Principles of Cost Accounting 16th Edition by Vanderbeck
Discover how readable, real, and relevant cost accounting can be with PRINCIPLES OF COST ACCOUNTING. This edition packs the essentials you need to know for your future in a unique 10-chapter format that is well organized, practical, and concise. You gain a thorough understanding of cost concepts, cost behavior, and cost accounting techniques as they apply to manufacturing and service businesses. To ensure your understanding, the book introduces concepts in small, manageable sections that are immediately reinforced with proven questions, demonstration problems, practice exercises, and self-study quizzes. You master the fundamentals of job order costing and process costing before progressing to more advanced topics, such as budgeting, standard costing and variance analysis, costing for service businesses, and cost analysis for management decisions. Focus on the skills that will take you far in today’s competitive job market as you learn how to determine the costs of products and services accurately and how to set effective selling prices. Learn the techniques to measure accurately the performance of managers within an organization and to use accounting to motivate managers toward an organization’s goals. Find the relevant approach you need with the real cost accounting skills that will take you far in business today with PRINCIPLES OF COST ACCOUNTING.
Free Test Bank for Principles of Cost Accounting 16th Edition Part 2 by Vanderbeck
Test Bank for Principles of Cost Accounting 16th Edition Part 1 by Vanderbeck
Umberg Merchandise Company’s cost of goods sold last month was $1,350,000. the Merchandise Inventory at the beginning
of the month was $250,000 and there was $325,000 of Merchandise Inventory at the end of the month. Umberg’s merchandise
purchases were:
$1,350,000
$1,275,000
$1,425,000
$1,675,000
Cost accounting differs from financial accounting in that financial accounting:
Is mostly concerned with external financial reporting.
Is mostly concerned with individual departments of the company.
Provides the additional information required for special reports to management.
Puts more emphasis on future operations.
A budget:
is a monthly financial statement issued to a company’s lenders.
is management’s operating plan expressed in units and dollars.
documents the production department’s schedule.
is the basis for the annual sales forecast.
A(n) __________ requires estimating inventory balances during the year for interim financial statements and shutting down operations to count all inventory items at the end of the year.
periodic inventory system
inventory control account
perpetual inventory system
inventory cost method
In the financial statements, Materials should be categorized as:
Revenue.
Expenses.
Assets.
Liabilities.
Dan Louis is the supervisor of the Assembly Department of Wiggerman Corporation. He has control over and is responsible
for manufacturing costs traced to the department. The Assembly Department is an example of a(n):
cost center.
inventory center.
supervised work center.
worker’s center.
The business entity that purchases finished goods for resale is a:
Manufacturer.
Merchandiser.
Service business.
For-profit service business.
Ashley Corp. had finished goods inventory of $50,000 and $60,000 at April 1 and April 30, respectively, and cost of goods
manufactured of $175,000 in April. Cost of goods sold in April was:
$165,000
$175,000
$185,000
$225,000
Taylor Logan is an accountant with the Tanner Corporation. Taylor’s duties include preparing reports that focus on both
historical and estimated data needed to conduct ongoing operations and do long-range planning. Taylor is a(n)
certified financial planner.
management accountant.
financial accountant.
auditor.
The January performance report for cab no. 52 of Teri’s Taxi Service was as follows:
(A) Possible reason(s) for the variance in the driver’s wages could be:
Expense Budgeted Actual Variance
Driver’s wages $2,000 $1,800 $200 F
Gasoline 300 270 30 F
Maintenance 200 400 200 U
Insurance 100 110 10 U
Total $2,600 $2,580 $ 20 F
A new driver was assigned to cab no. 52 on January 5, replacing one who retired after 30 years of service.
The cab was in the shop for repairs for a few days.
Business was slow so cab no. 52 was idled for two days.
All of the above are possible reasons.
Unit cost information is important for making all of the following marketing decisions except:
Determining the selling price of a product.
Bidding on contracts.
Determining the amount of advertising needed to promote the product.
Determining the amount of profit that each product earns.
ISO 9000 is a set of international standards for:
determining the selling price of a product.
cost control.
quality management.
planning,
The Macke Company’s payroll summary showed the following in November:
What is the amount that would be included in direct labor in November?
Sales department salaries $10,000
Supervisor salaries 20,000
Assembly workers’ wages 25,000
Machine operators’ wages 35,000
Maintenance workers’ wages 15,000
Accounting department salaries 5,000
$25,000
$60,000
$95,000
$120,000
The balance in Post Industries’ Finished Goods account at December 30 was $425,000. Its December cost of goods
manufactured was $1,350,000, its total manufacturing costs were $1,500,000 and its cost of goods sold in December was $1,455,000.
