B1 - 3rd HW? Flashcards
Which of the following types of costs are prime costs (all that apply):
Direct materials, direct labor, overhead
Direct Materials and Direct labor only
Which o the following costs would decrease if production levels were increased w/in the relevant range? (choose 1)
Total variable costs, total fixed costs, variable costs per unit, fixed costs per unit
fixed costs
Which of the following topics is the focus of managerial accounting?
Financial statements and other financial reports, historcial cost principals, the needs of creditors, the needs of the organization’s internal parties
The needs of the organizations internal parties.
Which of the following is true about activity-based costing?
it should not be used with process or job costing, it can be used with either process or job costing, it can be used only wiht process costing, it can be used only wiht job costing
It can be used with either process or job costing.
A mfg company has several product lines. Traditionally it has allocated mfg OH costs b/w product lines based on total machine hours for each product line. Under a new ABC system which of the following OH costs would most likely have a new cost driver assigned to it?
Options: Electricity, depreciation, repair and maintenance, employee benefits
employee benefits expense - ABC seeks to assign OH costs in a manner that identifies consumption of resources. Employee salaries or even head count are more appropriate cost drivers than machine hours for employee benefits expense. Machine hours would be more likely identified as a cost driver for electric, R&M, and depreciation
What do product (inventoriable) costs in clude?
direct labor, direct material, applied overhead
If a product requred a great deal of electricity to produce, and crude oil prices increased, which of the following costs most likely increased?
Options: conversion, direct materials, prime costs, direct labor
Conversion Costs
ABC causes which allocation basis to increase?
Cost pools, allocation bases, or both
BOTH
Conversion cost pricing:
could be used when the customer furnishes the material used in manufacturing a product
Conversion costs do not include:
options: direct labor, indirect labor, indirect materials, direct materials
Direct materials - conversion costs concist of direct labor and overhead
Weighted average and FIFO equivalent units would be the same in a period when which of the following occurs?
No beginning inventory, no ending inventory, beg inventory exceeds 50% complete, beginning inventory EU are less than 50% complete
no beginning inventory exists
