cost exam 2

based of the pop quizzes

_________ costing assumes all units are homogeneous and follow the same path through the production process

process costing

the _____________ refers to the actual amount of work done to date stated in terms of how complete the units in work in process are relative to a fully complete unit

equivalent unit concept

the ________ approach to process costing combines the work and costs done in prior periods with the work and costs done in the current period

weighted-average

in a weighted average process costing system, the costs in the beginning work-in-process inventory are

used to compute the costs transferred out

a form prepared periodically for each processing department summarizing 1) the units for which the department is accountable and the disposition of these units and 2) the costs charged to the department and the allocation of these costs is called a

production cost report

________ process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed

FIFO

_____________ is used in manufacturing goods that have some common characteristics and some individual characteristics

operations costing

operations costing accounts for material costs like ___________ and conversion costs like _________ (at least theoretically)

job costing; process costing

operations costing systems are used when the products have

some common characteristics and some individual characteristics

an operations costing system

assigns conversion costs equally to each operation

___________ uses the information provided by activity based costing to identify ways to improve operations

activity based cost management

in general, ______ the resources committed to nonvalue-added activities will decrease customer response time

decreasing (or eliminating)

the basic concepts involved in ABC can be used to determine

customer profitability as well as product costs

in abc, the cost driver rate is computed by dividing

the total cost per activity by the estimated volume of activity

activity analysis is one of the first stages in implementing abcm. Which of the following steps in activity analysis is usually performed first?

identify the process objectives that are defined by what the customer wants or expects from the process

activity based cost management can best be defined as

the use of activity based costing information to improve operations

the unused resource capacity is the difference between the resources supplied and the resources

used

the amount of production possible under normal working conditions, including planned downtime and scheduled vacations, is called:

practical capacity

the degree to which a good or service meets specifications is called

conformance to specification

which of the following items is included in almost all quality control systems

quality planning and analysis

does the direct method make cost allocations between or among service departments?

no

does the step method allocate service department costs to other service departments?

some, not all

joint products are

outputs from common inputs and a common production process

Jamison Company has two service departments and two producing departments. Square footage of space occupied by each department follows:

Custodial services- 2000 feet

general admin- 4000 feet

producing A- 9000 feet

producing B- 9000 feet

total = 24000 feet

the department costs of custodial services are allocated on a basis of square footage of space. If custodial services costs are budgeted at $48,000, the amount of cost allocated to general admin under the direct method would be

$0

advanced computer solutions, incorporated has two main services: 1) time on a timeshared computer system, and 2) proprietary computer programs. The operation department (Op) provides computer time and the programming department (P) writes programs.

The percentage of each service used by each department for a typical period is:

Op uses 40% of P

P uses 30% of Op

In a typical period, Op spends $6100 and P spends $4100

Under the reciprocal method, what is the algebraic solution to the cost allocation problem?

Op = $6100 + 0.4P; P = $4100 + 0.3Op

refer to the picture, if common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B? (do not round intermediate equations)

$136,190