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| 1 | |
Which of the following groups of key cost concepts consists of the basic concepts and relationships among cost objectives and cost drivers? |
| | A) | Operational and management control |
| | B) | Planning and decision making |
| | C) | Product and service costing for the preparation of financial statements |
| | D) | Cost objects, cost drivers, and cost pools |
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| 2 | |
Conversion costs is equal to: |
| | A) | the sum of direct materials used and direct labor costs. |
| | B) | the sum of direct materials purchased and direct labor costs. |
| | C) | the sum of direct labor and overhead costs. |
| | D) | the sum of direct materials used and overhead costs. |
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| 3 | |
What kind of costs can be conveniently and economically traced to a cost object or pool? |
| | A) | Indirect Costs. |
| | B) | Period Costs. |
| | C) | Direct Costs. |
| | D) | Overhead Costs. |
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| 4 | |
Below is total cost information for Brady Company: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966300/ch3_q4_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (10.0K)</a>]]>
What is the unit fixed costs when production is 10,000 units? |
| | A) | $8 |
| | B) | $10 |
| | C) | $5 |
| | D) | $13 |
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| 5 | |
Below is total cost information for Brady Company: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966300/ch3_q5_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (10.0K)</a>]]>
What is the total unit cost when 5,000 units are produced? |
| | A) | $18 |
| | B) | $10 |
| | C) | $13 |
| | D) | $8 |
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| 6 | |
Below is total cost information for Brady Company: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966300/ch3_q6_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (10.0K)</a>]]>
What would be the total costs incurred for 10,000 units? |
| | A) | $130,000 |
| | B) | $50,000 |
| | C) | $80,000 |
| | D) | $90,000 |
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| 7 | |
Which of the following would NOT be a period cost for a manufacturing firm? |
| | A) | Commissions paid to salesperson |
| | B) | Salary paid to the CEO of the company |
| | C) | Repairs to the computer in the legal department |
| | D) | Depreciation on the manufacturing plant building |
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| 8 | |
Which one of the following would more likely be found in a merchandising company and not in a manufacturing company? |
| | A) | beginning inventory |
| | B) | cost of goods sold |
| | C) | ending inventory |
| | D) | gross profit |
| | E) | operating expenses |
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| 9 | |
The cost of goods that were transferred out of finished goods during the current period is: |
| | A) | cost of goods sold |
| | B) | cost of goods available for use |
| | C) | cost of goods manufactured |
| | D) | cost of goods available for sale |
| | E) | cost of goods purchased |
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| 10 | |
The key attributes of cost information include all of the following except: |
| | A) | the preparation costs are less than the value of the information. |
| | B) | accuracy. |
| | C) | quality. |
| | D) | timeliness. |
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| 11 | |
All of the following are a type of cost driver except: |
| | A) | Executional. |
| | B) | Activity-based. |
| | C) | Structural. |
| | D) | Volume-based. |
| | E) | Product-based |
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| 12 | |
The following information pertains to Gregg Manufacturing Company. <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966300/ch3_q12_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (32.0K)</a>]]>
What is the amount of direct materials used during the period? |
| | A) | $280 |
| | B) | $260 |
| | C) | $120 |
| | D) | $300 |
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| 13 | |
The following information pertains to Gregg Manufacturing Company. <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966300/ch3_q13_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (32.0K)</a>]]>
What is the amount of cost of goods manufactured during the period? |
| | A) | $860 |
| | B) | $840 |
| | C) | $940 |
| | D) | $1,020 |
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| 14 | |
The following information pertains to Gregg Manufacturing Company. <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0078025532/966300/ch3_q14_1.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (32.0K)</a>]]>
What is the amount of cost of goods sold during the period? |
| | A) | $860 |
| | B) | $840 |
| | C) | $940 |
| | D) | $1,020 |
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| 15 | |
Which one of the following best describes a value stream? |
| | A) | a set of related activities. |
| | B) | a group of related products. |
| | C) | a group of value-adding processes. |
| | D) | a flowchart for a strategy map. |
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