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| 1 | |
The sacrifice made, usually measured by the resources given up, to achieve a particular purpose is called which of the following? |
| | A) | A cost |
| | B) | An expense |
| | C) | A product cost |
| | D) | An inventoriable cost |
| | E) | A period cost |
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| 2 | |
Product costs are: |
| | A) | expensed in the period incurred. |
| | B) | initially capitalized on the balance sheet. |
| | C) | treated in the same manner as period costs. |
| | D) | always classified as an indirect cost. |
| | E) | immediately subtracted from cost of goods sold. |
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| 3 | |
Which of the following statements is true? |
| | A) | Product costs affect only the balance sheet. |
| | B) | Product costs affect only the income statement. |
| | C) | Period costs affect only the balance sheet. |
| | D) | Product costs eventually affect both the balance sheet and the income statement. |
| | E) | None of the above |
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| 4 | |
Manufacturers, such as Caterpillar, have three broad types of inventory accounts showing up on their Balance Sheet. Which of the following statements correctly depicts these accounts? |
| | A) | Direct Materials, Work-in-Process, Finished Goods |
| | B) | Indirect Material, Job Shop, Manufacturing Overhead |
| | C) | Raw Materials, Work In Process, Cost of Goods Manufactured |
| | D) | Direct Materials, Direct Labor, Manufacturing Overhead |
| | E) | Raw Materials, Work-in-Process, Finished Goods |
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| 5 | |
Which of the following types of business would not incur a product cost? |
| | A) | Retailer |
| | B) | Wholesaler |
| | C) | Manufacturer |
| | D) | Service provider |
| | E) | All of the above could incur a product cost. |
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| 6 | |
Which of the following types of business would not incur a period cost? |
| | A) | Retailer |
| | B) | Wholesaler |
| | C) | Manufacturer |
| | D) | Service provider |
| | E) | All of the above could incur a period cost. |
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| 7 | |
Which of the following statements is (are) correct? |
| | A) | Overtime premiums should be treated as a component of manufacturing overhead. |
| | B) | Overtime premiums should be treated as a component of direct labor. |
| | C) | Idle time should be treated as a component of direct labor. |
| | D) | Idle time should be accounted for as a special type of loss. |
| | E) | Both "B" and "C" are correct. |
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| 8 | |
Which of the following production processes is described as a production process with high production volume, and with many standardized components and/or customized combination of components? |
| | A) | Batch |
| | B) | Assembly line |
| | C) | Mass customization |
| | D) | Continuous flow |
| | E) | Job shop |
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| 9 | |
Which of the following production processes is described as a process with multiple products and low volume? |
| | A) | Batch |
| | B) | Assembly line |
| | C) | Mass customization |
| | D) | Continuous flow |
| | E) | Job shop |
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| 10 | |
Which of the following costs is a conversion cost? |
| | A) | Direct materials |
| | B) | Salary paid to sales manager |
| | C) | Salary paid to production line worker |
| | D) | Only (B) and (C) |
| | E) | Only (A) and (C) |
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| 11 | |
Consider the following taken from a schedule of cost of goods manufactured: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/9352606310/856414/ch2_11.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"> (21.0K)</a>]]>
What is the value of the ending work-in-process inventory? |
| | A) | $50,000 |
| | B) | $82,000 |
| | C) | $70,000 |
| | D) | $35,000 |
| | E) | $65,000 |
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| 12 | |
Consider the following taken from a schedule of cost of goods manufactured: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/9352606310/856414/ch2_12.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"> (24.0K)</a>]]>
What was the amount of the ending raw-material inventory? |
| | A) | $55,000 |
| | B) | $65,000 |
| | C) | $15,000 |
| | D) | $100,000 |
| | E) | None of the above |
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| 13 | |
Consider the following: <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/9352606310/856414/ch2_13.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"> (23.0K)</a>]]>
Which of the costs, A, B, or C, is a variable cost? |
| | A) | Cost A |
| | B) | Cost B |
| | C) | Cost C |
| | D) | Cost A and C |
| | E) | None of the above |
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| 14 | |
Which of the following refers to a cost that can be substantially influenced by a manager? |
| | A) | Sunk cost. |
| | B) | Direct cost. |
| | C) | Opportunity cost. |
| | D) | Controllable cost. |
| | E) | Sunk cost |
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| 15 | |
Which of the following refers to a cost that is a benefit sacrificed when the choice of one action precludes taking an alternative course of action? |
| | A) | Out-of-pocket cost. |
| | B) | Direct cost. |
| | C) | Opportunity cost. |
| | D) | Controllable cost. |
| | E) | None of the above |
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