1) the total cost of direct materials, direct labor, and factory overhead transferred from
the work-in-process inventory account to the finished goods inventory account during
an accounting period is:
a.normal cost of goods sold
b.adjusted cost of goods sold
c.total manufacturing cost
d.cost of goods manufactured
e.actual cost of goods sold
2) place the following phases of the departmental approach in the correct order.
1> allocate the production department costs to products.
2> allocate service costs to the overhead costs.
3> allocate the service department costs to the production department.
4> trace all direct costs and allocate overhead costs to both the service and production
departments.
a.3,4,1,2
b.4,3,2,1
c.4,3,1
d.3,2,1
e.1,3,2
3) smith co., maker of high-quality eyewear, incurs fixed costs of $18 and variable costs
of $36 in making one unit of its matrix line of sunglasses. smith co.’s major supplier has
offered to make all 100,000 matrix sunglasses for $44 each. if smith accepts the offer of
the supplier, smith will save $4 per unit in fixed costs. based on this information, should
smith co. make or buy the sunglasses and how much will be saved?
a.smith co. should buy the sunglasses in order to save $200,000
b.smith co. should buy the sunglasses in order to save $500,000
c.smith co. should make the sunglasses in order to save $400,000
d.smith co. should make the sunglasses in order to save $300,000
4) which of the following is not a method the management accountant must address
regarding the costing system?
a.cost accumulation method
b.cost measurement method
c.labor decision method
d.overhead assignment method
5) the following costs were for optimal view inc., a contact lens manufacturer:
at an output level of 425 lenses, per unit variable cost is calculated to be:
a.$34.29
b.$48.00
c.$30.00
d.$35.56
e.$40.00
6) any product, service, or organizational unit to which costs are assigned for some
management purpose is a (n):
a.cost object
b.direct cost
c.indirect cost
d.cost driver
e.allocation base
7) east bay fisheries inc. processes king salmon for various distributors. two
departments are involved processing and packaging. data relating to tons of king
salmon processed in the processing department during june 2013 are provided below:
total equivalent units for materials under the weighted-average method are calculated to
be:
a.6,830 equivalent units
b.8,180 equivalent units
c.6,980 equivalent units
d.7,140 equivalent units
e.7,620 equivalent units
8) pearson electric company uses the high-low method to analyze mixed costs. the
following information relates to the production data for the first six months of the year.
how should the cost function be properly stated using the high-low method?
a.y = $6,025 + $2.00h
b.y = $6,520 + $3.00h
c.y = $6,085 + $2.00h
d.y = $6,250 + $3.00h
9) cleaning care inc. expects to sell 10,000 mops. fixed costs (for the year) are expected
to be $10,000, unit sales price is expected to be $12, and unit variable costs are
budgeted at $7.
cleaning care’s margin of safety (mos) in units is:
a.1,000
b.2,000
c.4,000
d.8,000
e.9,000
10) which of the following is not a consequence of lack of strategic information?
a.inability to effectively benchmark competitors
b.failure to identify most profitable products
c.inability to trace costs to individual products
d.incorrect investment decisions
11) which of the four types of cost drivers-activity-based, volume-based, structural and
executional-are often best related to linear cost estimation methods?
a.activity-based only
b.activity-based and volume-based
c.structural and volume-based
d.executional and volume-based
e.structural and executional