhead. 
D)  fixed manufacturing overhead.

Which of the following methods is required for external financial reporting?

Factory overhead includes

Which of the following is NOT an inventory account?

Which of the following would appear on an income statement of both a retailer and a manufacturer?

Direct labour costs plus direct materials costs.

Schultz Company reported the following information about the production and sales of its only product: -The operating income (loss) under absorption costing would be

A company has the following information: -The net income under variable costing would be

Which of the following is NOT a factor in determining whether a cost is direct or indirect?

A period cost

A company has the following information: -Raw materials purchased during the current period were

The costing method, which capitalizes fixed manufacturing overhead as product cost.

All of the following are inventoriable costs under variable costing EXCEPT

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

Which of the following methods is required for external financial reporting?

Factory overhead includes

Which of the following is NOT an inventory account?

Which of the following would appear on an income statement of both a retailer and a manufacturer?

Direct labour costs plus direct materials costs.

Schultz Company reported the following information about the production and sales of its only product: -The operating income (loss) under absorption costing would be

A company has the following information: -The net income under variable costing would be

Which of the following is NOT a factor in determining whether a cost is direct or indirect?

A period cost

A company has the following information: -Raw materials purchased during the current period were

The costing method, which capitalizes fixed manufacturing overhead as product cost.

All of the following are inventoriable costs under variable costing EXCEPT

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