Question 1 0 out of 2 points All of the following are good reasons why managers allocate overhead costs to products EXCEPT Selected Answer c To give managers incentive to efficiently use indirect manufacturing resources and activities Answers a To give managers the information they need to make good decisions b Because it is required by U S Generally Accepted Accounting Principles for external financial reporting c To give managers incentive to efficiently use indirect manufacturing resources and activities d Because managers would otherwise have difficulty estimating the cost of direct materials and labor Question 2 0 out of 2 points Activity based costing is different from the other approaches because Selected Answer d It is simple, using a single overhead cost pool and overhead rate Answers a It is easily replicated between companies and industries (all companies should have the same activities) b It separates out overhead costs across the different departments c It separates out overhead costs into the different processes or procedures that incur overhead costs d It is simple, using a single overhead cost pool and overhead rate Question 3 2 out of 2 points Why is process costing needed in some companies or industries Selected Answer d To separate out the costs of partially completed items as they move across the production process Answers a Because in process costing companies, product costs are recorded as expenses (on the income statement) as they are incurred b Because in process costing companies, a job cost sheet tracks each of the product costs as they are incurred c To separate out the selling, general and administrative costs from the production process costs d To separate out the costs of partially completed items as they move across the production process Question 4 2 out of 2 points Which of the following would be considered a nonmanufacturing (period) cost Selected Answer b The cost of an advertising campaign to launch a new product Answers a The cost of materials used to make the product b The cost of an advertising campaign to launch a new product c The utilities cost for the factory where the product is made d The hourly wages of the workers who make the product Question 5 0 out of 2 points A predetermined overhead rate Selected Answer d Is used to assign direct material and direct labor costs to jobs Answers a Is the predicted growth rate of overhead costs b Is used to allocate manufacturing overhead costs to jobs c Is used to assign period costs to different jobs d Is used to assign direct material and direct labor costs to jobs Transcribed image text

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Question 1

0 out of 2 points

All of the following are good reasons why managers allocate overhead costs to products EXCEPT:

Selected Answer:	c. To give managers incentive to efficiently use indirect manufacturing resources and activities.
Answers:	a. To give managers the information they need to make good decisions.
	b. Because it is required by U.S. Generally Accepted Accounting Principles for external financial reporting.
	c. To give managers incentive to efficiently use indirect manufacturing resources and activities.
	d. Because managers would otherwise have difficulty estimating the cost of direct materials and labor.

Question 2

0 out of 2 points

Activity based costing is different from the other approaches because

Selected Answer:	d. It is simple, using a single overhead cost pool and overhead rate.
Answers:	a. It is easily replicated between companies and industries (all companies should have the same activities).
	b. It separates out overhead costs across the different departments.
	c. It separates out overhead costs into the different processes or procedures that incur overhead costs.
	d. It is simple, using a single overhead cost pool and overhead rate.

Question 3

2 out of 2 points

Why is process costing needed in some companies or industries?

Selected Answer:	d. To separate out the costs of partially completed items as they move across the production process.
Answers:	a. Because in process costing companies, product costs are recorded as expenses (on the income statement) as they are incurred.
	b. Because in process costing companies, a job cost sheet tracks each of the product costs as they are incurred.
	c. To separate out the selling, general and administrative costs from the production process costs.
	d. To separate out the costs of partially completed items as they move across the production process.

Question 4

2 out of 2 points

Which of the following would be considered a nonmanufacturing (period) cost?

Selected Answer:	b. The cost of an advertising campaign to launch a new product.
Answers:	a. The cost of materials used to make the product.
	b. The cost of an advertising campaign to launch a new product.
	c. The utilities cost for the factory where the product is made.
	d. The hourly wages of the workers who make the product.

Question 5

0 out of 2 points

A predetermined overhead rate ...

Selected Answer:	d. Is used to assign direct material and direct labor costs to jobs.
Answers:	a. Is the predicted growth rate of overhead costs.
	b. Is used to allocate manufacturing overhead costs to jobs.
	c. Is used to assign period costs to different jobs.
	d. Is used to assign direct material and direct labor costs to jobs.

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