Ch 2 An Introduction to Cost Data
What is used by most organizations to store data in separate tables and facilitate access to datasets that are related to one another?
a relational database
When a cost is assigned to a work package and activity, it is a project Blank______ cost.
direct
An example of a variable cost is Blank______
direct labor used to manufacture the product
Which of the following are most likely fixed costs?
factory insurance administrative salaries factory rent
An example of a fixed cost is Blank______.
factory rent expense
Which system measures the input of financial transactions to generate financial statements?
financial reporting system
Allocation is used for Blank______.
indirect costs only
Cost accumulation begins with defining the cost _blank_.
objects
A system that captures transactional data regarding sales, inventory, and payment method when a sale takes place is known as a(n) Blank______ system.
point-of-sale
Which component of a relational database includes data that is organized into columns and rows?
tables
A point-of-sale enables Blank______.
the capture of transactional data regarding sales, inventory, and payment method when a sale takes place
A cost that changes in total, both directionally and proportionately within the relevant range is a Blank______ cost.
variable
Which of the following statements are true regarding direct costs?
A regional sales manager's salary would be a direct cost of the regional office in which the sales manager works. A direct cost can be easily and conveniently traced to a specific cost object.
______ enable employees throughout the system to take ownership of their piece of the supply chain and to accurately communicate order status both to the customer and among themselves.
ERP systems
A cost that can be easily and conveniently traced to a specific cost object is a(n) __ cost of that cost object, whereas costs that cannot be easily and conveniently traced to that specific cost object are __ costs.
Field 1: direct or product Field 2: indirect, common, or period
The __ __ __ system manages much of the logistics and other processes for many firms. (Spell out your answers; do not use abbreviations.)
Field 1: enterprise Field 2: resource Field 3: planning
Any item for which cost data is desired is called a cost __
Field 1: object or objects
How will fixed costs and variable costs be affected by an increase in the level of output?
Fixed costs will remain constant, while variable costs will increase.
If you need software that enables you to best visualize your data, which of the following offer the best two options?
Tableau and Power BI
Product costs have which of the following characteristics?
They "attach" to units of product as they are purchased for resale or produced. They may consist of inventory purchased for resale.
Cost objects include products, customers, or jobs.
True
Which of the following statements are true about product costs?
What gets categorized as product costs differs substantially between companies. Product costs "attach" to units of product as they are purchased or produced.
What is a fixed cost?
a cost that remains constant (does not change) regardless of the level of output
The process of identifying and combining all of the costs involved in manufacturing a product or providing a service is called cost _blank_.
accumulation
Cost objects include Blank______.
customers organizational segments anything for which cost data is desired
Tableau and Power BI are powerful software tools for data analysis. Their biggest advantage over Excel is which of the following?
data visualization
A(n) Blank______ stores and tracks characteristics of different entities, including details about customers, sales transactions, vendors, employees, and suppliers.
database
What maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)?
database
Costs that can be easily and conveniently traced to a specific product are called Blank______ costs.
direct
Types of cost assignment include Blank______.
direct tracing cost allocation
The systems that manage much of the logistics and other processes for many firms are called Blank______ systems.
enterprise resource planning
Which system captures and measures financial transactions and communicates financial performance to interested parties?
financial reporting system
Which of the following are related to a cost object but not easily or clearly traceable to it?
indirect costs
Direct costs on a project include which of the following?
labor materials
Which costs change based on the number of units of the cost object produced?
variable
Direct labor and materials are also known as Blank______.
variable costs
