Accounting Exam 4 – Flashcards

The cost of a manufactured product generally consists of which of the following costs?

The cost of materials entering directly into the manufacturing process is classified as:

Which of the following is an example of a direct materials cost for an automobile manufacturer?

If the cost of direct materials is a small portion of total production cost, it may be classified as part of:

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as:

Which of the following is FALSE in regards to direct materials for an auto manufacturer?

Which of the following is an example of direct labor cost for an airplane manufacturer?

Which of the following is considered a part of factory overhead cost?

The following are all product costs EXCEPT:

Which of the following is an example of a factory overhead cost?

Which of the following items would NOT be classified as a part of factory overhead?

Which of the following items would NOT be classified as part of factory overhead?

Compute factory overhead from the following costs: Depreciation on Factory buildings: $20,000 Depreciation on office Equipment: 20,000 Direct materials used: 70,000 Indirect labor: 3,000

Which of the following manufacturing costs is an indicated cost of producing a product?

Which of the following are two main types of cost accounting systems for manufacturing operations?

For which of the following businesses would the job order cost system be appropriate?

Which of the following would most likely use a job order costing system?

For which of the following businesses would the process cost system be appropriate?

Which of the following costs are NOT included in finished goods inventory?

The document authorizing the issuance of materials from the storeroom is the:

Which of the following products probably would be manufactured using a job order costing system?

In a job order costing system, the effect of the flow of direct materials into production is to:

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of materials from the materials account to:

Job order costing and process costing are:

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a:

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on:

Which of the following is NOT true about why a service firm will use the job order costing system?

The basis for recording direct and indirect labor costs incurred is a summary of the period's:

Recording direct labor costs in a job order cost accounting system:

Increases in work in progress account occur when:

At the end of the fiscal year, the balance of Factory Overhead is small. This balance would normally be:

Each account in the work in progress subsidiary ledger is called a:

The recording of the factory labor incurred for general factory use would increase:

The recording of the application of factory overhead costs to jobs would decease:

The recording of jobs completed would increase:

The recording of the hobs completed would decrease:

The recording of the jobs shipped and customers billed would increase:

The finished goods account is the controlling account for the:

The Cranford Company forecasts that the total overhead for the current year will be $15,000,000 and that the total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the Crawford Company uses a predetermined overhead rate based on machine hours for applying overhead, what is the overhead rate?

Bell Manufacturers Inc. has estimated total factory overhead costs of $60,000 and 10,000 direct labor ours for the current fiscal year. If job number 117 incurred 2,000 direct labor hours, the work in progress account will be increased and factory overhead will be decreased for:

When job 771 was completed, direct materials totaled $3,000; direct labor, $3,500 and factory overhead, $1,500. Units produced totaled 1,000. Unit costs are:

Cambridge Corporation applied factory overhead costs of $205,000 to production during the current year. At the end of the year, total overspilled factory overhead is $17,000. What was the amount of actual factory overhead cost incurred during the year?

Hudson, Inc. has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year. If direct labor hours for Job N41 total 1,500, calculate applied factory overhead applied to this job:

Hudson, Inc. has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year. If direct labor hours for the year total 18,000 and actual factory overhead totals $350,000, what is the amount of overspilled or underpaid overhead for the year?

The sale of a finished good on account:

Products costs include all of the following EXCEPT:

Which of the following would most likely be a period cost?

Period costs include all of the following EXCEPT:

The period costs of a textbook printer would include:

Which types of inventories does a manufacturing business report on its balance sheet?

Costs that are treated as assets until the product is sold are called:

The Crawford Company forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $4,000,000 and the actual machine hours are 100,000 hours. If the Crawford Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by:

At the end of the year, overhead applied was $35,000,000. Actual overhead was $35,000,000. Closing over/under applied overhead into cost of goods sold would cause net income to:

Which of the following would most likely be a product cost?

For a manufacturing business, inventory that is in the process of being manufacturer is referred to as:

Job cost sheets can provide information to managers for all but which of the following?

A difference in quantity of materials used on two comparable jobs may be caused by:

Which of the following would probably NOT be found in the accounting system of a service provider?

In a job order cost accounting system used by a service business, which of the following items would normally NOT be included as part of overhead?

The direct labor an overhead costs of providing services to clients are accumulated in:

Just-in time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality. One of the ways in which this is accomplished in manufacturing and non manufacturing processes is by:

A disadvantage of maintaining high inventory levels includes:

Which of the following statements is TRUE regarding lead time?

Just-in-time manufacturing uses which of the following techniques?

Pull manufacturing is driven by which of the following?

Just-in-time manufacturing practices include all of the following EXCEPT:

An activity-based costing system allocates factory overhead rates to products or services using:

Heedy Winery accumulates the costs incurred in the labeling process in an activity cost pool. Costs for the labelling process are estimated to be $320,000 for the coming year, and the winery expects to generate 640,000 labels. Production for its top-selling wine is estimate at 160,000 bottles. How much overhead from the labeling process will be allocated to this particular variety of wine?

Cost behavior refers to the manner in which:

Costs that remain constant on a per-unit level as the level of activity changes are called:

Which of the following graphs illustrates the behavior of a total fixed cost?

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

Which of the following describes the behavior of the variable cost per unit?

which of the following activity bases would be the most appropriate for food cost of a hospital?

Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service such as UPS?

Costs that vary in total in direct proportion to changes in an activity level are called:

Which of the following is an example of a cost that varies in total as the number of units produced changes?

