Question 1

In choosing a cost management system, the controller must balance the total costs of implementing such systems.What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?

Accepted Answer

Error costs and measurement costs must b...

Question 2

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows:
 
- Refer to Figure 2-15.What is the gross margin (profit) ?

Accepted Answer

A)   $11,500
B)   $11,600
C)   $ 4,500
D)   $ 4,600E) A) and D)
F) A) and C)

Question 3

Wages paid to a janitor in the factory would be classified as

Accepted Answer

A)   direct labor.
B)   direct janitor salaries.
C)   supervisor salaries.
D)   factory overhead.E) None of the above
F) B) and D)

Question 4

Which of the following is a trait of a functional-based cost management system?

Accepted Answer

A)   unit-based drivers
B)   tracing intensive
C)   use of both financial and nonfinancial measures of performance
D)   detailed activity informationE) A) and B)
F) A) and C)

Question 5

Services differ from tangible products in which of the following dimensions?

Accepted Answer

A)   intangibility
B)   inseparability
C)   perishability
D)   all of theseE) None of the above
F) B) and C)

Question 6

Selling and administrative costs are classified as

Accepted Answer

A)   product costs.
B)   conversion costs.
C)   period costs.
D)   factory overhead.E) C) and D)
F) All of the above

Question 7

Home Designs Company designs decks, gazebos, and play equipment for residential homes.The following was provided for the year ended June 30, 2011:
  The average design fee is $700.There were 2,000 designs processed during the year.
Required:

Accepted Answer

The answer of Home Designs Company designs decks, gazebos, and...

Question 8

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Accepted Answer

A)   financial accounting information system
B)   operational control information system
C)   cost accounting information system
D)   all of theseE) A) and D)
F) B) and C)

Question 9

An example of a period cost is

Accepted Answer

A)   insurance on factory equipment.
B)   president's salary.
C)   property taxes on factory building.
D)   wages of factory custodians.E) A) and C)
F) All of the above

Question 10

The following information pertains to Fry Enterprises:  What are the prime costs for the year?

Accepted Answer

A)   $360,000
B)   $480,000
C)   $270,000
D)   $300,000E) A) and D)
F) None of the above

Question 11

Assume the following information:  The ending direct materials inventory is

Accepted Answer

A)   $175,000.
B)   $ 75,000.
C)   $ 50,000.
D)   $100,000.E) C) and D)
F) B) and C)

Question 12

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Accepted Answer

A)   factory supplies used
B)   canvas used in sail
C)   depreciation of factory buildings
D)   indirect materialsE) A) and B)
F) A) and C)

Question 13

Prime product costs include

Accepted Answer

A)   only factory overhead.
B)   only direct labor.
C)   direct labor and factory overhead.
D)   direct materials and direct labor.E) A) and B)
F) A) and C)

Question 14

Error costs can be defined as

Accepted Answer

A)   the costs associated with the measurements required by the cost management system.
B)   unit costs assigned based on activities.
C)   the costs associated with making poor decisions based on bad cost information.
D)   none of theseE) A) and C)
F) C) and D)

Question 15

The _______________ is an accounting information subsystem that is primarily concerned with producing outputs for external users.

Accepted Answer

A)   cost management information system
B)   computer system
C)   internal accounting system
D)   financial accounting information systemE) None of the above
F) C) and D)

Question 16

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)   EDIE) B) and C)
F) C) and D)

Question 17

An example of a tangible product, rather than a service, would be

Accepted Answer

A)   housekeeping.
B)   insurance coverage.
C)   paper.
D)   medical exam.E) A) and C)
F) All of the above

Question 18

If the total warehousing cost for the year amounts to $350,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

Accepted Answer

A)   $70,000
B)   $140,000
C)   $210,000
D)   $350,000E) B) and C)
F) A) and B)

Question 19

Selected data concerning the past year's operations of the Wood Corporation are as follows:   The cost of goods sold is

Accepted Answer

A)   $1,630,000.
B)   $1,880,000.
C)   $1,600,000.
D)   $1,650,000.E) All of the above
F) None of the above

Question 20

In a company that supplies garlic bread to pizza restaurants, which of the following would NOT be considered a transforming process?

Accepted Answer

A)   delivered garlic bread
B)   baking
C)   packaging
D)   mixingE) A) and D)
F) B) and C)

Exam 2: Basic Cost Management Concepts

Error costs can be defined as

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Assume the following information: The ending direct materials inventory is

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If the total warehousing cost for the year amounts to $350,000, and 40 percent of the warehousing activity is associated with finished goods and 60 percent with direct materials, how much of the cost would be charged as a product cost?

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Which of the following is a trait of a functional-based cost management system?

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An example of a period cost is

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An example of a tangible product, rather than a service, would be

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The _______________ is an accounting information subsystem that is primarily concerned with producing outputs for external users.

Correct AnswerverifiedShow Answer

In a company that supplies garlic bread to pizza restaurants, which of the following would NOT be considered a transforming process?

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Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

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Services differ from tangible products in which of the following dimensions?

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Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

Correct AnswerverifiedShow Answer

The following information pertains to Fry Enterprises: What are the prime costs for the year?

Correct AnswerverifiedShow Answer

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

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Prime product costs include

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Wages paid to a janitor in the factory would be classified as

Correct AnswerverifiedShow Answer

In choosing a cost management system, the controller must balance the total costs of implementing such systems.What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?

Correct AnswerverifiedError costs and measurement costs must b...View AnswerShow Answer

Figure 2-15 Information from the records of the Tyler Enterprises for March 2011 is as follows: - Refer to Figure 2-15.What is the gross margin (profit) ?

Correct AnswerverifiedShow Answer

Selected data concerning the past year's operations of the Wood Corporation are as follows: The cost of goods sold is

Correct AnswerverifiedShow Answer

Home Designs Company designs decks, gazebos, and play equipment for residential homes.The following was provided for the year ended June 30, 2011: The average design fee is $700.There were 2,000 designs processed during the year. Required:

Correct AnswerverifiedShow Answer

Selling and administrative costs are classified as

Correct AnswerverifiedShow Answer

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Error costs and measurement costs must b...
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