ACCY 200 SB7

The difference between absorption costing and direct (or variable) costing is in the accounting for:

fixed manufacturing overhead

Assume the following data for Elite Company's assembly department for the month of December: Units completed and transferred to the finishing department 150,000 Units in process at the end of December (60 percent complete) 25,000 Calculate the assembly department's equivalent units of production for the month of December.

165,000

An example of a product cost is:

production line maintenance costs

A predetermined overhead application rate is established to apply manufacturing overhead to __________.

work in process

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

Accounting

Which of the following process steps occurs first for managers to observe costs for different organizational reference points?

Cost accumulation

Identify the cost elements reported on the statement of cost of goods manufactured.

Direct labor Manufacturing overhead Raw materials

Indirect costs describe costs that:

are not traceable to a cost object

Which of the following costs would be classified as a period cost?

Advertising expense for the product

Identify the true statements about cost accounting.

It reports the cost of goods manufactured and sold, as well as the cost of goods manufactured and not sold. It is a subset of both financial and managerial accounting.

Identify the following items that represent an increase in the Work in process inventory.

Raw material used Direct labor incurred Manufacturing overhead applied

Which of the following manufacturing environments would use a job order costing system?

Textbook printing

A predetermined overhead rate is used to:

assign indirect costs to units produced.

A cost that is not clearly traceable to a product or activity under consideration such that the cost would continue to be incurred if the product or activity were discontinued is known as a(n) _____ cost.

indirect

For a manufacturing firm, _____ costs are inventoried and treated as assets until inventory is sold while ______ costs are recorded as expense in the accounting period incurred.

product; period

Cost accounting _____.

relates primarily to the accumulation and determination of product, process, or services costs

An organization's ____ _____ is the sequence of functions and related activities that adds value for the customer over the life of a product or service.

value chain