Cost Accounting Quiz Chap 1 and 2 * Required 1. Input your name * 2. Management accounting information focuses on external reporting. "point ‘Mark only one oval. Owe OraleeFinancial accounting is broader in scope than management accounting. 1 point Mark only one oval. Tue (False The wages of a plant supervisor would be classified as a period cost. 1 point Mark only one oval. (CO True CO False Cost accounting and cost management include calculating various costs, obtaining financial 1 point and nonfinancial information, and analyzing relevant information for decision-making, ‘Mark only one oval, (OTe OFatseConversion costs include all direct manufacturing costs. 1 point Mark only one oval. Tue >) False Financial accounting reports financial and non financial information that helps managers 1 point implement company strategies. Mark only one oval, Te False Accountants define a cost as a resource to be sacrificed to achieve a specific objective 1 point ‘Mark only one oval. © me False10. " The cost of electricity used in the production would be classified as a indirect cost. Mark only one oval. A product cost that is useful for one decision may not be useful information for another decision. Mark only one oval. > True CO False Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting. Mark only one oval. Orne ) False 1 point 1 point 1 point12. The person MOST likely to use ONLY financial accounting information is a Mark only one oval. factory shift supervisor ) vice president of operations > current shareholder ) department manager. 13, The person MOST likely to use management accounting information is a(n) ‘Mark only one oval. (> banker evaluating a credit application (> shareholder evaluating a stock investment. ) governmental taxing authority. —) assembly department supervisor. 1 point 1 point14, Financial accounting provides the PRIMARY source of information Mark only one oval. for decision making in the finishing department. for improving customer service > for preparing the income statement for shareholders. ( tor planning next year’s operating budget. 15. Which of the following statements refers to management accounting information? Mark only one oval. O There ate no regulations governing the reports —) The reports are generally delayed and historical —_) The audience tends to be stockholders, creditors, and tax authorities. It primarily measures and records business transactions. 1 point 1 point16. Cost accounting provides all EXCEPT 1 point Mark only one oval. information for management accounting and financial accounting ) pricing information from marketing studies. > financial information regarding the cost of acquiring resources. > nonfinancial information regarding the cost of operational efficiencies, 17. Indirect manufacturing costs 1 point Mark only one oval. (> can be traced to the product that created the costs (—) can be easily identified with the cost object. __) generally include the cost of material and the cost of labor. (may include both variable and fixed costs.18. _Allof the following are true EXCEPT that indirect costs Mark only one oval. may be included in prime costs. ) are not easily traced to products or services. > vary with the selection of the cost object. >) may be included in manufacturing overhead, 19. Variable costs Mark only one oval. are always indirect costs increase in total when the actual level of activity increases. include most personnel costs and depreciation on machinery. ) can always be traced directly to the cost abject. 1 point 1 point20. Which one of the following is a variable cost in an insurance company? 1 point Mark only one oval Rent ) President's salary sales commissions ) Property taxes 21. Which of the following is a fixed cost in an automobile manufacturing plant? 1 point ‘Mark only one oval. C_) Administrative salaries (> Electricity used by assembly-line machines ») Sales commissions —) windows for each car produced22. Within the relevant range, if there is a change in the level of the activity then 1 point Mark only one oval total fixed costs and total variable costs will change. ) total fixed costs and total variable costs will remain the same, > total fixed costs will remain the same and total variable costs will change. >) total fixed costs will change and total variable costs will remain the same 23. Within the relevant range, if there is a change in the level of the activity then 1 point Mark only one oval. O fined and variable costs per unit will change. —) fixed and variable costs per unit will remain the same. —) fixed costs per unit will remain the same and variable costs per unit will change. (fixed costs per unt will change and variable costs per unit will remain the same.24. Which of the following statements about the direct/indirect cost classification is NOT true? 1 point Mark only one oval. Indirect costs are always traced —) Indirect costs are always allocated, ( The design of operations affects the direct/indirect classification () The direct/indirect classification depends on the choice of cost object. 1 point 25. Classifying a cost as either direct or indirect depends upon ‘Mark only one oval. () the behavior of the cost in response to volume changes (_) whether the cost is expensed in the period in which it is incurred __) whether the cost can be easily identified with the cost object (whether an expenditure is avoidable or not in the future26. Cost behavior refers to 1 point Mark only one oval. ( how costs react to 2 change in the level of activity. ( winether a cost is incurred in a manufacturing, merchandising, or service company. ( classifying costs as either inventoriable or period costs. ( whether a particular expense has been ethically incurred. 