Cost Accounting Textbook Exam Questions https://quizplus.com/study-set/3665 12 Chapters 3096 Verified Questions
Cost Accounting Textbook Exam Questions Course Introduction Cost Accounting is a comprehensive course that explores the principles, methods, and techniques used to determine, record, and analyze the costs associated with producing goods or services. Students will learn about cost behavior, cost accumulation systems, job order costing, process costing, and activity-based costing. The course also covers budgeting, standard costing, variance analysis, and the use of cost information for planning, control, and decision-making within organizations. Emphasis is placed on the practical application of cost accounting concepts to support effective financial management and strategic business decisions.
Recommended Textbook Managerial Accounting 3rd Canadian Edition by Karen W. Braun
Available Study Resources on Quizplus 12 Chapters 3096 Verified Questions 3096 Flashcards Source URL: https://quizplus.com/study-set/3665
Page 2
Chapter 1: Introduction to Managerial Accounting Available Study Resources on Quizplus for this Chatper 201 Verified Questions 201 Flashcards Source URL: https://quizplus.com/quiz/72957
Sample Questions Q1) Which term listed below describes costs incurred when the company fails to detect poor quality goods or services? A) Internal failure costs B) Value-added activity C) Just-in-time production D) External failure costs Answer: D Q2) Lean production systems keep large inventories. A)True B)False Answer: False Q3) ISO 9001:2008 is a certification program for companies that adhere to an international set of quality management standards and guidelines. A)True B)False Answer: True Q4) Discuss at least four differences between financial accounting and managerial accounting. Answer: 11ea895a_9460_6ae2_861b_d9f5afb1f84f_TB1238_00 To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Building Blocks of Managerial Accounting Available Study Resources on Quizplus for this Chatper 265 Verified Questions 265 Flashcards Source URL: https://quizplus.com/quiz/72956
Sample Questions Q1) Research and development is needed to improve products and to design new products. A)True B)False Answer: True Q2) A company's distribution system is an important part of the value chain. A)True B)False Answer: True Q3) Sanjay Company's average fixed costs per unit will be A) $19.00 per unit. B) $5.00 per unit. C) $14.00 per unit. D) $15.00 per unit. Answer: C Q4) All of the components of manufacturing from research and development through customer service after the sale are part of a firm's value chain. A)True B)False Answer: True Page 4 To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Cost Behaviour Available Study Resources on Quizplus for this Chatper 374 Verified Questions 374 Flashcards Source URL: https://quizplus.com/quiz/72955
Sample Questions Q1) If Toby prepares a contribution margin income statement for the month of June, what would be his operating income? A) $48,200 B) $108,000 C) $160,000 D) $56,000 Answer: A Q2) Using variable costing, what is the operating income at Preston Racquets for last month? A) $200,000 B) $80,000 C) $20,000 D) $140,000 Answer: C Q3) What is the fixed portion of the monthly overhead expenses at Copely Mulch? A) $5,000 B) $9,000 C) $4,000 D) $1,000 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 272 Verified Questions 272 Flashcards Source URL: https://quizplus.com/quiz/72954
Sample Questions Q1) The lowest possible operating leverage factor for a company is A) zero. B) +1. C) -1. D) somewhere between zero and +1. Q2) The break-even sales volume in units for Warm Hands is A) 8,125. B) 7,313. C) 24,375. D) 9,750. Q3) Contribution margin and gross margin income statements have different operating incomes. A)True B)False Q4) Only the unit contribution margin approach may be used to calculate the break-even point. A)True B)False Q5) What is meant by the term break-even point? Why should a manager be concerned about the break-even point?
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Job Costing Available Study Resources on Quizplus for this Chatper 353 Verified Questions 353 Flashcards Source URL: https://quizplus.com/quiz/72953
Sample Questions Q1) The journal entry to issue $500 of direct materials and $30 of indirect materials involves a debit to A) Manufacturing Overhead for $530. B) Work in Process Inventory for $530. C) Work in Process Inventory for $500 and a credit to Manufacturing Overhead for $30. D) Work in Process Inventory for $500 and a debit to Manufacturing Overhead for $30. Q2) At Lorelei Corporation the journal entry to transfer completed goods to the finished goods inventory account would include a A) debit to Work in Process Inventory for $226,750. B) debit to Finished Goods Inventory for $227,875. C) credit to Work in Process Inventory for $227,875. D) debit to Finished Goods Inventory for $226,750. Q3) What is the beginning finished goods inventory at Harmon Manufacturing? A) $135,100 B) $75,100 C) $25,100 D) $6,100 To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Process Costing Available Study Resources on Quizplus for this Chatper 288 Verified Questions 288 Flashcards Source URL: https://quizplus.com/quiz/72952
Sample Questions Q1) Beginning WIP inventory is 700 units; completed and transferred out were 2,800 units; and Ending WIP inventory is 600 units. What is the number of units started? A) 2,800 B) 2,700 C) 3,400 D) 3,200 Q2) The journal entry to record the use of direct materials in Processing Department #1 would include a debit to Raw Materials inventory. A)True B)False Q3) At Pizza Company the cost per equivalent unit for material costs would be closest to A) $2.62. B) $2.50. C) $1.00. D) $0.50. Q4) Conversion costs are the sum of direct labour and manufacturing overhead. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Activity Based Costing Available Study Resources on Quizplus for this Chatper 184 Verified Questions 184 Flashcards Source URL: https://quizplus.com/quiz/72951
Sample Questions Q1) Activity-based management refers to using activity-based cost information to make decisions that may increase profits while satisfying customers' needs. A)True B)False Q2) A four-part ABC cost hierarchy includes A) market-sustaining costs. B) research and development costs. C) manufacturing-level costs. D) output unit-level costs. Q3) Lean practices tend to centre on external waste that may occur as a result of the product. A)True B)False Q4) As a result of cost distortion, either all products will be overcosted, or all products will be undercosted. A)True B)False Q5) What is activity-based management and how can it be used to improve the profitability of a company? 9 click on the resource link above. To view all questions and flashcards with Page answers,
Chapter 8: Short-Term Business Decisions Available Study Resources on Quizplus for this Chatper 271 Verified Questions 271 Flashcards Source URL: https://quizplus.com/quiz/72950
Sample Questions Q1) Which of the following is the format of the income statement most useful in decision-making? A) Absorption costing format B) Traditional format C) Single-step format D) Contribution margin format Q2) In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be A) relevant to the decision. B) irrelevant to the decision. C) opportunity costs. D) sunk costs. Q3) If the Philadelphia Swim Club is a price-taker and won't be able to charge more than its competitors who charge $37.00 for a membership. What profit will it earn in terms of dollars? A) $11,000,000 B) $(12,500,000) C) $1,000,000 D) $(1,000,000) To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: The Master Budget and Responsibility Accounting Available Study Resources on Quizplus for this Chatper 228 Verified Questions 228 Flashcards Source URL: https://quizplus.com/quiz/72949
Sample Questions Q1) What is the desired ending inventory on May 31 at Peabody Enterprises? A) $8,400 B) $1,120 C) $1,680 D) $1,440 Q2) What are the total cash collections in June at Three Sisters Catering? A) $38,000 B) $85,600 C) $96,900 D) $94,400 Q3) The ________ budgets project cash inflows and outflows and the budgeted balance sheet. A) purchases B) capital expenditures C) cash D) financial Q4) Investments centres are generally large divisions of corporations. A)True B)False
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Flexible Budgets and Standard Costs Available Study Resources on Quizplus for this Chatper 260 Verified Questions 260 Flashcards Source URL: https://quizplus.com/quiz/72948
Sample Questions Q1) Manufacturing overhead cost allocated to production equals the standard predetermined manufacturing overhead cost rate times the actual quantity of the allocation base allowed for the standard number of outputs. A)True B)False Q2) What does a favourable direct materials price variance indicate? A) The actual cost of materials purchased was greater than the standard cost of materials purchased. B) The standard cost of materials purchased was less than the actual cost of materials purchased. C) The standard cost of materials purchased was greater than the actual cost of materials purchased. D) The actual quantity of materials used was less than the standard quantity of materials used for actual production. Q3) The flexible budget variance is the difference between the flexible budget and the static budget. A)True B)False To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Performance Evaluation and the Balanced Scorecard Available Study Resources on Quizplus for this Chatper 195 Verified Questions 195 Flashcards Source URL: https://quizplus.com/quiz/72947
Sample Questions Q1) Goal congruence is more likely to be achieved at a decentralized organization rather than a centralized organization. A)True B)False Q2) Falcone Company has $72,000 of operating income, a profit margin of 12%, a target rate of return of 10%, and asset turnover of 3.0. The sales in dollars for Falcone Company would be closest to A) $8,640. B) $24,000. C) $216,000. D) $600,000. Q3) Roberts Corporation has an ROI of 23%, total assets of $5,250,000, and current liabilities of $950,000. What is Roberts Corporation's operating income? A) $218,500 B) $1,207,500 C) $4,130,435 D) $22,826,087 Q4) Describe the limitations of financial performance measurement. Page 13 Q5) List and describe five reasons why a company might choose to decentralize. To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Capital Investment Decisions and the Time Value of Money Available Study Resources on Quizplus for this Chatper 205 Verified Questions 205 Flashcards Source URL: https://quizplus.com/quiz/72946
Sample Questions Q1) The accounting rate of return is a measure of liquidity computed by dividing the average annual cash flows from an asset by the average amount invested in the asset. A)True B)False Q2) JE Trim is considering investing $50,000 in a new molding planer that will have no residual value. The new equipment is expected to result in increased annual net cash inflows of $10,000 per year for the next 10 years. Assuming that JE Trim Music uses an 8% hurdle rate, what is net present value (NPV) of the investment? Is this a favourable investment? Q3) When computing the accounting rate of return for a capital asset, which of the following is used as the equation's numerator? A) Average annual operating income from the asset B) Average amount invested in the asset C) Total amount invested in the asset D) Average net cash flows from the asset Q4) Simone Corporation bought a new machine which cost $87,500, has a useful life of 10 years, and will generate annual cash inflows of $25,000. The residual value of the machine is $5,500. What is the payback period? Page 14 To view all questions and flashcards with answers, click on the resource link above.