ACC 650 Week 1 Quiz | Assignment Help | Grand Canyon University

ACC 650 Week 1 Quiz | Assignment Help | Grand Canyon University 




1.

Which of the following employees would not be classified as indirect labour?

 

·         Plant Custodian.

·         Salesperson.

·         An employee that packs products for shipment

·         Plant security guard.

·         A line employee that produces parts for chairs using a saw and template.

 

2.

A custom-home builder would likely utilize:

 

·         job-order costing.

·         process costing.

·         mass customization.

·         process budgeting.

·         joint costing.



3.

Gonzales Company has developed an integrated system that coordinates the flow of all goods, services, and information into and out of the organization, working with raw material vendors as well as customers to improve service and reduce costs. The firm is said to be using:

 

·         participative management.

·         top-down management.

·         strategic cost management.

·         supply chain management.

·         management by objectives (MBO).



4.

Given the following information, what is the cost of unused capacity? Cost of material supplied is $8,600; Cost of material used is $8,000; Cost of material used per shelf is $8; Cost of material supplied per shelf is $8.60.

 


·         $600.

·         $6,000.

·         $0.60

·         $1,000.

·         There is no unused capacity.

 

5.

When selecting a volume-based cost driver, the goal is to:

 

·         choose an input that varies in a pattern that is most similar to the pattern with which overhead costs vary.

·         choose a period where a cost driver is at a low level so that overhead costs will be at a low level.

·         choose labor hours for computer-integrated manufacturing processes.

·         eliminate complexity by using a plant-wide overhead rate for all of a firm’s products.

·         None of these are goals when selecting a volume-based cost driver.


 

6.

Strategic cost management is:

 

·         the process of determining cost drivers.

·         the recognition of the importance of cost relationships among the activities in the value chain.

·         the process of managing cost relationships to the firm’s advantage

·         cost-causing factors.

·         two of the answers are correct.

 


7.

Which type of production process is likely used by a paint manufacturer to produce paint?

·         Batch.

·         Continuous Flow.

·         Job Shop.

·         Assembly.

·         Direct assembly.

 


8.

Metalica The company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was:

 

·         $0.04 per machine hour.

·         $0.05 per machine hour.

·         $20 per machine hour.

·         $21 per machine hour.

·         $25 per machine hour.

 


9.

Guaranteed Appliance Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. The total of Guarantee’s direct labor cost was:

·         $110,000.

·         $180,000.

·         $155,000.

·         $235,000.

·         $735,000.


 

10.

Under- or over applied manufacturing overhead at year-end is most commonly:

 

·         charged or credited to Work-in-Process Inventory.

·         charged or credited to Cost of Goods Sold

·         charged or credited to a special loss account.

·         prorated among Work-in-Process Inventory, Finished-Goods Inventory, and Cost of Goods Sold.

·         ignored because there is no effect on the Cash account.

 


11.

How should a company that manufactures automobiles classify it's partially completed vehicles?

·         Supplies.

·         Raw materials inventory

·         Finished goods inventory.

·         Cost of goods manufactured.

·         Work-in-process inventory.

 


12.

Conversion costs are:

·         direct material, direct labor, and manufacturing overhead.

·         direct material and direct labor

·         direct labor and manufacturing overhead

·         prime costs.

·         period costs.

 

 

 

13.

Which of the following is correct regarding the changing role of managerial accounting?

·         The managerial accountant is crunching more numbers than ever before in leading-edge companies.

·         The managerial accountant has been transformed into a financial historian in progressive companies.

·         Managerial accountants are typically isolated in separate departments.

·         Forward-looking goals have transformed managerial accountants into business advisors

·         Managerial accountants rarely have the title of analyst or take on leadership roles.

 


14.

In order for a company to achieve a sustainable competitive advantage, it must:

 

·         perform one or more activities in the value chain at the same quality level as its competitors.

·         perform all activities in the value chain at the same quality level as its competitors.

·         perform its value chain activities at a higher quality level than one of its competitors.

·         perform at lower quality and higher cost than competitors.

·         two of the answers are correct.

 


15.

Farina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following:

Under applied manufacturing overhead: $7,200

Actual manufacturing overhead: $392,000

Budgeted labor hours: 50,000

Simone's actual labor hours worked totaled:



·         48,100.

·         49,100.

·         49,900.

·         50,900.

·         cannot be determined based on the information presented.

 


16.

Which of the following statements is true?

 

·         Product costs affect only the balance sheet.

·         Product costs affect only the income statement

·         Period costs affect only the balance sheet.

·         Neither product costs nor period costs affect the Statement of Retained Earnings. This can also be a true statement if the period costs were prepaid (i.e., prepaid advertising, depreciation).

·         Product costs eventually affect both the balance sheet and the income statement.

 


17.

Shu Corporation recently computed total production costs of $567,000 and total period costs of $420,000, excluding $35,000 of sales commissions that were overlooked by the company's administrative assistant. On the basis of this information, Shu’s income statement should reveal operating expenses of:

 

·         $35,000.

·         $420,000.

·         $455,000.

·         $567,000.

·         $602,000.

 


18.

The value chain of a manufacturer would tend to include activities related to:

 

·         manufacturing

·         research and development.

·         product design.

·         marketing.

·         all of the answers are correct.

 


19.

Harrison Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was:

 

·         $104,000.

·         $125,000.

·         $117,000.

·         $133,000.

·         None of the answers is correct.

 


20.

Which of the following manufacturers would most likely use job-order costing?

 

·         Chemical manufacturers.

·         Microchip processors.

·         Custom-furniture manufacturers.

·         Gasoline refiners.

·         Fertilizer manufacturers.

 

 

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