Question 1

Mitchell Company The following information has been taken from the cost records of Mitchell Company for the past year:
  Inventries‾ Beginning ‾ Ending ‾Raw Material$75$85Wotk in Process8030 Finished Goods 90110\begin{array}{ll}\underline{	ext {Inventries}}&\underline{	ext { Beginning }} &\underline{ 	ext { Ending }} \	ext {Raw Material}&\$ 75 & \$ 85 \	ext {Wotk in Process}&80 & 30 \	ext { Finished Goods }&90 & 110\end{array}Inventries​Raw MaterialWotk in Process Finished Goods ​ Beginning ​$758090​ Ending ​$8530110​  
 Refer to Mitchell Company. Direct labor cost charged to production during the year was

Accepted Answer

A)   $135.
B)   $216.
C)   $225.
D)   $360.

Question 2

A(n)  ____ cost increases or decreases in intervals as activity changes.

Accepted Answer

A)   historical cost
B)   fixed cost
C)   step cost
D)   budgeted cost

Question 3

In an actual cost system, actual production overhead costs are accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

Accepted Answer

A) True 
 B)False

Question 4

Conversion cost does not include

Accepted Answer

A)   direct labor.
B)   direct material.
C)   factory depreciation.
D)   supervisors' salaries.

Question 5

Costs that are incurred when customers complain are:

Accepted Answer

A)   prevention costs
B)   detection costs
C)   appraisal costs
D)   failure costs

Question 6

A cost object is anything for which management wants to collect or accumulate costs.

Accepted Answer

A) True 
 B)False

Question 7

A fixed cost remains constant on a per-unit basis as production changes.

Accepted Answer

A) True 
 B)False

Question 8

Prime cost consists of   direct material ‾ direct labor ‾overhead ‾\begin{array}{llcc}  \underline{	ext { direct material } }&\underline{  	ext { direct labor }} & \underline{ 	ext {overhead   }}\\end{array} direct material ​​ direct labor ​​overhead ​​

Accepted Answer

A)   no yes no
B)   yes yes no
C)   yes no yes
D)   no yes yes

Question 9

The formula to compute cost of goods manufactured is

Accepted Answer

A)   beginning Work in Process Inventory plus purchases of raw material minus ending Work in Process Inventory.
B)   beginning Work in Process Inventory plus direct labor plus direct material used plus overhead incurred minus ending Work in Process Inventory.
C)   direct material used plus direct labor plus overhead incurred.
D)   direct material used plus direct labor plus overhead incurred plus beginning Work in Process Inventory.

Question 10

Which of the following always has a direct cause-effect relationship to a cost?   Predictor ‾ Cost driver‾\begin{array}{llcc} \underline{ 	ext { Predictor } }& \underline{ 	ext {  Cost driver} }\\end{array} Predictor ​​ Cost driver​​

Accepted Answer

A)   yes yes
B)   yes no
C)   no yes
D)   no no

Question 11

Another name for inventoriable costs is ____________________ costs.

Accepted Answer

The answer of Another name for inventoriable costs is ____________________...

Question 12

Conversion of inputs to outputs is recorded in the

Accepted Answer

A)   Work in Process Inventory account.
B)   Finished Goods Inventory account.
C)   Raw Material Inventory account.
D)   both a and b.

Question 13

What is the difference between a product cost and a period cost? Give three examples of each. What is the difference between a direct cost and indirect cost? Give two examples of each.

Accepted Answer

A product cost is one that is associated...

Question 14

In an actual cost system, overhead is assigned to Work in Process Inventory with a debit entry to the account.

Accepted Answer

A) True 
 B)False

Exam 1: Cost Terminology and Cost Behaviors

In an actual cost system, actual production overhead costs are accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

Correct Answer
verified

Costs that are incurred when customers complain are:

Correct Answer
verified

What is the difference between a product cost and a period cost? Give three examples of each. What is the difference between a direct cost and indirect cost? Give two examples of each.

Correct Answer
verified
A product cost is one that is associated...
View Answer

Conversion cost does not include

Correct Answer
verified

The formula to compute cost of goods manufactured is

Correct Answer
verified

In an actual cost system, overhead is assigned to Work in Process Inventory with a debit entry to the account.

Correct Answer
verified

Which of the following always has a direct cause-effect relationship to a cost? $\begin{array}{llcc} \underline{ \text { Predictor } }& \underline{ \text { Cost driver} }\\\end{array}$

Correct Answer
verified

Another name for inventoriable costs is ____________________ costs.

Correct Answer
verified

A cost object is anything for which management wants to collect or accumulate costs.

Correct Answer
verified

Conversion of inputs to outputs is recorded in the

Correct Answer
verified

Prime cost consists of $\begin{array}{llcc} \underline{\text { direct material } }&\underline{ \text { direct labor }} & \underline{ \text {overhead }}\\\end{array}$

Correct Answer
verified

A fixed cost remains constant on a per-unit basis as production changes.

Correct Answer
verified

Correct Answer
verified

A(n) ____ cost increases or decreases in intervals as activity changes.

Correct Answer
verified

Exam 1: Cost Terminology and Cost Behaviors

In an actual cost system, actual production overhead costs are accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

Correct AnswerverifiedShow Answer

Costs that are incurred when customers complain are:

Correct AnswerverifiedShow Answer

What is the difference between a product cost and a period cost? Give three examples of each. What is the difference between a direct cost and indirect cost? Give two examples of each.

Correct AnswerverifiedA product cost is one that is associated...View AnswerShow Answer

Conversion cost does not include

Correct AnswerverifiedShow Answer

The formula to compute cost of goods manufactured is

Correct AnswerverifiedShow Answer

In an actual cost system, overhead is assigned to Work in Process Inventory with a debit entry to the account.

Correct AnswerverifiedShow Answer

Which of the following always has a direct cause-effect relationship to a cost? Predictor ‾ Cost driver‾\begin{array}{llcc} \underline{ \text { Predictor } }& \underline{ \text { Cost driver} }\\\end{array} Predictor ​​ Cost driver​​

Correct AnswerverifiedShow Answer

Another name for inventoriable costs is ____________________ costs.

Correct AnswerverifiedShow Answer

A cost object is anything for which management wants to collect or accumulate costs.

Correct AnswerverifiedShow Answer

Conversion of inputs to outputs is recorded in the

Correct AnswerverifiedShow Answer

Prime cost consists of direct material ‾ direct labor ‾overhead ‾\begin{array}{llcc} \underline{\text { direct material } }&\underline{ \text { direct labor }} & \underline{ \text {overhead }}\\\end{array} direct material ​​ direct labor ​​overhead ​​

Correct AnswerverifiedShow Answer

A fixed cost remains constant on a per-unit basis as production changes.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A(n) ____ cost increases or decreases in intervals as activity changes.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A product cost is one that is associated...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following always has a direct cause-effect relationship to a cost? $\begin{array}{llcc} \underline{ \text { Predictor } }& \underline{ \text { Cost driver} }\\\end{array}$

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Prime cost consists of $\begin{array}{llcc} \underline{\text { direct material } }&\underline{ \text { direct labor }} & \underline{ \text {overhead }}\\\end{array}$

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified