intro cma week 1
As of the due date, your progress bar shows that you have completed 80% of a SmartBook assignment. After the assignment due date, you return to SmartBook and complete the remaining 20% of the assignment. What score appears on your Connect reports?
80%
activity base
A measure of whatever causes the incurrence of a variable cost. For example, the total cost of X-ray film in a hospital will increase as the number of X-rays taken increases. Therefore, the number of X-rays is the activity base that explains the total cost of X-ray film.
committed fixed costs
Investments in facilities, equipment, and basic organizational structure that can't be significantly reduced even for short periods of time without making fundamental changes.
direct material
Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.
Once you have answered all questions, click "_____" for proper grading.
Submit
Variable cost within the relevant range
Variable cost per unit remains constant in the short run regardless of the level of production. (va
raw material
any resource that can be used to make a product
All cell addresses included in a valid formula are outlined in ________.
blue
"Answered" on the question map indicates that the question ________.
has been visited but may be incomplete and/or incorrect Correct
a cost that contains both variable and fixed cost elements is a(n) ____ cost
mixed
At the top of the screen, questions 3, 4 and 5 are outlined with a chain. This indicates that ________.
questions 3, 4, and 5 are based on the same set of data
inventoriable costs
synonym for product costs
cost strucure
the relative proportion of fixed, variable, and mixed costs in an organization
in the equation Y= a +bX the b is
the slope of the line
In "Check my work" errors are marked with red X's. You click on "Check my work" and you only see green check marks, but it says "Answer is not complete" at the top. This indicates that ________.
"so far, so good." What you have entered so far is correct, but you have not yet earned full credit
Assume your professor has given you unlimited time on a specific assignment and you have completed some, but not all, of the assignment. A friend stops by and asks you to go out for a couple of hours. What should you do?
Click "Save and Exit." Then, complete the assignment and click "Submit Assignment" before the due date.
What is the address of a cell in row 22 of column F?
F22
Indirect Labor
The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced to particular products.
relevant range
The range of activity within which assumptions about variable and fixed cost behavior are valid.
finished good
consist of completed units of product that have not yet been sold to customers.
period cost
costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued (All selling and administrative expenses are treated as period costs.)
When direct materials are used in production, their costs are transferred from Raw Materials to Work in Process. Direct labor and manufacturing overhead costs are added to Work in Process to convert direct materials into finished goods. Once units of product are completed, their costs are transferred from Work in Process to Finished Goods. When a manufacturer sells its finished goods to customers, the costs are transferred from Finished Goods to Cost of Goods Sold.
notes
the third manufacturing cost category, includes all manufacturing costs except direct materials and direct labor. For example, manufacturing overhead includes a portion of raw materials know as indirect materials as well as indirect labor.
notes
SmartBook is broken into which of the following main phases?
read and practice
When you have completed a journal entry, and want to advance to the next journal entry within the problem, you click on "________."
record entry
Within the ____ ____ of activity, cost assumptions are reasonably valid.
relevant range
nonmanufacturing costs
selling costs and administrative costs
Mixed costs are also commonly known as semi-_________ costs.
semi-variable
Your instructor may enable two sources of assistance, Hints and Show Me. Which of these two will display a valid formula?
show me
period costs are always expensed on the income statement in the period in which:
they are incurred
a mixed cost has a minimum cost of having a service available and ready for use
this is a fixed portion of a mixed cost
a mixed cost has a minimum cost of having a service available and ready to use
this is a fixed portion of a mixed cost
step-variable costs (salary employees)
total cost remains constant within a narrow range of activity, total cost increases to a new higher cost for the next higher range of activity
in the equation Y= a +bX the Y is
total mixed cost
After the due date, a SmartBook assignment appears in the "Further Study" section at the bottom of my "To-Do" list.
true
After the due date, you can continue to access SmartBook to continue your studies in the chapter, but your assignment score will not reflect the additional time spent.
true
Each yellow cell requires a formula.
true
Excel functions are prebuilt formulas within Excel.
true
If available, clicking on "Hint" will take you to a video that steps you through the exact question you are working on with a different set of numbers.
true
In some cases, the financial statement headings will require additional input.
true
In some cases, your professor may allow you to check your work.
true
Once you've demonstrated mastery of a topic by answering the LearnSmart questions, the highlighting changes from yellow to green
true
Read is a pre-highlighted e-book.
true
The message "Answer is complete and correct" in "Check my work" indicates that full credit has been earned for that question.
true
The reports within SmartBook are accessed by clicking on "Menu" and then clicking on "Reports."
true
When mixed costs are represented by a straight-line, the steeper the slope, the higher the variable cost per unit.
true
When preparing journal entries, the account titles are selected using either the dropdown menu (if available) or by keying in the account titles.
true
When you have more than one account debited, you can enter them in either order without losing points.
true
You must indicate how confident you are in your answer (I Know It/Think So/Unsure/No Idea) before you submit your answer(s).
true
Your score for the SmartBook assignment is earned in the Practice section of SmartBook.
true
within the relevant range of activity fixed costs remain constant in total
true
work in process
units of product that are only partially complete and will require further work before they are ready for sale to the customer
Within the relevant range ____ costs remain constant on a per unit basis
variable
which type of cost changes in total, in direct proportion to changes in activity level?
variable
cost of goods sold for a merchandising company direct materials and commissions are all examples of
variable cost
Which of the following is a valid Excel formula?
