Question

1.    Which of the following is NOT a purpose for allocating costs to cost objects? a)    To provide...

1.    Which of the following is NOT a purpose for allocating costs to cost objects?

a)    To provide information for economic decisions.

b)    To determine selling prices.

c)    To motivate managers and employees.

d)    To justify costs or compute reimbursements.

2.    Which of the following manufactured products should use process costing?

a)    Expensive jewelry.

b)    Bags of cement.

c)    Custom build houses.

d)    Designer watches.

3.    Which of the following is NOT a common criteria used to guide decisions related to coast allocations?

a)    Ability to bear.

b)    Benefit received.

c)    Causality.

d)    Stable market prices.

4.    In a FIFO process costing system, which of the following are assumed to be completed first in the current period?

a)    Units started this period.

b)    Units started last period.

c)    Units transferred out.

d)    Units still in process.

5.    Which of the following costs is invententoried when using variable costing method?

a)    Rent on a factory building.

b)    Electricity consumed in a manufacturing process.

c)    Sales commission paid on each sale.

d)    Advertising costs incurred for the product.

6.    Which of the following statements is true of a linear cost function?

a)    It presents variable cost as a slope coefficient.

b)    It presents total cost as an intercept.

c)    It presents variable cost as an intercept.

d)    It presents total cost as a slope coefficient.

7.    Which of the following is true of historical costs?

a)    They are useful for making future predictions.

b)    They are used for decision making.

c)    They are always accounted as opportunity costs.

d)    They cannot be fixed costs.

8.    Short-run prices should at least recover ____________.

a)    Full cost of producing a product.

b)    Fixed manufacturing overhead.

c)    Variable cost of producing a product.

d)    Variable and fixed manufacturing overhead.

9.    The method that allocates costs by explicitly including all the services rendered among all support departments is the _____________.

a)    Direct method.

b)    Reciprocal method.

c)    Step-down method.

d)    Sequential method.

10. In joint costing, which of the following is a market-based approach to allocating costs?

a)    Sales units.

b)    Units of production.

c)    Physical measures.

d)    Net realizable value.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5a) Which of the following statements is true? a. Advertising is a period cost and a...
5a) Which of the following statements is true? a. Advertising is a period cost and a plant manager’s salary is a manufacturing overhead cost. b. Advertising is a product cost and a plant manager’s salary is a period cost. c. Advertising is a product cost and a plant manager’s salary is a manufacturing overhead cost. d. Advertising is a period cost and a plant manager’s salary is a period cost. 5b) Which beginning and ending inventories appear on a cost...
The following Company, which has only one product, has provided the following data concerning its most...
The following Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price: $ 175 Units Data: Units in beginning inventory 0 Units produced 9,500 Units sold 8,000 Units in ending Inventory 1,500 Variable costs per unit: Direct materials $ 55 Direct labor $ 38 Variable manufacturing overhead $ 2 Variable selling and admin $ 10 Fixed costs: Fixed manufacturing overhead $ 300,000 Fixed selling and admin $ 125,000 REQUIRED: a....
Match the following terms to the correct definition: Variable cost Cost driver Activity Based Costing Cost...
Match the following terms to the correct definition: Variable cost Cost driver Activity Based Costing Cost Pool Fixed Cost Target Costing ___     This method of cost estimation assumes each service consumes indirect costs in the same proportion as the department as a whole. ___     The process of setting prices to cover one additional unit of output (product or service). ___     This method estimates the cost of treating individual patient diagnosis over time. ___     This method of cost estimation uses the intensity of the service...
Which of the following would probably be the least appropriate allocation base for allocating overhead in...
Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? A. machine-hours B. power consumption C. direct labor-hours D. machine setups 1 points QUESTION 6 In a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period: A. is deducted on the Income Statement as overapplied overhead. B. is closed to Cost of...
1) In a period, opening stocks were 12,600 units and closing stocks 14,100 units. The profit...
1) In a period, opening stocks were 12,600 units and closing stocks 14,100 units. The profit based on marginal costing was $50,400 and profit using absorption costing was $60,150. The fixed overhead absorption rate per unit is (A) $4.77. (B) $6.50. (C) $6.77. (D) None of the above 2) Under the FIFO process costing method, the two categories of completed units used to compute the total cost of units completed during a period are (A) beginning work-in-process units and units...
Which of the following statements about variable costing systems is true? A.    Variable overhead costs...
Which of the following statements about variable costing systems is true? A.    Variable overhead costs are treated as period costs B.    Fixed overhead costs are treated as product costs C.    Only direct materials and direct labor are included in total cost D.    Fixed overhead costs are treated as period costs
Which of the following costs at a manufacturing company would be treated as a product cost...
Which of the following costs at a manufacturing company would be treated as a product cost under variable costing? A) Advertising expense B)Direct Labor Cost C)Rent on the factory building D)Administrative Salary
Which of the following statements is true about direct costs? a. A direct cost is a...
Which of the following statements is true about direct costs? a. A direct cost is a cost that can easily and conveniently be traced to a specified cost object. b. A direct cost is allocated to different cost objects. c. A direct cost is a cost that cannot be easily traced to a specified cost object. d. Manufacturing overhead is included as a direct cost. QUESTION 4 Doors, Inc. produced 25,000 units last year.  The following information was provided: Direct materials...
Where is the break-even point located in a CVP graph? a. At the intersection of the...
Where is the break-even point located in a CVP graph? a. At the intersection of the variable cost line and the fixed cost line. b. At the intersection of the mixed cost line and the sales line. c. At the intersection of the sales line and the fixed cost line. d. At the intersection of the total cost line and the sales line. When using the weighted-average method, equivalent units are a. the number of units produced in a period...
11. Which of the following costs is least likely to be a variable cost? sales commissions...
11. Which of the following costs is least likely to be a variable cost? sales commissions direct labor indirect materials supervisory salaries 12. Which of the following components are included in a mixed cost? a sunk cost and an opportunity cost a fixed cost and a variable cost a manufacturing cost and a selling cost a product cost and a period cost 13. Kari’s Kookies has total costs of $5,000 when 2,000 units are produced and $11,000 when 5,000 units...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT