ACC310 Module 1 Quiz 2017 (100% Answer)

QuestionQuestion 1 1 ptsThe Cost of Goods Manufactured Statement summarizes the periodic production operations for a company. On the face of that schedule are intermediate calculations supporting the cost of goods manufactured figure. The beginning Work-in-Process inventory plus the total of the manufacturing costs equalscost of goods manufactured for the period.total work-in-process during the period.cost of goods sold for the period.total finished goods during the period.Flag this QuestionQuestion 2 1 ptsThe development of just-in-time (JIT) methods of production focused onincreasing product quality.reducing operating expenses.increasing customer service.reducing inventories.increasing sales revenue.Flag this QuestionQuestion 3 1 ptsA manufacturing company incurs direct labor costs as it transforms direct material into marketable products. The cost of the direct labor will be treated as a period cost on the income statement when the resulting:products are sold.products are completed.payroll costs are incurred.payroll costs are paid.Flag this QuestionQuestion 4 1 ptsThe primary reason for adopting total quality management (TQM) is to achieve (CIA adapted)better managerial decisions.greater employee participation.greater customer satisfaction.reduced delivery charges.reduced delivery time.Flag this QuestionQuestion 5 1 ptsThe terms direct cost and indirect cost are commonly used in accounting. A particular cost might be considered a direct cost of a manufacturing department but an indirect cost of the product produced in the manufacturing department. Classifying a cost as either direct or indirect depends uponthe cost object to which the cost is being related.the behavior of the cost in response to volume changes.whether the cost is expensed in the period in which it is incurred.whether an expenditure is unavoidable because it cannot be changed regardless of any action taken.Flag this QuestionQuestion 6 1 ptsDifferential costs are (CMA adapted)A cost common to all choices in questions and not clearly allocable to any of them.A cost that continues to be incurred in the absence of activity.The profit foregone by selecting one choice instead of another.The difference in total costs that result from selecting one choice instead of another.Flag this QuestionQuestion 7 1 ptsWhich of the following best distinguishes an opportunity cost from an outlay cost?Opportunity costs are sacrifices from foregone alternative uses of resources, whereas outlay costs are cash outflows.Opportunity costs have very little utility in practical applications, whereas outlay costs are always relevant.Outlay costs are speculative in nature, whereas opportunity costs are easily traceable to products.Opportunity costs are recorded, whereas outlay costs are not.Flag this QuestionQuestion 8 1 ptsExpense A is a fixed cost expense, B is a variable cost. During the current year the volume of output has decreased. In terms of cost per unit of output, we would expect thatexpense B has remained unchanged.expense A has decreased.expense B has decreased.expense A has remained unchanged.Flag this QuestionQuestion 9 1 ptsIn a decision analysis situation, which one of the following costs is not likely to contain a variable cost component? (CMA adapted, 6/96)MaterialSellingDepreciationOverheadLaborFlag this QuestionQuestion 10 1 ptsWhich of the following statements is false?Eliminating nonvalue-added activities always reduces costs without affecting the value of the product to customers.The supply chain is a linked set of organizations that exchange goods and services in combination to provide a final product or service to the customer.Accounting systems are important because they provide all the information for decisions commonly made by managers.In essence, the value chain and the supply chain are similar; each creates something for which the customer is willing to pay.