Question 1

All of the following costs are included in factory overhead EXCEPT

Accepted Answer

A)  factory supplies. 
B)  indirect labor. 
C)  plant foreman's salary. 
D)  direct labor. 
A)  factory supplies. 
B)  indirect labor. 
C)  plant foreman's salary. 
D)  direct labor.

Question 2

Which of the following expenses incurred by a department store is a direct cost for the women's shoe department?

Accepted Answer

A)  the salespersons' commissions in the women's shoe department 
B)  the salaries for individuals working in the accounting department 
C)  the advertising expense for the service department 
D)  the allocated rent expense for the clothing department 
A)  the salespersons' commissions in the women's shoe department 
B)  the salaries for individuals working in the accounting department 
C)  the advertising expense for the service department 
D)  the allocated rent expense for the clothing department

Question 3

In a cost management system, the process view does NOT include

Accepted Answer

A)  resources. 
B)  activities. 
C)  driver analysis. 
D)  performance analysis. 
A)  resources. 
B)  activities. 
C)  driver analysis. 
D)  performance analysis.

Question 4

Which of the following costs is a product cost?

Accepted Answer

A)  lease payments on cars used by salespersons 
B)  president's salary 
C)  property taxes on factory building 
D)  depreciation on office equipment 
A)  lease payments on cars used by salespersons 
B)  president's salary 
C)  property taxes on factory building 
D)  depreciation on office equipment

Question 5

Information from the records of Place, Inc., for December 2011 is as follows:   The net income for the month of December 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 6

Figure 2-12 Information from the records of the Scully Company for July 2011 was as follows:
    Scully Corporation produced 20,000 units.
-
Refer to Figure 2-12.The prime costs per unit for July were

Accepted Answer

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

Question 7

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

Accepted Answer

A)  the wages paid to assembly-line production workers 
B)  the tires for buses 
C)  the windshields for buses 
D)  the depreciation on factory building 
A)  the wages paid to assembly-line production workers 
B)  the tires for buses 
C)  the windshields for buses 
D)  the depreciation on factory building

Question 8

Which of the following costs would NOT be included in calculating inventory values under the absorption-costing basis?

Accepted Answer

A)  direct materials 
B)  fixed overhead 
C)  selling and administrative expenses 
D)  direct labor 
A)  direct materials 
B)  fixed overhead 
C)  selling and administrative expenses 
D)  direct labor

Question 9

The sum of the total additions to work in process during a period is

Accepted Answer

A)  total manufacturing costs added. 
B)  factory overhead applied. 
C)  material used. 
D)  cost of goods manufactured. 
A)  total manufacturing costs added. 
B)  factory overhead applied. 
C)  material used. 
D)  cost of goods manufactured.

Question 10

Which of the following costs is a period cost for a manufacturing company?

Accepted Answer

A)  controller's salary 
B)  wages of machine operators 
C)  insurance on factory equipment 
D)  fringe benefits for factory employees 
A)  controller's salary 
B)  wages of machine operators 
C)  insurance on factory equipment 
D)  fringe benefits for factory employees

Question 11

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows:
  *variable overhead is $205,000, fixed overhead is $200,000
 
- Refer to Figure 2-11.The total product cost is

Accepted Answer

A)  $1,179,000 
B)  $ 969,000 
C)  $ 615,000 
D)  $ 764,000 
A)  $1,179,000 
B)  $ 969,000 
C)  $ 615,000 
D)  $ 764,000

Question 12

The following information has been provided:   What is the amount of factory overhead?

Accepted Answer

A)  $20 
B)  $22 
C)  $14 
D)  $55 
A)  $20 
B)  $22 
C)  $14 
D)  $55

Question 13

Best Corporation incurred the following costs:
   Required:
Calculate the following values:

Accepted Answer

The answer of Best Corporation incurred the following costs:
 ...

Question 14

Inventory balances for Rude, Inc., in April 2011 are as follows:   During April, purchases of direct materials were $18,000.Direct labor and factory overhead costs were $20,000 and $28,000, respectively.
The cost of goods manufactured in April was

Accepted Answer

A)  $68,000. 
B)  $77,600. 
C)  $74,000. 
D)  $71,600. 
A)  $68,000. 
B)  $77,600. 
C)  $74,000. 
D)  $71,600.

Question 15

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

Accepted Answer

A)  materials inventory 
B)  cost of goods available for sale 
C)  cost of goods manufactured 
D)  finished goods inventory 
A)  materials inventory 
B)  cost of goods available for sale 
C)  cost of goods manufactured 
D)  finished goods inventory

Question 16

Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system?

