MBA 526- Questions With All Correct Answers
Selling Costs correct answer -The costs associated with securing and filling
customers orders.
Is required by GAAP for external reporting purposes. Inventory costs include
direct materials, direct labor, variable overhead, and fixed overhead. correct
answer -Full (absorption) Costing
Activity-based costing correct answer -Assigns overhead costs to products
using a number of different allocation bases.
Overapplied overhead correct answer -Actual overhead costs are less than
applied overhead.
Job Cost Sheet correct answer -A form used to accumulate the product
costs of each job.
Process costing system correct answer -Used by companies that produce
large quantities of identical items.
Cost Driver correct answer -The activity used as the basis for developing
an overhead rate.
Manufacturing costs correct answer -Consists of direct material, direct
labor, and overhead.
Direct labor correct answer -Represents cost of workers directly involved
in the production of a job.
Period Costs correct answer -Costs that are expensed as incurred.
Job-order costing system correct answer -Used by companies that produce
individual products or batches of products that are unique
Just-in-time manufacturing correct answer -Involves minimizing inventory
levels
, Underapplied overhead correct answer -When actual overhead exceeds
applied overhead
Cost of goods manufactured correct answer -The cost of the jobs
completed during the period. These costs are summarized on the Schedule of
Cost of Goods Manufactured.
Indirect labor cost correct answer -Includes the cost of production
supervisors
Product cost correct answer -Is not expensed until the related product is
sold
Cost Pool correct answer -Consists of the cost of a major activity
Manufacturing overhead correct answer -Focuses on eliminating waste
throughout the value chain
Allocation base correct answer -A characteristic used to develop the
overhead allocation rate
Lean Manufacturing correct answer -The overhead cost that flows into
work in process. Focuses on eliminating waste in value chain
Which of the following is not a product cost? correct answer -Depreciation
on finished goods warehouse
Which of the following is not a period cost? correct answer -Overtime
premium
GAAP requires that inventories and cost of goods sold be reported at full cost.
Which of the following is defined as full cost? correct answer -Direct
materials, Direct labor, and Total overhead
The schedule of cost of goods manufactured is an analysis of which account?
correct answer -Work In Process
Which of the following companies would use a job-order costing system?
correct answer -Construction
Selling Costs correct answer -The costs associated with securing and filling
customers orders.
Is required by GAAP for external reporting purposes. Inventory costs include
direct materials, direct labor, variable overhead, and fixed overhead. correct
answer -Full (absorption) Costing
Activity-based costing correct answer -Assigns overhead costs to products
using a number of different allocation bases.
Overapplied overhead correct answer -Actual overhead costs are less than
applied overhead.
Job Cost Sheet correct answer -A form used to accumulate the product
costs of each job.
Process costing system correct answer -Used by companies that produce
large quantities of identical items.
Cost Driver correct answer -The activity used as the basis for developing
an overhead rate.
Manufacturing costs correct answer -Consists of direct material, direct
labor, and overhead.
Direct labor correct answer -Represents cost of workers directly involved
in the production of a job.
Period Costs correct answer -Costs that are expensed as incurred.
Job-order costing system correct answer -Used by companies that produce
individual products or batches of products that are unique
Just-in-time manufacturing correct answer -Involves minimizing inventory
levels
, Underapplied overhead correct answer -When actual overhead exceeds
applied overhead
Cost of goods manufactured correct answer -The cost of the jobs
completed during the period. These costs are summarized on the Schedule of
Cost of Goods Manufactured.
Indirect labor cost correct answer -Includes the cost of production
supervisors
Product cost correct answer -Is not expensed until the related product is
sold
Cost Pool correct answer -Consists of the cost of a major activity
Manufacturing overhead correct answer -Focuses on eliminating waste
throughout the value chain
Allocation base correct answer -A characteristic used to develop the
overhead allocation rate
Lean Manufacturing correct answer -The overhead cost that flows into
work in process. Focuses on eliminating waste in value chain
Which of the following is not a product cost? correct answer -Depreciation
on finished goods warehouse
Which of the following is not a period cost? correct answer -Overtime
premium
GAAP requires that inventories and cost of goods sold be reported at full cost.
Which of the following is defined as full cost? correct answer -Direct
materials, Direct labor, and Total overhead
The schedule of cost of goods manufactured is an analysis of which account?
correct answer -Work In Process
Which of the following companies would use a job-order costing system?
correct answer -Construction