What was the balance in Post’s Finished Goods at December 1?
$380,000
$320,000
$470,000
$530,000
Which of the following items of cost would be least likely to appear on a performance report based on responsibility
accounting for the supervisor of an assembly line in a large manufacturing situation?
Direct labor
Supervisor's salary
Materials
Repairs and maintenance
The process of establishing objectives or goals for the firm and determining the means by which they will be met is:
controlling.
analyzing profitability.
planning.
assigning responsibility.
Which of the following is most likely to be considered an indirect material in the manufacture of a sofa?
Lumber
Glue
Fabric
Foam rubber
The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities is a:
Manufacturer.
Merchandiser.
Service business.
Not-for-profit service agency.
Control is the process of monitoring the company’s operations to determine whether the company’s objectives are being
achieved. Effective control is achieved through all of the following except:
periodically measuring and comparing company results.
assigning responsibility for costs to employees responsible for those costs.
constantly monitoring employees to ensure they do exactly as they are told.
taking necessary corrective action when variances warrant doing so.
Which of the following statements best describes a characteristic of a performance report prepared for use by a production line department head?
The costs in the report should include only those controllable by the department head.
The report should be stated in dollars rather than in physical units so the department head knows the financial magnitude of any variances.
The report should include information on all costs chargeable to the department, regardless of their origin or control.
It is more important that the report be precise than timely.
As a result of recent accounting scandals involving companies such as Enron and World Com, the Sarbanes-Oxley Act of
2002 was written to protect shareholders of public companies by improving
management accounting.
corporate governance.
professional competence.
the corporate legal process.
The following data were taken from Mansfield Merchandisers on January 31:
What was the Cost of goods sold in January?
Merchandise inventory, January 1 $ 90,000
Sales salaries 35,000
Merchandise inventory, January 31 65,000
Purchases 560,000
$585,000
$650,000
$620,000
$535,000
Responsibility accounting would most likely hold a manager of a manufacturing unit responsible for:
cost of raw materials.
quantity of raw materials used.
the number of units ordered.
amount of taxes incurred.
Examples of service businesses include:
Airlines, architects, and hair stylists.
Department stores, poster shops, and wholesalers.
Aircraft producers, home builders, and machine tool makers.
None of these are correct.
Inventory accounts for a manufacturer include all of the following except:
Merchandise Inventory.
Finished Goods.
Work in Process.
Materials.
Which of the following items of cost would be least likely to appear on a performance report based on responsibility
accounting for the supervisor of an assembly line in a large manufacturing situation?
Direct labor
Indirect materials
Selling expenses
Repairs and maintenance
For a manufacturer, the cost of all materials purchases and on hand to be used in the manufacturing process is:
Merchandise Inventory.
Finished Goods.
Work in Process.
Materials.
Joshua Company prepares monthly performance reports for each department. The budgeted amounts of wages for the
Finishing Department for the month of August and for the eight-month period ended August 31 were $12,000 and $100,000,
respectively. Actual wages paid through July were $91,500, and wages for the month of August were $11,800. The month and year-todate
variances, respectively, for wages on the August performance report would be:
$200 F; $8,500 F
$200 F; $3,300 U
$200 U; $3,300 U
$200 U; $8,500 F
For a manufacturer, the total cost of manufactured goods completed but still on hand is:
Merchandise Inventory.
Finished Goods.
Work in Process.
Materials.
Witt Company, like most manufacturers, maintains a continuous record of purchases, materials issued into production and
balances of all goods in stock, so that inventory valuation data is available at any time. This is an example of a(n)
perpetual inventory system.
inventory control account.
periodic inventory system.
inventory cost method.
For a manufacturer, manufacturing costs incurred to date for goods in various stages of production, but not yet completed is:
Merchandise Inventory.
Finished Goods.
Work in Process.
Materials.
The type of merchandiser who purchases goods from the producer and sells them to shops that sell them to the consumer is a:
Manufacturer.
Retailer.
Wholesaler.
Service business.
Which of the following is not a key element of the Sarbanes Oxley Act to improve corporate governance?
The establishment of the Public Company Accounting Oversight Board
Requiring a company’s annual report to contain an internal control report that includes management’s opinion on the effectiveness of internal control
Severe criminal penalties for retaliation against “whistleblowers”
Requiring that the company’s performance reports are prepared in accordance with generally accepted accounting principles