Question 1

Improvements in information-gathering technology make it possible to consider more and more costs as ________ costs.

Accepted Answer

A) direct 
B) indirect 
C) estimated 
D) fixed 
A) direct 
B) indirect 
C) estimated 
D) fixed

Question 2

Which statement is TRUE?

Accepted Answer

A) All fixed costs are indirect costs. 
B) All direct costs are variable costs. 
C) All variable costs are direct costs. 
D) Because of a cost-benefit trade-off,some direct costs may be treated as indirect costs. 
A) All fixed costs are indirect costs. 
B) All direct costs are variable costs. 
C) All variable costs are direct costs. 
D) Because of a cost-benefit trade-off,some direct costs may be treated as indirect costs.

Question 3

Which of the following formulae determine cost of goods sold in a retail sector company?

Accepted Answer

A) Beginning inventory - Ending inventory - Purchases = Cost of goods sold 
B) Beginning inventory + Purchases + Ending inventory = Cost of goods sold 
C) Beginning inventory + Purchases - Ending inventory = Costs of goods sold 
D) Beginning inventory - Purchases + Ending inventory = Cost of goods sold 
A) Beginning inventory - Ending inventory - Purchases = Cost of goods sold 
B) Beginning inventory + Purchases + Ending inventory = Cost of goods sold 
C) Beginning inventory + Purchases - Ending inventory = Costs of goods sold 
D) Beginning inventory - Purchases + Ending inventory = Cost of goods sold

Question 4

Classifying a cost as ______ is easier if a company's facility (or some part of it)is used exclusively for a specific cost object,such as a specific product or a particular customer.

Accepted Answer

A) direct 
B) indirect 
C) variable 
D) fixed 
A) direct 
B) indirect 
C) variable 
D) fixed

Question 5

Answer the following questions using the information below:
 $\begin{array}{|lr|}
\hline \text { Beginning finished goods, } 1 / 1 / 2018 & \$ 40,000 \
\hline \text { Ending finished goods, } 12 / 31 / 2018 & 33,000 \
\hline \text { Cost of goods sold } & 250000 \
\hline \text { Sales revenue } & 600,000 \
\hline \text { Operating expenses } & 120,000 \
\hline
\end{array}$
-What is operating profit for 2018?

Accepted Answer

A) $230 000 
B) $157 000 
C) $107 000 
D) $123 000 
A) $230 000 
B) $157 000 
C) $107 000 
D) $123 000

Question 6

Misallocated indirect costs may lead to promoting products that are not profitable.

Accepted Answer

A) True 
 B)False

Question 7

Cost of goods manufactured refers to the cost of goods brought to completion,whether they were started before or during the current accounting period.

Accepted Answer

A) True 
 B)False

Question 8

Rodney Marsh is paid $10 an hour for straight-time and $15 an hour for overtime.One week he worked 45 hours,which included 5 hours of overtime,and 3 hours of idle time caused by material shortages.Compensation would be reported as:

Accepted Answer

A) $445 of direct labour and $30 of manufacturing overhead 
B) $420 of direct labour and $55 of manufacturing overhead 
C) $450 of direct labour and $25 of manufacturing overhead 
D) $370 of direct labour and $105 of manufacturing overhead 
A) $445 of direct labour and $30 of manufacturing overhead 
B) $420 of direct labour and $55 of manufacturing overhead 
C) $450 of direct labour and $25 of manufacturing overhead 
D) $370 of direct labour and $105 of manufacturing overhead

Question 9

For last year,Ulladula Enterprises reported revenues of $420 000,cost of goods sold of $108 000,cost of goods manufactured of $101 000,and total operating costs of $70 000.Gross margin for last year was:

Accepted Answer

A) $249 000 
B) $312 000 
C) $319 000 
D) $242 000 
A) $249 000 
B) $312 000 
C) $319 000 
D) $242 000

Question 10

Retail sector companies purchase ________ products and then sell them without changing their
Basic form.

Accepted Answer

A) tangible 
B) intangible 
C) packaged 
D) popular 
A) tangible 
B) intangible 
C) packaged 
D) popular

Question 11

Costs are defined as variable or fixed with respect to a specific activity and for a given time period.

Accepted Answer

A) True 
 B)False

Question 12

Inventoriable costs are expensed on the income statement:

Accepted Answer

A) after the products are manufactured. 
B) when the products are sold. 
C) when direct materials for the product are purchased. 
D) not at any particular time,it varies. 
A) after the products are manufactured. 
B) when the products are sold. 
C) when direct materials for the product are purchased. 
D) not at any particular time,it varies.

Question 13

Manufacturing sector companies purchase and then sell tangible products without changing
their basic form.

Accepted Answer

A) True 
 B)False

Question 14

Direct manufacturing labour includes wages and fringe benefits paid to machine operators.

Accepted Answer

A) True 
 B)False

Question 15

Acquisition costs of direct materials include freight-in charges,and custom duties.

Accepted Answer

A) True 
 B)False

Question 16

'Total manufacturing costs' consists of which of the following?

Accepted Answer

A) Direct manufacturing labour costs + conversion costs 
B) Direct materials + conversion costs 
C) Direct materials + prime costs 
D) Direct manufacturing labour costs + prime costs 
A) Direct manufacturing labour costs + conversion costs 
B) Direct materials + conversion costs 
C) Direct materials + prime costs 
D) Direct manufacturing labour costs + prime costs

Question 17

If a worker is paid for 8 hours,but is idle for 1 of those 8 hours,the 1 hour of idle time would be considered a component of direct labour.

