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Preview Extract
Chapter 2
1. The cost management information system is primarily concerned with producing outputs for internal users using inputs
and processes needed to satisfy management objectives.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CND
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-CE5U-NATZ-G71S-RPDF-GESU-YPUD-CESU-EAJS-GOSUBAL ID: E3TS-CWSU-CQBA-GC5D-ECMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
2. The Financial accounting information system provides information for three broad objectives: costing services and
products, planning and control, and decision making.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CBU
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-CWAD-OCJ1-CEAU-1PTA-GOSU-O3TI-8YSU-NQJU-GOSSL ID:
EPTZ-CWSU-13UF-GPUD-QPTI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 1
Chapter 2
3. The value chain is the set of activities required to design, develop, produce, market, deliver and provide post-sales
service for the products and services sold to customers.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CB1
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-8FOU-1CUG-CO4D-Q3B1-GYSU-K3J3-CRSU-RP3O-GOSUL ID:
EPDD-GESU-YQJS-GO4U-O3JT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
4. Cost management information benefits production, marketing, and customer service systems as well as being a crucial
part of managerial decision making.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CBT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-CTUD-QQMF-8Y4D-EC5N-CWSU-GPDG-CRSS-GPJW-GOSUBAL ID: GCJW-GCSS-E3UF-GCHU-CQBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 2
Chapter 2
5. An integrated cost management system receives information from and provides information to only the controller of a
company.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CBO
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-CE5D-OP3O-GFTU-N3DN-CRSU-GP3S-CESU-Q3JZ-GOSSL ID:
KQBW-8RSU-GCJW-CE3S-NPDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
6. Cost assignment is one of the key processes of the cost accounting system.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CBZ
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-CT1G-GA3W-CWAD-EC5D-CESU-YPTI-8YSS-KA33-GOSSL ID:
E3TI-CRSU-1CBS-G7TU-GPMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 3
Chapter 2
7. Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future
loss to the company.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CBS
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GRAS-CPTA-CT1S-K3DD-8YSU-KCTT-8YSS-GCTS-GOSSL ID:
EAT3-CCSU-CCT3-GAHU-YCJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
8. The three methods of cost assignment are direct tracing, driver tracing, and allocation.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CBI
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GY3G-CP3W-CA3U-RAMB-CESU-GP5D-8RSU-RPTA-GOSUL ID:
R3TT-GESS-RPDF-CTOU-1PJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 4
Chapter 2
9. Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some
underlying “true cost”.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/3/2017 1:55 PM
QUESTION ID:
JFND-GO33-GINU-1CBW
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-CEHU-13MG-GHHD-E3B1-GHSU-CQBO-8RSU-NATS-GOSUBAL ID: E3UF-GCSU-EC3W-GTTS-RAJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
10. The most precise of the three methods of cost assignment is direct tracing since it relies on observable causal
relationships.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CKN
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-GE3D-NQJW-CA5G-NAMD-CASU-Y3BU-CRSU-NPJS-GOSUBAL ID: EQB1-8RSU-1ATZ-8R3D-G3MB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 5
Chapter 2
11. Services differ from tangible products on three dimension: intangibility, perishability, and inseparability.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CKB
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-CWHU-NCDR-8R5G-R3B3-GRSU-GQBO-8YSU-YAJZ-GOSUBAL ID: OA5R-8YSS-R3JZ-GJOU-KP31-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
12. Intangible products are goods produced by converting raw material into finished products through the use of labor and
capital inputs.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJ3
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GWHD-GAT3-GC3G-EPBS-GWSS-GCBU-8YSS-CCMG-GOSUBAL ID: N3UR-GYSU-QATW-CC4U-KPDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 6
Chapter 2
13. Production costs are costs associated with manufacturing goods or providing services and are classified as direct
materials, direct labor, and overhead.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-8YAD-YPMG-GHAU-1CBW-COSU-CPB3-8RSS-K3JW-GOSUBAL ID: OPDN-CESU-QP3T-CA4U-NCBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
14. Conversion cost is the sum of direct materials and direct labor cost and prime cost is the sum of direct labor and
overhead cost.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CKG
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GYAU-NA5F-CRAD-OPMF-CESU-OCTU-CRSS-N3JS-GOSUBAL ID: RPDN-GASU-GQB1-GE4D-1P31-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 7
Chapter 2
15. Product costs include production, marketing, and customer service, and are used for strategic design decisions and
tactical profitability analysis.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CKF
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-8R4U-1A5D-GF1D-GCTW-GCSU-Y3JT-8RSS-KCUB-GOSUBAL ID: YP3W-GOSU-GC3Z-CR5S-EQBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 8
Chapter 2
16. The income statement prepared for external parties is frequently referred to as absorption-costing income, or full
costing income.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CKR
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-GO3D-RCBI-GE3U-KA3A-GESS-RCMR-CRSU-1C31-GOSUBAL ID: NP3O-8YSU-R3TO-GBUD-N3JS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
17. The cost of goods sold is the cost of direct materials, direct labor and overhead attached to the units sold.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CKD
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-GFTD-O3DF-8Y4S-RAJS-GWSU-EC3I-CESU-C3MR-GOSSL ID:
R3DB-GESS-KCJS-CTOU-G3JZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 9
Chapter 2
18. The cost of goods manufactured represents the total manufacturing cost of goods completed during the current period.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJU
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-G7OU-NCUG-CITD-GAJ3-GHSS-KCBS-CESS-K3B1-GOSUL ID:
C3T3-GYSS-ECBU-GJOS-CATU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
19. Work in process consists of all partially completed units found in production at a given point in time.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJ1
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-C3UD-RCMG-8RAD-YCUN-GESS-RPDD-8RSS-K3BI-GOSUBAL ID: GPBO-GCSS-NCUG-CRHU-RCDR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 10
Chapter 2
20. Gross margin, also called gross profit, is the difference between sales and costs of goods sold.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-GWHU-NPBA-8FOU-Q3JT-GYSS-CC5B-CRSU-ECMF-GOSUBAL ID: NQBZ-CCSS-CCUB-GAHG-CP3U-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
21. Cost management systems can be broadly classified as traditional or activity based.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJO
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-CCAU-1PT1-GT1G-ECDN-8YSU-CCTA-8RSU-OCUR-GOSUBAL ID: QAMD-CASU-RCMF-8RHD-CPTO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 11
Chapter 2
22. A traditional cost accounting system assumes that all costs can be classified as fixed with respect to changes in the
units or volume produced.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJZ
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-CC4G-CCMR-8YHU-E3BZ-GRSU-NATS-CESU-N3TW-GOSSBAL ID: NQJS-8YSU-EQDB-GTUD-CQDR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
23. The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve
customer value.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-GE5U-RPTU-CAHD-KCUG-GRSS-K3BT-8YSS-NPUR-GOSUBAL ID: OAMN-CRSS-GPJU-G7TG-C3MN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 12
Chapter 2
24. Error costs are costs associated with measurements required by the cost management system and measurement costs
are the costs associated with making poor decisions.
a. True
b. False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJW
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-CC4S-NP5F-CW4D-R3UD-CESS-GQB1-8RSS-NC5R-GOSUBAL ID: 1QMG-CRSU-O3JZ-GCAG-ECMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
25. The cost accounting system that emphasizes tracing over allocation is called an activity-based accounting system.
a. True
b. False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1CJI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-COHS-RQJU-GE4S-GCMF-CRSU-GQMN-CESU-YPMN-GOSSBAL ID: EAT1-GRSU-EPMR-G7OS-R3DG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 13
Chapter 2
26. A subsystem of the accounting information system designed to satisfy costing, controlling and decision making
objectives is called the __________ system.
ANSWER:
cost management
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P1N
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-8R4D-YP3S-CA4D-C3JI-CASU-YCTO-8YSU-KC5B-GOSUL ID:
OCJO-GHSU-YCTI-CC4U-CPMD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
27. The cost management subsystem designed to provide accurate and timely feedback concerning the performance of
managers relative to their control of activities is the __________ information system.
ANSWER:
operational control
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P1B
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-CP1G-NAJS-C31D-RPTI-CRSU-E3BT-CRSS-C3MR-GOSUL ID:
CPDD-COSS-N3JU-CAHS-E3TT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 14
Chapter 2
28. The overall objective of accounting information is to provide information to __________.
ANSWER:
users
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PT3
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GOHS-CAUN-CI1U-KCTW-8YSU-YPUR-CESS-NC3O-GOSSBAL ID: NC3O-CWSU-KCMN-GB1U-YPTS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
29. The resources given up that are expected to bring a current or future benefit to the organization are called __________
.
ANSWER:
costs
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PTA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GY3G-GPBA-GY3G-NQB3-CCSS-RAUG-CESS-GCJ3-GOSUBAL ID: OPTZ-CRSS-KC3O-GCHS-CA5B-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 15
Chapter 2
30. Expired costs used up in the generation of revenues are called __________ .
ANSWER:
expenses
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P1G
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-G31U-YQDR-GBTU-GPJ3-CASS-GC5G-CESU-RA3T-GOSUL ID:
13TT-CESU-1PBT-GE3U-K3DN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
31. The least accurate but easiest to apply method of cost assignment is the __________ method.
ANSWER:
allocation
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P1F
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-CW3G-CCDB-GO3G-G3UN-CCSS-EA31-CESU-Q3J3-GOSUBAL ID: OPJZ-CWSU-O3MD-GOHU-13BT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 16
Chapter 2
32. __________ means the consumer cannot see, hear, feel, or taste a service before it is bought.
ANSWER:
Intangibility
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P1R
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-CA4G-GCMR-G3OU-QP5B-GESU-RCUG-CESU-N3BU-GOSUBAL ID: CAUF-GWSU-N3TO-CC4D-RCJU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
33. __________ are generally materials necessary for production that do not become part of the finished product or are
not used to provide a service.
ANSWER:
Supplies
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P1D
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-GYAU-EAUB-GR4S-RPTI-GRSU-1PTT-CESU-K3BO-GOSSBAL ID: GPTU-CRSU-Q3DG-GW5S-EAJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 17
Chapter 2
34. Costs necessary to market and distribute a product or service are often referred to as order- __________ and order__________ costs.
ANSWER:
getting; filling
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/13/2017 2:53 AM
QUESTION ID:
JFND-GO33-GINU-1PTU
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-C31U-ECBO-GT1D-YQBU-GYSS-RQJ3-CRSU-GPTO-GOSSBAL ID: CCBT-8RSU-YAT1-GC5U-QA3I-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
35. In preparing an income statement, __________ and __________ costs are separated.
ANSWER:
production; nonproduction
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PT1
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-GYHD-1QJS-8B1U-NQJI-GWSS-K3UB-8RSU-EPDB-GOSUL ID:
EQBO-8RSU-OPTU-GA3D-GAJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 18
Chapter 2
36. Gross margin is the difference between __________ and the cost of goods or services sold.
ANSWER:
sales revenues
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PTT
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-GJOU-NA3T-8R5U-1C3S-GESU-R3UB-CRSS-N3TU-GOSSL ID:
E3JO-GRSS-NPJZ-GEHD-K3J1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
37. __________ income is the difference between gross margin and selling and administrative expenses.
ANSWER:
Operating
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PTO
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GA5G-GC3U-GTTU-ECT3-GASU-CCB1-CRSU-YPTZ-GOSSL ID:
EC3T-COSU-G3B1-GPOU-RQJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 19
Chapter 2
38. Cost management systems are made up of two subsystems: the __________ accounting system and the __________
control system.
ANSWER:
cost; operational
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PTZ
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-CW3U-YPMF-GT1S-N3BZ-CRSS-KC5R-8RSU-CAUG-GOSUBAL ID: YATU-8YSU-1PBW-GBTD-EQJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
39. Generally, more managerial objectives can be met with an activity-based system than with a _________ system.
ANSWER:
traditional
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PTS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-C3OU-R3BT-GA4U-RC31-COSU-QCB3-8YSS-R3BZ-GOSUBAL ID: RCBZ-8YSU-RPTA-CCAU-YPBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 20
Chapter 2
40. In deciding whether to implement a(n) __________ cost management system, managers must evaluate the trade-off
between costs of measurement and cost of errors.
ANSWER:
activity-based
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Completion
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PTI
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-G31G-NPJ1-8B1D-RPTT-GRSU-CPUN-CESU-EC5D-GOSUL ID:
1PJO-CESU-QCJ1-COHS-KPTT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
41. The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):
a. cost objective
b. system
c. activity
d. cost driver
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PTW
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-8RAU-KQMD-GJTS-ECBA-GCSS-NP3A-8YSU-GPJS-GOSSL ID:
EPB3-8RSU-EATW-8Y4U-RCT1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 21
Chapter 2
42. The overall objective of accounting information systems is to
a. provide information to users.
b. manage the organization.
c. prepare financial reports.
d. report to the government.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P4N
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-GFTG-C3MR-CJOU-KA3S-GOSS-KCUG-CRSS-RQBA-GOSUBAL ID: EC5R-COSU-NC5N-8FOU-NPTA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 22
Chapter 2
43. The outputs of an accounting information system includes:
a. economic events.
b. financial statements.
c. bill of lading report.
d. value chain information.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:36 PM
QUESTION ID:
JFND-GO33-GINU-1P4B
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-GB1G-RA5G-CW3D-OPMB-GOSU-C3MG-8RSU-KPBO-GOSUBAL ID: GCJT-CRSU-GP5G-GRAD-1AMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 23
Chapter 2
44. 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?
a. financial accounting information system
b. operational control information system
c. cost accounting information system
d. all of the above
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P33
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-8Y3D-CAT3-COAG-KPUG-GASU-KC3A-CESU-E3JZ-GOSUBAL ID: YA5R-CCSU-NPDN-G7OS-GA5F-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 24
Chapter 2
45. In a company that supplies muffins to bakeries, which of the following would be considered an input?
a. delivered muffins
b. flour
c. baking
d. none of these
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P3A
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GI1D-CCTO-CT1U-E3BZ-GASU-NCBT-8RSU-YPMD-GOSSL ID:
CAMF-8RSS-NQBO-CEHU-GPJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 25
Chapter 2
46. In a company that supplies muffins to bakeries, which of the following would NOT be considered an input?
a. delivered muffins
b. flour
c. egg
d. oil
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P4G
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-8BTS-R3T3-CPUD-Y3MB-GWSU-1PT3-8YSS-CA5R-GOSUL ID:
QAJA-GESS-CA5D-GPTU-C3B3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 26
Chapter 2
47. For financial accounting, the nature of the inputs and the rules and conventions governing processes are defined by the
_____.
a. Securities and Exchange Commission (SEC)
b. Trade Reporting and Compliance Board (TRCP)
c. International Ethics Standards Board (IESB)
d. Monetary and Securities Trade Regulation Commission (MSTRC)
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:39 PM
QUESTION ID:
JFND-GO33-GINU-1P4F
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-G7UD-1A3W-CTTG-CA3O-CCSU-13J3-8RSS-NQJI-GOSSL ID:
CPJ1-GHSU-OPJ3-CIOS-RPBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 27
Chapter 2
48. In a company that supplies muffins to bakeries, which of the following would be considered a transforming process?
a. delivered muffins
b. baking
c. egg
d. oil
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P4R
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-GA3G-ECMB-8FOU-EQBW-COSU-QPMF-CRSU-NPBABAL ID: GOSU-1QDB-CASU-RC5B-CCAU-YCJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 28
Chapter 2
49. In a company that supplies muffins to bakeries, delivered muffins to bakeries would be a(n)
a. interrelated part.
b. input.
c. output.
d. process.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P4D
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GOAS-KAUF-CC5G-ECTA-GRSU-EA3S-8RSU-KC5N-GOSUBAL ID: QC3T-GOSS-KC5F-CAHG-CP5N-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 29
Chapter 2
50. In an accounting information system, the inputs are usually
a. financial statements.
b. analyzing data.
c. economic events.
d. performance reports.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P3U
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-GEAD-13TU-GW5U-K3BS-CRSU-G3BI-8YSU-13DF-GOSSBAL ID: ECB3-GWSU-CQJA-CEHU-GQB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 30
Chapter 2
51. Which of the following is a cost management subsystem designed to provide accurate and timely feedback concerning
the performance of managers and others relative to their planning and control of activities?
a. financial accounting information system
b. operational control information system
c. cost accounting information system
d. all of the above
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P31
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GP1U-YC3S-GRAU-ECBI-CCSS-GPBT-8RSU-1PTZ-GOSSL ID:
C3DB-GYSU-EPBW-CPUG-CPTS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 31
Chapter 2
52. The accounting information subsystem that is primarily concerned with producing outputs for external users is called:
a. cost management information system
b. computer system
c. internal accounting system
d. financial accounting information system
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P3T
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GA4D-RC3I-GI1D-EPTS-CESS-RPJT-CESU-NP3A-GOSUL ID:
R3T1-GCSU-YAUR-CJ1G-NCBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 32
Chapter 2
53. 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?
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
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P3O
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-C31U-GPTZ-8R3S-KCUG-CRSU-CCDG-8RSU-RPMD-GOSSL ID:
G3JI-CWSU-GP5B-G7OU-QATZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 33
Chapter 2
54. Which of the following is a major subsystem of the cost accounting information system?
a. ERP
b. Operational control information system
c. OLAP
d. EDI
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Technology
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-09 – FN-Leveraging Technology
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P3Z
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-CT1S-GC31-C3OS-NQJO-8YSU-EQBW-CESS-KATU-GOSUL ID:
NQBT-CRSS-KCTT-GJ1U-O3MR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 34
Chapter 2
55. A computerized information system that strives to input data once and to make it available to people across the
company for different purposes is called a:
a. cost management information system
b. enterprise resource planning system
c. internal accounting system
d. financial accounting information system
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Technology
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-09 – FN-Leveraging Technology
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P3S
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-GPTD-1PTT-CC3U-ECJ1-CASS-GCJ1-8RSU-OCDG-GOSSL ID:
CAJ1-COSS-RCBZ-GHHD-CPUF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 35
Chapter 2
56. A cost management subsystem designed to provide accurate and timely feedback concerning the performance of
managers and others relative to their planning and control activities is called the:
a. cost accounting information system
b. financial accounting system
c. operational control information system
d. tax reporting system
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1P3I
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-G3TS-GCT3-GH3D-CPUR-GASS-EC3S-CRSU-EPDG-GOSUL ID:
OCUF-CWSU-C3BI-GAAU-GPJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 36
Chapter 2
57. _____ is concerned with determining what activities should be performed and assessing how well they are performed.
a. The financial accounting system
b. The value chain
c. Operational control
d. Traditional costing
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:41 PM
QUESTION ID:
JFND-GO33-GINU-1P3W
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-GW4S-NPBZ-G7TS-NQDB-GRSU-1QJS-8YSU-YAUG-GOSSBAL ID: R3BW-8RSU-RATW-CC5G-CAJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 37
Chapter 2
58. Which of the following is an objective of the operational control system?
a. Providing information to external users
b. Facilitating stewardship evaluation
c. Increasing value to customers
d. Increasing post-purchase costs
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-1 – LO: 02.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:42 PM
QUESTION ID:
JFND-GO33-GINU-1PNN
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-GO5G-G3BW-CRAU-NATS-GHSU-OC5G-8YSU-G3DG-GOSUBAL ID: GCJ3-CASU-OCJO-8YAG-NPJU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 38
Chapter 2
59. A cost that expires without producing any revenue benefit is known as a(n) _____.
a. loss
b. expense
c. profit
d. surplus
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:43 PM
QUESTION ID:
JFND-GO33-GINU-1PNB
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-8F1U-KCTW-CPOS-K3TA-CASU-KCB1-8RSU-YQJT-GOSUBAL ID: G3MN-8RSU-RCTS-GRAS-EC3A-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 39
Chapter 2
60. The cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future
benefit to the organization is/are called:
a. Expenses
b. Cost
c. An activity
d. A loss
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PB3
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-CWHG-CP3S-8YHU-OC5B-GWSU-GAMD-8YSU-E3DF-GOSUBAL ID: 1AMN-GHSU-OQBI-GA3S-GATA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 40
Chapter 2
61. A cost used up in the production of revenues is a(n)
a. unexpired cost.
b. loss.
c. expense.
d. asset.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GW3D-R3T3-GO4U-YP5D-GESS-RQBU-CESU-QC5R-GOSSBAL ID: EPDN-CASU-CC3U-CEAD-OQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 41
Chapter 2
62. Which of the following is an example of a loss?
a. the cost of a product delivered to a customer
b. the cost of a delivered advertising campaign
c. the cost of the purchase of equipment
d. the write-off of an obsolete product
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PNG
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-CR4D-KAUR-CITS-RA3S-CESS-C3B1-CRSU-GCDD-GOSSBAL ID: KC3S-GYSU-KCTO-8Y3G-GCBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 42
Chapter 2
63. Which of the following is an example of an expense?
a. the cost of a proposed advertising campaign
b. the cost of a product delivered to a customer
c. the cost of the purchase of equipment
d. the write-off of an obsolete product
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
12/30/2016 12:59 AM
QUESTION ID:
JFND-GO33-GINU-1PNF
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-C31D-KA5D-GIOU-NQBZ-CASS-CPMF-8YSU-CCT3-GOSUBAL ID: O3DF-CCSU-GQJT-CAHD-RPDG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 43
Chapter 2
64. A(n) _____ is a basic unit of work performed within an organization.
a. allocation
b. object
c. driver
d. activity
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:44 PM
QUESTION ID:
JFND-GO33-GINU-1PNR
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-8Y5D-QPDG-GRHG-GA5R-CESU-O3T1-8RSS-CCBO-GOSUBAL ID: YCTI-CCSU-KPMD-C31S-RA5G-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 44
Chapter 2
65. Which of the following statements is true of traceability?
a. It uses well-specified economic events as inputs, and its processes follow certain rules and conventions.
b. It is used for investment decisions, stewardship evaluation, activity monitoring, and regulatory measures.
c. It is the ability to assign a cost directly to a cost object in an economically feasible way by means of a causal
relationship.
d. It is concerned with determining what activities should be performed by managers and assessing how well they
are performed.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:45 PM
QUESTION ID:
JFND-GO33-GINU-1PND
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-GITD-E3BZ-CP1D-NAJA-CASU-YC3A-CESS-N3T3-GOSSL ID:
NCMD-GYSS-CQJZ-CF1U-EQBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 45
Chapter 2
66. Factors that cause changes in resource usage, activity usage, costs and revenues are called
a. indirect costs.
b. drivers.
c. assignments.
d. cost objects.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBU
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GR5S-NPJ3-CO5U-QA33-GESS-CCDN-CRSU-YCB1-GOSSL ID:
EPUR-CRSU-GPMG-CO4U-GCJU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 46
Chapter 2
67. The most likely method to assign the cost of an assembly-line supervisor when the assembly line is the cost object is
the:
a. driver tracing method
b. arbitration method
c. allocation method
d. direct tracing method
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PB1
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-CTOU-QAUD-COHG-E3B1-GOSS-KA3U-8YSU-E3BI-GOSUL ID:
QA3Z-GWSS-KPJO-8YHS-GP3I-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 47
Chapter 2
68. Which cost assignment method would likely assign the cost of heating in a plant that makes beds and dressers when
the bed product line is the cost object?
a. driver tracing
b. direct tracing
c. allocation
d. arbitration
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GE5S-NQJ1-GW4G-KQJI-GRSU-OQBT-8YSU-EQJO-GOSUBAL ID: QCB3-GRSU-RQDR-GB1U-QPMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 48
Chapter 2
69. Which cost assignment method would likely assign the cost of maintenance for machines in a department that does
cutting when the cutting activity is the cost object?
a. driver tracing
b. direct tracing
c. allocation
d. arbitration
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBO
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-8Y3S-RPBS-CW4D-NCJW-GHSU-KAJI-8YSS-ECB1-GOSSL ID:
NPUF-CRSU-NP5N-CO5S-G3JO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 49
Chapter 2
70. Which of the following expenses incurred by a department store is a direct cost for the women’s shoe 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
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBZ
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-CA5U-CPB1-8FUD-QQDB-GRSS-KCDG-CRSU-QPMG-GOSUBAL ID: YPTT-CCSS-KPTI-GH3G-G3BU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 50
Chapter 2
71. Which of the following costs incurred by a chair manufacturer would be traced to the product cost through direct
tracing?
a. the depreciation on factory equipment
b. the supervisor’s salary
c. the insurance on the factory building
d. the woodworker’s salary
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GA3U-YAUD-G3TU-OCB3-GESU-13MG-8RSS-G3UN-GOSUBAL ID: E3MN-CRSS-RAJU-8YHU-YCTZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 51
Chapter 2
72. Direct costs
a. are incurred for the benefit of the business as a whole.
b. would continue even if a particular product were discontinued.
c. are those costs that can be easily and accurately traced to a cost object.
d. can be assigned to products only by a process of allocation.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-CFUD-YCTI-CJTD-RPMN-CESU-GQJT-8YSU-RQDB-GOSUBAL ID: GATU-GOSS-N3JS-GOAD-OQDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 52
Chapter 2
73. The direct costs of operating a college computer center would NOT include
a. rent paid for computers.
b. a fair share of college utilities.
c. paper used by the center.
d. computer consultants’ salaries.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PBW
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-CJTS-G3JU-CEAU-1AJW-GHSU-CC5B-8YSS-GPMN-GOSUL ID:
GA5N-GESU-KPDB-8BTU-CCB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 53
Chapter 2
74. 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?
a. direct tracing
b. driver tracing
c. allocation
d. all of the above
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PKN
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-CAHU-NAMF-GRHD-EQBI-GOSS-RA3A-8YSS-NC5F-GOSSL ID:
G3JS-CWSS-GC3I-GJ1S-NCTW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 54
Chapter 2
75. Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished
product?
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
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PKB
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GF1U-EQJW-GT1D-YA5F-GWSU-KQMF-8YSU-QAJZ-GOSSBAL ID: EQDB-GESS-R3BZ-8FTD-K3JW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 55
Chapter 2
76. The assignment of indirect costs to cost objects is referred to as:
a. Allocation
b. Direct tracing
c. Physical observation
d. Cost management
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJ3
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-8YHU-CQMB-GTOU-RA3T-8RSU-E3J1-8YSU-EPDB-GOSUL ID:
RP3W-GESU-RCT1-GW4G-C3BI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 56
Chapter 2
77. What is a disadvantage of assigning costs evenly over all cost objects?
a. not all costs will be assigned
b. total costs will be distorted
c. costs may be distorted by consumption patterns of other cost objects
d. none of these
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-GCHU-G3TS-GBUD-KA5F-GWSS-C3TU-CRSU-O3BU-GOSSBAL ID: GC5D-GWSU-KPJS-C3UD-1CJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 57
Chapter 2
78. The three methods of assigning costs to cost objects are direct tracing, driver tracing, and _____.
a. observation
b. arbitration
c. assignment
d. allocation
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:46 PM
QUESTION ID:
JFND-GO33-GINU-1PKG
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-CA3U-EQBZ-GAHS-EPBO-GWSU-N3UR-CRSS-EPJU-GOSUBAL ID: GPTI-8YSU-EC3U-GOHG-EA5F-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 58
Chapter 2
79. Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon
physical observation?
a. the wood and upholstery materials that are in the final piece
b. the depreciation paid on factory equipment t
c. he labor of the worker assembling the piece of furniture
d. the labor of the woodworker who finishes the wood of the piece
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PKF
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-GB1U-KPUG-GCAU-RATT-CRSU-KAJI-8RSS-GP3S-GOSUBAL ID: RP5G-8RSU-GCDF-GC5U-GATI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 59
Chapter 2
80. The precision of driver tracing depends upon
a. physically observable relationships.
b. the strength of causal relationships described by the driver.
c. allocation estimations.
d. both b and c.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PKR
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-8B1G-K3DD-GTTU-KA5R-CASU-1QBA-8RSU-OCTW-GOSUBAL ID: CPUD-GYSU-OAUN-CE3U-CA5B-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 60
Chapter 2
81. If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next
best approach is
a. driver tracing.
b. allocation.
c. estimation.
d. none of these.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-2 – LO: 02.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PKD
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GBUD-R3DG-GP1G-GAJU-GOSS-N3MR-CRSU-K3TW-GOSUBAL ID: NCDD-GESU-NA5F-8F1D-1ATS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 61
Chapter 2
82. Services differ from tangible products on three important dimensions: intangibility, inseparability, and _____.
a. profitability
b. sustainability
c. utility
d. perishability
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:47 PM
QUESTION ID:
JFND-GO33-GINU-1PJU
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GC4U-C3T1-CF1D-1AJO-GYSU-NAT3-8YSU-1PUD-GOSUL ID:
Y3TO-GHSS-KQBI-G3UD-KCJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 62
Chapter 2
83. With regards to products, perishability can be defined as
a. buyers of products who can not see, feel, hear or taste the product before it is bought.
b. services that cannot be stored.
c. buyers and sellers who must be in direct contact for the sale to take place.
d. buyers of the product who do not need direct contact with the manufacturer of the product.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJ1
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-GA5U-KPTI-CA3D-CQJ1-CESU-1PT3-CRSS-N3J3-GOSUL ID:
EC31-8RSS-CP5N-GO3S-GCJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 63
Chapter 2
84. Intangibility of services means that
a. products cannot be seen, tasted, heard or felt before the purchase.
b. products cannot be stored.
c. exchange takes place in direct contact.
d. both a and c.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-GW4G-CP33-CC3G-KCMR-COSS-CQBT-8RSU-EQBU-GOSUBAL ID: GAMF-GRSS-RA3A-GCHD-YA5B-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 64
Chapter 2
85. An example of a tangible product, rather than a service, would be
a. housekeeping.
b. insurance coverage.
c. paper.
d. medical exam.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJO
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-GE4D-OC5B-8YAG-KPDD-GYSU-Y3JT-8RSS-CQBA-GOSUBAL ID: EPBW-CASU-NQBO-G71D-CQDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 65
Chapter 2
86. With regard to services, inseparability means that
a. products cannot be stored.
b. direct contact must take place for an exchange.
c. products have a physical presence.
d. none of the above apply to inseparability.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJZ
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-GPTD-GAJO-CA3G-GPJT-COSU-Y3J1-CRSS-N3TS-GOSUL ID:
QPJO-CESS-EPJT-CE4G-K3BI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 66
Chapter 2
87. An example of a service, rather than a tangible product, would be
a. medical exams.
b. cloths.
c. trucks.
d. radios.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GR5U-G3UG-GTOU-NQJ3-CASU-Y3DR-8RSU-E3TA-GOSUBAL ID: 1CBW-GASU-YA31-CF1U-RC3O-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 67
Chapter 2
88. Which of the following is a service organization?
a. grocery store
b. CPA firm
c. cattle ranch
d. department store
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-02 – Global Business
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINU-1PJI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-CC5D-1PMR-GBTU-CPBO-GWSS-KCMR-CRSS-NCT3-GOSSBAL ID: EA5F-CCSU-KCJA-CP1D-OC5B-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 68
Chapter 2
89. Which of the following will be included in traditional product costs?
a. Customer service costs
b. Marketing costs
c. Research and development costs
d. Production costs
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:49 PM
QUESTION ID:
JFND-GO33-GINU-1PJW
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-8BTD-CPB1-GPTS-KCDN-CRSU-GATU-CESU-YAUG-GOSUBAL ID: YQBA-GOSU-KATA-GW3D-KQJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 69
Chapter 2
90. Product value-chain costs assist managers in meeting which of the following objectives?
a. product mix decisions
b. tactical profitability analysis
c. external financial reporting
d. strategic design decisions
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINW-NOKN
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-CEHU-NCTZ-CF1U-EATT-CWSS-CCDN-8YSU-R3TW-GOSUBAL ID: YAUR-CASS-NAJI-CW3U-GCMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 70
Chapter 2
91. Value-chain product costs include which of the following?
a. customer service costs
b. marketing costs
c. research and development
d. all of the above
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINW-NOKB
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-GPTD-NA3U-CFTS-RCJT-GRSU-GCUR-CRSU-NPBZ-GOSUBAL ID: RQMF-COSU-OP3A-8R3S-KPMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 71
Chapter 2
92. Which of the following costs would NOT be included in operating product costs?
a. production
b. marketing
c. research and development
d. all of the above
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINW-NOJ3
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-CA5D-GP3S-CE5D-RCMB-GESU-N3B1-CESS-RPTW-GOSSL ID:
N3JW-CASU-NC33-C31U-1PMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 72
Chapter 2
93. Which of the following managerial objectives is served by traditional product costs?
a. Product mix decisions
b. External financial reporting
c. Strategic design decisions
d. Tactical profitability analysis
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
1/21/2017 12:50 PM
QUESTION ID:
JFND-GO33-GINW-NOJA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-GR4D-NPBA-GFTS-CP5D-8RSU-GAJA-8YSU-RPJA-GOSUBAL ID: CA3W-GHSU-KCJW-CCAD-Q3UF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 73
Chapter 2
94. Which of the following costs is NOT a product cost?
a. rent on an office building
b. indirect labor
c. repairs on manufacturing equipment
d. steel used in inventory items produced
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINW-NOKG
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMF-GH5D-G3TZ-8BTD-ECJI-8RSU-OAJZ-8RSS-K3B3-GOSUL ID:
R3B1-8RSS-RPBA-CAAG-G3UD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 74
Chapter 2
95. Which of the following costs is an example of product costs?
a. selling commissions
b. nonfactory office salaries
c. direct materials
d. advertising expense
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:26 AM
DATE MODIFIED:
10/7/2016 9:26 AM
QUESTION ID:
JFND-GO33-GINW-NOKF
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-CCAU-GCTU-CT1G-NCBO-CESS-CPMR-8YSU-GPMB-GOSSBAL ID: NPBZ-CASS-GCTA-CA4G-NCBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 75
Chapter 2
96. During the month of January, Marcos & Henesey, Inc. had total manufacturing costs of $165,000. It incurred $62,000
of direct labor cost and $40,000 of manufacturing overhead cost during the month. If the materials inventory on January 1
was $5,800 less than the materials inventory on January 31, what was the cost of materials purchased during the month?
a. $53,650
b. $68,800
c. $58,000
d. $93,800
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS:
Direct materials used = Total manufacturing cost − (Direct labor cost + Overhead cost) = $165,000 −
($62,000 + $40,000) = $165,000 − $102,000 = $63,000
Direct materials purchased = Direct materials used + Difference in inventory balances = $63,000 +
$5,800 = $68,800
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE Multiple Choice
:
HAS VARIABLES: False
LEARNING OBJE COCM.HANS.18.2-3 – LO: 02.03
CTIVES:
NATIONAL STAN United States – BUSPROG – Reflective Thinking
DARDS:
STATE STANDAR United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
DS:
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:27 AM
DATE MODIFIE 1/27/2017 1:23 AM
D:
QUESTION ID: JFND-GO33-GINW-NOKR
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-GBTU-QQBA-G31S-KCJ1-8RSU-1PBS-CESU-RPJ3-GOSUL ID:
1PJA-GRSU-R3BO-GR5D-YATZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 76
Chapter 2
97. Which of the following costs is a product cost?
a. lease payments on cars used by salespersons
b. president’s salary
c. property taxes on factory building
d. depreciation on office equipment
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOKD
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-8YAU-CCUD-CFTD-NC33-GOSU-QC5N-8YSS-KCJT-GOSSL ID:
ECUR-COSU-EPJU-GOHD-EPTS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 77
Chapter 2
98. Which of the following costs is a period cost for a manufacturing company?
a. controller’s salary
b. wages of machine operators
c. insurance on factory equipment
d. fringe benefits for factory employees
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOJU
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-CW3G-RA5G-CWAS-K3TA-GWSS-C3T1-CESU-KAJW-GOSSBAL ID: RP3U-GESS-CAJI-GY5D-KAUD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 78
Chapter 2
99. In a traditional manufacturing company, product costs include
a. direct materials only.
b. direct materials, direct labor, and factory overhead.
c. direct materials and direct labor only.
d. direct labor only.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOJ1
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-G31S-E3T1-GRAG-KAJW-GHSU-1A3A-8RSS-GQBU-GOSUL ID:
C3JU-CCSU-KQJO-GI1S-EATA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 79
Chapter 2
100. According to the rules and conventions of the Financial Accounting Standards Board (FASB), only production costs
should be used in calculating product costs for _____.
a. tactical profitability analysis
b. pricing decisions
c. product mix decisions
d. external financial reporting
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/21/2017 12:58 PM
QUESTION ID:
JFND-GO33-GINW-NOJT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GR3G-C3TZ-GB1U-KC5N-GESS-GQBA-8RSU-1QBU-GOSUBAL ID: OCTA-CCSU-NCDR-CE5D-EQJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 80
Chapter 2
101. If total warehousing cost for the year amounts to $950,000, and 35 percent of the warehousing activity is associated
with finished goods and 65 percent with direct materials, how much of the cost would be charged as a product cost?
a. $285,000
b. $332,500
c. $617,500
d. $950,000
ANSWER:
c
RATIONALE:
SUPPORTING CALCULATIONS: Total product cost = Total cost × Percent of direct materials =
$950,000 × 0.65 = $617,500
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTI COCM.HANS.18.2-3 – LO: 02.03
VES:
NATIONAL STANDA United States – BUSPROG – Reflective Thinking
RDS:
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED: 1/21/2017 12:59 PM
QUESTION ID:
JFND-GO33-GINW-NOJO
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMF-GTTU-YQMD-GRAU-NAMD-GASU-ECTS-8YSU-CQDGBAL ID: GOSU-YCMF-CCSU-OQMN-8R4S-CAJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
102. Which of the following costs would be included as part of direct materials in the production of an automobile?
a. glue for a sticker applied to the automobile
b. steel
c. gasoline used to fuel machines in production
d. none of these
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOJZ
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-G3TU-OQJS-CE5U-NPBA-8RSS-GCTO-8RSS-RATS-GOSUL ID:
QCTS-GHSU-Q3BT-CAHU-NC3Z-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 82
Chapter 2
103. All of Eva Enterprise’s operations are housed in one building with the costs of occupying the building accumulated in
a separate account. The total costs incurred in July amounted to $48,000. The company allocates these costs on the basis
of square feet of floor space occupied. Administrative offices, sales offices, and factory operations occupy 9,000, 6,000,
and 30,000 square feet, respectively. How much will be classified as a product cost for July?
a. $9,600
b. $6,400
c. $16,000
d. $32,000
ANSWER:
d
RATIONALE:
SUPPORTING CALCULATIONS: [30,000/(9,000 + 6,000 + 30,000)] × $48,000 = $32,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOJS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GHHD-Y3MB-GEHD-NPJS-GCSU-YQMR-8RSU-KPJA-GOSUBAL ID: R3JA-8RSS-CCJW-CCHS-EPBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
104. Which of the following costs would be considered a direct material?
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
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOJI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GYAG-C3UB-CR4U-CQMB-8YSU-Y3DD-CRSS-CCTU-GOSSBAL ID: K3DN-GASS-NQMB-G71G-GPJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
105. The difference between a supply and an indirect material is that
a. supplies are not necessary for production.
b. indirect materials are not physically part of the product.
c. supplies are not necessary for production and are not physically part of the product.
d. supplies are necessary for production and are not physically part of the product.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOJW
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-CTOU-GPJI-CCHU-YA3I-CASS-RA3A-CESS-NPTU-GOSSL ID:
KQB3-CCSS-CCUD-GC4S-CCT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 85
Chapter 2
106. Which of the following costs would be included as part of direct labor?
a. a materials handler
b. a cutter in the production of shelving
c. an assembly-line supervisor
d. a janitor
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO1N
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GBOS-GPMN-GC4G-KATI-8YSU-O3DD-CESU-GQMD-GOSUBAL ID: Q3DN-CWSU-EQMG-8R5U-NQBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
107. Which of the following costs would be included as part of factory overhead?
a. depreciation of plant equipment
b. direct labor
c. depreciation on the corporation’s office building
d. paper used in the production of books
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO1B
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-GW5G-R3JZ-CRHS-KPJS-8RSU-EA3U-CESU-QA5F-GOSUBAL ID: QPBW-GASU-RCJI-GHAU-GCJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
108. Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?
a. factory supplies used
b. depreciation of factory buildings
c. canvas used in sail
d. indirect materials
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOT3
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-G7TD-Y3TZ-CJ1S-NC3O-CWSU-13UR-CRSU-NAT3-GOSSL ID:
E3BA-GRSS-E3JW-8YHD-Y3T1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 88
Chapter 2
109. Wages paid to a janitor in the factory would be classified as
a. direct labor.
b. direct janitor salaries.
c. supervisor salaries.
d. factory overhead.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTA
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-CR4D-K3UN-8Y3D-1AT1-CESU-NPUF-CESU-RQBS-GOSUL ID:
OATI-CESU-CQJO-8Y3U-KCTT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
110. All of the following costs are included in factory overhead EXCEPT
a. factory supplies.
b. indirect labor.
c. plant foreman’s salary.
d. direct labor.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO1G
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-GH4U-CA3W-GFUD-RPDB-CRSU-N3MF-CESU-O3UN-GOSSBAL ID: KPB1-GASS-G3T1-G7TG-RPTI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
111. Selling and administrative costs are classified as
a. product costs.
b. conversion costs.
c. period costs.
d. factory overhead.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO1F
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-G7TD-CCJU-GTTS-KAMB-CESU-1A3U-8RSS-GQBS-GOSUBAL ID: EATZ-COSS-G3UD-CF1U-CPMN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 91
Chapter 2
112. Which of the following costs is NOT a period cost?
a. receptionist’s salary
b. steel used in steel railings
c. depreciation on sales staffs’ cars
d. sales commission
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO1R
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-GOHU-Y3JW-8Y4S-CCB1-CASS-GPTA-CRSU-E3UN-GOSSL ID:
CQBT-8RSU-NP5G-CTTD-Q3BT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 92
Chapter 2
113. Which of the following costs is a period cost?
a. depreciation of factory equipment
b. transportation-in for material shipments
c. amortization of a patent for the company’s product
d. depreciation of office computers
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO1D
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-8FOU-KAUF-8B1G-C3MF-CCSS-EQJU-CESU-1CDR-GOSUL ID:
QC5B-GRSS-CPTZ-GY5D-G3MG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 93
Chapter 2
114. An example of a period cost is
a. president’s salary.
b. insurance on factory equipment.
c. property taxes on factory building.
d. wages of factory custodians.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTU
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-GW5U-K3JW-GT1U-QQJI-GYSS-NPB3-8YSU-OCBT-GOSSBAL ID: GPJU-GWSU-13BI-CAAD-YPBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
115. An example of a nonproduction cost is
a. wages paid to assembly-line employees.
b. manufacturing supplies.
c. insurance on manufacturing facilities.
d. the treasurer’s salary.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOT1
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GAHD-EQB1-GWAD-GPJS-GRSS-KCTT-8YSS-R3DF-GOSSBAL ID: E3TI-GHSU-1PBA-CW4D-QCDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 95
Chapter 2
116. Which of the following costs are expensed in the period in which they are incurred?
a. Direct materials costs
b. Product costs
c. Factory overhead costs
d. Nonproduction costs
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-8BOU-KC3T-GTOS-RQMD-8YSU-C3MN-CRSS-GP3I-GOSUBAL ID: CQMD-COSS-CCMD-CI1U-K3BI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 96
Chapter 2
117. Order-getting costs would NOT include
a. marketing costs.
b. customer service costs.
c. advertising.
