Cost Accounting
Mock Exam
Course Introduction
Cost Accounting explores the principles, methods, and techniques used to capture, analyze, and report the costs associated with producing goods and services. The course covers foundational topics such as cost classification, cost behavior, job and process costing systems, activity-based costing, budgeting, and standard costing. Students will learn how cost information supports managerial planning, control, and decision-making, with a focus on practical applications within various organizational contexts. Through real-world examples and analytical exercises, the course equips students with the skills needed to improve operational efficiency and strategic financial management.
Recommended Textbook
Horngren's Accounting The Managerial Chapters 10th Edition by Tracie L. Miller Nobles
Available Study Resources on Quizplus
9 Chapters
1348 Verified Questions
1348 Flashcards
Source URL: https://quizplus.com/study-set/3558 Page 2
Chapter 1: Introduction to Managerial Accounting
Available Study Resources on Quizplus for this Chatper
179 Verified Questions
179 Flashcards
Source URL: https://quizplus.com/quiz/70629
Sample Questions
Q1) Wages and benefits of factory managers are considered as product costs.
A)True
B)False
Answer: True
Q2) Which of the following correctly describes the accounting for advertising costs?
A) Advertising costs are product costs and are expensed as incurred.
B) Advertising costs are period costs and are expensed as incurred.
C) Advertising costs are product costs and are expensed when the manufactured product is sold.
D) Advertising costs are period costs and are expensed when the manufactured product is sold.
Answer: B
Q3) Calculate Fizz's total product costs.
A) $126,000
B) $104,100
C) $127,100
D) $115,000
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Job Order Costing
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/70630
Sample Questions
Q1) The cost of goods manufactured is recorded with a debit to the Work-in-Process Inventory account and a credit to the Cost of Goods Manufactured account.
A)True
B)False
Answer: False
Q2) Unlike manufacturing companies, service companies use an allocation base for allocating both direct and indirect costs.
A)True
B)False Answer: False
Q3) Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account.
A)True
B)False Answer: False
Q4) Job order costing is well suited for the service industry.
A)True
B)False Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Process Costing
Available Study Resources on Quizplus for this Chatper
144 Verified Questions
144 Flashcards
Source URL: https://quizplus.com/quiz/70631
Sample Questions
Q1) When raw materials are purchased on account, the Accounts Payable account is credited.
A)True
B)False
Answer: True
Q2) A process is one of a series of steps in manufacturing production, usually associated with making large quantities of similar items.
A)True
B)False
Answer: True
Q3) The beginning inventory costs and current period costs are combined to determine the average cost of equivalent units of production under the:
A) equivalent units method.
B) conversion costs method.
C) first-in, first-out method.
D) weighted-average method.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Cost-Volume-Profit Analysis
Available Study Resources on Quizplus for this Chatper
172 Verified Questions
172 Flashcards
Source URL: https://quizplus.com/quiz/70632
Sample Questions
Q1) What is the contribution margin ratio?
A) 12%
B) 60%
C) 40%
D) 70%
Q2) Purely Pizza Company sells pizzas in two different sizes-medium and large. The two products sell in equal numbers. The contribution margin of a medium pizza is $12 and the contribution margin of a large pizza is $18. The weighted average contribution margin is $15.
A)True
B)False
Q3) Nancy was reviewing the water bill for her dog day care and spa and determined that her highest bill, $3,800, occurred in May when she washed 400 dogs and her lowest bill, $2,400, occurred in November when she washed 200 dogs. What was the fixed cost associated with Nancy's water bill?
A) $2,400
B) $3,800
C) $1,000
D) $1,400
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 5: Master Budgets
Available Study Resources on Quizplus for this Chatper
114 Verified Questions
114 Flashcards
Source URL: https://quizplus.com/quiz/70633
Sample Questions
Q1) Calculate cost of goods sold for the month of February.
A) $40,250
B) $52,000
C) $33,750
D) $39,000
Q2) A budget is a financial plan that managers use to coordinate a business's activities.
A)True
B)False
Q3) Which of the following is true of the sales budget?
A) It provides sales values that are used to prepare financial statements for external reporting purposes.
B) It captures the variable and fixed expenses of the business.
C) It is used in the production budget.
D) It shows the value of expected production in a period.
Q4) Calculate the ending merchandise inventory for the month of March.
A) $38,750
B) $52,000
C) $33,750
D) $39,000
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Flexible Budgets and Standard Cost Systems
Available Study Resources on Quizplus for this Chatper
174 Verified Questions
174 Flashcards
Source URL: https://quizplus.com/quiz/70634
Sample Questions
Q1) The fixed overhead volume variance shows why the fixed overhead is underallocated or overallocated because it is a cost variance.
A)True
B)False
Q2) Accurate Tax Returns budgets 2 direct labor hours for every tax return that it prepares, at a standard cost of $32 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $18,000. The actual labor cost was $36 per hour during that period. The actual number of labor hours was 1,000. What was the direct labor cost variance?
A) $2,000 F
B) $32,000 U
C) $4,000 U
D) $32,000 F
Q3) A favorable variance has a debit balance and is a contra-revenue.
A)True B)False
Q4) A favorable variance reflects a decrease in operating income.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cost Allocation and Responsibility Accounting
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/70635
Sample Questions
Q1) In a balanced scorecard, which of the following is a key performance indicator of the financial perspective?
A) hours of employee training
B) number of warranty claims
C) percentage of market share
D) return on investment
Q2) How much is the percentage flexible budget variance for traceable fixed expenses?
A) 0.8 % F
B) 0.8 % U
C) 0.3 % U
D) 0.3 % F
Q3) The practice of comparing a company's achievements against the best practices in the industry is known as goal congruence.
A)True
B)False
Q4) The transfer price should be an amount between the market price and the variable cost.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Short-Term Business Decisions
Available Study Resources on Quizplus for this Chatper
161 Verified Questions
161 Flashcards
Source URL: https://quizplus.com/quiz/70636
Sample Questions
Q1) Victory Company makes a special kind of racing tire. Variable costs are $220, and fixed costs are $30,000 per month. Victory sells 500 units per month at a price of $300. If Victory upgrades the quality of the tire, they believe that they can boost the price. If so, the variable cost will go up to $230 and the fixed costs will rise by 50%. The CEO wishes to increase his operational income by 25%. What price level would give the desired results?
A) $330 per unit
B) $370 per unit
C) $320 per unit
D) $345 per unit
Q2) Assuming the Football Helmets line is dropped, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $100,000 per year, how will operating income be affected?
A) Operating income will increase $30,000.
B) Operating income will increase $10,000.
C) Operating income will decrease $10,000.
D) Operating income will decrease $80,000.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Capital Investment Decisions
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/70637
Sample Questions
Q1) Which of the following situations suggests the acceptance of an investment proposal?
A) The present value of the net cash inflows exceeds the initial investment.
B) The IRR is lower than the hurdle rate.
C) The cash inflows are lesser than the initial investment.
D) The investment will have a residual value.
Q2) The payback method can only be used when the net cash inflows from a capital investment are the same for each period.
A)True
B)False
Q3) Which project has the highest profitability index?
A) Project A
B) Project B
C) Project C
D) Project D
Q4) The accounting rate of return is calculated by dividing the average annual operating income by the average amount invested.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11