Question 1

Which type of production process is ideal for a low production volume and one-of-a-kind products?

Accepted Answer

A)  Batch.
B)  Continuous Flow.
C)  Job Shop.
D)  Assembly.
E)  Direct assembly.

Question 2

Out-of-pocket costs are deﬁned as the beneﬁt that is sacriﬁced when the choice of one action precludes taking an alternative course of action.

Accepted Answer

A) True 
 B)False

Question 3

The accounting records of Falcon Company revealed the following information:  Falcon's cost of goods manufactured is:

Accepted Answer

A)  $519,000.
B)  $522,000.
C)  $568,000.
D)  $571,000.
E)  None of the answers is correct.

Question 4

As activity increases, unit variable cost:

Accepted Answer

A)  increases proportionately with activity.
B)  decreases proportionately with activity.
C)  remains constant.
D)  increases by a ﬁxed amount.
E)  decreases by a ﬁxed amount.

Question 5

Depreciation of factory equipment would be classiﬁed as:

Accepted Answer

A)  operating cost.
B)  "other" cost.
C)  manufacturing overhead.
D)  period cost.
E)  administrative cost.

Question 6

Which type of production process is likely used for custom yachts built by Hargrave?

Accepted Answer

A)  Batch.
B)  Continuous Flow.
C)  Job Shop.
D)  Assembly.
E)  Direct assembly.

Question 7

The total cost of direct material, direct labor, and manufacturing overhead transferred from work-in- process inventory to ﬁnished-goods inventory is called the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 8

The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000.Dixon's product costs total:

Accepted Answer

A)  $1,050,000.
B)  $830,000.
C)  $895,000.
D)  $1,270,000.
E)  None of the answers is correct. A

Question 9

Which of the following would not be classiﬁed as direct materials by a company that makes automobiles?

Accepted Answer

A)  Wheel lubricant.
B)  Tires.
C)  Interior leather.
D)  CD player.
E)  Sheet metal used in the automobile's body.

Question 10

Which type of production process is likely used by a paint manufacturer to produce paint?

Accepted Answer

A)  Batch.
B)  Continuous Flow.
C)  Job Shop.
D)  Assembly.
E)  Direct assembly.

Question 11

Which of the following costs is not a component of manufacturing overhead?

Accepted Answer

A)  Indirect materials.
B)  Factory utilities.
C)  Factory equipment.
D)  Indirect labor.
E)  Property taxes on the manufacturing plant.

Question 12

How should a company that manufactures automobiles classify its partially completed vehicles?

Accepted Answer

A)  Supplies.
B)  Raw materials inventory.
C)  Finished goods inventory.
D)  Cost of goods manufactured.
E)  Work-in-process inventory. E

Question 13

Which of the four items listed below is not a type of production process?

Accepted Answer

A)  Batch.
B)  Job Shop.
C)  Continuous Flow.
D)  Job Flow.
E)  Assembly.

Question 14

The ﬁxed cost per unit:

Accepted Answer

A)  will increase as activity increases.
B)  will decrease as activity decreases.
C)  will decrease as activity remains constant.
D)  will remain constant.
E)  will increase as activity decreases and will decrease as activity increases.

Question 15

Dorsett Technologies had ﬁnished goods inventory on January 1, 20X8 of $29,300 and ﬁnished goods inventory on December 31, 20X8 of $24,100.If the cost of goods manufactured for the year was $385,000, what was the cost of goods sold for the year?

Accepted Answer

A)  $395,400.
B)  $385,000.
C)  $390,200.
D)  $400,600.
E)  None of the answers is correct.

Question 16

There are three standard categories of manufacturing processes.

Accepted Answer

A) True 
 B)False

Question 17

Indirect costs:

Accepted Answer

A)  can be traced to a cost object.
B)  cannot be traced to a particular cost object.
C)  are not important.
D)  are always variable costs.
E)  may be indirect with respect to theme park but direct with respect to one of its major

Question 18

Compton Inc.has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750.Materials used during the month were $128,900.As a result, what is the cost of materials purchased during the month?

Accepted Answer

A)  $101,400.
B)  $127,650.
C)  $130,150.
D)  $157,650.
E)  None of the answers is correct.

Question 19

Cost of goods manufactured for Branson Books for the year was $860,000.Beginning work-in-process inventory was $40,000.Ending work-in-process was $60,000.If the beginning ﬁnished goods inventory was $400,000 and the ending ﬁnished goods inventory was $990,000 what was the cost of goods sold for the year?

