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Keiser ACG4342 Week 1 Quiz
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Question 1

Material amounts of underapplied or overapplied overhead should be

a. allocated to direct materials, work in process, and finished goods.

b. treated as an adjustment to cost of goods sold.

c. allocated to work in process, finished goods, and cost of goods sold.

d. treated as an adjustment to work in process.

3 points Save Answer

Question 2

Services differ from tangible products in which of the following dimensions?

a. intangibility

b. inseparability

c. perishability

d. all of the above

3 points Save Answer

Question 3

The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):

a. activity

b. system

c. cost objective

d. cost driver

3 points Save Answer

Question 4

Which of the following activities is NOT significant to the advancement of information technology?

a. theory of constraints

b. decision support systems

c. enterprise resource planning software

d. emergence of electronic commerce

3 points Save Answer

Question 5

Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system?

a. Overhead is assigned on a plant-wide rate based on direct labor hours.

b. Customer service costs are assigned to products using number of complaints as the activity driver.

c. Direct labor cost is assigned to products using direct tracing.

d. None of these.

3 points Save Answer

Question 6

Figure 3-2A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed.

Refer to Figure 3-2. What is the cost of resource usage?

a. $240,000

b. $60,000

c. $30

d. $300,000

Solution: ($300,000/20,000) × 4,000 = $60,000

3 points Save Answer

Question 7

Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?

a. financial accounting information system

b. operational control information system

c. cost accounting information system

d. all of the above

3 points Save Answer

Question 8

All of the following are unit-based activity drivers EXCEPT

a. machine hours.

b. direct labor hours.

c. number of setups.

d. number of units.

3 points Save Answer

Question 9

If overhead is a significant proportion of the unit manufacturing costs, the distortion caused by using multi-level drivers can be serious.

True

False

3 points Save Answer

Question 10

Activity attributes are nonfinancial and financial information items that describe individual activities.

True

False

3 points Save Answer

Question 11

What does a correlation coefficient near 0 mean?

a. Two variables are moving in the same direction.

b. Two variables are unrelated.

c. One variable is a good predictor of the other.

d. Two variables are moving in the opposite direction.

3 points Save Answer

Question 12

The two major subsystems of the accounting information system are the financial accounting information system and the cost management accounting information system.

True

False

3 points Save Answer

Question 13

A secondary activity is

a. an activity driver.

b. one that is consumed by the final cost object.

c. one that is consumed by intermediate cost objects.

d. the second activity on the activity list.

3 points Save Answer

Question 14

Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately.

True

False

3 points Save Answer

Question 15

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?

a. the wages paid to assembly-line production workers

b. the windshields for buses

c. the depreciation on factory building

d. the tires for buses

3 points Save Answer

Question 16

Resources are categorized as flexible, which are supplied as needed, and committed, which are supplied in advance of usage.

True

False

3 points Save Answer

Question 17

In an activity-based management system, one is NOT likely to find

a. broad flexible product costing.

b. systemwide performance maximization.

c. tracing of costs to activities.

d. only unit-based drivers.

3 points Save Answer

Question 18

Which of the following is NOT part of the financial accounting information system?

a. filing reports with the SEC

b. preparing GAAP financial statements

c. reporting a large contingent liability to current and potential shareholders

d. determining the future cash flows of a proposed flexible manufacturing system

3 points Save Answer

Question 19

Which of the following activities is NOT associated with the cost management information system?

a. preparing a cost of quality report

b. using future expected earnings to estimate the price of a share of common stock

c. determining the cost of a customer

d. preparing a performance report that compares actual costs to budgeted costs

3 points Save Answer

Question 20

The simple list of activities identified in an ABC system is called:

a. Activity inventory

b. Activity attributes

c. Activity driver

d. Activity dictionary

3 points Save Answer

Question 21

The Roan plant of the Texas Company has two production departments: Extrusion and

Assembly. The plant produces two products: P and Q. Cost information for the production departments is given below:

Extrusion $360,000

Assembly 750,000

The following table presents activity information about the departments and products:

 

Extrusion

Assembly

Total

Direct labor hours:

 

 

 

P

10,000

20,000

30,000

Q

10,000

30,000

40,000

Total

20,000

50,000

70,000

Machine hours:

 

 

 

P

5,000

1,000

6,000

Q

15,000

2,000

17,000

Total

20,000

3,000

23,000

Required:

a. Compute the predetermined overhead rate for each department if Extrusion uses machine hours and Assembly uses labor hours. (Be sure to show all work to receive full credit)

10 points Save Answer

Question 22

The following information pertains to TwinStone Industries for 2014:

Estimated total overhead costs for 2014 $37,500

Estimated direct labor costs for 2014 25,000

Actual direct labor costs 22,500

Actual overhead costs 36,000

Activity base Direct labor costs

What is the predetermined overhead rate for Stone Industries for 2014? (be sure to show all work to receive full credit)

10 points Save Answer

Question 23

Explain the relationship between the Cost Management System and the Financial Accounting System. Be sure to include the users of both systems.

 

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Keiser ACG4342 Week 1 Quiz
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  • Submitted On 20 Jun, 2017 10:19:45
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Question Question 1 Material amounts of underapplied or overapplied overhead should be a. allocated to direct materials, work in process, and finished goods. b. treated as an adjustment to cost of goods sold. c. allocated to work in process, finished goods, and cost of goods sold. d. treated as an adjustment to work in process. 3 points Save Answer Question 2 Services differ from tangible products in which of the following dimensions? a. intangibility b. inseparability c. perishability d. all of the above 3 points Save Answer Question 3 The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n): a. activity b. system c. cost objective d. cost driver 3 points Save Answer Question 4 Which of the following activities is NOT significant to the advancement of information technology? a. theory of constraints b. decision support systems c. enterprise resource planning software d. emergence of electronic commerce 3 points Save Answer Question 5 Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system? a. Overhead is assigned on a plant-wide rate based on direct labor hours. b. Customer service costs are assigned to products using number of complaints as the activity driver. c. Direct labor cost is assigned to products using direct tracing. d. None of these. 3 points Save Answer Question 6 Figure 3-2A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed. Refer ...
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