d. salaries of sales personnel.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTO
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-COAU-QQBW-CPOS-RQMN-8RSU-YP5R-8YSU-YPTS-GOSSBAL ID: EC5F-CRSU-GPBU-G7UD-Y3UR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 97
Chapter 2
118. Period costs do NOT include
a. order-getting costs.
b. order-filling costs.
c. order-making costs.
d. all of the above are period costs.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTZ
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-C3TU-CPTI-CC5U-KAUR-GYSS-RQJT-8YSS-NPJA-GOSUL ID:
RATO-CESS-RA3A-GI1G-C3B1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 98
Chapter 2
119. Prime product costs include
a. only factory overhead.
b. only direct labor.
c. direct labor and factory overhead.
d. direct materials and direct labor.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTS
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-GP1G-NA3I-8F1G-CPJA-CCSS-ECUN-CRSU-YPDF-GOSSL ID:
N3B1-8YSS-EQBW-GTUG-KP3W-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 99
Chapter 2
120. The sum of direct labor and factory overhead is referred to as
a. period costs.
b. conversion costs.
c. prime costs.
d. direct product costs.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-GCAD-GPMD-GHAS-ECUR-CWSS-ECT1-CESU-KA5F-GOSSBAL ID: RQBO-GHSU-EPTT-GOAD-CA3U-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 100
Chapter 2
121. Conversion costs do NOT include
a. direct materials.
b. direct labor.
c. factory overhead.
d. any of these costs.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NOTW
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GYHD-RA3A-CA3U-QCJ1-GHSS-CC31-8YSU-QCT3-GOSUL ID:
KA5G-COSS-CCBT-CPOU-G3BT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 101
Chapter 2
122. Which of the following would NOT be included in the conversion cost of an automobile?
a. screws used in assembly
b. assembly worker wages
c. depreciation on machinery
d. steel
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQNN
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GP1D-1PBA-CI1G-C3TA-COSU-GA3Z-8RSU-Y3DF-GOSUBAL ID: CCDN-GWSS-NC5R-GA5U-EATW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 102
Chapter 2
123. Costs that are expensed in the period in which they are incurred are called:
a. Direct materials costs
b. Product costs
c. Noninventoriable costs
d. Inventoriable costs
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQNB
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-CITS-EPJU-8Y5G-GP3S-CESS-EPUB-CESS-E3MF-GOSUL ID:
CQBW-8RSU-E3DB-COAD-NPUN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 103
Chapter 2
124. Information from the records of the Abel Corporation for July 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Factory overhead *
$1,230,000
210,000
264,000
300,000
405,000
*variable overhead is $205,000, fixed overhead is $200,000
Direct materials
Work in process
Finished goods
Inventories
July 1, 2018
July 31, 2018
$36,000
$42,000
75,000
84,000
69,000
57,000
The conversion cost is
a. $960,000
b. $1,179,000
c. $705,000
d. $564,000
ANSWER:
c
RATIONALE:
$300,000 + $405,000 = $705,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 11:45 AM
QUESTION ID:
JFND-GO33-GINW-NQB3
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GR5U-YC5N-8YAD-QA3W-GWSS-EP3Z-CESS-RP5R-GOSSBAL ID: EPTS-GCSS-K3DR-GI1D-YCDG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 104
Chapter 2
125. Information from the records of the Abel Corporation for July 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Factory overhead *
$1,230,000
210,000
264,000
300,000
405,000
*variable overhead is $205,000, fixed overhead is $200,000
Direct materials
Work in process
Finished goods
Inventories
July 1, 2018
July 31, 2018
$36,000
$42,000
75,000
84,000
69,000
57,000
The prime costs are
a. $210,000
b. $264,000
c. $300,000
d. $564,000
ANSWER:
d
RATIONALE:
$264,000 + $300,000 = $564,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 11:47 AM
QUESTION ID:
JFND-GO33-GINW-NQBA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-CAHS-E3J3-CC3D-R3TU-CWSS-CP5B-CRSS-KPDG-GOSSBAL ID: KCJT-GHSU-RPTU-CW5G-CQJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 105
Chapter 2
126. Information from the records of the Abel Corporation for July 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Factory overhead *
$1,230,000
210,000
264,000
300,000
405,000
*variable overhead is $205,000, fixed overhead is $200,000
Direct materials
Work in process
Finished goods
Inventories
July 1, 2018
July 31, 2018
$36,000
$42,000
75,000
84,000
69,000
57,000
The variable product costs are
a. $969,000
b. $769,000
c. $764,000
d. $1,179,000
ANSWER:
b
RATIONALE:
$264,000 + $300,000 + $205,000 = $769,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-28 – Variable and Fixed Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 11:49 AM
QUESTION ID:
JFND-GO33-GINW-NQNG
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-8F1D-CPBW-GTTU-QQB1-GCSS-GQDN-8YSU-CC3O-GOSUBAL ID: RA5N-GRSU-OC5B-CA3S-KCDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 106
Chapter 2
127. Information from the records of the Abel Corporation for July 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Factory overhead *
$1,230,000
210,000
264,000
300,000
405,000
*variable overhead is $205,000, fixed overhead is $200,000
Direct materials
Work in process
Finished goods
Inventories
July 1, 2018
July 31, 2018
$36,000
$42,000
75,000
84,000
69,000
57,000
The total product cost is
a. $1,179,000
b. $969,000
c. $615,000
d. $764,000
ANSWER:
b
RATIONALE:
$264,000 + $300,000 + $405,000 = $969,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 11:52 AM
QUESTION ID:
JFND-GO33-GINW-NQNF
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-CO5D-NQBW-GE5U-RA31-GYSS-NCT1-8RSU-GQDF-GOSUL ID:
EP5B-CASS-GAUR-CE5D-1QJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 107
Chapter 2
128. Information from the records of the Conundrum Company for September 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Variable factory overhead
Factory overhead
Direct materials
$307,500
52,500
66,000
75,000
50,000
51,250
Inventories
Sept. 1, 2018
Sept 30, 2018
$ 8,000
$10,500
Work in process
18,750
21,000
Finished goods
17,250
14,250
Conundrum Corporation produced 20,000 units.
The prime costs per unit for September were
a. $7.05
b. $8.8125
c. $14.7375
d. $20.00
ANSWER:
a
RATIONALE:
$66,000 + $75,000 = $141,000/20,000 units = $7.05 per unit
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:06 AM
QUESTION ID:
JFND-GO33-GINW-NQNR
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-GOHD-GCTO-COHG-GPJ1-CESU-YATA-CESU-KP3Z-GOSUBAL ID: YAMB-CCSU-QA3O-GWAS-CPUF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 108
Chapter 2
129. Information from the records of the Conundrum Company for September 2018 was as follows:
Sales
$307,500
Selling and administrative expenses
52,500
Direct materials used
66,000
Direct labor
75,000
Variable factory overhead
50,000
Factory overhead
51,250
Inventories
Sept. 1, 2018
Sept 30, 2018
Direct materials
$ 8,000
$10,500
Work in process
18,750
21,000
Finished goods
17,250
14,250
Conundrum Corporation produced 20,000 units.
What are the conversion costs per unit?
a. $7.05
b. $8.8125
c. $12.1125
d. $14.7375
ANSWER:
b
RATIONALE:
$75,000 + $50,000 + $51,250 = $176,250/20,000 units = $8.8125
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:07 AM
QUESTION ID:
JFND-GO33-GINW-NQND
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-CJOS-NC5B-GTTG-ECTS-GCSS-K3BO-CESU-1P5B-GOSUL ID:
KAJ3-CCSU-1P3S-CRAU-KPDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 109
Chapter 2
130. Information from the records of the Conundrum Company for September 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Variable factory overhead
Factory overhead
Direct materials
$307,500
52,500
66,000
75,000
50,000
51,250
Inventories
Sept. 1, 2018
Sept 30, 2018
$ 8,000
$10,500
Work in process
18,750
21,000
Finished goods
17,250
14,250
Conundrum Corporation produced 20,000 units.
If production increased to 32,000 units next year, what is the effect on variable product costs per unit and total product
costs per unit respectively?
a. remain the same; remain the same
b. remain the same; decrease
c. increase; remain the same
d. decrease; increase
ANSWER:
b
RATIONALE:
variable product cost per unit remain the same; total product cost per unit will decrease
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:08 AM
QUESTION ID:
JFND-GO33-GINW-NQBU
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-CE5U-EAUR-CFOU-RP3O-GHSU-N3B1-8YSU-YCDN-GOSUBAL ID: 1AT1-CRSU-YC5B-GTTG-GCJU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
131. Information from the records of the Conundrum Company for September 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Variable factory overhead
Factory overhead
Direct materials
$307,500
52,500
66,000
75,000
50,000
51,250
Inventories
Sept. 1, 2018
Sept 30, 2018
$ 8,000
$10,500
Work in process
18,750
21,000
Finished goods
17,250
14,250
Conundrum Corporation produced 20,000 units.
What are the total variable costs per unit?
a. $7.05
b. $9.55
c. $2.175
d. $6.25
ANSWER:
b
RATIONALE:
$66,000 + 75,000 + 50,000 = $191,000/20,000 units = $9.55 per unit
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-28 – Variable and Fixed Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:09 AM
QUESTION ID:
JFND-GO33-GINW-NQB1
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GITG-NA5G-GBUD-QA33-GOSU-E3DG-CESU-RAMR-GOSSBAL ID: NCJ1-COSS-NAJU-GIUG-RQB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 111
Chapter 2
132. Information from the records of the Conundrum Company for September 2018 was as follows:
Sales
Selling and administrative expenses
Direct materials used
Direct labor
Variable factory overhead
Factory overhead
Direct materials
$307,500
52,500
66,000
75,000
50,000
51,250
Inventories
Sept. 1, 2018
Sept 30, 2018
$ 8,000
$10,500
Work in process
18,750
21,000
Finished goods
17,250
14,250
Conundrum Corporation produced 20,000 units.
What is the total product cost per unit?
a. $14.7375
b. $12.1125
c. $12.175
d. $12.2375
ANSWER:
b
RATIONALE:
$66,000 + $75,000 + $50,000 + $51,250 = $242,250/20,000 = $12.1125
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:12 AM
QUESTION ID:
JFND-GO33-GINW-NQBT
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-CWAU-OPJI-GH5G-R3JS-8YSS-GPDN-CESS-NCJT-GOSUL ID:
CAUF-GCSU-KCBW-CR4U-NA5N-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 112
Chapter 2
133. Product costs are converted from cost to expense when
a. units are completed.
b. materials are purchased.
c. units are sold.
d. materials are requisitioned.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQBO
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-CA4G-E3TI-CW3G-RAT3-CCSU-OA5R-8RSS-CQMR-GOSUL ID:
RCJI-CASS-R3BA-GC5D-OCUG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 113
Chapter 2
134. A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into
production, it would be classified as
a. finished goods inventory.
b. factory supplies.
c. work-in-process inventory.
d. direct materials inventory.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQBZ
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-GBTD-O3JS-GJTU-N3BS-8RSU-OCMG-CRSS-KCJ3-GOSSL ID:
NPMD-8RSU-NPUF-CW3U-KQB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 114
Chapter 2
135. The income statement prepared for external reporting is
a. based on a functional classification.
b. referred to as absorption-costing income.
c. called full-costing income.
d. all of the above.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQBS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-CC4U-RCT1-GR5D-EQMG-CCSU-RATO-8YSS-NP3A-GOSUBAL ID: EPUD-CRSU-N3UN-GJ1G-NCBS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 115
Chapter 2
136. Which of the following costs would NOT be included in calculating inventory values under the absorption-costing
basis?
a. direct materials
b. fixed overhead
c. selling and administrative expenses
d. direct labor
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQBI
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GE3G-RAMB-G71G-RQJI-GASS-G3UR-8YSU-RQJU-GOSUL ID:
13BI-GESU-YQJI-GB1U-KAUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 116
Chapter 2
137. When calculating the absorption-costing income for external reporting, all
a. manufacturing costs ultimately become nonmanufacturing costs.
b. manufacturing costs are product costs and product costs are never expensed.
c. costs of selling manufactured products are classified as product costs.
d. selling and administrative costs are classified as nonmanufacturing costs.
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQBW
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-GO4D-1AMB-G71D-YPTO-GCSU-NP3O-8RSU-O3MG-GOSUBAL ID: EPDB-8YSU-Y3BU-GO5U-YCTI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 117
Chapter 2
138. Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?
a. materials inventory
b. bonds payable
c. prepaid insurance
d. retained earnings
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQKN
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-GH3U-OATI-CC4G-EQJ1-CRSU-1PMB-8RSU-KCMR-GOSUBAL ID: EAUN-GASU-CCJA-GC4U-NCT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 118
Chapter 2
139. Which type of inventory is normally sold to other organizations?
a. direct materials
b. factory supplies
c. work in process
d. finished goods
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQKB
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-GWHD-NA5G-8B1S-G3JI-CESS-NCJA-CRSS-GATI-GOSUL ID:
OC3A-GASS-NP3I-GW3S-G3DD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
140. The records of Bentler Shoppers, Inc. for December 2018 shows the following information:
Sales
Selling and administrative expenses
Direct materials purchases
Direct labor
Factory overhead
Direct materials, December 1
Work-in-process, December 1
Finished goods, December 1
Direct materials, December 31
Work-in-process, December 31
Finished goods, December 31
$2,050,000
250,000
205,000
298,000
350,000
50,000
85,000
64,000
41,000
72,000
55,000
The net income for the month of December is:
a. $875,000.
b. $916,000.
c. $884,000.
d. $770,000.
ANSWER: b
RATIONA SUPPORTING CALCULATIONS:
LE:
Cost of goods manufactured = (Beginning direct materials + Direct materials purchases − Ending direct
materials) + (Direct labor + Factory overhead + Beginning work in process − Ending work in process) =
($50,000 +$205,000 − $41,000) + ($298,000 + $350,000 + $85,000 − $72,000) = $875,000
Cost of goods sold = Cost of goods manufactured + Beginning finished goods − Ending finished goods =
$875,000 + $64,000 − $55,000 = $884,000
Net income = Sales − Cost of goods sold − Selling and administrative expense = $2,050,000 − $884,000 −
$250,000 = $916,000
POINTS: 1
DIFFICU Challenging
LTY:
QUESTIO Multiple Choice
N TYPE:
HAS VARI False
ABLES:
LEARNIN COCM.HANS.18.2-4 – LO: 02.04
G OBJEC
TIVES:
NATIONA United States – BUSPROG – Reflective Thinking
L STAND
ARDS:
STATE ST United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
ANDARD United States – v1 – AICPA-10 – FN-Measurement
S:
United States – v1 – IMA-07 – Cost Management
KEYWOR Bloom’s – Applying
DS:
NOTES: Time Estimate – 10 min.