Accepted Answer

A) True 
 B)False

Question 18

________ is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question.

Accepted Answer

A) Cost behaviour 
B) Relevant range 
C) Cost allocation 
D) Performance evaluation 
A) Cost behaviour 
B) Relevant range 
C) Cost allocation 
D) Performance evaluation

Question 19

For last year,Deniliquin Manufacturing reported the following:
$\begin{array}{|l|r|}
\hline\text { Revenue } & \$ 420000 \
\hline \text { Beginning inventory of direct materials, January 1 } & 22000 \
\hline \text { Purchases of direct materials } & 146000 \
\hline \text { Ending inventory of direct materials, December 31 } & 16000 \
\hline \text { Direct manufacturing labour } & 40000 \
\hline \text { Indirect manufacturing costs } & 35000 \
\hline \text { Beginning inventory of finished goods, January 1 } & 104000 \
\hline \text { Cost of goods manufactured } & 36000 \
\hline \text { Ending inventory of finished goods, December 31 } & 140000\\hline
\end{array}$
-
What was Deniliquin's cost of goods sold?

Accepted Answer

A) $103 000 
B) $317 000 
C) $152 000 
D) $268 000 
A) $103 000 
B) $317 000 
C) $152 000 
D) $268 000

Question 20

Inventoriable costs and period costs flow through the income statement of a service company in a similar way to those of a manufacturing company.

Accepted Answer

A) True 
 B)False

Improvements in information-gathering technology make it possible to consider more and more costs as ________ costs.

Which statement is TRUE?

Which of the following formulae determine cost of goods sold in a retail sector company?

Classifying a cost as ______ is easier if a company's facility (or some part of it)is used exclusively for a specific cost object,such as a specific product or a particular customer.

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 40,000 Ending finished goods, 12/31/2018 33,000 Cost of goods sold 250000 Sales revenue 600,000 Operating expenses 120,000 -What is operating profit for 2018?

Misallocated indirect costs may lead to promoting products that are not profitable.

Cost of goods manufactured refers to the cost of goods brought to completion,whether they were started before or during the current accounting period.

Rodney Marsh is paid $10 an hour for straight-time and $15 an hour for overtime.One week he worked 45 hours,which included 5 hours of overtime,and 3 hours of idle time caused by material shortages.Compensation would be reported as:

For last year,Ulladula Enterprises reported revenues of $420 000,cost of goods sold of $108 000,cost of goods manufactured of $101 000,and total operating costs of $70 000.Gross margin for last year was:

Retail sector companies purchase ________ products and then sell them without changing their Basic form.

Costs are defined as variable or fixed with respect to a specific activity and for a given time period.

Inventoriable costs are expensed on the income statement:

Manufacturing sector companies purchase and then sell tangible products without changing their basic form.

Direct manufacturing labour includes wages and fringe benefits paid to machine operators.

Acquisition costs of direct materials include freight-in charges,and custom duties.

'Total manufacturing costs' consists of which of the following?

If a worker is paid for 8 hours,but is idle for 1 of those 8 hours,the 1 hour of idle time would be considered a component of direct labour.

________ is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question.

Inventoriable costs and period costs flow through the income statement of a service company in a similar way to those of a manufacturing company.

Management Accounting in Context

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 2: Different Costs for Different Purposes

Improvements in information-gathering technology make it possible to consider more and more costs as ________ costs.

Which statement is TRUE?

Which of the following formulae determine cost of goods sold in a retail sector company?

Classifying a cost as ______ is easier if a company's facility (or some part of it)is used exclusively for a specific cost object,such as a specific product or a particular customer.

Answer the following questions using the information below: Beginning finished goods, 1/1/2018 \ 40,000 Ending finished goods, 12/31/2018 33,000 Cost of goods sold 250000 Sales revenue 600,000 Operating expenses 120,000 -What is operating profit for 2018?

Misallocated indirect costs may lead to promoting products that are not profitable.

Cost of goods manufactured refers to the cost of goods brought to completion,whether they were started before or during the current accounting period.

Rodney Marsh is paid $10 an hour for straight-time and $15 an hour for overtime.One week he worked 45 hours,which included 5 hours of overtime,and 3 hours of idle time caused by material shortages.Compensation would be reported as:

For last year,Ulladula Enterprises reported revenues of $420 000,cost of goods sold of $108 000,cost of goods manufactured of $101 000,and total operating costs of $70 000.Gross margin for last year was:

Retail sector companies purchase ________ products and then sell them without changing their Basic form.

Costs are defined as variable or fixed with respect to a specific activity and for a given time period.

Inventoriable costs are expensed on the income statement:

Manufacturing sector companies purchase and then sell tangible products without changing their basic form.

Direct manufacturing labour includes wages and fringe benefits paid to machine operators.

Acquisition costs of direct materials include freight-in charges,and custom duties.

'Total manufacturing costs' consists of which of the following?

If a worker is paid for 8 hours,but is idle for 1 of those 8 hours,the 1 hour of idle time would be considered a component of direct labour.

________ is the band of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question.

Inventoriable costs and period costs flow through the income statement of a service company in a similar way to those of a manufacturing company.

Management Accounting in Context

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters