accounting topic 5

Which of the following items would NOT be reported on the Statement of Cost of Goods Manufactured?

Contribution margin

Which of the following activities is not included in the organization's value chain?

Finance

Which of the following is more relevant to management accounting than to cost accounting?

Providing managers information for planning and control purposes

An excess of cost of goods manufactured over cost of goods sold for the period represents:

a decrease in work in process inventory.

Indirect costs pertain to costs that:

are not traceable to a cost object.

Cost of Goods Manufactured can be computed as:

beginning balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied - ending balance of work in process.

The three components of product costs are:

direct material, direct labor, manufacturing overhead.

The product cost of a single unit of manufactured production is determined by:

dividing total direct materials, direct labor, manufacturing overhead and delivery expenses for a production run by the number of units produced.

An example of a cost likely to have an indirect relationship with products being manufactured is:

electricity costs for packaging equipment.

he predetermined overhead application rate based on direct labor hours is computed as:

estimated total overhead costs divided by estimated direct labor hours.

The manufacturing overhead component of a product's cost:

includes all manufacturing costs except those for raw materials and direct labor.

An example of a direct cost in the production of a computer is:

production labor costs.

The three sections of a statement of cost of goods manufactured include:

raw material, direct labor, manufacturing overhead.

Item 10 Strategic cost management initiatives that would occur in an organization's value chain functions begins with __________blank and concludes with __________blank.

research and development, customer service

Cost accounting would best be characterized as:

serving the needs of both financial and managerial accounting.

O'Fallon Products estimates manufacturing overhead of $400,000 for 2022 and applies overhead to units produced based on 200,000 machine hours. During 2022, O'Fallon generated 195,120 machine hours and incurred $409,752 of manufacturing overhead. For 2022, O'Fallon's under/overapplied overhead is:

$19,512 underapplied.