accounting final test 2 The Cosmo Corporation manufactures and assembles office chairs

1. Identify the primary activities and estimate a total cost pool for each.

The first step in developing an ABC system is

2. $7.50

The Cosmo Corporation manufactures and assembles office chairs. Cosmo uses an activity-based costing system to allocate all manufacturing conversion costs. Each chair consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows:

3. True

Both process costing and job costing assign costs to units as they proceed through the process.

4. True

Prime Costs include direct labor and direct materials.

5. True

Indirect labor would be a component of conversion costs.

6. Transferred costs

When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next. What are these costs called?

7. Process Costing

Which of the following product costing systems is normally used to assign costs to goods that are mass produced?

8. Process Costing

The costing system used by a company making computer chips would be

9. $390,000

A company manufactures wallets. Last month's costs were: What were the prime costs for the month?

10. True

In a manufacturing company, fixed costs remain the same at many different production levels within the relevant range.