Question 1

The records of Custom Choppers, Inc. for September 2014 shows the following information:   The net income for the month of September is

Accepted Answer

A)  $644,000. 
B)  $36,000. 
C)  $636,000. 
D)  $180,000. 
A)  $644,000. 
B)  $36,000. 
C)  $636,000. 
D)  $180,000.

Question 2

Which of the following costs would be considered a direct material?

Accepted Answer

A)  glue in the production of automobiles 
B)  labor used to finish product 
C)  paper used in the production of books 
D)  depreciation on the corporation's office building 
A)  glue in the production of automobiles 
B)  labor used to finish product 
C)  paper used in the production of books 
D)  depreciation on the corporation's office building

Question 3

Classify the following costs incurred by a step railing manufacturing company as direct materials, direct labor, factory overhead, or period costs:

Accepted Answer

The answer of Classify the following costs incurred by a...

Question 4

The accounting information subsystem that is primarily concerned with producing outputs for external users is called:

Accepted Answer

A)  cost management information system 
B)  computer system 
C)  internal accounting system 
D)  financial accounting information system 
A)  cost management information system 
B)  computer system 
C)  internal accounting system 
D)  financial accounting information system

Question 5

Which of the following is a major subsystem of the cost accounting information system?

Accepted Answer

A)  ERP 
B)  operational control information system 
C)  OLAP 
D)  EDI 
A)  ERP 
B)  operational control information system 
C)  OLAP 
D)  EDI

Question 6

High quality cost management systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?

Accepted Answer

A)  increases speed by ignoring non-financial information 
B)  reduces duplicate data storage and use of data 
C)  improves timeliness of reports 
D)  increases the efficiency of generating reliable and accurate information 
A)  increases speed by ignoring non-financial information 
B)  reduces duplicate data storage and use of data 
C)  improves timeliness of reports 
D)  increases the efficiency of generating reliable and accurate information

Question 7

In a company that supplies muffins to bakeries, which of the following would NOT be considered an input?

Accepted Answer

A)  delivered muffins 
B)  flour 
C)  egg 
D)  oil 
A)  delivered muffins 
B)  flour 
C)  egg 
D)  oil

Question 8

Figure 2-12 Information from the records of the Conundrum Company for September 2014 was as follows:
    Conundrum Corporation produced 20,000 units.
Refer to Figure 2-12. The prime costs per unit for September were

Accepted Answer

A)  $ 7.05 
B)  $ 8.8125 
C)  $ 14.7375 
D)  $ 20.00 
A)  $ 7.05 
B)  $ 8.8125 
C)  $ 14.7375 
D)  $ 20.00

Question 9

Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

Accepted Answer

A) True 
 B)False

Question 10

In an activity-based management system, one is NOT likely to find

Accepted Answer

A)  tracing of costs to activities. 
B)  only unit-based drivers. 
C)  broad flexible product costing. 
D)  systemwide performance maximization. 
A)  tracing of costs to activities. 
B)  only unit-based drivers. 
C)  broad flexible product costing. 
D)  systemwide performance maximization.

Question 11

The least accurate but easiest to apply method of cost assignment is the __________ method.

Accepted Answer

The answer of The least accurate but easiest to apply...

Question 12

Which of the following costs are expensed in the period in which they are incurred?

Accepted Answer

A)  Direct materials costs 
B)  Product costs 
C)  Factory overhead costs 
D)  Nonproduction costs 
A)  Direct materials costs 
B)  Product costs 
C)  Factory overhead costs 
D)  Nonproduction costs

Question 13

The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making.

Accepted Answer

A) True 
 B)False

Question 14

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

Accepted Answer

A) True 
 B)False

Question 15

Cost management information benefits production, marketing, and customer service systems as well as being a crucial part of managerial decision making.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  greater product costing accuracy 
B)  increased cost of implementing the system 
C)  improved decision making 
D)  enhanced strategic planning 
A)  greater product costing accuracy 
B)  increased cost of implementing the system 
C)  improved decision making 
D)  enhanced strategic planning

Question 17

Cost assignment is one of the key processes of the cost accounting system.

Accepted Answer

A) True 
 B)False

Question 18

An example of a period cost is

Accepted Answer

A)  president's salary. 
B)  insurance on factory equipment. 
C)  property taxes on factory building. 
D)  wages of factory custodians. 
A)  president's salary. 
B)  insurance on factory equipment. 
C)  property taxes on factory building. 
D)  wages of factory custodians.

Question 19

Which of the following methods of assigning costs is based on convenience or some assumed linkage, and reduces the overall accuracy of the cost assignments?

Accepted Answer

A)  direct tracing 
B)  driver tracing 
C)  allocation 
D)  all of the above 
A)  direct tracing 
B)  driver tracing 
C)  allocation 
D)  all of the above

Question 20

Gross margin, also called gross profit, is the difference between sales and costs of finished products.

Accepted Answer

A) True 
 B)False

The records of Custom Choppers, Inc. for September 2014 shows the following information: The net income for the month of September is

Which of the following costs would be considered a direct material?

Classify the following costs incurred by a step railing manufacturing company as direct materials, direct labor, factory overhead, or period costs:

The accounting information subsystem that is primarily concerned with producing outputs for external users is called:

Which of the following is a major subsystem of the cost accounting information system?

High quality cost management systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?

In a company that supplies muffins to bakeries, which of the following would NOT be considered an input?

Figure 2-12 Information from the records of the Conundrum Company for September 2014 was as follows: Conundrum Corporation produced 20,000 units. Refer to Figure 2-12. The prime costs per unit for September were

Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

In an activity-based management system, one is NOT likely to find

The least accurate but easiest to apply method of cost assignment is the __________ method.

Which of the following costs are expensed in the period in which they are incurred?

The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making.

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

Cost management information benefits production, marketing, and customer service systems as well as being a crucial part of managerial decision making.

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

Cost assignment is one of the key processes of the cost accounting system.

An example of a period cost is

Which of the following methods of assigning costs is based on convenience or some assumed linkage, and reduces the overall accuracy of the cost assignments?

Gross margin, also called gross profit, is the difference between sales and costs of finished products.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 2: Basic Cost Management Concepts

The records of Custom Choppers, Inc. for September 2014 shows the following information: The net income for the month of September is

Which of the following costs would be considered a direct material?

Classify the following costs incurred by a step railing manufacturing company as direct materials, direct labor, factory overhead, or period costs:

The accounting information subsystem that is primarily concerned with producing outputs for external users is called:

Which of the following is a major subsystem of the cost accounting information system?

High quality cost management systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?

In a company that supplies muffins to bakeries, which of the following would NOT be considered an input?

Figure 2-12 Information from the records of the Conundrum Company for September 2014 was as follows: Conundrum Corporation produced 20,000 units. Refer to Figure 2-12. The prime costs per unit for September were

Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

In an activity-based management system, one is NOT likely to find

The least accurate but easiest to apply method of cost assignment is the __________ method.

Which of the following costs are expensed in the period in which they are incurred?

The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making.

Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

Cost management information benefits production, marketing, and customer service systems as well as being a crucial part of managerial decision making.

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

Cost assignment is one of the key processes of the cost accounting system.

An example of a period cost is

Which of the following methods of assigning costs is based on convenience or some assumed linkage, and reduces the overall accuracy of the cost assignments?

Gross margin, also called gross profit, is the difference between sales and costs of finished products.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters