ACC337 Review Questions 2 3 Essay

1488 Words Mar 11th, 2015 6 Pages
REVIEW QUESTIONS CHP 2,3
CHAPTER 2
True/False

____ 1. The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.

____ 2. Cost assignment is one of the key processes of the cost accounting system.

____ 3. The three methods of cost assignment are direct tracing, driver tracing, and allocation.

____ 4. Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

____ 5. Production costs are costs associated with manufacturing goods or providing services and are classified as direct materials, direct labor, and overhead.

____ 6. Costs can display
…show more content…
a.
$9,600
b.
$6,400
c.
$16,000
d.
$32,000

____ 21. Which of the following costs would be included as part of direct labor?
a.
a materials handler
b.
a cutter in the production of shelving
c.
an assembly-line supervisor
d.
a janitor

____ 22. Prime product costs include
a.
only factory overhead.
b.
only direct labor.
c.
direct labor and factory overhead.
d.
direct materials and direct labor.

____ 23. The sum of direct labor and factory overhead is referred to as
a.
period costs.
b.
conversion costs.
c.
prime costs.
d.
direct product costs.

Figure 2-11

Information from the records of the Abel Corporation for July 2014 was as follows:

Sales
$1,230,000
Selling and administrative expenses
210,000
Direct materials used
264,000
Direct labor
300,000
Factory overhead *
405,000
*variable overhead is $205,000, fixed overhead is $200,000

Inventories

July 1, 2014
July 31, 2014
Direct materials
$36,000
$42,000
Work in process
75,000
84,000
Finished goods
69,000
57,000

____ 24. Refer to Figure 2-11. The conversion cost is
a.
$960,000
b.
$1,179,000
c.
$705,000
d.
$564,000

____ 25. Refer to Figure 2-11. The prime costs are
a.
$210,000
b.
$264,000
c.
$300,000
d.
$564,000

____ 26. Refer to Figure 2-11. The variable product costs are
a.
$ 969,000
b.
$ 769,000
c.
$ 764,000
d.
$1,179,000

____ 27. Refer to Figure 2-11. The total product cost is
a.
$1,179,000
b.
$ 969,000
c.
$ 615,000
d.
$ 764,00

CHAPTER 3

____ 28. Cost behavior analysis focuses

Related Documents