Question 1

An indirect cost can be easily traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 2

Given the following information for Moore Corporation, prepare the necessary journal entries, assuming that the Raw Material Inventory account contains both direct and indirect material.

Accepted Answer

The answer of Given the following information for Moore Corporation,...

Question 3

Jordan Company The following information has been taken from the cost records of Jordan Company for the past year:
  Refer to Jordan Company. Direct labor cost charged to production during the year was

Accepted Answer

A)   $135.
B)   $216.
C)   $225.
D)   $360.E) All of the above
F) B) and D)

Question 4

Perry Company. Perry Company manufactures wood file cabinets. The following information is available for June of the current year.
 The direct labor rate is $9.60 per hour and overhead for the month was $9,600.
Refer to Perry Company. Compute total manufacturing costs for June, if there were 1,500 direct labor hours and $21,000 of raw material was purchased.

Accepted Answer

A)   $58,500
B)   $46,500
C)   $43,500
D)   $43,100E) A) and B)
F) B) and C)

Question 5

A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n)

Accepted Answer

A)   expired cost.
B)   fixed cost.
C)   variable cost.
D)   mixed cost.E) A) and C)
F) B) and C)

Question 6

In a normal cost system, factory overhead is applied to Work in Process using a predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 7

Costs that can be conveniently traced to a cost object are referred to as ____________________ costs.

Accepted Answer

The answer of Costs that can be conveniently traced to...

Question 8

Costs that are incurred to preclude defects and improper processing are:

Accepted Answer

A)   prevention costs
B)   detection costs
C)   appraisal costs
D)   failure costsE) B) and C)
F) A) and B)

Question 9

Anderson Enterprises  Refer to Anderson Enterprises. For March, prime cost incurred was

Accepted Answer

A)   $75,000.
B)   $69,000.
C)   $45,000.
D)   $39,000.E) A) and D)
F) B) and D)

Question 10

The formula for cost of goods sold for a manufacturer is

Accepted Answer

A)   beginning Finished Goods Inventory plus Cost of Goods Manufactured minus ending Finished Goods Inventory.
B)   beginning Work in Process Inventory plus Cost of Goods Manufactured minus ending Work in Process Inventory.
C)   direct material plus direct labor plus applied overhead.
D)   direct material plus direct labor plus overhead incurred plus beginning Work in Process Inventory.E) C) and D)
F) A) and B)

Question 11

Prime cost consists of

Accepted Answer

A)   no yes no
B)   yes yes no
C)   yes no yes
D)   no yes yesE) A) and D)
F) C) and D)

Question 12

The three primary inventory accounts in a manufacturing company are

Accepted Answer

A)   Merchandise Inventory, Supplies Inventory, and Finished Goods Inventory.
B)   Merchandise Inventory, Work in Process Inventory, and Finished Goods Inventory.
C)   Supplies Inventory, Work in Process Inventory, and Finished Goods Inventory.
D)   Raw Material Inventory, Work in Process Inventory, and Finished Goods Inventory.E) A) and B)
F) A) and C)

Question 13

Horner Corporation The following information has been taken from the cost records of Horner Corporation for the past year:
  Refer to Horner Corporation. The cost of raw material purchased during the year was

Accepted Answer

A)   $326.
B)   $346
C)   $375
D)   $426E) B) and D)
F) A) and C)

Question 14

A fixed cost remains constant on a per-unit basis as production changes.

Accepted Answer

A) True 
 B)False

Question 15

A selling cost is a(n)

Accepted Answer

A)   yes yes no
B)   yes no no
C)   no yes no
D)   no yes yesE) A) and D)
F) B) and D)

Question 16

The following information is for the Guthrie Manufacturing Company for November.
   Calculate total manufacturing costs, cost of goods manufactured, and cost of goods sold.

Accepted Answer

The answer of The following information is for the Guthrie...

Question 17

Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of each.

Accepted Answer

A variable cost is one that remains cons...

Question 18

There is typically an inverse relationship between prevention costs and failure costs.

Accepted Answer

A) True 
 B)False

Question 19

When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n)

Accepted Answer

A)   increase in the fixed element.
B)   decrease in the variable element.
C)   increase in the mixed element.
D)   decrease in the fixed element.E) B) and D)
F) All of the above

Question 20

A cost that varies in total in direct proportion to changes in activity is known as a ____________________ cost

Accepted Answer

The answer of A cost that varies in total in...

Exam 2: Cost Terminology and Cost Behaviors

There is typically an inverse relationship between prevention costs and failure costs.

Correct Answer
verified

Anderson Enterprises Refer to Anderson Enterprises. For March, prime cost incurred was

Correct Answer
verified

The three primary inventory accounts in a manufacturing company are

Correct Answer
verified

Costs that are incurred to preclude defects and improper processing are:

Correct Answer
verified

An indirect cost can be easily traced to a cost object.

Correct Answer
verified

A selling cost is a(n)

Correct Answer
verified

A fixed cost remains constant on a per-unit basis as production changes.

Correct Answer
verified

Costs that can be conveniently traced to a cost object are referred to as ____________________ costs.

Correct Answer
verified

Horner Corporation The following information has been taken from the cost records of Horner Corporation for the past year: Refer to Horner Corporation. The cost of raw material purchased during the year was

Correct Answer
verified

A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n)

Correct Answer
verified

Jordan Company The following information has been taken from the cost records of Jordan Company for the past year: Refer to Jordan Company. Direct labor cost charged to production during the year was

Correct Answer
verified

Prime cost consists of

Correct Answer
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Correct Answer
verified

In a normal cost system, factory overhead is applied to Work in Process using a predetermined overhead rate.

Correct Answer
verified

Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of each.

Correct Answer
verified
A variable cost is one that remains cons...
View Answer

When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n)

Correct Answer
verified

The following information is for the Guthrie Manufacturing Company for November. Calculate total manufacturing costs, cost of goods manufactured, and cost of goods sold.

Correct Answer
verified

The formula for cost of goods sold for a manufacturer is

Correct Answer
verified

Given the following information for Moore Corporation, prepare the necessary journal entries, assuming that the Raw Material Inventory account contains both direct and indirect material.

Correct Answer
verified

A cost that varies in total in direct proportion to changes in activity is known as a ____________________ cost

Correct Answer
verified

Exam 2: Cost Terminology and Cost Behaviors

There is typically an inverse relationship between prevention costs and failure costs.

Correct AnswerverifiedShow Answer

Anderson Enterprises Refer to Anderson Enterprises. For March, prime cost incurred was

Correct AnswerverifiedShow Answer

The three primary inventory accounts in a manufacturing company are

Correct AnswerverifiedShow Answer

Costs that are incurred to preclude defects and improper processing are:

Correct AnswerverifiedShow Answer

An indirect cost can be easily traced to a cost object.

Correct AnswerverifiedShow Answer

A selling cost is a(n)

Correct AnswerverifiedShow Answer

A fixed cost remains constant on a per-unit basis as production changes.

Correct AnswerverifiedShow Answer

Costs that can be conveniently traced to a cost object are referred to as ____________________ costs.

Correct AnswerverifiedShow Answer

Horner Corporation The following information has been taken from the cost records of Horner Corporation for the past year: Refer to Horner Corporation. The cost of raw material purchased during the year was

Correct AnswerverifiedShow Answer

A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n)

Correct AnswerverifiedShow Answer

Jordan Company The following information has been taken from the cost records of Jordan Company for the past year: Refer to Jordan Company. Direct labor cost charged to production during the year was

Correct AnswerverifiedShow Answer

Prime cost consists of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a normal cost system, factory overhead is applied to Work in Process using a predetermined overhead rate.

Correct AnswerverifiedShow Answer

Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of each.

Correct AnswerverifiedA variable cost is one that remains cons...View AnswerShow Answer

When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n)

Correct AnswerverifiedShow Answer

The following information is for the Guthrie Manufacturing Company for November. Calculate total manufacturing costs, cost of goods manufactured, and cost of goods sold.

Correct AnswerverifiedShow Answer

The formula for cost of goods sold for a manufacturer is

Correct AnswerverifiedShow Answer

Given the following information for Moore Corporation, prepare the necessary journal entries, assuming that the Raw Material Inventory account contains both direct and indirect material.

Correct AnswerverifiedShow Answer

A cost that varies in total in direct proportion to changes in activity is known as a ____________________ cost

Correct AnswerverifiedShow Answer

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A variable cost is one that remains cons...
View Answer

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