Cost Terminology quiz

Cost Terminology

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Conversion costs do not include :

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All of the following would be considered manufacturing overhead costs by a book publisher except :

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A firm calculates that its annual cost to hold excess goods in order to avoid any chance of running out of inventory is $50,000. This $50,000 is an example of a :

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In cost terminology, conversion costs consist of :

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Inventoriable costs :

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Which one of the following best describes direct labor ?

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The terms direct cost and indirect cost are commonly used in accounting. A particular cost might be considered a direct cost of a manufacturing department but an indirect cost of the product produced in the manufacturing department. Classifying a cost as either direct or indirect depends upon

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Many companies recognize three major categories of costs of manufacturing a product. These are direct materials, direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile ?

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A computer company charges indirect manufacturing costs to a project at a fixed percentage of a cost pool. This project is covered by a cost-plus government contract. Which of the following is an appropriate guideline for determining how costs are assigned to the pool ?

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Finley Painters Co., a painting contractor, maintains a job-order cost system. Job costs are accumulated by tracking the actual cost of paint and other materials used on each job, as well as the actual cost of wages earned by the painters on each job. In addition, overhead is applied to each job by using a predetermined rate based on the actual painters‟ wages. Leonard Wayne, painter, earned $168 today by working on Job 08-45. In computing prime cost and conversion cost for Job 08-45, how would the wages earned today by Wayne be classified ?

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Which one of the following items would not be considered a manufacturing cost ?

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Roberta Johnson is the manager of Sleep-Well Inn, one of a chain of motels located throughout the U.S. An example of an operating cost at Sleep-Well that is both direct and fixed is :

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The term “prime costs” refers to :

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Management accounting differs from financial accounting in that financial accounting is :

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A cost incurred for the benefit of more than one cost objective is :

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In a traditional manufacturing operation, direct costs would normally include :

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In practice, items such as wood screws and glue used in the production of school desks and chairs would most likely be classified as :

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Using absorption costing, fixed manufacturing overhead costs are best described as :

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Cost drivers are :

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The allocation of costs to particular cost objects allows a firm to analyze all of the following except :

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Conversion costs are :

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The allocation of general overhead costs to operating departments can be least justified in determining :

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A company experienced a machinery breakdown on one of its production lines. As a consequence of the breakdown, manufacturing fell behind schedule, and a decision was made to schedule overtime to return manufacturing to schedule. Which one of the following methods is the proper way to account for the overtime paid to the direct laborers ?

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Rose Co.‟s fixed manufacturing overhead costs totaled $150,000 and variable selling costs totaled $75,000. How should these costs be classified under variable costing ?

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Costs are allocated to cost objects in many ways and for many reasons. Which one of the following is a purpose of cost allocation ?

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A cost that always can be directly traced to a cost object is :

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Which of the following is a period cost rather than a product cost of a manufacturer ?

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Conversion cost pricing :

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