Managerial Accounting Question Paper
Chapter 2
1. Which of the following would be considered a product cost for external financial reporting purposes?
a.
Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company's facilities. c. Cost of travel necessary to sell the manufactured product.
d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines.
1. Which of the following would be considered a product cost for external financial reporting purposes?
a.
Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company's facilities. c. Cost of travel necessary to sell the manufactured product.
d. Cost of sand spread on the factory floor to absorb oil from …show more content…
A)67,300 units. B)68,820 units. C)70,520 units. D)63,900 units.
2.Black Company uses the weighted-average method in its process costing system. The company's ending work-in-process inventory consists of 5,000 units, 80% complete with respect to materials and 50% complete with respect to labour and overhead. If the total dollar value of the ending inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00, what is the cost per equivalent unit for materials? A)$5.00. B)$10.00. C)$8.00. D)$4.00.
2.Black Company uses the weighted-average method in its process costing system. The company's ending work-in-process inventory consists of 5,000 units, 80% complete with respect to materials and 50% complete with respect to labour and overhead. If the total dollar value of the ending inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00, what is the cost per equivalent unit for materials? A)$5.00. B)$10.00. C)$8.00. D)$4.00.
3.Department 2 is the second of three sequential processes. All materials are added at the beginning of processing in Department 2. During October, Department 2 reported the following …show more content…
Why may departmental overhead rates NOT correctly assign overhead costs? A) Because of the potential use of machine hours in allocating overhead costs to products rather than direct labour hours or direct labour cost. B) Because of the high correlation between direct labour hours and the incurrence of overhead costs. C) Because of the over-reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, batch size, or complexity of production. D) Because of the difficulties associated with identifying cost pools for the first stage of the allocation process.
2. A company inspects 10 finished units in every production run, regardless of how many units are produced in that run. What kind of activity is this?
• • • • A) B) C) D) unit-level activity. batch-level activity. product-level activity customer-level activity
2. A company inspects 10 finished units in every production run, regardless of how many units are produced in that run. What kind of activity is this?
• • • • A) B) C) D) unit-level activity. batch-level activity. product-level activity customer-level activity
3. Which of the following is least likely to be classified as an organization sustaining activity in an activity based costing system?
A) B) plant maintenance property taxes
C) machine processing costs D)plant
1. Which of the following would be considered a product cost for external financial reporting purposes?
a.
Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company's facilities. c. Cost of travel necessary to sell the manufactured product.
d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines.
1. Which of the following would be considered a product cost for external financial reporting purposes?
a.
Cost of a warehouse used to store finished goods. b. Cost of guided public tours through the company's facilities. c. Cost of travel necessary to sell the manufactured product.
d. Cost of sand spread on the factory floor to absorb oil from …show more content…
A)67,300 units. B)68,820 units. C)70,520 units. D)63,900 units.
2.Black Company uses the weighted-average method in its process costing system. The company's ending work-in-process inventory consists of 5,000 units, 80% complete with respect to materials and 50% complete with respect to labour and overhead. If the total dollar value of the ending inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00, what is the cost per equivalent unit for materials? A)$5.00. B)$10.00. C)$8.00. D)$4.00.
2.Black Company uses the weighted-average method in its process costing system. The company's ending work-in-process inventory consists of 5,000 units, 80% complete with respect to materials and 50% complete with respect to labour and overhead. If the total dollar value of the ending inventory is $60,000 and the cost per equivalent unit for labour and overhead is $8.00, what is the cost per equivalent unit for materials? A)$5.00. B)$10.00. C)$8.00. D)$4.00.
3.Department 2 is the second of three sequential processes. All materials are added at the beginning of processing in Department 2. During October, Department 2 reported the following …show more content…
Why may departmental overhead rates NOT correctly assign overhead costs? A) Because of the potential use of machine hours in allocating overhead costs to products rather than direct labour hours or direct labour cost. B) Because of the high correlation between direct labour hours and the incurrence of overhead costs. C) Because of the over-reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, batch size, or complexity of production. D) Because of the difficulties associated with identifying cost pools for the first stage of the allocation process.
2. A company inspects 10 finished units in every production run, regardless of how many units are produced in that run. What kind of activity is this?
• • • • A) B) C) D) unit-level activity. batch-level activity. product-level activity customer-level activity
2. A company inspects 10 finished units in every production run, regardless of how many units are produced in that run. What kind of activity is this?
• • • • A) B) C) D) unit-level activity. batch-level activity. product-level activity customer-level activity
3. Which of the following is least likely to be classified as an organization sustaining activity in an activity based costing system?
A) B) plant maintenance property taxes
C) machine processing costs D)plant