27. When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units | point are produced Mark only one oval. variable costs will total $120,000. variable costs will total $60,000. satiable unit costs will increase to $12 per unit. variable unit costs will decrease to $3 per unit28. When 20,000 units are produced, fixed costs are $16 per unit. Therefore, when 40,000 units 1 point are produced fixed costs will: Mark only one oval. increase to $32 per unit (remain at $16 per unit eecrease to $8 per unit > total $640,00029. See below image for the question: 1 point 5) Amber Manufacturing provided the following information for last month: Sales $20,000 Variable costs 6,000 Fixed co: 9,000 Operating income $5,000 Ifsales double next month, what is the projected operating income? Mark only one oval ©) $10,000 () $25,000 ©) $19,000 () $12,00030. See below image for the question: 2points Wheel and Tire Manufacturing currently produces 1,000 tires per month. The following pee unit data apply for sales to regular customers Direct materials $20 Direct manufacturing labor 3 Variable manufacturing overhead 6 Fixed manufacturing overhead 10 Total manufacturing costs 3 The plant has capacity for 3,000 tires and is cos ‘What is the total cost of producing 2,000 tires! Mark only one oval. fering expanding production to 2,000 tires. 28,000 > s7a000 > $68,000 > $62,000 favatalSee below image for the question: Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales (o regular custom: Direct materials $50 Direct manufacturing labor 5 Variable manufacturing overhead 4 Fixed manufacturing overhead 10 Total manufacturing costs $79 The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles? Mark only one oval. ($79 per unit (3158 per unit $74 per unit 5104 per unit32. See below image for the question: Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers Direct materials Direct manufacturing labor ‘Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs The plant has capacity for 2,000 axles and is considering expanding production to 1,00 axles. What is the total cost of producing 1,500 axles? Mark only one oval. $85,000 $170,000 ($107,500 ©) $102,500 Oo 2 points33. See below image for the question 2 points Axle and Wheel Manufacturing currently produces 1,000 axles per month, The following per ‘unit data apply for sales to regular customers Direct materials $30 Direct manufacturing labor 3 ‘Variable manufacturing overhead 10 Fixed manufacturing overhead 40 Total manufacturing costs S85 The plant has capacity for 2,000 axles and is considering expanding production to 1,500 axles. What is the per unit cost when producing 1,500 axles? Mark only one oval. Coser 9 $107.50 > $85.00 aA ) $170.0034. XIAN Manufacturing produces a unique valve, and has the capacity to produce 50,000 valves 1 point annually. Currently XIAN produces 40,000 valves and is thinking about increasing production to 45,000valves next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? Mark only one oval. —) Total manufacturing costs will increase and unit manufacturing costs will stay the same. > Total manufacturing costs will increase and unit manufacturing costs will decrease, ) Total manufacturing costs will stay the same and unit manufacturing costs will stay the same. ( Total manufacturing costs will stay the same and unit manufacturing costs will decrease36. See below iage for the question 1 point The following information pertains to Alleigh’s Mannequins: Manufacturing costs $1,500,000 Units manufactured 30,000 Units sold 2 500 units sold for $85 per unit Beginning inventory O units What is the manufacturing cost per unit? Mark only one oval. $50.00 ) $50.85 CO s1765 ) $85.0036. When 100,000 units are produced the fixed cost is $20 per unit. Therefore, when 500,000 1 point units are produced fixed costs will remain at Mark only one oval. —) $20 per unit. ) $4 per unit $5 per unit ) $10 per unit37. See below image for the question: 3 points Cloud Glasses Company sells glasses that protect the wearer from supposedly dangerous ultra-blue rays emitted by clouds. The company has the following information: # Indirect materials used in products: $6,400 * Depreciation on delivery equipment: $10,200 # Gas and oil for delivery trucks: $2,200 ‘+ President's salary: $92,000 Materials used in products: $120,000 * Labor costs of assembly line workers: $110,000 © Pactory supplies used: $24,000 * Advertising expense: $25,000 © Property taxes on the factory: $45,000 * Repairs on office equipment: $1,800 © Factory utilities: $39,000 Determine the total amount of Product Cost,38. See below image for the question: 3 points Cloud Glasses Company sells glasses that protect the wearer from supposedly dangerous ultra-blue rays emitted by clouds. The company has the following information: # Indirect materials used in products: $6,400 * Depreciation on delivery equipment: $10 # Gas and oil for delivery trucks: $2,200 + President's salary: $92,000 # Materials used in products: $120,000 00 # Labor costs of assembly line workers: $110,000 + Factory supplies used: $24,000 # Advertising expense: $25,000 * Property taxes on the factory: $45,000 * Repairs on office equipment: $1,800 + Factory utilities: $39,000 Detennine the total amount of Period Cost.39. Determine the Variable Cost Per Unit 3 points Presented below are the production data forthe first six months ofthe year for the mixed costs incurred by Gallup Company. Month Cost Tanuary S480 4,100 February 4024 3.200 Maceh 6480 5300 April S840 7,500 May 5800 4800 June 73336 6,600 Gallup Company uses the high-low method to analyze mixed costs.40. Determine the Total Fixed cost 2points Presented below are the production data forthe first six months ofthe year for the mixed costs incurred by Gallup Company. Month Cost Tanuary S480 4,100 February 4024 3.200 Maceh 6480 5300 April S840 7,500 May 5800 4800 June 73336 6,600 Gallup Company uses the high-low method to analyze mixed costs. 41. ExtendedForms Id (skip this field) 00 NOT EDIT this field or your score will nt recorded, This content is neither created nor endorsed ty Google.