Accepted Answer

A)  Overhead is assigned on a plant-wide rate based on direct labor hours. 
B)  Customer service costs are assigned to products using number of complaints as the activity driver. 
C)  Direct labor cost is assigned to products using direct tracing. 
D)  None of these. 
A)  Overhead is assigned on a plant-wide rate based on direct labor hours. 
B)  Customer service costs are assigned to products using number of complaints as the activity driver. 
C)  Direct labor cost is assigned to products using direct tracing. 
D)  None of these.

Question 17

Order-getting costs would NOT include

Accepted Answer

A)  marketing costs. 
B)  customer service costs. 
C)  advertising. 
D)  salaries of sales personnel. 
A)  marketing costs. 
B)  customer service costs. 
C)  advertising. 
D)  salaries of sales personnel.

Question 18

The insurance paid on the factory is

Accepted Answer

A)  a direct cost if the cost object is the factory. 
B)  an indirect cost if the cost object is the product produced. 
C)  could be either a direct cost or an indirect cost, depending on the cost object. 
D)  all of these. 
A)  a direct cost if the cost object is the factory. 
B)  an indirect cost if the cost object is the product produced. 
C)  could be either a direct cost or an indirect cost, depending on the cost object. 
D)  all of these.

Question 19

With regard to services, inseparability means that

Accepted Answer

A)  products cannot be stored. 
B)  direct contact must take place for a sale. 
C)  products have a physical presence. 
D)  none of the above apply to inseparability. 
A)  products cannot be stored. 
B)  direct contact must take place for a sale. 
C)  products have a physical presence. 
D)  none of the above apply to inseparability.

Question 20

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows:
    
-Refer to Figure 2-15.What was the cost of materials used in production?

Accepted Answer

A)  $ 6,200 
B)  $ 6,000 
C)  $ 5,800 
D)  $19,500 
A)  $ 6,200 
B)  $ 6,000 
C)  $ 5,800 
D)  $19,500

All of the following costs are included in factory overhead EXCEPT

Which of the following expenses incurred by a department store is a direct cost for the women's shoe department?

In a cost management system, the process view does NOT include

Which of the following costs is a product cost?

Information from the records of Place, Inc., for December 2011 is as follows: The net income for the month of December is

Figure 2-12 Information from the records of the Scully Company for July 2011 was as follows: Scully Corporation produced 20,000 units. - Refer to Figure 2-12.The prime costs per unit for July were

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

Which of the following costs would NOT be included in calculating inventory values under the absorption-costing basis?

The sum of the total additions to work in process during a period is

Which of the following costs is a period cost for a manufacturing company?

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows: *variable overhead is $205,000, fixed overhead is $200,000 - Refer to Figure 2-11.The total product cost is

The following information has been provided: What is the amount of factory overhead?

Best Corporation incurred the following costs: Required: Calculate the following values:

Inventory balances for Rude, Inc., in April 2011 are as follows: During April, purchases of direct materials were $18,000.Direct labor and factory overhead costs were $20,000 and $28,000, respectively. The cost of goods manufactured in April was

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system?

Order-getting costs would NOT include

The insurance paid on the factory is

With regard to services, inseparability means that

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows: -Refer to Figure 2-15.What was the cost of materials used in production?

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

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

All of the following costs are included in factory overhead EXCEPT

Which of the following expenses incurred by a department store is a direct cost for the women's shoe department?

In a cost management system, the process view does NOT include

Which of the following costs is a product cost?

Information from the records of Place, Inc., for December 2011 is as follows: The net income for the month of December is

Figure 2-12 Information from the records of the Scully Company for July 2011 was as follows: Scully Corporation produced 20,000 units. - Refer to Figure 2-12.The prime costs per unit for July were

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

Which of the following costs would NOT be included in calculating inventory values under the absorption-costing basis?

The sum of the total additions to work in process during a period is

Which of the following costs is a period cost for a manufacturing company?

Figure 2-11 Information from the records of the Cain Corporation for August 2011 was as follows: *variable overhead is $205,000, fixed overhead is $200,000 - Refer to Figure 2-11.The total product cost is

The following information has been provided: What is the amount of factory overhead?

Best Corporation incurred the following costs: Required: Calculate the following values:

Inventory balances for Rude, Inc., in April 2011 are as follows: During April, purchases of direct materials were $18,000.Direct labor and factory overhead costs were $20,000 and $28,000, respectively. The cost of goods manufactured in April was

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system?

Order-getting costs would NOT include

The insurance paid on the factory is

With regard to services, inseparability means that

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows: -Refer to Figure 2-15.What was the cost of materials used in production?

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

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