MBA 613 EXAM 1 QUESTIONS AND ANSWERS 100%
CORRECT RATED A+
The twentieth century saw an accelerating shift from traditional manufacturing activities to
production procedures requiring large investments in raw materials and labor. True or False? -
ANSWER False
An object to which costs are assigned is called: - ANSWER A cost object
Which procedure best describes activity-based costing? - ANSWER Overhead costs are
assigned to activities; then costs are assigned to products.
Which of the following aspects of manufacturing must be understood in order to implement
activity based costing in a production setting?
The activities that occur in the production process must be known
The cost drivers that generate activities within the production process
The production process
All of the above - ANSWER All of the above
,Activity-based costing systems tend to _____________________ high-volume, low-complexity
products. - ANSWER Accurately cost
Activity-based costing's primary benefit is that it provides: - ANSWER More precise cost data
for internal decision-making purposes
When goods are transferred from the factory to the finished goods warehouse,
Work-In-Process is reduced and Cost of Goods Sold Expense is recorded.
True or False? - ANSWER False
Partially completed goods that are in the process of being converted into a finish product are
defined as: - ANSWER Work-in-process inventories
When is the cost of manufacturing equipment recognized as an expense? - ANSWER When
finished goods inventory is sold
What are the three major components of product costs? - ANSWER Direct materials
Direct labor
Manufacturing overhead
What is the most reasonable cost driver for direct material costs? - ANSWER The quantity of
direct materials used
, Which of the following results in an increase in work-in-process inventory?
Purchasing raw materials
Finishing a job in process
Selling finished goods inventory
Using direct manufacturing labor hours - ANSWER Using direct manufacturing labor hours
Which of the following accounts increases when raw materials are used?
Work-in-Process Inventory
Finished Goods Inventory
Raw Materials Expense
Raw Materials Inventory - ANSWER Work-in-process inventory
The number of fully completed units that equates with a given number of partially completed
units is referred to as the: - ANSWER Equivalent completed units
For which of the following manufactured products would process costing be more
appropriate?
CORRECT RATED A+
The twentieth century saw an accelerating shift from traditional manufacturing activities to
production procedures requiring large investments in raw materials and labor. True or False? -
ANSWER False
An object to which costs are assigned is called: - ANSWER A cost object
Which procedure best describes activity-based costing? - ANSWER Overhead costs are
assigned to activities; then costs are assigned to products.
Which of the following aspects of manufacturing must be understood in order to implement
activity based costing in a production setting?
The activities that occur in the production process must be known
The cost drivers that generate activities within the production process
The production process
All of the above - ANSWER All of the above
,Activity-based costing systems tend to _____________________ high-volume, low-complexity
products. - ANSWER Accurately cost
Activity-based costing's primary benefit is that it provides: - ANSWER More precise cost data
for internal decision-making purposes
When goods are transferred from the factory to the finished goods warehouse,
Work-In-Process is reduced and Cost of Goods Sold Expense is recorded.
True or False? - ANSWER False
Partially completed goods that are in the process of being converted into a finish product are
defined as: - ANSWER Work-in-process inventories
When is the cost of manufacturing equipment recognized as an expense? - ANSWER When
finished goods inventory is sold
What are the three major components of product costs? - ANSWER Direct materials
Direct labor
Manufacturing overhead
What is the most reasonable cost driver for direct material costs? - ANSWER The quantity of
direct materials used
, Which of the following results in an increase in work-in-process inventory?
Purchasing raw materials
Finishing a job in process
Selling finished goods inventory
Using direct manufacturing labor hours - ANSWER Using direct manufacturing labor hours
Which of the following accounts increases when raw materials are used?
Work-in-Process Inventory
Finished Goods Inventory
Raw Materials Expense
Raw Materials Inventory - ANSWER Work-in-process inventory
The number of fully completed units that equates with a given number of partially completed
units is referred to as the: - ANSWER Equivalent completed units
For which of the following manufactured products would process costing be more
appropriate?