DATE CR 10/7/2016 9:27 AM
EATED:
Copyright
Learning.
Powered
Page 120
DATE MCengage
1/27/2017
3:31
AM by Cognero.
ODIFIED
:
QUESTIO JFND-GO33-GINW-NQJ3
Chapter 2
141. The merchandise inventory in a merchandising business corresponds most closely to which of the following items in
a manufacturing firm?
a. materials inventory
b. cost of goods available for sale
c. cost of goods manufactured
d. finished goods inventory
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQJA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMF-GA3U-RAUB-COHU-KPTZ-CCSU-1AUR-8YSU-G3MF-GOSUBAL ID: GP3W-GRSU-OC5G-CPOU-CP3U-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
142. Beginning work-in-process inventory is $188,000, ending work-in-process inventory is $220,000, cost of goods
manufactured is $850,000, and direct materials used are $162,000. What are the conversion costs?
a. $688,000
b. $980,000
c. $656,000
d. $720,000
ANSWER: d
RATIONALE SUPPORTING CALCULATIONS: Conversion costs = Cost of goods manufactured + Ending work-in:
process − Beginning work-in-process − Direct materials used = $850,000 + $220,000 − $188,000 −
$162,000 = $720,000
POINTS:
1
DIFFICULT Challenging
Y:
QUESTION Multiple Choice
TYPE:
HAS VARIAB False
LES:
LEARNING COCM.HANS.18.2-4 – LO: 02.04
OBJECTIVE
S:
NATIONAL S United States – BUSPROG – Reflective Thinking
TANDARDS:
STATE STAN United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
DARDS:
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREA 10/7/2016 9:27 AM
TED:
DATE MODI 1/21/2017 1:03 PM
FIED:
QUESTION I JFND-GO33-GINW-NQKG
D:
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-CIUD-R3TS-CFOS-NC3A-GRSS-CC3O-8YSU-O3BS-GOSUL ID:
1PUR-CCSU-1P3O-GC4S-N3BS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
143. The following information pertains to Steel Wheels, Inc:
Cost of goods manufactured
$350,000
Beginning work-in-process inventory
110,000
Ending work-in-process inventory
80,000
Manufacturing overhead
50,000
What are the prime costs for the year?
a. $360,000
b. $480,000
c. $270,000
d. $300,000
ANSWER:
c
RATIONALE:
SUPPORTING CALCULATIONS: $350,000 + $80,000 − $110,000 − $50,000 = $270,000
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 1:02 AM
QUESTION ID:
JFND-GO33-GINW-NQKF
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-GA5S-ECBA-GC3D-NQBW-GYSU-Y3DR-8YSU-NATS-GOSSBAL ID: EQB1-GYSU-CAJT-C3TD-RCTA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
144. Inventory balances for Balmer Company in April 2018 are as follows:
Raw materials
Work in process
Finished goods
April 1, 2018
$ 40,000
67,500
150,000
April 30, 2018
$ 35,000
59,800
120,000
During April, purchases of direct materials were $58,000. Direct labor and factory overhead costs were $82,000 and
$110,000, respectively.
Prime costs for April were:
a. $145,000.
b. $140,000.
c. $88,000.
d. $152,700.
ANSWER:
a
RATIONALE:
SUPPORTING CALCULATIONS: Prime cost = Direct materials cost + Direct labor cost = ($40,000
+ $58,000 − $35,000) + $82,000 = $145,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJE COCM.HANS.18.2-4 – LO: 02.04
CTIVES:
NATIONAL STANDUnited States – BUSPROG – Reflective Thinking
ARDS:
STATE STANDAR United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
DS:
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:27 AM
DATE MODIFIED: 1/21/2017 1:06 PM
QUESTION ID:
JFND-GO33-GINW-NQKR
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-GE3S-R3TI-8YAD-C3BW-GOSU-GP5G-CESU-RCJO-GOSUL ID:
GCJS-CRSU-QQJS-8BTD-1CUD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 124
Chapter 2
145. Inventory balances for Marshall, Inc., in June 2018 are as follows:
Raw materials
Work in process
Finished goods
June 1, 2018
$1,125
2,000
4,500
June 30, 2018
$ 875
1,550
3,750
During June, purchases of direct materials were $1,500. Direct labor and factory overhead costs were $2,500 and $3,500,
respectively.
Conversion costs for June were
a. $8,200.
b. $7,750.
c. $7,500.
d. $6,000.
ANSWER:
d
RATIONALE:
SUPPORTING CALCULATIONS: $2,500 + $3,500 = $6,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:19 AM
QUESTION ID:
JFND-GO33-GINW-NQKD
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-CW5D-QQBT-8RHU-NCMB-GRSU-1C3U-8RSU-GPBU-GOSUBAL ID: E3JZ-GASU-E3TZ-CW4S-NQBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 125
Chapter 2
146. Inventory balances for the Jameson Company in October 2018 are as follows:
Raw materials
Work in process
Finished goods
October 1, 2018
$ 27,000
48,000
108,000
October 31, 2018
$21,000
37,200
90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and
$84,000, respectively.
What is the cost of materials used in production?
a. $36,000
b. $42,000
c. $47,800
d. $54,000
ANSWER:
b
RATIONALE:
$27,000 + $36,000 − $21,000 = $42,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:23 AM
QUESTION ID:
JFND-GO33-GINW-NQJU
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GA5D-N3UN-CWAU-1ATZ-GASU-CPTS-CRSU-K3JI-GOSSL ID:
KA3T-GASS-EPJT-GTUG-EAJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 126
Chapter 2
147. Inventory balances for the Jameson Company in October 2018 are as follows:
Raw materials
Work in process
Finished goods
October 1, 2018
$ 27,000
48,000
108,000
October 31, 2018
$21,000
37,200
90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and
$84,000, respectively.
What are the total manufacturing costs added to production in the period?
a. $186,000
b. $180,000
c. $144,000
d. $174,200
ANSWER:
a
RATIONALE:
$42,000 + $60,000 + $84,000 = $186,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:26 AM
QUESTION ID:
JFND-GO33-GINW-NQJ1
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-CCHU-YA3O-8Y3G-GPUG-GCSU-QP33-8YSS-GPDF-GOSSBAL ID: GP5G-CRSS-CA5B-CCHG-KCUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 127
Chapter 2
148. The sum of the total additions to work in process during a period is
a. total manufacturing costs added.
b. factory overhead applied.
c. material used.
d. cost of goods manufactured.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQJT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-CE5G-KATT-GWAD-KAMF-COSU-GCDB-8YSU-KP5D-GOSUBAL ID: YPMD-GWSU-OPDD-8Y3U-CCMN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 128
Chapter 2
149. Inventory balances for the Jameson Company in October 2018 are as follows:
Raw materials
Work in process
Finished goods
October 1, 2018
$ 27,000
48,000
108,000
October 31, 2018
$21,000
37,200
90,000
During October, purchases of direct materials were $36,000. Direct labor and factory overhead costs were $60,000 and
$84,000, respectively.
What is the cost of goods manufactured?
a. $180,000
b. $186,000
c. $194,000
d. $196,800
ANSWER:
d
RATIONALE:
$42,000 + $60,000 + $84,000 + $48,000 − $37,200 = $196,800
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/22/2017 9:20 AM
QUESTION ID:
JFND-GO33-GINW-NQJO
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-CA3S-NPJ1-8Y4D-KAT1-8YSS-GC5G-CESS-ECBT-GOSUL ID:
YC3I-COSS-CQJA-8R3D-NPJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 129
Chapter 2
150. The ending work-in-process inventory is deducted on the
a. balance sheet.
b. income statement.
c. statement of cost of goods manufactured.
d. statement of cash flows.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQJS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-CE3D-N3DR-8YHG-CQMF-GYSU-EQBS-8RSU-YAJW-GOSUBAL ID: YATZ-COSU-E3MN-CC5D-EC3W-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 130
Chapter 2
151. The following information for the Sutton Glass Company has been provided:
Cost of goods manufactured
Work in process:
Beginning
Ending
Direct labor
Direct materials used
Factory overhead
$100,000
15,000
20,000
30,000
?
45,000
What is the amount of direct materials used?
a. $25,000
b. $30,000
c. $35,000
d. $100,000
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS: $100,000 + $20,000 − $15,000 − $30,000 − $45,000
= $30,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES COCM.HANS.18.2-4 – LO: 02.04
:
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 4:05 AM
QUESTION ID:
JFND-GO33-GINW-NQJZ
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-CR4S-GQJW-8F1U-KP3O-CRSU-OQBO-8RSU-RCDF-GOSUL ID:
NA33-GOSU-Q3DF-CEHD-RPBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 131
Chapter 2
152. Cost of goods sold equals cost of goods manufactured
a. when finished goods inventories remain constant.
b. when work-in-process inventories remain constant.
c. plus beginning work-in-process inventory minus ending work-in-process inventory.
d. when materials inventories remain constant.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NQJI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GEAU-Q3UD-GY3G-NATS-GRSS-RPDN-CESU-1P5G-GOSSBAL ID: E3DD-CRSU-QPBU-GYHD-CA3T-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 132
Chapter 2
153. Selected data concerning the past year’s operations of the Motor City Corporation are as follows:
Selling and administrative expenses
Direct materials used
Direct labor (50,000 hours)
Factory overhead application rate
Direct material
Work in process
Finished goods
$225,000
467,500
450,000
8 per DLH
Inventories
Beginning
$75,000
112,500
60,000
Ending
$67,500
135,000
37,500
The cost of direct materials purchased is
a. $467,500.
b. $460,000.
c. $437,500.
d. $445,000.
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS: $467,500 + $67,500 − $75,000 = $460,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 4:16 AM
QUESTION ID:
JFND-GO33-GINW-NTKN
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMF-CA4D-E3BT-CI1U-RAT1-GRSU-RQBU-CRSU-N3DF-GOSSBAL ID: C3UB-CASU-RAJW-CA3D-NQBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 133
Chapter 2
154. Inventory balances for Spiritlight Ventures for November 2018 are as follows:
Materials
Work in process
Finished goods
November 1, 2018
$ 9,000
16,000
36,000
November 30, 2018
$ 7,000
12,400
30,000
During November, 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 November was
a. $68,000.
b. $77,600.
c. $74,000.
d. $71,600.
ANSWER:
d
RATIONALE:
SUPPORTING CALCULATIONS: $9,000 + $18,000 − $7,000 + $20,000 + $28,000 + $16,000 −
$12,400 = $71,600
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIV COCM.HANS.18.2-4 – LO: 02.04
ES:
NATIONAL STANDAR United States – BUSPROG – Reflective Thinking
DS:
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/13/2017 3:31 AM
QUESTION ID:
JFND-GO33-GINW-NQJW
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-G31U-NCBW-CTOU-YAJ1-CESS-EPJA-CESS-CP5B-GOSUL ID:
13DD-GRSU-1AUB-GJ1S-RA5G-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 134
Chapter 2
155. The following is the data for Lauren Enterprises:
Selling and administrative expenses
Direct materials used
Direct labor (25,000 hours)
Factory overhead application rate
Direct materials
Work in process
Finished goods
$75,000
265,000
300,000
$16 per DLH
Inventories
Beginning
Ending
$50,000
$45,000
75,000
90,000
40,000
25,000
What is the cost of goods manufactured?
a. $1,115,000
b. $965,000
c. $955,000
d. $950,000
ANSWER:
d
RATIONALE:
SUPPORTING CALCULATIONS: $265,000 + $300,000 + $400,000($16 × 25,000) + $75,000 −
$90,000 = $950,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVCOCM.HANS.18.2-4 – LO: 02.04
ES:
NATIONAL STANDAR United States – BUSPROG – Reflective Thinking
DS:
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 12:15 PM
QUESTION ID:
JFND-GO33-GINW-NTKB
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GCAS-K3MF-CE4U-OC5G-8YSS-CATU-CRSU-KAJO-GOSUL ID:
KQB3-CESS-KQBZ-CA4U-RA33-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 135
Chapter 2
156. The following is the data for Lauren Enterprises:
Selling and administrative expenses
Direct materials used
Direct labor (25,000 hours)
Factory overhead application rate
Direct materials
Work in process
Finished goods
$75,000
265,000
300,000
$16 per DLH
Inventories
Beginning
Ending
$50,000
$45,000
75,000
90,000
40,000
25,000
What is the cost of goods sold?
a. $565,000
b. $950,000
c. $965,000
d. $980,000
ANSWER:
c
RATIONALE:
$265,000 + $300,000 + $400,000 + $75,000 − $90,000 + $40,000 − $25,000 = $965,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 12:15 PM
QUESTION ID:
JFND-GO33-GINW-NTJ3
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-CR4U-NATA-GY4D-EAMR-GASU-O3DF-CESS-EP3I-GOSUL ID:
GATO-CWSU-K3JS-CITU-EQJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 136
Chapter 2
157. The cost of units completed during a period is called
a. cost of goods sold.
b. cost of goods manufactured.
c. current manufacturing costs.
d. finished goods inventory.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTJA
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-8RHU-R3BU-CW5D-NC3I-8YSS-RCMR-CRSS-KCTA-GOSUL ID:
GPBA-CESS-EPB1-8FOS-GP31-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 137
Chapter 2
158. The records for the previous year for Sarasota Boat Builders, Inc., shows the following data:
Selling and administrative expenses
Direct materials used
Direct labor (100,000 hours)
Factory overhead application rate
$300,000
530,000
600,000
$5 per DLH
Inventories
Work in process
Finished goods
Beginning
$150,000
80,000
Ending
$160,000
50,000
The cost of goods sold is
a. $1,630,000.
b. $1,880,000.
c. $1,600,000.
d. $1,650,000.
ANSWER:
d
RATIONALE:
SUPPORTING CALCULATIONS: $530,000 + $600,000 + $500,000($5 × 100,000) + $150,000 −
$160,000 + $80,000 − $50,000 = $1,650,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJEC COCM.HANS.18.2-4 – LO: 02.04
TIVES:
NATIONAL STAND United States – BUSPROG – Reflective Thinking
ARDS:
STATE STANDARD United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
S:
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:27 AM
DATE MODIFIED: 1/3/2017 6:55 AM
QUESTION ID:
JFND-GO33-GINW-NTKG
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-CE5S-RATS-G31G-CQDF-CRSS-R3JZ-CESU-QA5B-GOSSBAL ID: NCJT-CCSU-RA5G-COHU-RPBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
159. The following information has been provided for Hopen Enterprises:
Cost of goods manufactured
Work in process
Beginning
Ending
Direct labor
Materials placed in production
Factory overhead
$7,500
1,200
1,400
4,000
1,500
?
