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