Cost of Goods Sold is an a. unexpired product cost. b. expired product cost. c. unexpired period cost. d. expired period costThe three primary inventory accounts in a manufacturing company are a. Merchandise Inventory, Supplies Inventory, and Finished Goods Inventory. b. Merchandise Inventory, Work in Process Inventory, and Finished Goods Inventory. c. Supplies Inventory, Work in Process Inventory, and Finished Goods Inventory. d. Raw Material Inventory, Work in Process Inventory, and Finished Goods Inventory.All costs related to the manufacturing function in a company are a. prime costs. b. direct costs. c. product costs. d. conversion costsWhich of the following is not a product cost component? a. rent on a factory building b. indirect production labor wages c. janitorial supplies used in a factory d. commission on the sale of a productWhich of the following costs would be considered overhead in the production of chocolate chip cookies? a. flour b. chocolate chips c. sugar d. oven electricityA cost driver a. causes fixed costs to rise because of production changes. b. has a direct cause-effect relationship to a cost. c. can predict the cost behavior of a variable, but not a fixed, cost. d. is an overhead cost that causes distribution costs to change in distinct increments with changes in production volume.The distinction between direct and indirect costs depends on whether a cost a. is controllable or non-controllable. b. is variable or fixed. c. can be conveniently and physically traced to a cost object under consideration. d. will increase with changes in levels of activityThe indirect costs of converting raw material into finished goods are called a. period costs. b. prime costs. c. overhead costs. d. conversion costsPeriod costs a. are generally expensed in the same period in which they are incurred. b. are always variable costs. c. remain unchanged over a given period of time. d. are associated with the periodic inventory methodProduct costs are deducted from revenue a. as expenditures are made. b. when production is completed. c. as goods are sold. d. to minimize taxable incomeThe cost accounting system that would be most apt to use a single inventory account entitled Raw and In Process (RIP) would be: A. backflush costing B. process costing C. job order costing D. historical costing E. standard costingThe costs to be offset against the savings from lower work in process levels in a JIT system include all of the following, except: A. handling a larger number of small batches of work in process B. the higher probability of shutdowns due to the smaller safety stock C. the possibility that setup costs cannot be reduced enough to offset the larger number of setups D. the possibility of customer dissatisfaction due to slower response time to orders E. all of the aboveAll of the following statements apply to a JIT work cell except that: A. a cell is responsible for the entire production of a product or part B. every worker in the cell specializes in a single task C. a cell's workers may be evaluated and rewarded as a team D. all workers in a cell are responsible for product quality E. all of the above statements applyAn example of a fixed cost is a. total indirect material cost. b. total hourly wages. c. cost of electricity. d. straight-line depreciation.JIT purchasing eliminates all of the following documents, except: A. purchase requisitions B. blanket purchase orders C. receiving reports D. materials requisitions E. all of the above are eliminatedConversion cost does not include a. direct labor. b. direct material. c. factory depreciation. d. supervisors' salariesThe term "prime cost" refers to a. all manufacturing costs incurred to produce units of output. b. all manufacturing costs other than direct labor and raw material costs. c. raw material purchased and direct labor costs. d. the raw material used and direct labor costs.All of the following are obstacles to JIT purchasing, except: A. the layout of the production process B. the frequency of schedule changes C. the attitudes of purchasing agents and suppliersD. the distance from suppliers E. all of the above are obstaclesA(n) ________ cost increases or decreases in intervals as activity changes. a. historical cost b. fixed cost c. step cost d. budgeted costWhich of the following would need to be allocated to a cost object? a. direct material b. direct labor c. direct production costs d. indirect production costs
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