Keiser ACG4342 Week 1 Quiz (100% Answer)

QuestionQuestion 1Material amounts of underapplied or overapplied overhead should bea. allocated to direct materials, work in process, and finished goods.b. treated as an adjustment to cost of goods sold.c. allocated to work in process, finished goods, and cost of goods sold.d. treated as an adjustment to work in process.3 points Save AnswerQuestion 2Services differ from tangible products in which of the following dimensions?a. intangibilityb. inseparabilityc. perishabilityd. all of the above3 points Save AnswerQuestion 3The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):a. activityb. systemc. cost objectived. cost driver3 points Save AnswerQuestion 4Which of the following activities is NOT significant to the advancement of information technology?a. theory of constraintsb. decision support systemsc. enterprise resource planning softwared. emergence of electronic commerce3 points Save AnswerQuestion 5Which of the following items would be associated with both a functional-based cost accounting information system and an activity based cost information system?a. Overhead is assigned on a plant-wide rate based on direct labor hours.b. Customer service costs are assigned to products using number of complaints as the activity driver.c. Direct labor cost is assigned to products using direct tracing.d. None of these.3 points Save AnswerQuestion 6Figure 3-2A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed.Refer to Figure 3-2. What is the cost of resource usage?a. $240,000b. $60,000c. $30d. $300,000Solution: ($300,000/20,000) × 4,000 = $60,0003 points Save AnswerQuestion 7Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?a. financial accounting information systemb. operational control information systemc. cost accounting information systemd. all of the above3 points Save AnswerQuestion 8All of the following are unit-based activity drivers EXCEPTa. machine hours.b. direct labor hours.c. number of setups.d. number of units.3 points Save AnswerQuestion 9If overhead is a significant proportion of the unit manufacturing costs, the distortion caused by using multi-level drivers can be serious.TrueFalse3 points Save AnswerQuestion 10Activity attributes are nonfinancial and financial information items that describe individual activities.TrueFalse3 points Save AnswerQuestion 11What does a correlation coefficient near 0 mean?a. Two variables are moving in the same direction.b. Two variables are unrelated.c. One variable is a good predictor of the other.d. Two variables are moving in the opposite direction.3 points Save AnswerQuestion 12The two major subsystems of the accounting information system are the financial accounting information system and the cost management accounting information system.TrueFalse3 points Save AnswerQuestion 13A secondary activity isa. an activity driver.b. one that is consumed by the final cost object.c. one that is consumed by intermediate cost objects.d. the second activity on the activity list.3 points Save AnswerQuestion 14Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately.TrueFalse3 points Save AnswerQuestion 15Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?a. the wages paid to assembly-line production workersb. the windshields for busesc. the depreciation on factory buildingd. the tires for buses3 points Save AnswerQuestion 16Resources are categorized as flexible, which are supplied as needed, and committed, which are supplied in advance of usage.TrueFalse3 points Save AnswerQuestion 17In an activity-based management system, one is NOT likely to finda. broad flexible product costing.b. systemwide performance maximization.c. tracing of costs to activities.d. only unit-based drivers.3 points Save AnswerQuestion 18Which of the following is NOT part of the financial accounting information system?a. filing reports with the SECb. preparing GAAP financial statementsc. reporting a large contingent liability to current and potential shareholdersd. determining the future cash flows of a proposed flexible manufacturing system3 points Save AnswerQuestion 19Which of the following activities is NOT associated with the cost management information system?a. preparing a cost of quality reportb. using future expected earnings to estimate the price of a share of common stockc. determining the cost of a customerd. preparing a performance report that compares actual costs to budgeted costs3 points Save AnswerQuestion 20The simple list of activities identified in an ABC system is called:a. Activity inventoryb. Activity attributesc. Activity driverd. Activity dictionary3 points Save AnswerQuestion 21The Roan plant of the Texas Company has two production departments: Extrusion andAssembly. The plant produces two products: P and Q. Cost information for the production departments is given below:Extrusion $360,000Assembly 750,000The following table presents activity information about the departments and products:    Extrusion    Assembly    Total Direct labor hours:            P    10,000     20,000    30,000Q    10,000    30,000    40,000Total     20,000    50,000    70,000Machine hours:             P    5,000     1,000    6,000Q    15,000    2,000    17,000Total     20,000    3,000    23,000Required:a. Compute the predetermined overhead rate for each department if Extrusion uses machine hours and Assembly uses labor hours. (Be sure to show all work to receive full credit)10 points Save AnswerQuestion 22The following information pertains to TwinStone Industries for 2014:Estimated total overhead costs for 2014 $37,500Estimated direct labor costs for 2014 25,000Actual direct labor costs 22,500Actual overhead costs 36,000Activity base Direct labor costsWhat is the predetermined overhead rate for Stone Industries for 2014? (be sure to show all work to receive full credit)10 points Save AnswerQuestion 23Explain the relationship between the Cost Management System and the Financial Accounting System. Be sure to include the users of both systems.