Question : 10) Under GAAP, for the purposes of calculating inventory costs, : 1211950

10) Under GAAP, for the purposes of calculating inventory costs, product costs include ________.

A) all costs incurred along the value chain

B) design costs

C) only inventoriable costs

D) only research and development costs

11) Product costs used for government contracts generally include ________.

A) marketing costs, and customer service costs

B) design costs and production costs

C) all the costs for pricing and product-mix decisions

D) production costs, distribution costs, marketing costs, and customer service costs

12) Product costs used for external reporting generally include ________.

A) manufacturing costs only

B) design costs plus manufacturing costs

C) all costs incurred along the value chain

D) research and development costs along with production costs

13) Which of the following is common for reporting product cost under financial reporting and product cost

for reimbursement under government contracts?

A) marketing cost

B) distribution costs

C) customer service

D) research and development costs

14) For external reporting ________.

A) costs are classified as either inventoriable or period costs

B) costs reflect current values

C) there are no prescribed rules since no one is exactly sure how investors and creditors will use these numbers

D) costs include amounts that reflect both current and future benefits

15)  Which of the following statements is true?

A) Product costs and design costs are interchangeable terms.

B) Inventoriable costs are assigned to inventories under GAAP.

C) Manufacturing costs are a special case of period costs.

D) Intangible costs refer to a particular cost of a product.

16) Debated items that some companies include as direct manufacturing labor include ________.

A) fringe benefits

B) overtime

C) idle time

D) plant supervisor’s salary

17) Mario Garcia is paid $20 an hour for straight-time and $30 an hour for overtime. One week she worked 42 hours, which included 2 hours of overtime. What is the overhead incurred to the company?

A) $60

B) $10

C) $30

D) $20

18) Dave Rigby is paid $30 an hour for straight-time and $40 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time caused by material shortages. What is the direct labor cost incurred to the company?

A) $1,260

B) $1,400

C) $1,310

D) $1,210

19) Tony worked 48 hours last week for Bread Works Manufacturing. Of the 48 hours 5 hours were considered overtime, and also Tony was idle for 4 of the 48 hours due to an equipment malfunction. Tony makes $50 per hour and is paid $75 an hour (time and a half) for overtime. Tony’s total compensation for that week would be ________, and assuming Bread Works charges overtime premium and idle time to indirect labor, the amount of this compensation credited to indirect labor would be ________.

A) $2,950; $325

B) $2,900; $280

C) $2,750; $300

D)  $2,500; $350