BADM 3030 - Chapter 8

Question 1

Cost accounting enables managers of a manufacturing business to identify, measure and control...

Accepted Answer

its gross profit

Answer

its operating cash flows

Answer

its sales revenue

Answer

its net income

Question 2

Which stakeholders have the greater interest in a company's cost accounting?

Accepted Answer

Management / insiders

Answer

Owners / stockholders / outsiders

Answer

Suppliers / business partners

Answer

Wall Street / analysts

Question 3

In the manufacturing process, timecards are important for measuring the hours of...

Accepted Answer

Assembly line workers

Answer

Back office "overhead" workers

Answer

Sales personnel

Answer

All of the above for allocating their costs to the company's various prodcts

Question 4

Timecard totals are then accumulated as an input on the bill of materials

Answer

true

Question 5

Companies typically capture costs of manufacturing each of their products in these three categories:

Accepted Answer

Direct materials, direct labor, and manufacturing overhead

Answer

Fixed, variable and semi-fixed costs

Answer

Product costs, selling costs, and administrative costs

Answer

Controllable, uncontrollable and standard costs

Question 6

Management By Exception principles are usually applied to exceptions or variances between...

Accepted Answer

Standard and actual costs

Answer

Controllable and uncontrollable costs

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Variable and fixed costs

Answer

Sales revenue and gross profit

Question 7

A labor cost variance considers both the cost per labor hour and the cost per unit of raw material

Answer

true

Question 8

Allocating costs to a specific product, job or process involves the use of an "allocation base" directly related to what is being produced

Answer

true

Question 9

In deciding the unit selling price for each of its products, a company is most concerned with recovering the...

Accepted Answer

variable cost per unit

Answer

standard cost per unit

Answer

fixed cost per unit

Answer

fixed costs in total

Question 10

A company's break-even point is where its gross profit is equal to zero.

Answer

true

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