Final Exam

Question 1

3 types of product cost

Answer 1

Direct materials, direct labor, manufacturing overhead

Question 2

The costs of primary raw materials that are converted into finished goods.

Answer 2

Direct material

Question 3

Wages earned by production employees for time they spend working on the conversion of raw materials to finished goods.

Answer 3

Direct Labor

Question 4

All manufacturing costs other than direct materials and direct labor.

Answer 4

Manufacturing overhead

Question 5

All cost incurred in manufacturing of products; they are carried in the accounts as an asset (inventory) until the product is sold at which time they are recognized as an expense (cost of goods sold).

Answer 5

Product Cost

Question 6

Expired costs not related to manufacturing inventory; they are recognized as expenses when incurred.

Answer 6

Period Cost

Question 7

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials to finished goods.

Answer 7

Conversion Cost

Question 8

The physical ingredients and components that will be converted by machines and/or human labor into finished product.

Answer 8

Raw Materials

Question 9

The cost of inventories that are in the manufacturing process and have not yet reached completion.

Answer 9

Work in process

Question 10

The dollar amount of inventory that has completed the production process and is awaiting sale to customers.

Answer 10

Finished goods

Question 11

Raw material, WIP, finished goods

Answer 11

3 types of inventory

Question 12

Service merchandising manufacturing

Answer 12

revenue product activities

Question 13

Product or service trying to accumulate or measure a cost for.

Answer 13

Cost object

Question 14

Cost directly associated to a product; traced to object; easily identifiable.

Answer 14

Direct Cost

Question 15

Associated with cost object but cannot be traced or identified; cost allocation cannot be determined.

Answer 15

Indirected cost

Question 16

Assigns cost to object as direct or indirect.

Answer 16

Cost Assignment

Question 17

Group of indirect costs; broad or narrow; a collection of related costs, such as departmental manufacturing overhead, that is assigned to one or more cost objectives, such as products.

Answer 17

Cost Pool

Question 18

A measure of volume activity, such as direct labor hours or machine hours, that determines how much of a cost pool is assigned to each cost objective.

Answer 18

Cost Allocation Base

Question 19

Process manufacturing, job order production

Answer 19

Production methods

Question 20

A document used to track the status of and accumulate the costs for a specific job in a job cost system.

Answer 20

Job Cost Sheet

Question 21

A manufacturing environment where production is on a continuous basis.

Answer 21

Process Manufacturing

Question 22

The manufacturing of products in a single units or in batches of identical units.

Answer 22

Job Production

Question 23

A set of accounts or records that contains detailed information about the items included in the balance of one general ledger account.

Answer 23

Subsidiary ledger

Question 24

A document that contains a job’s unique identification number and specifies details for the job such as the quantity to be produced, the total raw materials requirements, the manufacturing operations and other activities to be performed, and perhaps even the time when each manufacturing operation should be performed.

Answer 24

Production order

Question 25

A document used to record the type and quantity of each raw material issued to the factory.

Answer 25

Materials Requisition Form

Question 26

The assignment of costs to services performed.

Answer 26

Job Costing