Cost Concept and Classification

Statements related to Financial Accounting are:

A. Users of the information are external parties of the company

B. The information helps managers make decisions in meeting organizational goals.

C. Its preparation is limited by some standards, like GAAP or IFRS

D. The reports produced have a certain period of time, such as annually or quarterly.

E. The reports contain detailed information.

• A-C-E

• B-C-E

• A-C-D

• C-D-E

The following are the correct stages of value chain analysis...

• R&D - Production - Marketing - Design - Customer Service - Distribution

• Design - R&D - Production - Distribution - Marketing - Customer Service

• Design - Production - Marketing - Distribution - Customer Service - R&D

• R&D - Design - Production - Marketing - Distribution - Customer Service

Fixed costs expressed on a per unit basis:

• will increase with increases in activity.

• will decrease with increases in activity

• are not affected by activity

• should be ignored in making decisions since they cannot change

Here are the guidelines used by management accounting, except....

• Cost-Benefit Approach

• Principle of Consitency

• Behavioral and technical considerations

• Different Costs for different purposes

Here are the types of inventories of companies in the manufacturing sector, except ....

• Direct Material

• Work in process

• Finished Goods

• Merchandise Inventory

The following expenses were incurred in February:

Direct Materials Rp.43.000.000
Direct Labor Rp.16.000.000
Manufacturing Overhead Rp.37.000.000
Selling Expense Rp17.000.000
Administration Expense Rp.26.000.000

The total conversion cost during that month is

• Rp59.000.000

• Rp53.000.000

• Rp80.000.000

• Rp139.000.000

The accounting information of a company are as follows:

Cost of goods manufactured = $105.000

Beginning Inventory Finished Goods = $20.000

Ending Inventory Finished Goods = $16.000

Berapa nilai cost of goods sold?

• $141.000

• $101.000

• $69.000

• $109.000

Which of the following costs are NOT recorded in the company's accounting system?

• Sunk cost

• Opportunity cost

• Direct cost

• Indirect cost

FTA Bike Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:

Direct materials $50

Direct manufacturing labor $5

Variable manufacturing overhead $14

Fixed manufacturing overhead $10

Total manufacturing costs $79

The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles.

What is the per unit cost of producing 2,000 bicycles?

• $79 per unit

• $158 per unit

• $74 per unit

• $134 per unit

FTA Corp. direct labor costs are 20% prime costs, and 60% conversion costs. If manufacturing overhead is $50,000, FTA Corp's direct material costs are....

• $275.000

• $300.000

• $325.000

• $375.000