WorksheetsACCT 302
Total questions: 62
Worksheet time: 46mins
(a) is a variable, such as the level of activity or volume, that causally affects costs over a given time span.
3 most common cost drivers
direct labor hours
machine hours
total direct labor cost
product costs
estimated total annual MOH costs/
estimated cost driver. What is (a) ?
unique, custom products or small batches
ex: hospitals, advertising agencies
What is (a) ?
mass production, similar items
ex: refineries, cereal manufacturers.
What is (a) ?
Identify job costing examples
automobile repair shop
custom furniture builder
movie production studio
chemical manufacturer
Identify process costing examples
chemical manufacturer
paint manufacturer
custom furniture builder
automobile repair shop
What does underallocated MOH tell us?
undercosted
not enough allocated to jobs
too little expense
too much expense
What does overallocated MOH tell us?
overcosted
too much allocated to jobs
too much expense
not enough allocated to jobs
What can be conveniently and economically traced (tracked) to a cost object?
direct cost
indirect cost
material labor
variable cost
direct cost example
material
labor
cannot be conveniently or economically traced (tracked) to a cost object. Instead of being traced, these costs are allocated to a cost object in a rational and systematic manner. Generally, referred to as factory or manufacturing overhead
(a)
Identify indirect cost examples
electricity
rent
property tax
plant admin expense
Which of the following differentiates cost accounting and financial accounting?
The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers
Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.
Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions.
Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties.
Which of the following is true?
Period costs are expensed through cost of goods sold on the income statement.
Product costs are held in inventory accounts on the balance sheet before being expensed on the income statement.
Both product and period costs are used to value finished goods inventory on the balance sheet.
Both product and period costs are immediately expensed on the income statement when incurred.
Which of the following costs would be considered period rather than product cost in a manufacturing company?
Manufacturing equipment depreciation
Property taxes on corporate HQ
Materials used on the product
Electrical costs to light the production facility
Sales commissions
When 24,000 units are produced, fixed costs are $24 per unit. Therefore, when 20,000 units are produced, fixed costs will ________.
decrease to $20 per unit
remain at $24 per unit
total $480,000
increase to $29 per unit
Which of the following is an indirect cost for a car assembly plant where the cost object is the car being produced?
the bumper
the assembly line labor
the night security officer at the factory
the door panels installed on the car
Which of the following is true about the assumptions underlying basic CVP analysis?
Selling price varies with demand and supply of the product.
Only selling price and variable cost per unit are known and constant
Only selling price, variable cost per unit, and total fixed costs are known and constant
Selling price, variable cost per unit, fixed cost per unit, and total fixed costs are known and constant.
Sparkle Jewelry sells 600 units resulting in $75,000 of sales revenue, $32,000 of variable costs, and $26,000 of fixed costs. Breakeven point in units is.(Round to the nearest whole unit.)
447 units
684 units
810 units
363 units
The contribution margin income statement
reports gross margin
is allowed for external reporting to shareholders
categorizes costs as either direct or indirect
can be used to predict operating income at different levels of activity
For a company with diverse products, undercosting overhead of a product will lead to ________.
misallocating direct labor costs of the product.
misallocating direct material costs of the product
misallocating indirect costs of another product
misallocating direct costs of another product
Which of the following statements is true of activity-based costing?
In activity-based costing, direct labor-hours is always the best allocation base to allocate all non-manufacturing indirect costs
Activity based costing is more suited to companies with high product diversity than companies with single product line.
Activity based costing broadly averages or spreads the cost of resources uniformly to cost objects such as products or services.
The main advantage of activity-based costing over peanut-butter costing is the accurate distribution of all direct costs to the products.
A grouping of individual indirect cost items. Cost pools simplify the
allocation of indirect costs because the costing system does not have to allocate
each cost individually.
(a)
A systematic way to link an indirect cost or group of
indirect costs to cost objects.
(a)
Actual direct-cost rates x
actual quantities of direct-cost
inputs
Direct Cost
Actual Costing
Indirect Cost
Normal Costing
Actual indirect-cost rates x actual quantities of
cost-allocation bases
Indirect Costs
Actual Costing
Direct Costs
Normal Costing
Actual direct-cost rates x actual quantities of
direct-cost inputs
Normal Costing
Direct Costs
Indirect Costs
Actual Costing
Budgeted indirect-cost rates x actual quantities of
cost-allocation bases
Normal Costing
Actual Costing
Indirect Costs
Direct Costs
a systematic way to link an indirect cost or
group of indirect costs to cost objects. What is (a) ?
(a) have both fixed and variable elements
the band or range of normal activity level
(or volume) in which there is a specific relationship between
the level of activity (or volume) and the cost in question
(a)
Cost of fabric used on recliners
Variable Cost
Fixed Cost
Indirect Cost
Direct Cost
Salary of public relations manager for Cooper Furniture
Indirect Cost
Variable Cost
Fixed Cost
Direct Cost
Annual convention for furniture manufacturers; generally Cooper Furniture attends
Direct Cost
Indirect Cost
Variable Cost
Fixed Cost
Cost of lubricant used on the recliner assembly line
Direct Cost
Indirect Cost
Variable Cost
Fixed Cost
Freight costs of recliner frames shipped from Durham, NC to Potomac, MD
Direct Cost
Indirect Cost
Variable Cost
Fixed Cost
Electricity costs for recliner assembly line (single bill covers entire plant)
Direct Cost
Indirect Cost
Variable Cost
Fixed Cost
Wages paid to temporary assembly-line workers hired in periods of high recliner production (paid on hourly basis)
Direct Cost
Indirect Cost
Variable Cost
Fixed Cost
Annual fire-insurance policy cost for Potomac, MD plant
Fixed Cost
Variable Cost
Indirect Cost
Direct Cost
Wages (salary) paid to plant manager who oversees the assembly lines for both chair types
Fixed Cost
Variable Cost
Indirect Cost
Direct Cost
A CPA firm
job costing
process costing
An oil refinery
process costing
job costing
A custom furniture manufacturer
job costing
process costing
A tire manufacturer
job costing
process costing
A textbook publisher
job costing
process costing
A home builder
job costing
process costing
An advertising agency
job costing
process costing
A dairy
job costing
process costing
A flour mill
process costing
job costing
A paint manufacturer
process costing
job costing
A nursing home
job costing
process costing
A landscaping company
job costing
process costing
An orange juice concentrate producer
process costing
job costing
A movie studio
job costing
process costing
A law firm
job costing
process costing
A commercial aircraft manufacturer
job costing
process costing
A management consulting firm
job costing
process costing
A cell phone battery manufacturer
process costing
job costing
A catering service
job costing
process costing
A paper mill
job costing
process costing
A computer repair shop
job costing
process costing
