成本管理会计练习chap02

Chapter 2

1. Delta Company manufactures hundreds of products. If the cost object is a product, depreciation expense on the factory building is considered indirect.

2. Direct tracing involves the use of drivers to assign costs to cost objects.

3. Expired costs are expenses.

4. Direct materials are considered a direct cost and a prime cost.

5. A functional-based management system uses unit-based and nonunit-based drivers.

6. The cost of property taxes on a factory building is generally considered a period cost.

7. Manufacturing overhead consists of all manufacturing costs.

8. An opportunity cost is the benefit forgone by selecting one alternative instead of another.

9. If cost of goods manufactured and cost of goods sold are the equal, this means that there was no change in finished goods inventory.

10. In a functional based system, costs are traced to activities and then to products.

11. Indirect costs are assigned to cost objects by: a. driver tracing b. direct tracing c. allocation d. assignment

12. Which of the following is a dimension of services? a. tangible b. inseparability c. durable d. all of the above

13. Conversion costs consist of: a. direct materials and direct labor b. direct materials and marketing costs

c. direct labor and overhead

d. direct labor and administrative costs

14. All partially completed units found in production at a given point in time is called:

a. work in process

b. raw materials

c. finished goods

d. partially processed

15. Which of the following would be considered a product cost?

a. salary of controller

b. depreciation of warehouse used for finished goods

c. insurance on factory building

d. interest expense on loan to purchase machinery

16. Which of the following activities is part of a company’s internal value chain?

a. customers

b. design

c. suppliers

d. all of the above

17. Which of the following is a characteristic of activity based cost management systems?

a. allocation intensive

b. use of financial measures of performance

c. uses unit- and nonunit-based drivers

d. focus on managing costs

18. If ending finished goods inventory is overstated,: a. net income is understated b. cost of goods sold is

overstated c. gross margin is overstated d. stockholders equity is understated

19. The Reica Company recorded the following manufacturing costs in the period just ended:

c. $49,000

d. $50,000

If gross margin is 30% of sales, the cost of goods manufactured for the year was:

a. $153,000

b. $108,000

c. $108,000

d. cannot be determined with the information given