Question : 71. Costs that incurred as part of the manufacturing process : 1256491

 

 

71. Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:A. Administrative expensesB. Nonmanufacturing costsC. Sunk costsD. Factory overheadE. Preproduction costs

 

 

72. Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product are called:A. Secondary materialsB. General materialsC. Direct materialsD. Indirect materials

E. Materials inventory

 

 

 

 

 

 

 

 

 

73. The salary paid to the supervisor of an assembly line would normally be classified as:A. Direct laborB. Indirect laborC. A period costD. A general costE. An assembly cost

 

 

74. Classifying costs by behavior involves:A. Identifying fixed cost and variable cost.B. Identifying cost of goods sold and operating costs.C. Identifying all costs.D. Identifying costs in a physical manner.E. Identifying both quantitative and qualitative cost factors.

 

 

75. Costs classified by controllability are useful for:A. The balance sheetB. The income statementC. The budgeting processD. Evaluation reportsE. Determining product cost

 

 

76. Which of the following is never included in direct materials costs?A)  Invoice costs of direct materials.B)  Outgoing delivery charges.C)  Materials storage costs.D)  Materials handling costs.E)  Insurance on stored material.

 

 

77. Raw materials that physically become part of the product and can be traced to specific units or batches of product are called:A. Raw materials soldB. Chargeable materialsC. Goods in processD. Indirect materialsE. Direct materials

 

 

78. The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense – factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of prime costs.

A. $1,023,000

B. $550,000

C. $488,000

D. $235,000

E. $238,000

 

 

79. The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense – factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries expense, $150,000. Determine the dollar amount of conversion costs.

A. $1,023,000

B. $550,000

C. $488,000

D. $235,000

E. $238,000

 

 

80. A fixed cost:A. Requires the future outlay of cash and is relevant for future decision making.B. Does not change with changes in the volume of activity within the relevant range.C. Is directly traceable to a cost object.D. Changes with changes in the volume of activity within the relevant range.E. Has already been incurred and cannot be avoided so it is irrelevant for decision making.

 

 

 

 

 

 

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