accounting topic 5 quiz
product cost of a single unit of manufactured production is determined by
adding total direct materials, direct labor, manufacturing overhead for a production run and then dividing by # of units produced.
an access of cost of goods manufactured over cost of goods sold for the period represents
an increase in finished goods iinventory
which would not be reported on the statement of cost of goods manufactured
contribution margin
3 components of product costs
direct material, direct labor, manu overhead
A cost that has an indirect relationship with computers being produced is
electricity costs for packaging equipment
an example of a cost likely to have an indirect relationship with products being manufactured is
electricity costs for packaging equipment
The 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 manufactured costs except those for raw materials and direct labor.
which of the following are associated with the cost assignment classifications?
indirect cost, direct cost
Indirect cost
not traceable to a cost object
Cost Management
process of using cost information to assess and manage the activities of an organization is known as cost management
3 sections of a statement of cost of goods manufactured include
raw material, direct labor, manufacturing overhead
a cost that has a direct relationship with products being produced is
raw materials for a specific product
Cost accounting
relates primarily to the accumulation and determination of product, process or services costs - plays a role in inventory valuation and income measurement
cost accunting would be best characterized as
serving the needs of both financial and mangemenrial accounting
cost accumulation
the process of collecting and recording transaction data through the accounting information system
Cost Pooling
total amount of cost accumulated by the accounting info system is logically categorized by different objects
which is not included in organization's value chain?
Accounting
which of following costs would be classified as a period cost?
Advertising expense for the product.
which of the following process steps occur first for managers to observe costs for differnet organizational reference points ?
Cost Accumulation
What is the primary focus of cost accounting?
Cost accumulation and assignment
which is not included in organization's value chain
Finance
Cost that is not traceable
Indirect cost
Which is more relevant to management accounting then to cost accounting?
Providing managers information for planning and control purposes
Cost Assignment:
The process of attributing an appropriate amount of cost in the cost pool to each subject
which of the following are associated with cost behavior classification?
Variable Cost, Mixed Cost
an example of a direct cost in production of a computer is
a production labor costs
Lean Accounting
a system that focuses on product or process cost accumulation by element of the value chain is known as - focuses on product + process cost accumulation - reflects requirement to have relevant cost data
The term "costs" means
- Price paid for maintenance supplies - salary paid to a superior - price changed by an accounting firm for its audit services
Examples of product cost that would be classified as manufacturing overhead
- depression expense for factory building - factory maintenance - electricity for factory machines - production managers salary
which of the following are elements of a product's cost for a manufacturing firm?
- human production effort - Ingredients - production machine support
