Quiz
Untitled
Create a free account to finish this quiz
Save your progress and see your final score.
Already have an account? Sign in
Questions in this quiz (44)
1Products, services, departments, and customers may be cost objects.
- ATrue
- BFalse
2Costs are accounted for in two basic stages: assignment followed by accumulation.
- ATrue
- BFalse
3Actual costs and budgeted costs are two different terms referring to the same thing.
- ATrue
- BFalse
4The same cost may be direct for one cost object and indirect for another cost object.
- ATrue
- BFalse
5Assigning direct costs poses more problems than assigning indirect costs.
- ATrue
- BFalse
6Improvements in information-gathering technologies are making it possible to trace more costs as direct.
- ATrue
- BFalse
7Misallocated indirect costs may lead to promoting products that are not profitable.
- ATrue
- BFalse
8The materiality of the cost is a factor in classifying the cost as a direct or indirect cost.
- ATrue
- BFalse
9The cost of a customized machine only used in the production of a single product would be classified as a direct cost.
- ATrue
- BFalse
10Some fixed costs may be classified as direct manufacturing costs.
- ATrue
- BFalse
11Fixed costs have no cost driver in the short run, but may have a cost driver in the long run.
- ATrue
- BFalse
12Costs that are difficult to change over the short run are always variable over the long run.
- ATrue
- BFalse
13Knowing whether a cost is a period or a product cost helps to estimate total costs at a new level of activity.
- ATrue
- BFalse
14A decision maker cannot adjust capacity over the short run.
- ATrue
- BFalse
15Fixed costs vary with the level of production or sales volume.
- ATrue
- BFalse
16Currently, most administrative personnel costs would be classified as fixed costs.
- ATrue
- BFalse
17Fixed costs depend on the resources used, not the resources acquired.
- ATrue
- BFalse
18When making decisions using fixed costs, the focus should be on total costs and not unit costs.
- ATrue
- BFalse
19When 50,000 units are produced the fixed cost is $10 per unit. Therefore, when 100,000 units are produced fixed costs will remain at $10 per unit.
- ATrue
- BFalse
20Service-sector companies provide services or intangible products to their customers.
- ATrue
- BFalse
21Inventoriable costs are reported as an asset when incurred and expensed on the income statement when the product is sold.
- ATrue
- BFalse
22Cost of goods sold refers to the products brought to completion, whether they were started before or during the current accounting period.
- ATrue
- BFalse
23Operating income is sales revenue minus cost of goods manufactured.
- ATrue
- BFalse
24All manufacturing costs are inventoriable costs.
- ATrue
- BFalse
25All costs reported on the income statement of a service-sector company are period costs.
- ATrue
- BFalse
26Period costs are never included as part of inventory.
- ATrue
- BFalse
27Conversion costs include all direct manufacturing costs.
- ATrue
- BFalse
28Inventory of a manufacturing firm includes goods partially worked on but not yet fully completed.
- ATrue
- BFalse
29The classification of product and period costs is particularly valuable in management accounting.
- ATrue
- BFalse
30The wages of a plant supervisor would be classified as a period cost.
- ATrue
- BFalse
31For external reporting, GAAP requires that costs be classified as either variable or fixed.
- ATrue
- BFalse
32Overtime premium consists of the wages paid to all workers (for both direct labor and indirect labor) in excess of their straight-time wage rates.
- ATrue
- BFalse
33A product cost that is useful for one decision may not be useful information for another decision.
- ATrue
- BFalse
34For external reporting purposes, indirect manufacturing costs must be allocated to individual units.
- ATrue
- BFalse
35The role of the cost accountant is to tailor the cost calculation to fit the current decision situation.
- ATrue
- BFalse
36Cost accounting and cost management include calculating various costs, obtaining financial and nonfinancial information, and analyzing relevant information for decision-making.
- ATrue
- BFalse
37Cost objects include
- Aproducts.
- Bcustomers.
- Cdepartments.
- Dall of the above.
38Actual costs are
- Athe costs incurred.
- Bbudgeted costs.
- Cestimated costs.
- Dforecasted costs.
39The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is
- Acost accumulation.
- Bcost assignment.
- Ccost tracing.
- Dconversion costing.
40The collection of accounting data in some organized way is
- Acost accumulation.
- Bcost assignment.
- Ccost tracing.
- Dconversion costing.
41Cost tracing is
- Athe assignment of direct costs to the chosen cost object.
- Ba function of cost allocation.
- Cthe process of tracking both direct and indirect costs associated with a cost object.
- Dthe process of determining the actual cost of the cost object.
42Cost allocation is
- Athe process of tracking both direct and indirect costs associated with a cost object.
- Bthe process of determining the actual cost of the cost object.
- Cthe assignment of indirect costs to the chosen cost object.
- Da function of cost tracing.
43The determination of a cost as being either direct or indirect depends upon
- Athe accounting system.
- Bthe allocation system.
- Cthe cost tracing system.
- Dthe cost object chosen.
44Classifying a cost as either direct or indirect depends upon
- Athe behavior of the cost in response to volume changes.
- Bwhether the cost is expensed in the period in which it is incurred.
- Cwhether the cost can be easily identified with the cost object.
- Dwhether an expenditure is avoidable or not in the future.
Information
- Description
- Quiz on Untitled, created by buggq on 22/03/2016.
- Author
- buggq
- Language
- English
- Views
- 4
- Rating
- No ratings yet Rate this quiz