Accepted Answer

A)  $230,000.
B)  $270,000.
C)  $460,000.
D)  $1,240,000.
E)  None of these answers is correct. B

Question 20

The accounting records of Comacho Company revealed the following costs, among others:  Costs that would be considered in the calculation of manufacturing overhead total:

Accepted Answer

A)  $149,000.
B)  $171,000.
C)  $186,000.
D)  $442,000.
E)  None of the answers is correct.

Exam 2: Basic Cost Management Concepts

Which type of production process is ideal for a low production volume and one-of-a-kind products?

Correct Answer
verified

Out-of-pocket costs are deﬁned as the beneﬁt that is sacriﬁced when the choice of one action precludes taking an alternative course of action.

Correct Answer
verified

The accounting records of Falcon Company revealed the following information: Falcon's cost of goods manufactured is:

Correct Answer
verified

As activity increases, unit variable cost:

Correct Answer
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Depreciation of factory equipment would be classiﬁed as:

Correct Answer
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Which type of production process is likely used for custom yachts built by Hargrave?

Correct Answer
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The total cost of direct material, direct labor, and manufacturing overhead transferred from work-in- process inventory to ﬁnished-goods inventory is called the cost of goods manufactured.

Correct Answer
verified

The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000.Dixon's product costs total:

Correct Answer
verified
A

Which of the following would not be classiﬁed as direct materials by a company that makes automobiles?

Correct Answer
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Which type of production process is likely used by a paint manufacturer to produce paint?

Correct Answer
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Which of the following costs is not a component of manufacturing overhead?

Correct Answer
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How should a company that manufactures automobiles classify its partially completed vehicles?

Correct Answer
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E

Which of the four items listed below is not a type of production process?

Correct Answer
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The ﬁxed cost per unit:

Correct Answer
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Dorsett Technologies had ﬁnished goods inventory on January 1, 20X8 of $29,300 and ﬁnished goods inventory on December 31, 20X8 of $24,100.If the cost of goods manufactured for the year was $385,000, what was the cost of goods sold for the year?

Correct Answer
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There are three standard categories of manufacturing processes.

Correct Answer
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Indirect costs:

Correct Answer
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Compton Inc.has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750.Materials used during the month were $128,900.As a result, what is the cost of materials purchased during the month?

Correct Answer
verified

Correct Answer
verified
B

The accounting records of Comacho Company revealed the following costs, among others: Costs that would be considered in the calculation of manufacturing overhead total:

Correct Answer
verified

Exam 2: Basic Cost Management Concepts

Which type of production process is ideal for a low production volume and one-of-a-kind products?

Correct AnswerverifiedShow Answer

Out-of-pocket costs are deﬁned as the beneﬁt that is sacriﬁced when the choice of one action precludes taking an alternative course of action.

Correct AnswerverifiedShow Answer

The accounting records of Falcon Company revealed the following information: Falcon's cost of goods manufactured is:

Correct AnswerverifiedShow Answer

As activity increases, unit variable cost:

Correct AnswerverifiedShow Answer

Depreciation of factory equipment would be classiﬁed as:

Correct AnswerverifiedShow Answer

Which type of production process is likely used for custom yachts built by Hargrave?

Correct AnswerverifiedShow Answer

The total cost of direct material, direct labor, and manufacturing overhead transferred from work-in- process inventory to ﬁnished-goods inventory is called the cost of goods manufactured.

Correct AnswerverifiedShow Answer

The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000.Dixon's product costs total:

Correct AnswerverifiedA

Which of the following would not be classiﬁed as direct materials by a company that makes automobiles?

Correct AnswerverifiedShow Answer

Which type of production process is likely used by a paint manufacturer to produce paint?

Correct AnswerverifiedShow Answer

Which of the following costs is not a component of manufacturing overhead?

Correct AnswerverifiedShow Answer

How should a company that manufactures automobiles classify its partially completed vehicles?

Correct AnswerverifiedE

Which of the four items listed below is not a type of production process?

Correct AnswerverifiedShow Answer

The ﬁxed cost per unit:

Correct AnswerverifiedShow Answer

Dorsett Technologies had ﬁnished goods inventory on January 1, 20X8 of $29,300 and ﬁnished goods inventory on December 31, 20X8 of $24,100.If the cost of goods manufactured for the year was $385,000, what was the cost of goods sold for the year?

Correct AnswerverifiedShow Answer

There are three standard categories of manufacturing processes.

Correct AnswerverifiedShow Answer

Indirect costs:

Correct AnswerverifiedShow Answer

Compton Inc.has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750.Materials used during the month were $128,900.As a result, what is the cost of materials purchased during the month?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedB

The accounting records of Comacho Company revealed the following costs, among others: Costs that would be considered in the calculation of manufacturing overhead total:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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A

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E

Correct Answer
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B

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