1			Which of the following groups of key cost concepts consists of the basic concepts and relationships among cost objectives and cost drivers?
			A)	Operational and management control
			B)	Planning and decision making
			C)	Product and service costing for the preparation of financial statements
			D)	Cost objects, cost drivers, and cost pools
2			Conversion costs is equal to:
			A)	the sum of direct materials used and direct labor costs.
			B)	the sum of direct materials purchased and direct labor costs.
			C)	the sum of direct labor and overhead costs.
			D)	the sum of direct materials used and overhead costs.
3			What kind of costs can be conveniently and economically traced to a cost object or pool?
			A)	Indirect Costs.
			B)	Relevant Costs.
			C)	Direct Costs.
			D)	Overhead Costs.

USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 4, 5 AND 6:

Below is total cost information for Brady Company:

Units produced	5,000	10,000
Fixed costs	$50,000	$50,000
Variable cost per unit	$8	$8

4			What is the unit fixed costs when production is 10,000 units?
			A)	$8
			B)	$10
			C)	$5
			D)	$13
5			What is the unit cost when 5,000 units are produced?
			A)	$18
			B)	$10
			C)	$13
			D)	$8
6			What would be the total costs incurred for 10,000 units?
			A)	$130,000
			B)	$50,000
			C)	$80,000
			D)	$90,000
7			Which of the following would NOT be a period cost for a manufacturing firm?
			A)	Commissions paid to salesperson
			B)	Salary paid to the CEO of the company
			C)	Repairs to the receptionist's computer
			D)	Depreciation on the manufacturing plant building
8			Which one of the following would NOT be found in a merchandising company?
			A)	beginning inventory
			B)	cost of goods sold
			C)	ending inventory
			D)	gross profit
			E)	work-in-process inventory
9			The cost of goods that were finished and transferred out of work in process during the current period is:
			A)	cost of goods sold
			B)	cost of goods available for use
			C)	cost of goods manufactured
			D)	cost of goods available for sale
			E)	cost of goods purchased
10			A cost is relevant if it:
			A)	is differential.
			B)	differs between alternatives.
			C)	is a future incurrence.
			D)	Only a and b are both correct.
			E)	a, b and c are all correct.
11			Which of the following is the benefit lost when choosing one option precludes receiving the benefits from an alternative option?
			A)	Sunk Costs.
			B)	Opportunity Costs.
			C)	Indifferent Costs.
			D)	Past Costs.

USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 12, 13 AND 14:

The following information pertains to Gregg Manufacturing Company.

Beginning direct materials inventory	$40
Beginning WIP inventory	50
Beginning finished goods inventory	80
Ending direct materials inventory	20
Ending WIP inventory	210
Ending finished goods inventory	100
Purchases	280
Direct labor	320
Factory overhead	400

12			What is the amount of direct materials used during the period?
			A)	$280
			B)	$260
			C)	$120
			D)	$300
13			What is the amount of cost of goods manufactured during the period?
			A)	$860
			B)	$840
			C)	$940
			D)	$1,020
14			What is the amount of cost of goods sold during the period?
			A)	$860
			B)	$840
			C)	$940
			D)	$1,020
15			Which one of the following would NOT usually be considered a controllable cost for the product or division manager?
			A)	factory wages.
			B)	plant salaries.
			C)	advertising.
			D)	maintenance.
			E)	plant rent expense.