Cost Accounting and Control System

Cost Accounting and Control System

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The need of independent examination and verification process for financial accounting
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Aladin's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the wholesale operation should amount to:
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What amount of overhead is applied to Job #200?

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The one cost that would be classified as part of both prime cost and conversion cost would be:
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To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: What should be the unit sales to break-even?

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In comparing financial and management accounting, which of the following more accurately describes management accounting information?
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Overriding criteria of financial accounting
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Product Costs are always presented in the income statement as part of cost of goods sold.
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As activity increases within the relevant range, fixed costs remain constant on a per unit basis.
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Activity-based costing systems have a tendency to distort product costs.
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To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: How much should be the actual peso sales to realize the desired profit?

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Question 12

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Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as:
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If a company opt to use the activity-based costing in allocating overhead costs, companies do not need to classify at which level of activities costs were incurred.
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It is in the planning phase where the problems and issues of the company are identified.
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At Break-even Point, there could either be a net income or net loss.
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It is the point of activity level where total revenue is equal to total cost
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Question 17

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Financial accounting is most concerned with meeting the needs of external users.
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Question 18

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To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: What is the contribution margin per unit?

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Question 19

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The cost of goods sold of a manufacturing company equals beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory.
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Financial accounting adheres strict compliance to Generally Accepted Accounting Principles (GAAP)
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These are the primary users of financial information
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The term "normal costing" refers to the use of
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External parties and management never use product cost information for investment decision and, planning and controlling.
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Overhead costs are applied to products on the basis of volume-related measures.
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Which of the following defines variable cost behavior?

 

 

 

 

        Total cost reaction                    Cost per unit reaction

        to increase in activity                to increase in activity

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Managerial accounting is most concerned with addressing the needs of the company as a whole.
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Referring to the preceding problem, the cost of wages and salaries and other overhead that would be charged to each delivery is closest to:
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Question 28

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In the value chain, planning and controlling activities in the organization is to be managed on a sequential order of the business functions.
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Actual Cost is a past cost or historical cost.
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Question 30

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To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q:  What is the amount of total variable cost at break-even point calculation?

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The emphasis of information of managerial accounting is past oriented.
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Traditional costing is mainly focused on highly automated manufacturing industry
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Prime cost is the sum of direct labor and manufacturing overhead.
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All costs in a manufacturing company are product costs.
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It is a systematic process of providing financial information of an organization or unit that is intended to be useful in decision making
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Media, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor cost was projected to be $225,000. During the year, Media incurred actual overhead costs of $146,000, actual direct professional labor hours of 14,500, and actual direct labor cost of $222,000. By year-end, the firm's overhead was:
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Question 7

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How much is the factory overhead cost per unit for TV under activity-based costing?

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Companies can use either direct labor cost or direct labor hours as a cost driver.
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Institute of Management Accountants' (IMA) overarching ethical principles include the following except one:
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Question 10

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Planning is a function that involves
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Question 11

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Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the retail division should amount to:
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Question 12

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This analysisfocuses on how profits are affected by selling prices, sales volume, unit variable costs, total fixed costs, and mix of products sold
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The amount that was paid by a company for a building to house its operations is an example of a sunk cost.
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A variable cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units' increases or decreases.
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What amount of these costs would be considered as product costs?

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All of the following are examples of product costs except:
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Fletcher, Inc. disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was underapplied by $15,000. If sales revenue totaled $1,400,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin:

 

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The accountant is the personnel assigned in overseeing the overall financial operations of the company.
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Purpose of information of managerial accounting
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The Graphic Approach is the widely used method in calculating the break-even point.
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P0.83 per factory overhead

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If direct labor is a good cost driver, increases in direct labor are matched with increases in manufacturing overhead.
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A tailoring company has gathered information on utility costs for the past year. The accountant has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs:

                    Hours worked             Utility cost incurred

Low point       1,300                          P   903

High point      1,680                               1,074

 

If 1,425 hours are worked in a month, total utility cost (rounded to the nearest peso) using the high-low method should be

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Question 24

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Prime costs consist of:
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Which of the following would not likely be used by service providers to accumulate job costs?
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Thread used in the production of bed sheet set, an indirect material, is classified as manufacturing overhead.
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Inventoriable costs that have become expenses can be found in:
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Which of the following is the proper sequence of events in an activity-based costing system?
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Traditional costing systems tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements.
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If the resolution efforts of resolving ethical issues are not successful, the member may wish to consider disassociating from the organization.
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At Break-even Point, there could either be a net income or net loss.
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Businesses are established because owners are just after the break-even point.
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A tailoring company has gathered information on utility costs for the past year. The accountant has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs:

                    Hours worked             Utility cost incurred

Low point       1,300                          P   903

High point      1,680                               1,074

 

If 1,425 hours are worked in a month, total utility cost (rounded to the nearest peso) using the high-low method should be

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Break-even Point is the point of activity level where total revenue is equal to total cost.
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Net Income is the amount available to cover fixed costs
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It is the point of activity level where total revenue is equal to total cost
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To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q:  What is the amount of total variable cost at break-even point calculation?

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Question 8

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Product Costs are treated as outright expenses.
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Question 9

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To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: What is the amount of income tax?

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Question 10

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Within the relevant range, the two main cost behaviors are direct and indirect costs.
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Generally speaking, cost accounting can be defined as aNo
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If the resolution efforts of resolving ethical issues are not successful, the member should stay at the organization and must find other ways to resolve such issues.
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External parties and management uses product cost information for investment decision and, planning and controlling
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Financial accounting is most concerned with meeting the needs of external users.
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In comparing financial and management accounting, which of the following more accurately describes management accounting information?
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It is the position in the organization structure wherein the personnel assigned are directly involved in the responsibility of achieving the goals of an organization
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The emphasis of information of financial accounting is future oriented.
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Scope of information of managerial accounting
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Overriding criteria of financial accounting
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Overriding criteria of managerial accounting
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