1. An example of a cost likely to have an indirect relationship with products being manufactured is:...
Question:
1. An example of a cost likely to have an indirect relationship with products being manufactured is:
A. Production labor costs.
B. Raw material costs.
C. Electricity costs for packaging equipment.
D. None of these.
2. An organization's value chain refers to:
A. The process of using cost information to manage the activities of the organization.
B. The sequence of functions and related activities that add value for the customer.
C. The process of collecting and recording valuable information in the accounting information system.
D. None of these.
3. Common costs pertain to costs that:
A. Are directly traceable to a cost object.
B. Are not directly traceable to a cost object.
C. Are commonly incurred.
D. Are direct costs.
4. The three components of product costs are:
A. Direct material, supervisor salaries, selling expenses.
B. Direct labor, manufacturing overhead, indirect material.
C. Direct material, direct labor, manufacturing overhead.
D. Manufacturing overhead, indirect material, indirect labor.
5. Which of the following is NOT an inventory account for a manufacturing company?
A. Cost of goods sold.
B. Work-in-process.
C. Raw materials.
D. Finished goods.
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley