Cost Accounting Exam Solutions
Course Introduction
Cost Accounting explores the principles, methods, and techniques used to track, record, and analyze costs associated with producing goods or delivering services. This course covers cost behavior, cost-volume-profit analysis, job order costing, process costing, budgeting, standard costing, and variance analysis. Emphasizing practical application, students learn how cost information supports decision-making, strategic planning, and performance evaluation within organizations. Through case studies and problem-solving exercises, the course equips students with the skills needed to manage resources efficiently and improve organizational profitability.
Recommended Textbook Cornerstones of Managerial Accounting 2nd Canadian Edition by Maryanne Mowen
Available Study Resources on Quizplus
14 Chapters
2059 Verified Questions
2059 Flashcards
Source URL: https://quizplus.com/study-set/3658
Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/72830
Sample Questions
Q1) Which of the following is a characteristic of financial accounting?
A) It has no regulatory or mandatory rules.
B) It is internally focused.
C) It is concerned with the firm as a whole.
D) It has an emphasis on the future.
Answer: C
Q2) The Triple Bottom Line refers to management putting triple the focus on profits.
A)True
B)False
Answer: False
Q3) A cost accountant would normally occupy a staff position within an organization.
A)True
B)False
Answer: True
Q4) Another name for management accounting could be internal accounting.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Basic Managerial Accounting Concepts
Available Study Resources on Quizplus for this Chatper
156 Verified Questions
156 Flashcards
Source URL: https://quizplus.com/quiz/72829
Sample Questions
Q1) What is the term for the cost of the partially completed goods at the end of the period?
A) the beginning work-in-process inventory
B) the cost of goods manufactured
C) the ending work-in-process inventory
D) the ending finished goods inventory
Answer: C
Q2) Which of the following job positions is an example of direct labour?
A) production line worker
B) maintenance person
C) security guard
D) management accountant
Answer: A
Q3) Costs incurred to produce future benefits are usually liabilities.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Cost Behaviour
Available Study Resources on Quizplus for this Chatper
186 Verified Questions
186 Flashcards
Source URL: https://quizplus.com/quiz/72828
Sample Questions
Q1) Brandon Company constructed the following cost formula for its monthly janitorial cost.
Total monthly janitorial cost = $5,000 + ($.48 × units of output)
Required: A. Identify the independent variable.
B. Identify the dependant variable.
C. Identify the intercept.
D. Identify the slope.
E. Compute the total janitorial cost if Brandon produces 10,000 units of output next year. Answer: A. units of output
B. Total monthly janitorial cost
C. \(\quad \$ 5,000\)
D. \(\quad 0.48\)
E. \(\quad ( \$ 5,000 \times 12 ) + ( \$ .48 \times 10,000 ) = \$ 64,800 (\) Total Yearly Janitorial Costs \()\)
Q2) Using linear regression,the value of X Variable 2 equals the slope of the line.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Costvolumeprofit Analysis: a Managerial Planning Tool
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/72827
Sample Questions
Q1) Refer to the Figure.What is the break-even point in sales dollars?
A) $112,500
B) $150,000
C) $171,429
D) $400,000
Q2) If the break-even point increases,the margin of safety increases.
A)True
B)False
Q3) Measured in units sold
A)horizontal-axis of CVP graph
B)vertical-axis of CVP graph
C)slope of revenue line
D)slope of cost line
E)point where the total revenue line and the total cost line intersect
Q4) Which of the following should be used to compute the sales mix so that the break-even computation is meaningful to management?
A) the expected mix
B) the most desirable mix
C) the least desirable mix
D) the traditional mix
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Job-Order Costing
Available Study Resources on Quizplus for this Chatper
176 Verified Questions
176 Flashcards
Source URL: https://quizplus.com/quiz/72826
Sample Questions
Q1) Immaterial overhead variance closed to costs of goods
A)Completion of job
B)End of each accounting period
C)Materials are removed from storage into production
D)Product is sold
E)End of year
Q2) Refer to the Figure.Suppose Blackfoot decides to continue using departmental overhead rates and a job spends 4 hours in assembly and 3 hours in testing.What is the amount of overhead charged to the job?
A) $20.00
B) $22.00
C) $28.00
D) $50.54
Q3) What formula is used to calculate the predetermined overhead rate?
A) estimated annual overhead / estimated annual activity level
B) actual annual overhead / estimated annual activity level
C) estimated annual overhead / actual annual activity level
D) actual annual overhead / actual annual activity level
Q4) What are the three steps of overhead application?
Q5) Discuss overapplied and underapplied overhead.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Process Costing
Available Study Resources on Quizplus for this Chatper
157 Verified Questions
157 Flashcards
Source URL: https://quizplus.com/quiz/72825
Sample Questions
Q1) Manufacturing firms always operate with significant work-in-process inventories.
A)True
B)False
Q2) Refer to Process Department A. A. Calculate the equivalent units of production in ending work-in-process inventory.
B. Calculate total equivalent units of production for Department \(A\) for October.
Q3) Which two methods are used to determine equivalent units of production in process costing?
A) weighted average and FIFO
B) FIFO and LIFO
C) exact costing and LIFO
D) weighted average and exact costing
Q4) The document that summarizes the manufacturing activity that takes place in a process department for a given period of time
A)Equivalent units of production
B)Transferred-in costs
C)FIFO costing methods
D)Production report
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Activity-Based Costing and Management
Available Study Resources on Quizplus for this Chatper
155 Verified Questions
155 Flashcards
Source URL: https://quizplus.com/quiz/72824
Sample Questions
Q1) Refer to the Figure.What is the cost of counting?
A) $50,500
B) $52,000
C) $54,000
D) $56,000
Q2) What costs are incurred to avoid poor quality in the products or services being produced?
A) prevention costs
B) appraisal costs
C) internal failure costs
D) external failure costs
Q3) Which of the following is defined as a category of quality-related costs?
A) invention
B) controller
C) internal control
D) external failure
Q4) Refer to First Choice Credit Union.
A. Calculate the total number of chequing accounts.
B. Calculate the yearly overall cost per chequing account.
C. Calculate the monthly overall cost per chequing account.
Page 9
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Absorption and Variable Costing,and Inventory Management
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/72823
Sample Questions
Q1) Which accounting method is used for external reporting?
A) absorption costing
B) variable costing
C) transfer price costing
D) responsibility costing
Q2) On a segmented income statement,fixed costs are broken down into direct fixed costs and overall fixed costs.
A)True
B)False
Q3) Refer to the Figure.What is the unit product cost under absorption costing?
A) $7.20
B) $8.20
C) $8.60
D) $10.20
Q4) Refer to the Figure.What is the segment margin of the product line?
A) $280,000
B) $325,000
C) $350,000
D) $400,000
10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Budgeting, production, cash, and Master Budget
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/72822
Sample Questions
Q1) A firm acquires information that can be used to improve decision making from a budgetary system.
A)True
B)False
Q2) Budgeted balance sheet
A)Operating budget
B)Financial budget
Q3) Which of the following is a result of participative budgeting?
A) pseudoparticipation
B) set goals that are either too high or too low
C) slack built into the budget
D) goal congruence
Q4) Individual behaviour that is in basic conflict with the goals of the organization is called dysfunctional behaviour.
A)True
B)False
Q5) Leads to budgetary slack
A)Advantage
B)Disadvantage
Q6) Does a not-for-profit agency need to budget? Why or why not?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Standard Costing: a Managerial Control Tool
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/72821
Sample Questions
Q1) Actual costs
A)Actual quantity × actual price
B)(Actual hours × actual rate) (standard hours × standard rate)
C)(Actual quantity × actual price) (standard quantity × standard price)
D)(Actual hours standard hours)× standard rate
E)(Actual price standard price)× actual quantity
F)Standard quantity × standard price
G)(Actual rate standard rate)× actual hours
H)(Actual quantity standard quantity)× standard price
Q2) During November,10,000 direct labour hours were worked at a standard cost of $10 per hour.Suppose the direct labour rate variance for November was $4,000 unfavourable.What was the actual cost per direct labour hour?
A) $9.20
B) $9.60
C) $10.00
D) $10.40
Q3) Currently attainable standards can be achieved under efficient operating conditions.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Flexible Budgets and Overhead Analysis
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/72820
Sample Questions
Q1) Performance report
A)(Actual hours standard hours)SVOR
B)Prediction of what activity costs will be as activity output changes
C)A measure of capacity utilization
D)Actual variable overhead (SVOR × actual hours)
E)Difference between the actual amount and the flexible budget amount
F)A budget that specifies costs for a range of activity
G)A budget for a particular level of activity
H)Estimating activity output and then assessing the cost of resources to produce this output
I)A report that compares actual with planned costs
J)Difference between actual and budgeted fixed overhead
Q2) Activity-based budgeting focuses on cost items required by organizational units.
A)True
B)False
Q3) What does inefficient use of labour imply?
A) unfavourable variable overhead efficiency variance
B) favourable variable overhead efficiency variance
C) unfavourable variable overhead spending variance
D) favourable variable overhead spending variance
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Performance Evaluation and Decentralization
Available Study Resources on Quizplus for this Chatper
145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/72819
Sample Questions
Q1) A segment of Syntex,Inc.manufactures and sells blankets.The various models of blankets are produced in a single factory using stable technology.They are sold by the sales department,which is also located in the factory.What centre is most probably used to account for this segment?
A) a cost centre
B) a revenue centre
C) a profit centre
D) an investment centre
Q2) Last night,Rebecca worked on her accounting homework for two and a half hours.During that time,she completed eight problems.What is Rebecca's cycle time for one problem?
A) 4.50 minutes
B) 6.25 minutes
C) 10.25 minutes
D) 18.75 minutes
Q3) The company as a whole may be harmed when divisions refuse to transfer goods with a market price transfer policy.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Short-Run Decision Making: Relevant Costing
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/72818
Sample Questions
Q1) Alora Company produces a product that has a manufacturing cost of $40 per unit.Alora's policy is to charge a price equal to cost plus $25%.The 25% is pure profit to Alora.
A)True
B)False
Q2) A segment margin is always greater than or equal to zero.
A)True
B)False
Q3) Refer to the Figure.What is the contribution margin per hour of machine time for Test B?
A) $10
B) $20
C) $40
D) $100
Q4) In making a short-run decision,all alternatives need to be considered,not only feasible ones.
A)True
B)False
Q5) Why does a special-order decision frequently ignore fixed factory overhead?
Page 15
Q6) What are the six steps of the decision-making model?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
153 Verified Questions
153 Flashcards
Source URL: https://quizplus.com/quiz/72817
Sample Questions
Q1) Refer to the Figure.What is the payback period for Project I?
A) 1 year
B) 2 years
C) 2.5 years
D) 3 years
Q2) Which of the following factors must a manager estimate when making a capital investment decision?
A) the previous spending
B) the timing of cash flows
C) the company's spending on other projects
D) the company's financial history
Q3) Refer to the Figure.Galway Company is considering a project with an initial investment of $124,450 that will yield annual net cash flows of $32,000 and will be depreciated at $20,742 per year over its six-year life.What is the internal rate of return?
A) 6%
B) 8%
C) 10%
D) 14%
Q4) What is a postaudit? What are the advantages and disadvantages of the postaudit?
To view all questions and flashcards with answers, click on the resource link above. Page 16