fin 14 quiz question 1 1 which cost is a period cost points 5 497121

Question 1.1. Which cost is a period cost? (Points : 5)

Depreciation of factory equipment

Transportation-in for raw material

Patent amortization for the company’s product

Depreciation of office equipment

Question 2. 2. (TCO 2) Which product would use job-order costing? (Points : 5)

Ink pens

Custom boot maker

Soda pop

Horse saddles

Question 3. 3. (TCO 3) In a process costing system, which would be TRUE? (Points : 5)

There is no need to use time tickets to assign costs to processes.

There is no need to track materials to processes.

A process costing system is more expensive to maintain because it has more work-in-process accounts.

All of the above

Question 4. 4. (TCO 8) A company keeps 60 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 30 days of inventory on hand, and the competitor’s carrying costs average $2,000 per day. The non-value-added costs for the company are (Points : 5)

$300,000.

$150,000.

$60,000.

$0.

Question 5. 5. (TCO 8) Which is an example of a non-value-added manufacturing activity? (Points : 5)

Assembly

Scheduling

Finishing

All of the above are value-added activities.

Question 6. 6. (TCO 1) The break-even point is (Points : 5)

the volume of activity where all fixed costs are recovered.

where fixed costs equal total variable costs.

where total revenues equal total costs.

where total costs equal total contribution margin.

Question 7. 7. (TCO 1) Lewis Production Company had the following projected information for 2010.

Selling price per unit $150

Variable cost per unit $90

Total fixed costs $300,000

Which is the break-even point in units? (Points : 5)

2,000 units

5,000 units

3,333 units

60,000 units

Question 8. 8. (TCO 7) Which cost category would most likely use the number of employees or new hires as its activity driver? (Points : 5)

Maintenance

Purchasing

Personnel

Accounting

Question 9. 9. (TCO 7) Yo Department Store incurred $8,000 of indirect advertising costs for its operations. The following data have been collected for 2013 for its three departments.

Shoes Cosmetics Crafts

Sales$120,000$100,000$100,000

Direct advertising costs $9,000$7,000 $4,000

Newspaper ad space60%20% 20%

How much of the indirect advertising costs will be allocated to the Crafts Department if newspaper ad space is the activity driver? (Points : 5)

$8,000

$1,600

$800

$6,400

Question 10. 10. (TCO 5) When budgets are used for control, (Points : 5)

budgeted amounts from different years are compared.

actual amounts from different years are compared.

budgeted amounts are compared to actual amounts.

None of the above

Question 11. 11. (TCO 5) Canceco Company produces and sells pillows. It expects to sell 10,000 pillows in the year 2014 and had 1,000 pillows in finished goods inventory at the end of 2013. Canceco would like to complete operations in the year 2014 with at least 1,250 completed pillows in inventory. There is no ending work-in-process inventory. The pillows sell for $5 each.

How many pillows would be produced in the year 2014? (Points : 5)

10,000 pillows

11,000 pillows

11,250 pillows

10,250 pillows

Question 12. 12. (TCO 4) Which is the primary difference between variable and absorption costing? (Points : 5)

Inclusion of fixed selling expenses in product costs

Inclusion of variable factory overhead in period costs

Inclusion of fixed selling expenses in period costs

Inclusion of fixed factory overhead in product costs

Question 13. 13. (TCO6) Which factor would cause an UNFAVORABLE material quantity variance? (Points : 5)

Using poorly maintained machinery

Using higher quality materials

Using more highly skilled workers

Receiving discounts for purchasing larger-than-normal quantities

Question 14. 14. (TCO 6) Which equation measures the direct labor rate variance? (Points : 5)

(SR * AH) – (SR * SH).

(AR * SH) – (SR * AH).

(AR * AH) – (SR * AH).

None of the above