• Question 1 Needs Grading
Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory.
1. _____ Frosting
2. _____ Wages of the baker
3. _____ Paper towels used in the baking area
4. _____ Depreciation on oven
Selected Answer:
1. A
2. C
3. B
4. B
Correct Answer:
1. a
2. c
3. b
4. b
• Question 2 Needs Grading
The aspects of the management process are listed below. Match each phase to the appropriate
description.
_____ Planning
_____ Directing
_____ Controlling
_____ Improving
_____ Decision making
a) Used by managers for continuous improvement
b) Managers must decide how to respond to unfavorable performances
c) Used by management to develop the organization’s objectives and goals
d) Monitoring the operating results of implemented plans and comparing actual results
e) Managers run their day to day activities
Selected Answer:
C
E
D
A
B
Correct Answer:
c
e
d
a
b
• Question 3 Needs Grading
Identify the following costs as a (a) product cost or (b) period cost for a cake factory.
1. _____ Frosting
2. _____ Baker’s wages
3. _____ Advertising fees
4. _____ Transportation out
Selected Answer:
1. A
2. A
3. B
4. B
Correct Answer:
1. a
2. a
3. b
4. b
• Question 4 Needs Grading
Classify the following costs as either a product cost or a period cost:
a)
direct materials used
b)
factory utilities
c)
salespersons’ commissions
d)
salary of plant manager
e)
indirect materials used
f)
depreciation on store equipment
g)
indirect labor incurred
h)
advertising expense
i)
direct labor incurred
j)
factory machinery repairs and maintenance
k)
_____________
depreciation on factory machinery
l)
plant insurance expired
Selected Answer:
a. product
b. product
c. period
d. product
e. product
f. product
g. product
h. period
i. product
j. product.
k. product
l. product
Correct Answer:
a) product
b) product
c) period
d) product
e) product
f) period
g) product
h) period
i) product
j) product
k) product
l) product
• Question 5 Needs Grading
There are four types of eco-efficiency measures. Match the following descriptions to the proper eco-efficiency
measures:
1. Energy Efficiency
A. Cost savings from recycling and reusing waste and by-product materials
2. Fuel Efficiency
B, Cost savings from reducing the amount of product packaging materials
3. Material Use
Efficiency
C. Cost savings from replacing lighting fixtures in a production facility with energy–
efficient lighting
4. Waste Efficiendy
D. Cost savings from replacing gas-powered vehnicles with hybrid or alternative
energy-source vehicles
Record your answers in the space below by listing the correct letter by the number.
1. ?
2. ?
3. ?
4. ?
Selected Answer:
1. C
2. D
3. B
4. A
Correct Answer:
5. C
6. D
7. B
8. A
• Question 6 Needs Grading
Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake
manufacturer.
1. _____ Frosting
2. _____ Depreciation on oven
3. _____ Wages of bakers
4. _____ Paper towels used in baking area
Selected Answer:
1. A
2. C
3. B
4. C
Correct Answer:
1. Direct material
2. Factory overhead
3. Direct labor
4. Factory overhead
• Question 1 0 out of 0.25 points
The Sharpe Company reports the following information for 2015:
Sales
$76,500
Direct materials used
7,300
Depreciation on factory equipment
4,700
Indirect labor
5,900
Direct labor
10,500
Factory rent
4,200
Factory utilities
1,200
Sales salaries expense
15,600
Office salaries expense
8,900
Indirect materials
1,200
Determine period costs for 2015.
Selected Answer:
$35,000
$24,500
Compute conversion costs given the following data: Direct Materials, $347,500; Direct
Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.
$374,200
$374,200
What is Cost of Goods Sold?