What is the amount of factory overhead?
a. $2,000
b. $2,200
c. $1,400
d. $5,500
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS: $7,500 + $1,400 − $1,200 − $4,000 − $1,500 = $2,200
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 6:50 AM
QUESTION ID:
JFND-GO33-GINW-NTKF
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GT1S-KAJW-CC3U-RP3W-GESS-CA5F-8RSU-OCDR-GOSUL ID:
QP3O-CESS-NP3A-GA5S-K3JS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
160. The following information is from the records of Stretch Limousines, Inc.:
Net direct materials purchase cost
Total direct materials used
Beginning direct materials inventory
$225,000
275,000
125,000
The ending direct materials inventory is
a. $175,000.
b. $75,000.
c. $50,000.
d. $100,000.
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS: $125,000 + $225,000 − $275,000 = $75,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 6:52 AM
QUESTION ID:
JFND-GO33-GINW-NTKR
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-GA3S-RAMD-CCHU-C3DR-GRSU-1PJZ-CESS-EPBO-GOSSBAL ID: N3BI-GWSU-EAMG-CFOU-KPBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
161. The Sumter Company recently had a fire in its accounting office, destroying most of its records. Only the following
information could be salvaged for 2018:
Direct labor
Factory overhead
Cost of goods sold
Work in process, January 1
Finished goods, January 1
Work in process, December 31
Finished goods, December 31
$400,000
200,000
800,000
80,000
160,000
100,000
120,000
The cost of direct materials used in production during 2018 is
a. $140,000.
b. $180,000.
c. $200,000.
d. $260,000.
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS: $800,000 + $120,000 − $160,000 + $100,000 − $80,000 −
$400,000 − $200,000 = $180,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECT COCM.HANS.18.2-4 – LO: 02.04
IVES:
NATIONAL STANDA United States – BUSPROG – Reflective Thinking
RDS:
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:27 AM
DATE MODIFIED: 1/3/2017 7:52 AM
QUESTION ID:
JFND-GO33-GINW-NTKD
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-GO5D-KP5N-GFTG-NA3A-GCSU-1ATS-CESS-GC3S-GOSUL ID:
KCUN-GHSU-1P31-8R3D-KCDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
162. Information from the records of Chrome Ponies Enterprises for June 2018 is as follows:
Sales
Direct labor
Selling and administrative expenses
Direct materials purchases
Factory overhead
Direct materials
Work in process
Finished goods
$41,000
10,000
7,000
6,000
13,500
Inventories
June 1, 2018
June 30, 2018
$1,200
$1,400
2,500
2,800
2,300
1,900
What was the cost of materials used in production?
a. $6,200
b. $6,000
c. $5,800
d. $19,500
ANSWER:
c
RATIONALE:
$6,000 + $1,200 − $1,400 = $5,800
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 12:17 PM
QUESTION ID:
JFND-GO33-GINW-NTJU
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMF-8RHU-GPTS-8YHU-RQJU-GOSU-C3B3-8RSU-EPDR-GOSUL ID:
YP3T-CESS-C3UB-CTTD-YCB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
163. Information from the records of Chrome Ponies Enterprises for June 2018 is as follows:
Sales
Direct labor
Selling and administrative expenses
Direct materials purchases
Factory overhead
Direct materials
Work in process
Finished goods
$41,000
10,000
7,000
6,000
13,500
Inventories
June 1, 2018
June 30, 2018
$1,200
$1,400
2,500
2,800
2,300
1,900
Chrome Ponies Enterprises’ cost of goods manufactured in June is
a. $29,300.
b. $29,700.
c. $29,200.
d. $29,000.
ANSWER:
d
RATIONALE:
SUPPORTING CALCULATIONS: ($1,200 + $6,000 − $1,400) + $10,000 + $13,500 + $2,500 −
$2,800 = $29,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIV COCM.HANS.18.2-4 – LO: 02.04
ES:
NATIONAL STANDAR United States – BUSPROG – Reflective Thinking
DS:
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 12:19 PM
QUESTION ID:
JFND-GO33-GINW-NTJ1
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GE3S-GQMG-GCHG-ECJO-CWSU-YA3T-CRSU-GPBI-GOSSBAL ID: NCDD-GASU-QQMD-C3UD-1CTA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
164. Information from the records of Chrome Ponies Enterprises for June 2018 is as follows:
Sales
Direct labor
Selling and administrative expenses
Direct materials purchases
Factory overhead
Direct materials
Work in process
Finished goods
$41,000
10,000
7,000
6,000
13,500
Inventories
June 1, 2018
June 30, 2018
$1,200
$1,400
2,500
2,800
2,300
1,900
What are the total manufacturing costs added?
a. $18,500
b. $19,300
c. $29,000
d. $29,300
ANSWER:
d
RATIONALE:
$6,000 + $1,200 − $1,400 + $10,000 + $13,500 = $29,300
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 12:21 PM
QUESTION ID:
JFND-GO33-GINW-NTJT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-COHU-QP31-CE5D-CPTW-GOSS-KCDB-8YSS-RA3O-GOSUBAL ID: QCUN-GESU-KC3S-GR3U-EP5D-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
165. Information from the records of Chrome Ponies Enterprises for June 2018 is as follows:
Sales
Direct labor
Selling and administrative expenses
Direct materials purchases
Factory overhead
Direct materials
Work in process
Finished goods
$41,000
10,000
7,000
6,000
13,500
Inventories
June 1, 2018
June 30, 2018
$1,200
$1,400
2,500
2,800
2,300
1,900
What is the gross margin (profit)?
a. $11,500
b. $11,600
c. $ 4,500
d. $ 4,600
ANSWER:
b
RATIONALE:
$41,000 − ($1,200 + $6,000 − $1,400) + $10,000 + $13,500 + $2,500 − $2,800 + $2,300 −
$1,900 = $11,600
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVE COCM.HANS.18.2-4 – LO: 02.04
S:
NATIONAL STANDARD United States – BUSPROG – Reflective Thinking
S:
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 12:23 PM
QUESTION ID:
JFND-GO33-GINW-NTJO
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-GI1D-NC3T-GWAS-GCJI-GCSS-EC3Z-8RSS-KATA-GOSUL ID:
13BZ-GHSU-13B3-GY4S-GPBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
166. Information from the records of Chrome Ponies Enterprises for June 2018 is as follows:
Sales
Direct labor
Selling and administrative expenses
Direct materials purchases
Factory overhead
Direct materials
Work in process
Finished goods
$41,000
10,000
7,000
6,000
13,500
Inventories
June 1, 2018
June 30, 2018
$1,200
$1,400
2,500
2,800
2,300
1,900
What is the cost of goods sold?
a. $36,500
b. $28,600
c. $29,400
d. $29,500
ANSWER:
c
RATIONALE:
($1,200 + $6,000 − $1,400) + $10,000 + $13,500 + $2,500 − $2,800 + $2,300 − $1,900 =
$29,400
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/4/2017 12:23 PM
QUESTION ID:
JFND-GO33-GINW-NTJZ
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ3-GH3S-RQMN-8BOU-13TS-GESU-EA3I-8RSS-GCTO-GOSUL ID:
KP5N-GCSU-EP5R-GHAD-RC5N-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
167. Morton Manufacturing shows cost of goods sold for the month of March was $90,000. The finished goods inventory
was $15,000 on March 1 and $17,500 on March 31. Beginning and ending work-in-process inventories were $20,000 and
$25,000, respectively. What was the cost of goods manufactured during March?
a. $92,500
b. $90,000
c. $87,500
d. $97,500
ANSWER:
a
RATIONALE:
SUPPORTING CALCULATIONS: $90,000 + $17,500 − $15,000 = $92,500
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTJS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-GOHU-GPTS-GO3U-GPJ3-GRSU-E3MF-8RSU-NCJW-GOSSBAL ID: GCDD-CRSS-C3MN-GHAS-GATU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
168. Assume the following information for the Blue Knights Corporation for the year ended December 31, 2018:
Sales
Cost of goods manufactured for the year
Beginning finished goods inventory
Ending finished goods inventory
Selling and administrative expenses
$2,250
1,350
450
495
300
What is the cost of goods sold for the year ended December 31, 2018?
a. $1,305
b. $1,605
c. $1,350
d. $1,650
ANSWER:
a
RATIONALE:
SUPPORTING CALCULATIONS: $1,350 + 450 − $495 = $1,305
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 9:34 AM
QUESTION ID:
JFND-GO33-GINW-NTJI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-GRHG-ECBU-GJOU-CP3S-CRSU-GCTO-CRSU-RQDD-GOSUBAL ID: Y3UD-GESU-EPBT-GT1D-RAT1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
169. Rebel Yell, Inc., recorded the following data for April:
Beginning finished goods inventory
Beginning work-in-process inventory
Ending work-in-process inventory
Ending finished goods inventory
Factory overhead costs
Direct materials used
Direct labor
$60,000
40,000
80,000
50,000
200,000
160,000
100,000
What is the cost of goods manufactured for April?
a. $470,000
b. $420,000
c. $460,000
d. $430,000
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS: $160,000 + $100,000 + $200,000 + $40,000 − $80,000 =
$420,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVE COCM.HANS.18.2-4 – LO: 02.04
S:
NATIONAL STANDARDS United States – BUSPROG – Reflective Thinking
:
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 7:00 AM
QUESTION ID:
JFND-GO33-GINW-NTJW
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-GRAU-KC3W-C3TG-ECT3-GHSU-QCT3-8RSS-GQMN-GOSUBAL ID: NPBI-GHSU-RQMB-GCHD-GCJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
170. The records of the Williamson Company show the following information:
Direct materials used
Direct labor
Factory overhead
Beginning work-in-process inventory
Beginning finished goods inventory
Ending work-in-process inventory
Selling and administrative expenses
$90,000
130,000
150,000
15,000
20,000
42,000
37,500
What was the cost of goods manufactured during the year?
a. $370,000
b. $365,000
ANSWER:
a
RATIONALE:
SUPPORTING CALCULATIONS:
$90,000 + $130,000 + $150,000 + $15,000 − $42,000 = $343,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 7:01 AM
QUESTION ID:
JFND-GO33-GINW-NT1N
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-CTUD-GP5N-GFUD-NAJ3-CRSS-NATI-CRSU-G3UD-GOSUL ID:
N3JO-8YSU-13UR-CJ1S-CC3S-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
171. Which of the following is NOT an example of a difference between the income statement of a service organization
and the income statement of a manufacturing organization?
a. A service company will never have work in process.
b. The service company will not have a finished goods inventory.
c. Fulfillment costs may be added to cost of goods sold of a service company.
d. Research and development expenses are not usually a major component of a service organization.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NT1B
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-GRAU-1CBO-GJTD-OQBU-CRSS-KCDD-CRSS-KQJS-GOSUL ID:
KAJS-8YSS-NQJI-G3OU-GPJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 151
Chapter 2
172. Which of the following items would NOT appear on an income statement of a service organization?
a. selling expenses
b. cost of goods sold
c. administrative expenses
d. gross margin
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTT3
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMD-CA4G-KCTT-GWAU-NCJA-GESU-GATT-8RSU-Y3TU-GOSUBAL ID: Q3JS-COSU-CCJ3-G31U-KA3I-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 152
Chapter 2
173. Which of the following items is NEVER relevant to the cost flows of a service organization?
a. finished goods inventory
b. materials inventory
c. work-in-process inventory
d. all of the above are always relevant.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTTA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-8BTD-N3JZ-CJUD-NPBU-GWSU-NAMF-CRSS-EAJO-GOSUBAL ID: RP3T-GESU-GQMF-GT1S-K3JZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
174. Assume the following data for Rodriguez Services, an accounting firm, for November:
Beginning materials inventory
Beginning work-in-process inventory
Ending work-in-process inventory
Ending materials inventory
Actual overhead costs
Direct materials used
Direct labor
$20,000
40,000
50,000
10,000
100,000
60,000
200,000
What is the cost of services sold for November?
a. $370,000
b. $350,000
c. $360,000
d. $330,000
ANSWER:
b
RATIONALE:
SUPPORTING CALCULATIONS: $60,000 + $200,000 + $100,000 + $40,000 − $50,000
= $350,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES COCM.HANS.18.2-4 – LO: 02.04
:
NATIONAL STANDARDS United States – BUSPROG – Reflective Thinking
:
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 7:03 AM
QUESTION ID:
JFND-GO33-GINW-NT1G
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJS-GY3U-CP3A-CW5D-OCMD-CASS-EQDF-CRSU-NQBA-GOSUBAL ID: 1PTU-GOSU-CC3W-GHAD-1CTS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 154
Chapter 2
175. A small engine repair shop purchased materials costing $9,000 in July. The beginning inventory of material parts was
$4,500 and the ending inventory of material parts was $4,000. Payments for direct labor for July totaled $27,000,
secretarial costs were $2,000, and overhead of $5,000 was incurred. In addition, $5,000 was spent on advertising and
$2,000 for the franchise name. Revenue for July was $50,000.
What is the cost of services sold for July?
a. $41,500
b. $43,500
c. $50,500
d. $40,500
ANSWER:
a
RATIONALE:
SUPPORTING CALCULATIONS:
$9,000 + $4,500 − $4,000 + $27,000 + $5,000 = $41,500
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 5:04 AM
QUESTION ID:
JFND-GO33-GINW-NT1F
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMF-GY5U-RC5N-CC5D-EPJO-GASU-RPBS-8RSU-N3DD-GOSSL ID:
RQBI-GOSS-RATU-GC5G-GC3I-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 155
Chapter 2
176. A small engine repair shop purchased materials costing $9,000 in July. The beginning inventory of material parts was
$4,500 and the ending inventory of material parts was $4,000. Payments for direct labor for July totaled $27,000,
secretarial costs were $2,000, and overhead of $5,000 was incurred. In addition, $5,000 was spent on advertising and
$2,000 for the franchise name. Revenue for July was $50,000.
What is the gross margin for July?
a. $41,500
b. $43,500
c. $1,500
d. $8,500
ANSWER:
d
RATIONALE:
SUPPORTING CALCULATIONS: COSS = $9,000 + $4,500 − $4,000 + $27,000 + $5,000 =
$41,500 GM = $50,000 − 41,500 = $8,500
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJEC COCM.HANS.18.2-4 – LO: 02.04
TIVES:
NATIONAL STAND United States – BUSPROG – Reflective Thinking
ARDS:
STATE STANDARD United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
S:
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:27 AM
DATE MODIFIED: 1/3/2017 5:05 AM
QUESTION ID:
JFND-GO33-GINW-NT1R
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJZ-CI1D-GA5F-GCHU-G3DN-GESU-KAMF-CRSU-C3BT-GOSUL ID:
Q3JA-CCSS-NP5F-GR4S-GQJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 156
Chapter 2
177. One or more of the following is (are) a cost accounting system(s) that use(s) only unit-based activity drivers to assign
costs to cost objects.
a. Activity-based management
b. Activity-based costing system
c. Functional-based cost management system
d. Both a and b
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NT1D
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GBTU-KCTZ-C31S-CCBA-CASS-CPBT-CESS-RA3U-GOSSL ID:
EPMF-GHSU-O3JS-CAAD-EP3U-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 157
Chapter 2
178. Which of the following would be associated with a functional-based cost accounting information system?
a. setup costs assigned to products using the number of setups as the driver
b. materials handling costs assigned to products using the number of moves as the activity driver
c. customer service costs assigned to products using the number of complaints as the activity driver
d. purchasing costs assigned to products using number of direct labor hours as the activity driver
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTTU
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-CI1G-GATU-GCHU-RQJA-8RSU-ECDB-CRSU-Q3BS-GOSSBAL ID: K3JI-8YSU-N3BU-COAD-CQDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 158
Chapter 2
179. In a functional-based management system, one is NOT likely to find
a. unit- and non-unit-based cost drivers.
b. maximization of individual unit performance.
c. narrow and rigid product costing.
d. allocation intensive cost assignment.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTT1
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-GF1D-EQMN-GWHD-OATW-GWSS-KQBI-8RSS-ECT1BAL ID: GOSU-GAMF-CWSS-ECTT-GC3G-EA3A-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 159
Chapter 2
180. In a cost management system, the cost view does NOT include
a. resources.
b. activities.
c. driver analysis.
d. products and customers.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTTT
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GP1U-OAUF-CPTD-C3DF-CWSU-O3UG-CRSS-CATW-GOSUBAL ID: Y3UG-GCSS-ECUF-8Y4U-13J1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 160
Chapter 2
181. The system that focuses on the management of activities with the objective of improving the value received by the
customer and the profit received by providing this value is called.
a. Activity-based management
b. Contemporary cost control
c. Functional-based cost management system
d. JIT
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTTO
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-GHHU-N3T1-CW3U-K3B3-GHSU-CA5R-8YSU-OQDG-GOSUBAL ID: E3B3-CWSU-RCB1-GT1D-CPBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
182. Which of the following items would be associated with both a traditional cost accounting information system and an
activity based cost information system?
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.
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/2/2017 11:57 AM
QUESTION ID:
JFND-GO33-GINW-NTTZ
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJI-GOAD-13B3-GRAU-GPUF-CCSS-KAJ1-CRSU-NPT1-GOSUBAL ID: QC3A-GRSU-QQB3-GR3S-GAMN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 162
Chapter 2
183. In a cost management system, the process view does NOT include
a. resources.
b. activities.
c. driver analysis.
d. performance analysis.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTTS
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GH5D-C3TW-G7UD-EA3O-8RSU-YC3A-CRSS-EPTT-GOSUBAL ID: EAMF-CCSU-Y3UF-GIUD-GPMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
184. Which is NOT a benefit of an activity-based cost management system?
a. greater product costing accuracy
b. increased cost of implementing the system
c. improved decision making
d. enhanced strategic planning
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTTI
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMF-GY5U-Y3TW-CEHU-OA3O-CCSS-GC3O-CESU-RPMG-GOSUBAL ID: KQBI-CRSU-QP3O-GTUG-N3MR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Chapter 2
185. In an activity-based management system, one is NOT likely to find
a. tracing of costs to activities.
b. only unit-based drivers.
c. broad flexible product costing.
d. systemwide performance maximization.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NTTW
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-CA5D-C3TU-CE4S-EA5D-GWSS-CC5G-8YSU-OQJW-GOSUBAL ID: QCMB-GYSS-E3JZ-CWAG-NCBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 165
Chapter 2
186. Which of the following is a trait of a traditional cost management system?
a. unit-based drivers
b. tracing intensive
c. use of both financial and nonfinancial measures of performance
d. detailed activity information
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/2/2017 1:17 PM
QUESTION ID:
JFND-GO33-GINW-NO4N
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJU-GC5D-OCBT-CR5G-EPUN-CASS-GATW-CRSS-E3BT-GOSUBAL ID: QCTS-GCSU-GCBO-CRAD-KPTW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 166
Chapter 2
187. Which of the following is NOT a trait of a traditional cost management system?
a. unit-based drivers
b. narrow and rigid product costing
c. allocation-intensive
d. focus on managing activities
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/2/2017 1:21 PM
QUESTION ID:
JFND-GO33-GINW-NO4B
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJ1-G71U-13B3-8R3G-NPJA-CCSS-RPUG-CESU-RCUG-GOSSL ID:
GA3S-CCSS-G3BO-GJUD-CCTO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 167
Chapter 2
188. Which of the following is a trait of an activity-based cost management system?
a. allocation-intensive
b. narrow and rigid product costing
c. non-unit-based drivers
d. focus on managing costs
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO33
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GAAS-K3BZ-GFTD-1CDB-GASU-CATZ-CESU-OP5N-GOSUBAL ID: QCDB-GWSU-1ATI-GBTG-RPDN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 168
Chapter 2
189. The optimal level in the trade-off between measurement and error costs is when
a. measurement costs are greater than error costs.
b. measurement costs and error costs are minimized.
c. measurement costs are less than error costs.
d. the total of measurement costs and error costs are maximized.
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO3A
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-8R3U-RAJ3-CA4D-YATS-8YSS-GQBO-CRSS-CP5F-GOSSL ID:
G3JA-CCSS-EPMD-GIOU-GPUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 169
Chapter 2
190. Error costs can be defined as
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 these
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Remembering
NOTES:
Time Estimate – 5 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO4G
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GC5U-EC3T-G7UG-EPJI-GHSU-RPB3-CESU-QQB3-GOSUL ID:
CCMN-CESS-CPT1-GC3U-RC5R-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 170
Chapter 2
191. Describe a cost management information system, its objectives, and major subsystems.
ANSWER:
The cost management information system is an accounting information subsystem that is primarily
concerned with producing outputs for internal users using inputs and processes needed to satisfy
management objectives.
The objectives are as follows:
To provide information for costing out services, products, and other objects of
interest to management.
2. To provide information for planning and control.
3. To provide information for decision making.
1.
The major subsystems of a cost management information system are the cost accounting information system
and the operational control information system.
POINTS:
1
DIFFICULTYModerate
:
QUESTION T Subjective Short Answer
YPE:
HAS VARIAB False
LES:
LEARNING COCM.HANS.18.2-1 – LO: 02.01
OBJECTIVES
:
NATIONAL S United States – BUSPROG – Analytic
TANDARDS:
STATE STAN United States – v1 – ACBSP-APC-26 – Management Functions
DARDS:
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-08 – Information Management
KEYWORDS: Bloom’s – Understanding
NOTES:
Time Estimate – 5 min.
DATE CREA 10/7/2016 9:27 AM
TED:
DATE MODI 10/7/2016 9:27 AM
FIED:
QUESTION I JFND-GO33-GINW-NO4F
D:
QUESTIOGCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMMR-CFTU-1CJI-GC5S-RCBZ-CWSS-GCJW-CRSS-KA3I-GOSUL ID:
GCTO-GWSS-E3JU-CE3D-O3DN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 171
Chapter 2
192. Explain the differences between direct tracing, driver tracing, and allocation.
ANSWER:
Direct tracing is the process of identifying and assigning costs to a cost object that are specifically or
physically associated with the cost object.
Driver tracing is assigning costs using drivers, which are causal factors. The driver approach relies on
identification of factors that allegedly capture the causal relationship.
Allocation is the assignment of indirect costs to cost objects based on convenience or assumed linkages.
POINTS:
1
DIFFICULTY: Moderate
QUESTION TYP Subjective Short Answer
E:
HAS VARIABLE False
S:
LEARNING OBJ COCM.HANS.18.2-2 – LO: 02.02
ECTIVES:
NATIONAL STA United States – BUSPROG – Analytic
NDARDS:
STATE STANDA United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
RDS:
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 10 min.
DATE CREATE 10/7/2016 9:27 AM
D:
DATE MODIFIE 10/7/2016 9:27 AM
D:
QUESTION ID: JFND-GO33-GINW-NO4D
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMB-GH4G-RA33-CR5G-NPTW-GCSS-GPBS-8YSU-NAT1-GOSUBAL ID: NC3O-CESS-RAJT-CTUG-RCUG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 172
Chapter 2
193. Classify the following costs incurred by a step railing manufacturing company as direct materials, direct labor,
factory overhead, or period costs:
a. Wages paid to production workers
b. Utilities in the office
c. Depreciation on machinery in plant
d. Steel
e. Accountant’s salary
f. Rent on factory building
g. Rent on office equipment
h. Maintenance workers’ wages
i. Utilities in the plant
j. Maintenance on office equipment
ANSWER:
a. Direct labor
b.
c.
d.
e.
Period
Factory overhead
Direct materials
Period
f.
g.
h.
i.
j.
Factory overhead
Period
Factory overhead
Factory overhead
Period
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
10/7/2016 9:27 AM
QUESTION ID:
JFND-GO33-GINW-NO3U
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GTUG-NCBT-C3UD-N3JW-GYSU-GP3U-8RSU-G3DD-GOSUBAL ID: YCBT-GHSS-GQJ1-8RHU-NPTW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 173
Chapter 2
194. Big Foot Athletics designs and manufactures running shoes. A new model of shoes, Fast Track, has been developed
and is ready for production.
Required:
Which costs will the production manager collect from the value chain, and how would these costs be used in different
decisions?
a. traditional product costs
b. operating product costs
c. value-chain product costs
ANSWER:
Production costs would be included in all of the above definitions.
a. traditional product costs:
Direct materials, direct labor and manufacturing overhead
are the traditional product costs. They would be used for
external reporting, budgeting, and control of costs.
b. operating product costs:
In addition to the traditional product costs, marketing and
customer service costs would be considered in analyzing
profitability of the product. Strategic questions about the
operating design, i.e., materials and plant layout, would be
addressed. The focus is on the revenue and cost of Fast
Track.
c. value-chain product costs:
Production costs of Fast Track must be viewed in relation
to other products. Strategic pricing and product mix
decisions must be made. The profitability of all the product
lines is at issue.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-3 – LO: 02.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 15 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/3/2017 6:19 AM
QUESTION ID:
JFND-GO33-GINW-NO31
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJW-CRAD-GPJW-GEHS-NPTW-CCSU-RAJA-8YSS-CPJS-GOSSBAL ID: GP5N-GESU-CA3W-GE5U-QPTU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 174
Chapter 2
195. Information from the records of Masibo Company for the last month is as follows:
Purchases of direct materials
Indirect labor
Direct labor
Depreciation on factory machinery
Sales
Selling and administrative expenses
Rent on factory building
Direct materials
Work in process
Finished goods
Beginning
$30,000
9,000
22,000
$ 65,000
25,000
32,500
12,000
205,900
21,000
28,000
Inventories
Ending
$30,100
10,100
20,100
Required:
a. Prepare a statement of cost of goods manufactured for the last month.
b. Prepare an income statement for the last month.
c. Determine prime and conversion costs.
ANSWER:
a.
Masibo Company
Statement of Cost of Goods Manufactured
for the last month
Direct materials:
Beginning inventory
Add: Purchases
Materials available
Less: Ending inventory
Direct materials used in production
Direct labor
Manufacturing overhead:
Indirect labor
Depreciation on machinery
Rent on factory
Total manufacturing costs added
Add: Beginning work-in-process inventory
Total costs in process
Less: Ending work-in-process inventory
Cost of goods manufactured
$30,000
65,000
$95,000
30,100
$64,900
32,500
$25,000
12,000
28,000
65,000
$162,400
9,000
$171,400
10,100
$161,300
b.
Masibo Company
Income Statement
for the last month
Sales
Less: Cost of goods sold
Add: Cost of goods manufactured
Beginning inventory finished goods
Cost of goods available for sale
Less: Ending inventory finished goods
Gross margin
Less: Selling and administrative expenses
Operating income
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c.
$205,900
$161,300
22,000
$183,300
20,100
163,200
$ 42,700
21,000
$Page
21,700
175
Prime costs = Direct materials cost + Direct labor cost = $64,900 + $32,500 = $97,400
Conversion costs = Direct labor cost + Overhead cost = $32,500 + $65,000 = $97,500
Chapter 2
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Chapter 2
196. The following information pertains to Ressler Company:
Direct materials purchases
Beginning direct materials
Factory overhead
Beginning work-in-process
Cost of goods manufactured
Ending finished goods
Gross margin
Selling and administrative expenses
Beginning finished goods
Ending work-in-process
Ending direct materials
Direct labor
Direct materials used
Operating income (loss)
Total manufacturing costs added
Cost of goods sold
Sales
$ 85,800
15,200
72,600
13,200
315,000
30,000
32,000
10,000
20,000
11,000
15,500
?
?
?
?
?
?
Required:
Determine the following values:
a. Net income
b. Total manufacturing costs added
c. Cost of goods sold
d. Sales
e. Direct materials used
f. Direct labor
ANSWER:
a. Net income = Gross margin − Selling and administrative expenses = $32,000 − $10,000 = $22,000
Total manufacturing costs added = Cost of goods manufactured + Ending work-in-process − Beginni
b.
work-in-process = $315,000 + $11,000 − $13,200 = $312,800
Cost of goods sold = Beginning finished goods + Cost of goods manufactured − Ending finished goo
c.
$20,000 + $315,000 − $30,000 = $305,000
d. Sales = Gross margin + Cost of goods sold = $32,000 + $305,000 = $337,000
Direct materials used = Beginning direct materials + Direct materials purchased − Ending direct mate
e.
= $15,200 + $85,800 − $15,500 = $85,500
Direct labor = Total manufacturing cost − Direct materials used − Factory overhead = $312,800 −
f.
$85,500 − $72,600 = $154,700
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIV COCM.HANS.18.2-4 – LO: 02.04
ES:
NATIONAL STANDARD United States – BUSPROG – Reflective Thinking
S:
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate
– 15 min.
