An activity is a basic unit of work performed within an organization.

True

False
status: correct (1.0)
correct: true
your answer: true
feedback: Correct.

Indirect costs cannot be easily or accurately traced to a cost object.

2 True

False
status: correct (1.0)
correct: true
your answer: true
feedback: Correct.

Assigning indirect costs to cost objects is achieved through allocation.

3 True

False
status: correct (1.0)
correct: true
your answer: true
feedback: Correct.

Tracing costs can only be achieved through direct tracing.

4 True

False
status: correct (1.0)
correct: false
your answer: false
feedback: Correct. Direct tracing is the process of assigning costs to an object where the costs are specifically or physically
associated with the object. Driver tracing can also be used to assign costs to cost objects.

Tangible products are goods produced by converting raw materials through the use of labor and capital inputs
such as plant, land, and machinery.
5
True

False
status: correct (1.0)
correct: true
your answer: true
feedback: Correct.

Direct materials cost combined with manufacturing overhead cost is known as conversion cost.

6 True

False
status: correct (1.0)
correct: false
your answer: false
feedback: Correct. Direct labor cost and manufacturing overhead cost are combined and called conversion costs.
 If the finished goods inventory increases between the beginning and end of the period, then the cost of goods
manufactured for the period is larger than the cost of goods sold.
7
True

False
status: correct (1.0)
correct: true
your answer: true
feedback: Correct.

In calculating the cost of goods manufactured, the costs found in ending work in process are added to the total
manufacturing costs of the period and the costs found in beginning work in process are subtracted.
8
True

False
status: correct (1.0)
correct: false
your answer: false
feedback: Correct. Cost of goods manufactured = Total manufacturing costs of the period + manufacturing costs in beginning
work in process - manufacturing costs in ending work in process.

The cost of goods manufactured for a period is the amount transferred from work in process inventory to
finished goods inventory during the period.
9
True

False
status: correct (1.0)
correct: true
your answer: true
feedback: Correct.

The focus of an activity based cost management system is to assign costs to organizational units and hold
unit managers responsible for controlling costs.
10
True

False
status: correct (1.0)
correct: false
your answer: false
feedback: Correct. This is the focus of a functional-based control system.
Services differ from tangible products on which of the following important dimensions?

a. intangibility, homogeneity, and traceability

b. intangibility, inseparability, and traceability

c. intangibility, perishability, and inseparability

d. perishability, traceability, and homogenity

status: correct (1.0)
correct: c
your answer: c
feedback: Correct.

Wages paid to a janitor in a factory would be classified as:

a. direct labor.

2 b. general and administrative expenses.

c. supervisor salaries.

d. factory overhead.
status: correct (1.0)
correct: d
your answer: d
feedback: Correct.

Using the following data, calculate the cost of goods sold.

3 The cost of goods sold is:

a. $17,000

b. $40,000

c. $23,000

d. $16,000
status: correct (1.0)
correct: c
your answer: c
feedback: Correct. COGS = $40,000 - $17,000 = $23,000

Using the following data, calculate the beginning finished goods inventory.