In the flow of costs which of the following comes

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Cornerstones of Cost Management
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Chapter 14 / Exercise 14.25
Cornerstones of Cost Management
Hansen/Mowen
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14) In the flow of costs, which of the following comes second? A) Cost of goods sold B) Finished goods inventory C) Work in process inventory D) Raw materials inventory
15) Which of the following is true about lean thinking?
16) A system in which companies purchase raw materials only when needed is called
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The document you are viewing contains questions related to this textbook.
Cornerstones of Cost Management
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Chapter 14 / Exercise 14.25
Cornerstones of Cost Management
Hansen/Mowen
Expert Verified
D) JIT production. 17) Which of the following is an example of a cost item that should be classified as an internal failure cost?
18) The cost of testing incoming raw materials from a supplier would be classified as a(n) ________ cost. A) appraisal B) prevention C) internal failure D) external failure
19) The cost of testing incoming raw materials from a supplier would be classified as a(n) ________ cost.
20) Which of the following is not an advantage of an ERP system?
21) Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic as
22) Joe's Bottling Company provided the following expense information for July: Assembly-line workers' wages $ 56,000 Depreciation on factory equipment $ 35,000 Caps for bottles $ 3,000 Plastic bottles $ 52,000 Reconfiguring the assembly line $123,000 Salaries of salespeople $ 63,000 Customer support hotline $ 12,000 Salaries of research scientists $ 65,000 Delivery expenses $ 40,000 Customer toll-free order line $ 8,000 What is the total cost for the production category of the value chain? A) $457,000 B) $307,000 C) $148,000 D) $146,000
23) Sneider Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: Depreciation expense on bottling machines $ 63,000 Glass juice bottles $ 60,000 Commissions for salespeople $ 30,000 Salaries of nutrition researchers $ 75,000 Costs of maintaining website used for customer orders $ 4,000 Wages of factory workers $ 75,000 Freshness seals/caps for juice bottles $ 3,000 Reconfiguring the factory layout $122,000 Customer help line $ 5,000 Costs of refrigerated trucks used to deliver juice $ 25,000 What is the total cost for the production category of the value chain?

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