accy 200 exam 2

The inventory accounts for a manufacturing company would NOT include: Raw materials. Manufacturing overhead. Finished goods. Work-in-process.

Manufacturing overhead.

Which of the following describes the correct sequence of flow of costs for a manufacturing firm? Raw materials, work-in-process, cost of goods sold, finished goods. Work-in-process, raw materials, finished goods, cost of goods sold. Raw materials, work-in-process, finished goods, cost of goods sold. Raw materials, finished goods, work-in-process, cost of goods sold.

Raw materials, work-in-process, finished goods, cost of goods sold.

Pam and Lenny's ice cream shop charges $1.25 for a cone. Variable expenses are $0.35 per cone, and fixed costs total $1,800 per month. A "sweetheart" promotion is being planned for the second week of February. During this week, a person buying a cone at the regular price would receive a free cone for a friend. It is estimated that 400 additional cones would be sold and that 600 cones would be given away. Advertising costs for the promotion would be $120. A. Calculate the effect of the promotion on operating income for the second week of February. B. Do you think the promotion should occur?

A. B. Yes

Larry estimates that the costs of insurance, license, and depreciation to operate his car total $320 per month and that the gas, oil, and maintenance costs are 14 cents per mile. Larry also estimates that, on average, he drives his car 1,400 miles per month. A. How much cost would Larry expect to incur during April if he drove the car 1,529 miles? B. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 1,400-mile month?

A. 534.06 (1529*0.14+320) B. No, there isn't much difference is cost

The use of activity-based costing information to support the decision-making process is known as: cost-based management. value chain analysis. cost distortion analysis. activity-based management.

activity-based management.

Cost accounting is concerned with: accumulation and determination of product, process or service cost. income measurement and inventory valuation. generally accepted accounting principles. all of the answers are correct.

all of the answers are correct.

Cost of Goods Manufactured can be computed as: beginning balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied - ending balance of work in process. ending balance of work in process + raw materials purchased + direct labor costs incurred + manufacturing overhead costs applied - beginning balance of work in process. beginning balance of work in process + raw materials purchased + direct labor costs incurred + manufacturing overhead costs applied - ending balance of work in process. ending balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied - beginning balance of work in process.

beginning balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied - ending balance of work in process.

The three components of product costs are: manufacturing overhead, indirect material, indirect labor. direct material, direct labor, manufacturing overhead. direct labor, manufacturing overhead, indirect material. direct material, supervisor salaries, selling expenses.

direct material, direct labor, manufacturing overhead.

The predetermined overhead application rate based on direct labor hours is computed as: estimated total overhead costs divided by estimated direct labor hours. actual total overhead costs divided by estimated direct labor hours. estimated total overhead costs divided by actual direct labor hours. actual total overhead costs divided by actual direct labor hours.

estimated total overhead costs divided by estimated direct labor hours.

Absorption costing and direct costing differ in the treatment of: direct labor costs. fixed manufacturing overhead. selling expenses. variable manufacturing overhead.

fixed manufacturing overhead.

The manufacturing overhead component of a product's cost: can only be determined at the end of the year when actual costs and actual production quantities are known. is the sum of the actual overhead costs incurred while manufacturing the product. is likely to be the same amount for every product made by the company. includes all manufacturing costs except those for raw materials and direct labor.

includes all manufacturing costs except those for raw materials and direct labor.

Standard costs are comprised of two elements: the quantity of input and the cost per unit of input. the quality of input and the cost per unit of output. the quality of input and the cost per unit of input. the quantity of input and the cost per unit of output.

the quantity of input and the cost per unit of input.