Question 1

Manufacturing overhead includes which of the following costs? a. Fixed costs only.
B) Variable costs only.
C) Conversion costs and direct labor.
D) Variable overhead and fixed overhead.
E) Common costs and special costs.

Accepted Answer

The answer of Manufacturing overhead includes which of the following...

Question 2

In a typical production process, the physical flows for a manufacturer are: a. Work-in-Process Inventory→Material Inventory→Finished Goods Inventory→Cost of Goods Sold.
B) Material Inventory→Cost of Goods Sold→Finished Goods.
C) Material Inventory→Work-in-Process inventory→Finished Goods Inventory→Cost of Goods Sold.
D) Finished Goods Inventory→Cost of Goods Sold→Material Inventory
E) None of the above.

Accepted Answer

The answer of In a typical production process, the physical...

Question 3

Attributes that we can measure for each cost object is referred to as: a. Cost Driver.
B) Allocation Basis.
C) Cost Pool.
D) Both A and
B) e. A, B, and
C)

Accepted Answer

The answer of Attributes that we can measure for each...

Question 4

Product costs include which of the following costs? a. Manufacturing overhead costs and selling and administrative costs.
B) Variable manufacturing costs and manufacturing overhead costs.
C) Common costs and special costs.
D) Period costs and common costs.
E) Variable costs only.

Accepted Answer

The answer of Product costs include which of the following...

Question 5

The cost of direct labor in a manufacturing plant is an example of:

Accepted Answer

The answer of The cost of direct labor in a...

Question 6

Gate Grocery's most popular candy bars cost $0.50 each and sells for $0.75. Management determined that it had purchased 3,000 candy bars in February. It began February with 200 bars and had 150 remaining at the end of February. How much is cost of goods sold for February? a. $1,475
B) $2,287.50
C) $3,050
D) $1,525

Accepted Answer

The answer of Gate Grocery's most popular candy bars cost...

Question 7

Prime costs include: a. Direct material, direct labor, and manufacturing overhead.
B) Direct material and direct labor.
C) Direct labor and manufacturing overhead.
D) Direct material and manufacturing overhead.
E) Variable overhead and fixed overhead.

Accepted Answer

The answer of Prime costs include: a. Direct material, direct...

Question 8

Product costs are also referred as: a. Mixed cost.
B) Selling and administrative costs.
C) Inventoriable costs.
D) Volume cost.
E) Break-even cost.

Accepted Answer

The answer of Product costs are also referred as: a....

Question 9

The following costs were incurred in November:  Prime costs during the month totaled:

Accepted Answer

The answer of The following costs were incurred in November:...

Question 10

Office rent is an example of a (an): a. Administrative cost.
B) Product cost.
C) Conversion Cost.
D) Costs of providing product or service.
E) Direct cost.

Accepted Answer

The answer of Office rent is an example of a...

Question 11

Packaging materials is an example of: a. Fixed overhead.
B) Direct material.
C) Variable overhead.
D) Period cost.
E) Prime cost.

Accepted Answer

The answer of Packaging materials is an example of: a....

Question 12

The Peterson Company incurred the following costs in the month of May:  The company's product costs total:

Accepted Answer

The answer of The Peterson Company incurred the following costs...

Question 13

Which of the following are the inputs manufacturers use to make their product? a. Direct material, direct labor, and manufacturing overhead.
B) Period costs and product costs.
C) Conversion costs and direct labor.
D) Common costs and special costs.
E) Direct material, direct labor, and period costs.

Accepted Answer

The answer of Which of the following are the inputs...

Question 14

Product costs are also known as: a. Prime costs.
B) Conversion costs.
C) Period costs.
D) Inventoriable costs

Accepted Answer

The answer of Product costs are also known as: a....

Question 15

Prime costs are:

Accepted Answer

Prime costs refer to the direct costs involved in producing a product or providing a service, including materials and labor costs. Therefore, the answer choice that includes only materials and labor costs is the correct option.

Question 16

Which of the following includes all the components of conversion costs? a. Direct materials and direct labor.
B) Prime costs plus fixed overhead.
C) Variable overhead and fixed overhead.
D) Direct labor plus capacity costs

Accepted Answer

The answer of Which of the following includes all the...

Question 17

Billings Company's plant manager is trying to better understand his plant's inventory workflow. He determined that $10 million was spent on raw materials, $2 million on direct labor and $3 million on manufacturing overhead. If raw materials beginning and ending inventories are $2 million and $1 million, respectively, and work-in-process beginning and ending inventories are $6 million and $4 million respectively, how much is cost of goods manufactured? a. $17 million.
B) $16 million.
C) $15 million.
D) $18 million.

Accepted Answer

The answer of Billings Company's plant manager is trying to...

Question 18

Which of the following inventory equations produces the Cost of Goods Sold? a. Cost of beginning inventory + cost of goods purchased during period - cost of ending inventory.
B) Cost of ending inventory + cost of goods purchased during period - cost of beginning inventory.
C) Cost of beginning inventory - cost of goods purchased during the period.
D) Cost of ending inventory - cost of goods purchased during the period.
E) Cost of ending inventory + cost of goods purchased during the period.

Accepted Answer

The answer of Which of the following inventory equations produces...

Question 19

The cost of purchasing goods from suppliers includes all of the following costs except: a. Cost of transportation.
B) Amounts paid to suppliers.
C) Sales commissions.
D) Costs of preparing goods for sale.
E) All of the above are included in the cost of purchasing goods from suppliers.

Accepted Answer

The answer of The cost of purchasing goods from suppliers...

Question 20

Which of the following items is reported on the balance sheet prior to being expensed on the income statement as a product cost? a. Inventory.
B) Insurance.
C) Sales commissions.
D) Utility charges.

Accepted Answer

The answer of Which of the following items is reported...

Quiz 3: Cost Flows and Cost Terminology

Manufacturing overhead includes which of the following costs? a. Fixed costs only. B) Variable costs only. C) Conversion costs and direct labor. D) Variable overhead and fixed overhead. E) Common costs and special costs.

Attributes that we can measure for each cost object is referred to as: a. Cost Driver. B) Allocation Basis. C) Cost Pool. D) Both A and B) e. A, B, and C)

Product costs include which of the following costs? a. Manufacturing overhead costs and selling and administrative costs. B) Variable manufacturing costs and manufacturing overhead costs. C) Common costs and special costs. D) Period costs and common costs. E) Variable costs only.

The cost of direct labor in a manufacturing plant is an example of:

Prime costs include: a. Direct material, direct labor, and manufacturing overhead. B) Direct material and direct labor. C) Direct labor and manufacturing overhead. D) Direct material and manufacturing overhead. E) Variable overhead and fixed overhead.

Product costs are also referred as: a. Mixed cost. B) Selling and administrative costs. C) Inventoriable costs. D) Volume cost. E) Break-even cost.

The following costs were incurred in November: Prime costs during the month totaled:

Office rent is an example of a (an): a. Administrative cost. B) Product cost. C) Conversion Cost. D) Costs of providing product or service. E) Direct cost.

Packaging materials is an example of: a. Fixed overhead. B) Direct material. C) Variable overhead. D) Period cost. E) Prime cost.

The Peterson Company incurred the following costs in the month of May: The company's product costs total:

Product costs are also known as: a. Prime costs. B) Conversion costs. C) Period costs. D) Inventoriable costs

Prime costs are:

Which of the following includes all the components of conversion costs? a. Direct materials and direct labor. B) Prime costs plus fixed overhead. C) Variable overhead and fixed overhead. D) Direct labor plus capacity costs

The cost of purchasing goods from suppliers includes all of the following costs except: a. Cost of transportation. B) Amounts paid to suppliers. C) Sales commissions. D) Costs of preparing goods for sale. E) All of the above are included in the cost of purchasing goods from suppliers.

Which of the following items is reported on the balance sheet prior to being expensed on the income statement as a product cost? a. Inventory. B) Insurance. C) Sales commissions. D) Utility charges.