ACCT 202 ULL Bundy Exam 2 Material Questions With
Complete Solutions
___ are costs that are expensed in the period in which they are
incurred, such as selling and administrative expenses. ___ are
found only on the income statement. Correct Answers Period
costs
___ are on the balance sheet as inventory until the product is
sold. Then the ___moves to the income statement as cost of
goods sold. Correct Answers Product Costs
___ involves measuring, recording, and reporting product costs.
Divided into job and process accounting. Correct Answers
Cost Accounting
___ provides information for internal users and reports tend to
be special-purpose reports related to specific decisions.
Information pertains to subunits of the business, and can be very
detailed, extending beyond the usual double-entry accounting to
any relevant data Correct Answers Managerial Accounting
___ recognizes that for complex manufacturing processes, the
use of a single rate can lead to significant distortions in product
costs. Therefore, ___ allocates overhead into multiple cost pools
related to a specific activity, such as ordering materials or
setting up machines. The costs in each pool are then assigned to
products on the basis of some related cost driver, such as the
number of purchase orders or the number of machine set-ups
Correct Answers Activity-Based Costing
, ___ tracks and accumulates costs by the process or department
rather than by the job or batch. We still have manufacturing
costs: Materials, Labor, and Overhead, which are accumulated
in work in process inventories - one for each department
Correct Answers Process Costing
A ___ is not an internal user Correct Answers Creditor
A process cost system wouldn't be used for a ___ Correct
Answers Music Video
A product requires processing in two departments, the baking
department and then, the packaging the department, before it is
completed. Cost completed and transferred out of the baking
department will be transferred to Correct Answers Work in
process Inventory - Packaging Department
A statement about managerial accounting which is true: Correct
Answers It is primarily for internal users such as stockholders
and managers
ABC Involved 4 Steps: Correct Answers 1. Identify and
Classify the activities involved in the manufacture of specific
products and allocate overhead to cost pools
2. Identify the cost driver most closely related to the costs
accumulated in each pool
3. Estimated overhead for each pool / estimated use of cost
drivers per activity
4. Assign overhead costs to products based on actual usage of
the cost drivers
Complete Solutions
___ are costs that are expensed in the period in which they are
incurred, such as selling and administrative expenses. ___ are
found only on the income statement. Correct Answers Period
costs
___ are on the balance sheet as inventory until the product is
sold. Then the ___moves to the income statement as cost of
goods sold. Correct Answers Product Costs
___ involves measuring, recording, and reporting product costs.
Divided into job and process accounting. Correct Answers
Cost Accounting
___ provides information for internal users and reports tend to
be special-purpose reports related to specific decisions.
Information pertains to subunits of the business, and can be very
detailed, extending beyond the usual double-entry accounting to
any relevant data Correct Answers Managerial Accounting
___ recognizes that for complex manufacturing processes, the
use of a single rate can lead to significant distortions in product
costs. Therefore, ___ allocates overhead into multiple cost pools
related to a specific activity, such as ordering materials or
setting up machines. The costs in each pool are then assigned to
products on the basis of some related cost driver, such as the
number of purchase orders or the number of machine set-ups
Correct Answers Activity-Based Costing
, ___ tracks and accumulates costs by the process or department
rather than by the job or batch. We still have manufacturing
costs: Materials, Labor, and Overhead, which are accumulated
in work in process inventories - one for each department
Correct Answers Process Costing
A ___ is not an internal user Correct Answers Creditor
A process cost system wouldn't be used for a ___ Correct
Answers Music Video
A product requires processing in two departments, the baking
department and then, the packaging the department, before it is
completed. Cost completed and transferred out of the baking
department will be transferred to Correct Answers Work in
process Inventory - Packaging Department
A statement about managerial accounting which is true: Correct
Answers It is primarily for internal users such as stockholders
and managers
ABC Involved 4 Steps: Correct Answers 1. Identify and
Classify the activities involved in the manufacture of specific
products and allocate overhead to cost pools
2. Identify the cost driver most closely related to the costs
accumulated in each pool
3. Estimated overhead for each pool / estimated use of cost
drivers per activity
4. Assign overhead costs to products based on actual usage of
the cost drivers
