Exam 2: Cost Terminology and Cost Behaviors

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&n... View Answer Show Answer Question 22 Short Answer Review LaterAdd Note Review Later Costs incurred for monitoring or inspecting products are known as ____________________ costs. Correct Answer verified Show Answer Question 23 True/False Review LaterAdd Note Review Later In an actual cost system,factory overhead is applied to Work in Process using a predetermined overhead rate. Correct Answer verified Show Answer Question 24 Essay Review LaterAdd Note Review Later What are three reasons that overhead must be allocated to products? Correct Answer verified Overhead must be allocated bec... View Answer Show Answer Question 25 Multiple Choice Review LaterAdd Note Review Later Denson Company manufactures computer stands.What is the beginning balance of Finished Goods Inventory if Cost of Goods Sold is $107,000;the ending balance of Finished Goods Inventory is $20,000;and Cost of Goods Manufactured is $50,000 less than Cost of Goods Sold? A) $70,000 B) $77,000 C) $157,000 D) $127,000 Correct Answer verified Show Answer Question 26 Multiple Choice Review LaterAdd Note Review Later The term "relevant range" as used in cost accounting means the range over which A) costs may fluctuate. B) cost relationships are valid. C) production may vary. D) relevant costs are incurreD. Correct Answer verified Show Answer Question 27 Short Answer Review LaterAdd Note Review Later Costs that result from defective units,product returns,and complaints are referred to as ____________________ costs. Correct Answer verified Show Answer Question 28 Short Answer Review LaterAdd Note Review Later The assumed range of activity that reflects the company's normal operating range is referred to as the ______________________________. Correct Answer verified Show Answer Question 29 Multiple Choice Review LaterAdd Note Review Later Bridges Corporation The following information has been taken from the cost records of Bridges Corporation for the past year: Raw material used in production                                                $336 Total manufacturing costs charged to production during            711 the year (includes direct material, direct labor, and overhead equal to 50% of direct labor cost) Cost of goods available for sale                                                  851 Selling and Administrative expenses                                           35 Inventories Begining   Ending Raw material $80     $90 Work in process 85      25 Finished goods 80     105 Refer to Bridges Company.Direct labor cost charged to production during the year was A) $125 B) $188 C) $250 D) $375. Correct Answer verified Show Answer Question 30 Multiple Choice Review LaterAdd Note Review Later When the number of units manufactured increases,the most significant change in unit cost will be reflected as a(n) A) increase in the fixed element. B) decrease in the variable element. C) increase in the mixed element. D) decrease in the fixed element. Correct Answer verified Show Answer Question 31 Multiple Choice Review LaterAdd Note Review Later Which of the following would generally be considered a fixed factory overhead cost? Straight-line     Factory       Units-of-production depreciation     insurance     depreciation A) no                     no                  no B) yes                    no                 yes C) yes                    yes                no D) no                      yes               no Correct Answer verified Show Answer Question 32 True/False Review LaterAdd Note Review Later Unexpired costs are reflected on the balance sheet. Correct Answer verified Show Answer Question 33 Multiple Choice Review LaterAdd Note Review Later Hunnicutt Company is a construction company that builds greenhouses on special request.What is the proper classification of the carpenters' wages? Product               Period                  Direct A) yes yes no B) yes no yes C) no no no D) no yes yes Correct Answer verified Show Answer Question 34 True/False Review LaterAdd Note Review Later In a normal cost system,factory overhead is applied to Work in Process using a predetermined overhead rate. Correct Answer verified Show Answer Question 35 True/False Review LaterAdd Note Review Later The portion of an asset that was consumed during a period is referred to an expired cost. Correct Answer verified Show Answer Question 36 Multiple Choice Review LaterAdd Note Review Later Bridges Corporation The following information has been taken from the cost records of Bridges Corporation for the past year: Raw material used in production                                                $336 Total manufacturing costs charged to production during            711 the year (includes direct material, direct labor, and overhead equal to 50% of direct labor cost) Cost of goods available for sale                                                  851 Selling and Administrative expenses                                           35 Inventories Begining   Ending Raw material $80     $90 Work in process 85      25 Finished goods 80     105 Refer to Bridges Company.Cost of Goods Manufactured was A) $651 B) $736 C) $771 D) $796 Correct Answer verified Show Answer Question 37 Short Answer Review LaterAdd Note Review Later Costs that cannot be conveniently traced to a cost object are known as ____________________ costs. Correct Answer verified Show Answer Question 38 Multiple Choice Review LaterAdd Note Review Later Prime cost consists of direct material             direct labor       overhead A) no yes no B) yes yes no C) yes no yes D) no yes yes Correct Answer verified Show Answer Question 39 Essay Review LaterAdd Note Review Later From the following information for the Bentwater Company,compute prime costs and conversion costs for the current period. inventories Begining   Ending Raw material    $9,900     $7,600 Work in process    44,500      37,800 Finished goods 36,580     61,300 Raw material purchased during the period cost $40,800;overhead incurred and paid or accrued for the period was $21,750;and 23,600 direct labor hours were incurred at a rate of $13.75 per hour. Correct Answer verified Show Answer Question 40 True/False Review LaterAdd Note Review Later It is not necessary to prepare the Cost of Goods Manufactured statement prior to preparing the Cost of Goods Sold statement. Correct Answer verified Show Answer Showing 21 - 40 of 129 PrevNext Prev 1 2 3 ... 5 6 7 Next Related Exams Exam 1 Introduction to Cost Accounting 98 Questions Exam 3 Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing 201 Questions Exam 4 Activity-Based Management and Activity-Based Costing 178 Questions Exam 5 Job Order Costing 180 Questions Exam 6 Process Costing 214 Questions Exam 7 Standard Costing and Variance Analysis 226 Questions Exam 8 The Master Budget 152 Questions Exam 9 Break-Even Point and Cost-Volume-Profit Analysis 122 Questions Exam 10 Relevant Information for Decision Making 113 Questions Exam 11 Allocation of Joint Costs and Accounting for By-Products 136 Questions Exam 12 Introduction to Cost Management Systems 100 Questions Exam 13 Responsibility Accounting,support Department Allocations,and Transfer Pricing 175 Questions Exam 14 Performance Measurement, balanced Scorecards, and Performance Rewards 191 Questions Exam 15 Capital Budgeting 182 Questions Exam 16 Managing Costs and Uncertainty 103 Questions Exam 17 Implementing Quality Concepts 108 Questions Exam 18 Inventory and Production Management 167 Questions Exam 19 Emerging Management Practices 69 Questions Previous slideNext slide Show Answer