=B17
administrative costs
All executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing or selling.
Materials that become an important component of the finished product and their cost can be easily and conveniently traced to the finished product are _________ materials.
direct (raw)
Conversion Cost
direct labor cost plus manufacturing overhead cost
selling and administrative costs are
direct or indirect cost
A fixed cost within the relevant range
does not change in total as output changes generally includes rent and supervisor salaries should not be expressed on a per unit basis when making decision
cost behavior
how a cost reacts to changes in the level of activity
product cost
All costs that are involved in acquiring or making a product. In the case of manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead.
discretionary fixed costs (managed fixed cost)
Fixed costs that are a result of annual management decisions; fixed costs that are controllable in the short run. (advertisement & manager training program)
Two days before the assignment due date, your progress bar shows that you have completed 80% of a SmartBook assignment. What score is reported on the Connect Performance Report?
Nothing, as the score is less than 100%, and the due date has not yet elapsed. Correct
Indirect Materials
Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.
Assume your professor has given you 60 minutes to complete a specific assignment. You have worked on the assignment for 45 minutes but have not yet completed the assignment. A friend stops by and asks you to go out for a couple of hours. What should you do?
Tell your friend to go away for 15 minutes!
Direct cost
a cost that can be easily and conveniently traced to a specified cost object
indirect cost
a cost that cannot be easily and conveniently traced to a specified cost object
common cost
a cost that is incurred to support a number of cost objects but that cannot be traced to them individually
Every cell highlighted in blue will ________.
accept, but not require, input Correct
selling costs
all costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer
manufacturing overhead
all manufacturing costs except direct materials and direct labor
The Concept Overview Video assignments are organized ________.
by learning objective
direct cost
can be directly accountable to a cost object. refer to materials, labor and expenses related to the production of a product.irectly accountable to a cost object
mixed cost
contains both variable and fixed cost elements
fixed costs
costs that remain constant as output changes. a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity
variable costs
costs that vary with the quantity of output produced, A variable cost is constant per unit
direct labor (touch labor)
factory labor costs that can be easily traced to individual units of product
other names for manufacturing overhead include
factory overhead, factory burden, indirect manufacturing cost
Which of the following is most likely a fixed cost?
factory rent, factory insurance, administrative salaries
Any questions missed appear in the "Self-Assessment" report.
false
Clicking on the "Read about this" icon within the Practice phase takes you back to the Outline.
false
The most important topics in the text are initially highlighted in green
false
There is only one knowledge check question associated with each video.
false
When preparing a journal entry, the credits must be listed before the debits.
false
variable costs vary ---- within the relevant range of activity
in total
Manufacturing Overhead
includes all manufacturing costs except direct materials and direct labor
product costs flow through the inventory accounts until the goods are sold, at which time they are matched against sales on the
income statement
As the level of activity moves outside of the relevant range, fixed costs:
increase or decrease in discrete steps
manufacturing overhead costs
indirect materials, factory supervisors salaries, and factory depreciation
product costs are also called
inventoriable costs
cost objective
is anything for which cost data are desired—including products, customers, and organizational subunits.
common activity bases include
machine hours, units sold & direct labor hours
Factory costs such as cleaning supplies, taxes, insurance, and janitor wages are classified as:
manufacturing overhead
The matching principle is based on the accrual concept that costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized.
note
The matching principle is based on the accrual concept that costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized. This means that if a cost is incurred to acquire or make something that will eventually be sold, then the cost should be recognized as an expense only when the sale takes place—that is, when the benefit occurs. Such costs are called product costs.
note
Although companies also incur depreciation, Page 28utility costs, property taxes, and insurance premiums to sustain their nonmanufacturing operations, these costs are not included as part of manufacturing overhead. Only those indirect costs associated with operating the factory are included in manufacturing overhead.
notes
For manufacturing companies, product costs include direct materials, direct labor, and manufacturing overhead.1 A manufacturer's product costs flow through three inventory accounts on the balance sheet—Raw Materials, Work in Process, and Finished Goods
notes
Prime Cost
the sum of direct materials cost and direct labor cost
The learning objective is at the top of each screen.
true
To see a quick overview of an assignment, click on the blue arrow on the far right-hand side of the screen.
true
Work done in SmartBook is saved and submitted automatically.
true
You can create your own practice quiz in SmartBook.
true
To review the recorded entries, click on "________."
view general journal
Units of product that are only partially complete are contained in the ____ inventory
work in progress