Cost Behavior Analysis Quiz

False (B)

semivariable costs

<p>variable</p> Signup and view all the answers

<p>Mixed cost (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>salaried employee compensation</p> Signup and view all the answers

<p>Step-variable costs = Costs that increase in discrete steps and can be adjusted quickly Step-fixed costs = Costs that remain fixed within a wide relevant range Mixed costs = Costs containing both variable and fixed cost elements Variable costs = Expenses that change in proportion to the company's activity</p> Signup and view all the answers

<p>A cost that has already been incurred and cannot be undone (C)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Traditional and contribution format income statements</p> Signup and view all the answers

<p>non-value-added</p> Signup and view all the answers

<p>Traditional income statement = External reporting purposes Contribution format income statement = Internal management purposes</p> Signup and view all the answers

<p>Because the original cost is irrecoverable and should not influence current decisions (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Identifying the needs of management and classifying costs accordingly</p> Signup and view all the answers

<p>To apply overhead costs to jobs throughout the period (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>overhead application</p> Signup and view all the answers

<p>predetermined</p> Signup and view all the answers

<p>Variable manufacturing overhead = Costs that change with the volume of direct labor hours used Normal costing = Applying overhead based on a predetermined rate Direct labor-hours = Measure of labor used in manufacturing Fixed manufacturing overhead = Costs that do not change with production volume</p> Signup and view all the answers

<p>27 DLHs (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>$20 per direct labor-hour</p> Signup and view all the answers

<p>$2,485 (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>75%</p> Signup and view all the answers

<p>activity-based</p> Signup and view all the answers

<p>Job-order costing = Used to create a balance sheet and income statement for external parties Departmental overhead rates = Results in a different selling price for jobs compared to plantwide rates Activity-based costing = Measures demands made on overhead resources by jobs and products</p> Signup and view all the answers

<p>Management planning and decision-making (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>They provide a more accurate accounting of costs caused by jobs.</p> Signup and view all the answers

<p>Did a good job managing the costs. (B)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>Actual overhead costs</p> Signup and view all the answers

<p>underapplied</p> Signup and view all the answers

<p>Overhead cost applied to Work in Process is greater than the actual overhead cost. (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Dividing estimated overhead costs by estimated activity. (B)</p> Signup and view all the answers

<p>Underapplied Overhead = Occurs when actual overhead is greater than applied overhead. Overapplied Overhead = Occurs when applied overhead is greater than actual overhead. Predetermined Overhead Rate = Used to apply overhead costs to products or jobs. Allocation Base = A measure of activity used to assign overhead costs.</p> Signup and view all the answers

<p>$158 (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Direct materials, direct labor, manufacturing overhead</p> Signup and view all the answers

<p>0</p> Signup and view all the answers

<p>Cost of Goods Manufactured = $158,000 Unadjusted Cost of Goods Sold = $118,500 Ending Finished Goods Inventory = $39,500 Underapplied Overhead = $5,000</p> Signup and view all the answers

<p>Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Underapplied or overapplied overhead</p> Signup and view all the answers

The rate used to apply manufacturing overhead costs to jobs, calculated before the accounting period begins.

The process of assigning overhead costs to specific jobs based on an allocation base.

Costs that vary with the level of production or the allocation base, such as labor hours.

A method that applies overhead using a predetermined rate times the actual quantity of the allocation base used.

A measure used to apply overhead costs, commonly direct labor hours or machine hours.

The fixed costs that do not change with the level of production, estimated for the year.

The total number of hours worked by employees directly involved in manufacturing a product.

The overhead cost allocated to a job based on the predetermined overhead rate and actual labor hours incurred.

Costs that increase in increments, not continuously.

Workers paid a fixed salary for a set workload.

Limits within which cost behaviors hold true.

Costs that remain constant within a range of activity.

Costs containing both fixed and variable components.

Costs that change directly with the level of production.

A fixed component of a mixed cost that must be paid regardless.

The operational portrayal of costs combining fixed and variable aspects.

The total cost incurred for Job 407 is $2,485.

The selling price calculated for Job 407 is $4,348.75, including markup.

A markup percentage of 75% is applied to the total job cost for Job 407.

An overhead application method using rates specific to each department.

A costing method that allocates overhead based on activities performed.

It allows for a more accurate measurement of job costs and overhead use.

Job-order costing systems help create financial statements for external stakeholders.

The account that sums the costs of jobs that are partially completed.

Costs related to production not directly tied to materials or labor.

Estimated manufacturing overhead costs assigned to production.

When applied overhead is less than actual overhead costs.

When applied overhead exceeds actual overhead costs.

A ledger account tracking actual and applied overhead costs.

Accounting entry to adjust for underapplied or overapplied overhead costs.

The total cost of producing one unit, calculated by dividing total job cost by the number of units.

A system that assigns costs to specific production jobs, tracking materials, labor, and overhead.

A report summarizing production costs including direct materials, labor, and overhead.

The total cost of inventory sold during a period, calculated by adjusting the cost of goods available for sale.

The initial calculation of COGS before adjusting for underapplied or overapplied overhead.

The final COGS figure after adding any underapplied overhead or subtracting overapplied overhead.

A visual representation of individual accounts used in accounting, showing debits and credits.

A cost that has already been incurred and cannot be recovered.

A cost that can be influenced by a manager's decisions.

A cost that cannot be influenced by a manager's decisions.

A cost that increases the value of products or services.

A cost that does not provide any benefit to stakeholders.

An income statement prepared for external reporting using product and period costs.

An income statement focused on internal reporting that classifies costs by behavior.

A company that buys finished products and resells them to consumers.