Copyright Cengage Learning. Powered
by Cognero.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/27/2017 3:36 AM
QUESTION ID:
JFND-GO33-GINW-NO3O
Page 177
Chapter 2
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Page 178
Chapter 2
197. The following costs were incurred by Texman Company:
Direct labor
Direct material purchases
Depreciation on plant
Factory supervisor’s salary
Plant maintenance
Plant utilities
Sales
Selling and administrative expenses
Beginning direct materials inventory
Beginning work-in-process inventory
Beginning finished goods inventory
Ending direct materials inventory
Ending work-in-process inventory
Ending finished goods inventory
$ 950,000
645,000
55,000
98,000
26,000
30,000
2,555,000
480,000
72,000
54,000
75,000
68,000
51,000
88,000
Required:
Calculate the following values:
a. Direct materials used
b. Cost of goods manufactured
c. Cost of goods sold
d. Operating income
ANSWER:
a. Direct materials used = Beginning direct materials inventory + Direct materials purchased −
Ending direct materials inventory = $72,000 + $645,000 − $68,000 = $649,000
b Cost of goods manufactured = Direct materials used + Direct labor + Factory supervisor’s salary
+ Depreciation on plant + Plant maintenance + Plant utilities + Beginning work-in-process
inventory − Ending work-in-process inventory = $649,000 + $950,000 + $98,000 + $55,000 +
$26,000 + $30,000 + $54,000 − $51,000 = $1,811,000
c. Cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured −
Ending finished goods inventory = $75,000 + $1,811,000 − $88,000 = $1,798,000
d. Operating income = Sales − Cost of goods sold − Selling and administrative expense =
$2,555,000 − $1,798,000 − $480,000 = $277,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES COCM.HANS.18.2-4 – LO: 02.04
:
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/27/2017 3:42 AM
QUESTION ID:
JFND-GO33-GINW-NO3Z
QUESTI
GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZCopyright Cengage
Learning. Powered by Cognero.
Page 179
ON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMG-CIUD-YAMD-CC4U-EQDN-COSU-RCMN-CESU-RCTTBAL ID: GOSU-GPTU-CWSS-N3TS-GH4S-KCDN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
Chapter 2
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Page 180
Chapter 2
198. Information about Mobile Enterprises for the year ending December 31, 2018, is as follows:
Sales
Selling and administrative expenses
Net income
Beginning inventories:
Direct materials
Work in process
Finished goods
$300,000
18,000
8,000
20,000
18,000
62,000
Ending direct materials is 20 percent larger than beginning direct materials. Ending work in process is half of the
beginning work in process. Ending finished goods increased by $8,000 during the year. Prime costs and conversion costs
are 70 percent and 60 percent of total manufacturing costs added, respectively. Materials purchases are $113,200.
Required:
a. Prepare a statement of cost of goods manufactured.
b. Prepare an income statement.
Note: Find the numbers for the income statement first.
ANSWER:
a.
Mobile Enterprises
Statement of Cost of Goods Manufactured
For the Year Ended December 31, 2018
Direct materials:
Beginning inventory*
Add: Purchases*
Materials available
Less: Ending inventory* ($20,000 × 1.20)
Direct materials used in production
Direct labor [(.7 × 273,000) − 109,200]
Manufacturing overhead [(.6 × 273,000) − 81,900]
Total manufacturing costs added
Add: Beginning work-in-process inventory*
Total costs in process
Less: Ending work-in-process inventory* ($18,000 × 0.50)
Cost of goods manufactured
$ 20,000
113,200
$133,200
24,000
$109,200
81,900
81,900
$273,000
18,000
$291,000
9,000
$282,000
b.
Mobile Enterprises
Income Statement
For the Year Ended December 31, 2018
Sales*
Less: Cost of goods sold:
Add: Cost of goods manufactured
Beginning inventory finished goods*
Cost of goods available for sale
Less: Ending inventory finished goods* ($62,000 + $8,000)
Gross margin
Less: Selling and administrative expenses*
Operating income*
*These items are provided.
POINTS:
1
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DIFFICULTY:
Challenging
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
$300,000
$282,000
62,000
$344,000
70,000
274,000
$ 26,000
18,000
$ 8,000
Page 181
Chapter 2
199. Foremost Corporation incurred the following costs:
Beginning direct materials inventory
Beginning work-in-process inventory
Beginning finished goods inventory
Ending direct materials inventory
Ending work in process
Ending finished goods
Factory supervisor’s salary
Depreciation on plant
Sales
Selling and administrative expenses
Plant maintenance
Plant utilities
Direct material purchases
Direct labor
$17,000
8,000
18,000
15,000
13,000
24,000
25,000
10,000
650,000
100,000
5,000
9,000
185,000
200,000
Required:
Calculate the following values:
a. Direct materials used
b. Cost of goods manufactured
c. Cost of goods sold
d. Operating income
ANSWER:
a. $17,000 + $185,000 − $15,000 = $187,000
$187,000 + $200,000 + $25,000 + $10,000 + $5,000 + $9,000 + $8,000 − $13,000 =
b.
$431,000
c. $18,000 + $431,000 − $24,000 = $425,000
d. $650,000 − $425,000 − $100,000 = $125,000
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES COCM.HANS.18.2-4 – LO: 02.04
:
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
NOTES:
Time Estimate – 10 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/24/2017 3:59 AM
QUESTION ID:
JFND-GO33-GINW-NO3I
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMMN-CWAU-G3TI-GYHU-QQMB-8RSU-N3B1-8RSS-GAMGBAL ID: GOSU-O3JS-CESU-K3DR-GE5D-KCBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 182
Chapter 2
200. Brigade Builders, Inc. designs decks, gazebos, and play equipment for residential homes. The following was
provided for the year ended September 30, 2018:
Direct labor
Direct material purchases
Administrative expenses
Overhead
Selling expenses
Beginning direct materials inventory
Beginning designs in process
Ending direct materials inventory
Ending designs in process
$800,000
80,000
155,000
95,000
325,000
43,000
21,000
18,000
45,000
The average design fee is $900. There were 3,500 designs processed during the year.
Required:
a. Prepare a statement of cost of services sold.
b. Prepare an income statement.
c. Discuss three differences between services and tangible products.
ANSWER:
Brigade Builders, Inc.
a.
Cost of Services Sold
For the Year Ended September 30, 2018
Beginning materials
Purchases
Materials available
Less: Ending materials
Materials used
Direct labor
Overhead
Beginning design in process
Ending designs in process
Cost of services sold
b.
Brigade Builders, Inc.
Income Statement
For the Year Ended September 30, 2018
Sales
Cost of services sold
Gross margin
Selling expenses
Administrative expenses
Net income
c.
$ 43,000
80,000
123,000
18,000
105,000
800,000
95,000
21,000
45,000
$976,000
$3,150,000
976,000
2,174,000
325,000
155,000
$1,694,000
Services have three attributes that are not possessed by tangible products:
intangibility, perishability, and inseparability.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-4 – LO: 02.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS:
United States – v1 – ACBSP-APC-09 – Financial Statements
Copyright Cengage Learning. Powered
by Cognero.
United
States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Applying
Page 183
Chapter 2
201. Define activity-based management. In your answer, present the activity-based management model in good form.
ANSWE Activity-based management focuses on the management of activities with the objective of improving the value
R:
received by the customer and the profit received by providing this value; it includes driver analysis, activity
analysis, and performance evaluation and draws on activity-based costing as a major source of information.
Exhibit 2-7 in the text presents the model.
POINTS 1
:
DIFFIC Moderate
ULTY:
QUESTI Subjective Short Answer
ON TYP
E:
HAS VA False
RIABLE
S:
LEARNI COCM.HANS.18.2-5 – LO: 02.05
NG OBJ
ECTIVE
S:
NATION United States – BUSPROG – Analytic
AL STA
NDARD
S:
STATE S United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
TANDA United States – v1 – AICPA-10 – FN-Measurement
RDS: United States – v1 – IMA-11 – Strategic Planning
KEYWO Bloom’s – Remembering
RDS:
NOTES: Time Estimate – 10 min.
DATE C 10/7/2016 9:27 AM
REATE
D:
DATE M 10/7/2016 9:27 AM
ODIFIE
D:
QUESTI JFND-GO33-GINW-NTNN
ON ID:
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJA-GEHG-GQBO-GT1S-EP5D-COSU-KCTT-8RSU-RCMG-GOSUBAL ID: GCUR-COSS-CCB3-CTOU-CQDR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
Copyright Cengage Learning. Powered by Cognero.
Page 184
Chapter 2
202. 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 traditional and activity-based cost systems balance the
trade-offs?
ANSWE Error costs and measurement costs must be considered in choosing a cost management system. Activity-based
R:
cost management has greater measurement costs due to analyzing many activities but has greater accuracy and
fewer error costs. Functional-based cost systems have lower measurement costs but higher error costs.
Controllers must assess the need for accuracy in costing, pricing, and managing profitability.
POINTS 1
:
DIFFIC Moderate
ULTY:
QUESTI Subjective Short Answer
ON TYP
E:
HAS VA False
RIABLE
S:
LEARNI COCM.HANS.18.2-5 – LO: 02.05
NG OBJ
ECTIVE
S:
NATION United States – BUSPROG – Analytic
AL STA
NDARD
S:
STATE S United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
TANDA United States – v1 – AICPA-10 – FN-Measurement
RDS: United States – v1 – IMA-07 – Cost Management
KEYWO Bloom’s – Understanding
RDS:
NOTES: Time Estimate – 10 min.
DATE C 10/7/2016 9:27 AM
REATE
D:
DATE M 1/2/2017 11:25 PM
ODIFIE
D:
QUESTI JFND-GO33-GINW-NTNB
ON ID:
QUESTIO GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZN GLOBA 8FOS-NPDB-C3DI-GWN8-EPRW-EMJO-CA4D-GQBW-CP1U-R3JI-GESS-RA3O-CESS-NPTA-GOSUL ID:
YP33-GYSU-ECB1-GT1S-GP5R-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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Page 185
Chapter 2
203. The cost of goods sold for the Immaculate Corporation for the month of April 2018 was $450,000. Work-in-process
inventory at the end of April was 95 percent of the work-in-process inventory at the beginning of the month.
Overhead is 80 percent of the direct labor cost. During the month, $110,000 of direct materials were purchased. Revenues
for Immaculate were $600,000, and the selling and administrative costs were $70,000.
Other information about Immaculate’s inventories and production for April was as follows:
Ending inventories-April 30
Direct materials
Work in process
Finished goods
$ 19,000
?
105,000
Beginning inventories-April 1
Direct materials
Work in process
Finished goods
$ 22,200
40,000
208,500
Required:
a. Prepare a cost of goods manufactured and cost of goods sold statements.
b. Prepare an income statement.
c. What are the prime costs, conversion costs, and period costs?
ANSWER:
a.
Immaculate Corporation
Statement of Cost of Goods Manufactured
For Month of April 2018
Direct Materials:
Beginning inventory*
Add: Purchases*
Materials available
Less: Ending inventory*
Direct materials used in production
Direct labor below
Manufacturing overhead ($128,500 × 0.80)
Total manufacturing costs added
Add: Beginning work-in-process inventory*
Total costs in process
$
22,20
0
110,0
00
$132,
200
19,00
0
$113,
200
128,5
00
102,8
00
$344,
500
40,00
0
$384,
500
Less: Ending work-in-process inventory ($40,000 ×
38,00
0.95)
0
Cost
of goods
manufactured
$346,
Copyright Cengage
Learning.
Powered
by Cognero. (from COGS
statement)
500
DM used = $22,200 + $110,000 − $19,000 = $113,200
CGM = $450,000 + $105,000 − $208,500 = $346,500
Page 186
Chapter 2
Copyright Cengage Learning. Powered by Cognero.
Page 187
Chapter 2
204. The following items (partial list) are associated with a functional-based cost accounting information system, an
activity-based cost accounting information system, or both:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
materials purchasing cost incurrence
assignment of purchasing cost to products using direct labor hours
assignment of purchasing cost using number of purchase orders
usage of direct materials
direct materials cost assigned to products using direct tracing
materials handling cost incurrence
materials handling cost assigned using direct labor hours
materials handling cost assigned using the number of moves as the driver
computer
materials handling equipment
decision to make a part or buy it from a supplier
costing out of products
report detailing individual product costs
Required:
1. For an activity-based cost system, classify the items into one of the following categories:
a. interrelated parts
b. processes
c. objectives
d. inputs
e. outputs
f. user actions
How would the choices differ between the two systems? What are the costs and benefits of
each?
ANSWER:
1. The activity-based cost accounting system:
a. interrelated parts: computer
b. processes: cost assignment: direct tracing of materials, driver tracing of purchasing
costs (orders), materials handling cost (moves)
c. objectives: costing out of products
d. inputs: direct materials cost, purchasing cost, materials handling cost
e. outputs: product cost report
f. user actions: make-or-buy decision
2.
2. The difference in the costing systems is found in the processes. A functional-based cost
system would not use nonunit drivers such as moves and orders to assign overhead but
would use a unit driver like direct labor hours. There is increased accuracy of the cost
assignments in an activity-based system, and a more comprehensive idea of costs may be
used for decision making.
The activity-based cost accounting system is more expensive to develop but has the
benefit of more comprehensive uses for cost information. The functional-based cost
system is simpler and less expensive to implement but the information generated is less
versatile.
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES COCM.HANS.18.2-5 – LO: 02.05
:
Copyright Cengage Learning. Powered by Cognero.
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
Page 188
Chapter 2
205. Describe several of the major differences between a traditional cost management system and an
activity-based cost management system.
ANSWER:
The traditional cost accounting system assumes that all costs can be
classified as fixed or variable with respect to changes in the units or volume of
product produced.
The activity-based cost management system’s objective is to improve the
quality, content, relevance, and timing of information.
A comparison of the two systems is shown below:
Traditional
1. Unit-based drivers
2. Allocation-intensive
3. Narrow and rigid product costing
4. Focus on managing costs
5. Sparse activity information
6. Maximization of individual unit
Activity-based
1. Unit and non-unit-based drivers
2. Tracing-intensive
3. Broad, flexible product costing
4. Focus on managing activities
5. Detailed activity information
6. Systemwide performance maximization
performance
7. Uses financial measures of performance
7. Uses both financial and nonfinancial
measures of performance
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
HAS VARIABLES:
False
LEARNING OBJECTIVES: COCM.HANS.18.2-5 – LO: 02.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS:
United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS:
Bloom’s – Understanding
NOTES:
Time Estimate – 15 min.
DATE CREATED:
10/7/2016 9:27 AM
DATE MODIFIED:
1/16/2017 6:03 AM
QUESTION ID:
JFND-GO33-GINW-NTBA
QUESTI GCID-E7BW-1TBP-GH4S-KPUB-CEAD-GQMB-CIO1-4P3W-CWHN-4P5D-GA4N-4C3S-8YH1-4QJZON GLO 8FOS-NPDB-C3DI-GWN8-EPRW-EMJT-GE3U-GPJW-GEAD-KCT3-GESU-GCUD-8YSU-QPMG-GOSUBAL ID: NPMN-GOSU-K3MG-GPOU-NCJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
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