Which of the following is an example of a cost that varies in total as the number of units produced changes?

As production increases, what would you expect to happen to fixed costs per unit?

Which of the following statements is TRUE regarding fixed and variable costs?

Which of the following graphs illustrates the behavior of a total variable cost?

The graph of a variable cost when plotted against its related activity base appears as a:

Which of the following describes the behavior of the fixed cost per unit?

Knowing how costs behave is useful to management for all of the following reasons EXCEPT:

which of the following graphs illustrates the nature of a mixed cost?

Which of the following costs is a mixed cost?

As production increases, what should happen to the variable costs per unit?

Winston Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 desks at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs are:

For purposes of analysis, mixed costs are generally:

Tucker Co. manufactures office furniture. During the most productive month of the year, 3,600 desks were manufactured at a total cost of $192,999. In its slowest month, the company made 1,200 desks at a cost of $72,000. Using the high-low method of cost estimation, total fixed costs per month are:

The systematic examination of the relationships among selling prices, volume of sales and production, costs, expenses, and profits is termed:

In cost-volume-profit analysis, all costs are classified into the following 2 categories:

the contribution margin ratio is

which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

variable costs as a percentage of sales for Leamon Inc. are 74%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $50,000?

If sales are $820,000 variable costs are 68% of sales, and operating income is $260,000, what is the contribution margin ratio?

A firm operated at 90% of capacity for the past year during which fixed costs were $320,000, variable costs were 60% of sales, and sales were $1,200,000. Operating profit was:

If sales are $200,000, variable costs are 56% of sales, and operating income is $30,000, what is the contribution margin ratio?

Wiles Inc.'s unit selling price is $40, the unit variable costs are $30, fixed costs are $135,000 and current sales are 10,000 units. How much will operating income change if sales increases by 5,000 units?

If fixed costs are $850,000 and variable costs are 70% of sales, what is the break-even point (in dollars)?

If fixed costs are $250,000, the unit selling price is $105 and the unit variable costs are $65, what is the break-even sales (in units)?

If fixed costs are $750,000 and variable costs are 55% of sales, what is the break-even-point (in dollars)?

If fixed costs are $350,000 the unit selling price is $75, and the unit variable costs are $30, what is the break even sales (in units)

If fixed costs are $810,000 the unit selling price is $60 and the unit variable costs are $48, what is the break-even-sales (in units) if the variable costs re increased by $2?

If fixed costs are $810,000, the unit selling price is $60, and the unit variable costs are $48, what is the break-even sales (in units) if fixed costs are reduced by $50,000?

If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50 what are the old and new break even sales (in units) if the unit selling price increases by $5?

Snower Corporation sells product G for $150 per unit, the variable cost per unit is $105, the fixed costs are $720,000 and Snower is in th 25% corporate tax bracket. Where are the sales (in dollars) required to earn a new income (after tax) of $40,000?

If fixed costs are $850,000 and the unit contribution margin is $90, what amount od units must be sold in order to have a zero profit

if fixed costs are $600,000 and the unit contribution margin is $12, what amount of units must be sold in order to realize an operating income of $100,000?

If fixed costs are $500,000 and the unit contribution margin is $40, what is the break-even-point in units if fixed costs are reduced by $80,000?

If fixed costs are $561,000 and the unit contribution margin is $10, what is the break-even point in units if variable costs are decreased by $.50 per unit?

If variable cost per unit increased because of an increase hourly wage rates, the break-even point would:

If variable costs per unit decreased because of a decrease in utility rates, the break-even point would:

Which of the following conditions would cause the break-evenpoint to decrease?

which of the following conditions would cause the break-even point to increase?

which of the following conditions would cause the break-even point to increase?

Rouney Co. gas budgeted salary increases to factory supervisors totaling 10%. If selling prices and all other cost relationships are held constant, next year's break-even point will:

If the contribution margin ratio for Harrison Company is 38%, sales were $425,000 and fixed costs are $100,000 what was the income from operations?

The point where the sales line an the total costs line intersect on the cost-volume-profit chart represents:

The point where the profit line intersects the horizontal axis on the profit-volume chart represents:

With the aid of computer software, managers can vary assumptions regarding selling prices, costs, and volume and can immediately see the effects of each change on the break even point and profit. such an analysis is called:

The point where the profit line intersects the left vertical axis on the profit volume chart represents:

clinton co. has an operating leverage of 4. sales are expected to increase by 8% next year. operating income is:

Assume that Crowson Co. sold 8,000 units of Product A and 2,00 units of Product B during the past year. The unit contribution margins for Product A and B are $20 and $45, respectively. Crown has fixed costs of $350,000. The break-even point in units is:

the relative distribution of sales among the various products sold by a business is termed the:

When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as the number of products does not exceed:

If a business had sales of 4,000,000, fixed costs of $1,200,000 a margin of safety of 25% and a contribution margin ratio of 40%, what was the break even point?

If a business had sales of $4,000,000 and a margin of safety of 25%, what was the break even point?

If a business had a capacity of $10,000,000 of sales, actual sales of $6,000,000, bak-even sales of $4,500,000, fixed costs of $1,800,000, and variable costs of 60% of sales, what is the margin of safety expressed as a percentage of sales:

If sales are $300,000, variable costs are 60% of sales, an operating income is $40,000, what is the operating leverage?

The difference between the current sales revenue and the sales at the break-even point is called the:

Cost-volume-profit analysis cannot be used if which of the following occurs: