Chapter 002, Managerial Accounting and Cost Concepts

| October 3, 2018

57. How much opportunity cost is represented in the following
information concerning a machine?
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A.
$80,000

B.
$14,000

C. $25,000

D.
$68,000

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Chapter 002, Managerial Accounting and Cost Concepts

Corcetti
Company manufactures and sells prewashed denim jeans. Large rolls of denim
cloth are purchased and are first washed in a giant washing machine. After the
cloth is dried, it is cut up into jean pattern shapes and then sewn together.
The completed jeans are sold to various retail chains.

59. Which of the following terms could be used to correctly
describe the cost of the soap used to wash the denim cloth?
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A.
Choice A

B.
Choice B

C. Choice C

D.
Choice D

60. Which of the following terms could be used to correctly
describe the wages paid to the workers that cut up the cloth into the jean
pattern shapes?
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A.
Choice A

B.
Choice B

C. Choice C

D.
Choice D

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Chapter 002, Managerial Accounting and Cost Concepts

61. Which of the following terms could be used to correctly
describe the cost of the thread used to sew the jeans together?
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A.
Choice A

B.
Choice B

C. Choice C

D.
Choice D

62. Which of the following
terms could be used to correctly describe the wages paid to the data entry
clerk who enters customer order information into the company’s computer system?
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A.
Choice A

B.
Choice B

C. Choice C

D.
Choice D

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Chapter 002, Managerial Accounting and Cost Concepts

A
partial listing of costs incurred at Peggs Corporation during September appears
below:
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63. The total of the manufacturing overhead costs listed above for
September is: A. $71,000
B. $351,000
C. $669,000 D. $40,000

64.
The total of the product
costs listed above for September is:

A.
$351,000
B.
$669,000

C. $71,000

D.
$318,000

65. The total of the period costs listed above for September is:

A.
$389,000

B. $318,000

C.
$71,000

D.
$351,000

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Chapter 002, Managerial Accounting and Cost Concepts

A
partial listing of costs incurred during February at Urfer Corporation appears
below:
.0/msohtmlclip1/01/clip_image007.jpg”>

66. The total of the period costs listed above for February is: A.
$379,000
B. $277,000 C. $61,000 D. $318,000

67. The total of the manufacturing overhead costs listed above for
February is: A. $61,000
B. $595,000
C. $277,000 D. $33,000

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