MBA 613 Exam 1 Questions and Answers Latest Update

MBA 613 Exam 1 Questions and Answers Latest Update 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? - Answers False An object to which costs are assigned is called: - Answers A cost object Which procedure best describes activity-based costing? - Answers 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 - Answers All of the above Activity-based costing systems tend to _____________________ high-volume, low-complexity products. - Answers Accurately cost Activity-based costing's primary benefit is that it provides: - Answers 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? - Answers False Partially completed goods that are in the process of being converted into a finish product are defined as: - Answers Work-in-process inventories When is the cost of manufacturing equipment recognized as an expense? - Answers When finished goods inventory is sold What are the three major components of product costs? - Answers Direct materials Direct labor Manufacturing overhead What is the most reasonable cost driver for direct material costs? - Answers 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 - Answers 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 - Answers 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: - Answers Equivalent completed units For which of the following manufactured products would process costing be more appropriate? Special order printing Modular homes Luxury liners Nylon fiber production - Answers Nylon fiber production All of the following costs are included in inventory under absorption costing except: Direct labor Variable selling expenses Fixed manufacturing expenses Direct materials - Answers Variable selling expenses For which of the following products would job order costing be least likely to be used? Residential building Mortgage loan processing Textbook printing