Question 1

_____ is an example of the decisions reflecting the strategic purpose of the cost-management system.

Accepted Answer

A) The cost of a manufacturing process 
B) The product mix to optimize profitability 
C) The amount of inventory that should appear on the balance sheet 
D) All of these answers are correct 
A) The cost of a manufacturing process 
B) The product mix to optimize profitability 
C) The amount of inventory that should appear on the balance sheet 
D) All of these answers are correct

Question 2

Cost allocation is the tracing and reassigning of costs to one or more cost objectives such as departments, customers, or products.

Accepted Answer

A) True 
 B)False

Question 3

The purpose that tends to dominate cost allocation

Accepted Answer

The answer of The purpose that tends to dominate cost...

Question 4

_____ is the part of the accounting system that measures costs for the purposes of management decision making and financial reporting.

Accepted Answer

A) Cost determination 
B) Cost accounting 
C) Cost accumulation 
D) Cost summary 
A) Cost determination 
B) Cost accounting 
C) Cost accumulation 
D) Cost summary

Question 5

Costs that can be eliminated without affecting a product's value to the customer

Accepted Answer

Non-value-

Question 6

The contribution approach is a method of internal reporting that emphasizes the distinction between variable and fixed costs for the purpose of better decision making.

Accepted Answer

A) True 
 B)False

Question 7

Where a specific product is the cost object, the hourly wages of assembly workers who work on only that product would be classified as an) _____.

Accepted Answer

A) direct, variable cost 
B) direct, fixed cost 
C) indirect, variable cost 
D) indirect, fixed cost 
A) direct, variable cost 
B) direct, fixed cost 
C) indirect, variable cost 
D) indirect, fixed cost

Question 8

Anything for which a separate measurement of cost is desired in the manufacturing process

Accepted Answer

The answer of Anything for which a separate measurement of...

Question 9

Benchmarks can come from within the organization, from competing organizations, or from other organizations having similar products.

Accepted Answer

A) True 
 B)False

Question 10

The change from traditional costing to activity-based costing may reveal that _____.

Accepted Answer

A) high volume products are overcosted 
B) low volume products are overcosted 
C) both high and low volume products are overcosted 
D) both high and low volume products are undercosted 
A) high volume products are overcosted 
B) low volume products are overcosted 
C) both high and low volume products are overcosted 
D) both high and low volume products are undercosted

Question 11

Cost can be measured by dollars, yen, and euros, as well as other currencies.

Accepted Answer

A) True 
 B)False

Question 12

In both merchandising and manufacturing accounting, selling and administrative costs are period costs.

Accepted Answer

A) True 
 B)False

Question 13

Costs can be classified only as direct or indirect.

Accepted Answer

A) True 
 B)False

Question 14

A cost object is anything for which a separate measurement of costs is desired.

Accepted Answer

A) True 
 B)False

Question 15

_____ is an example of the external financial reporting purpose of the cost management systems.

Accepted Answer

A) The cost of a manufacturing process 
B) The product mix to optimize profitability 
C) The amount of inventory that should appear on the balance sheet 
D) All of these answers are correct 
A) The cost of a manufacturing process 
B) The product mix to optimize profitability 
C) The amount of inventory that should appear on the balance sheet 
D) All of these answers are correct

Question 16

The techniques used to determine the cost of a product or service by collecting and classifying costs and assigning them to cost objectives

Accepted Answer

Cost accou

Question 17

Cost-allocation base refers to the _____.

Accepted Answer

A) cost driver 
B) total costs to be allocated 
C) total allocated costs 
D) cost objectives 
A) cost driver 
B) total costs to be allocated 
C) total allocated costs 
D) cost objectives

Question 18

There is no "best" cost allocation system.

Accepted Answer

A) True 
 B)False

Question 19

Porky, Inc., started the year with $90,000 in direct materials.During the year, Porky Inc.purchased $535,000 in direct materials, and used $500,000 in materials.The direct materials inventory on the balance sheet is _____.

Accepted Answer

A) $35,000 
B) $125,000 
C) $90,000 
D) $535,000 
A) $35,000 
B) $125,000 
C) $90,000 
D) $535,000

Question 20

A group of individual costs that is allocated to cost objectives using a single cost driver

Accepted Answer

The answer of A group of individual costs that is...

_____ is an example of the decisions reflecting the strategic purpose of the cost-management system.

Cost allocation is the tracing and reassigning of costs to one or more cost objectives such as departments, customers, or products.

The purpose that tends to dominate cost allocation

_____ is the part of the accounting system that measures costs for the purposes of management decision making and financial reporting.

Costs that can be eliminated without affecting a product's value to the customer

The contribution approach is a method of internal reporting that emphasizes the distinction between variable and fixed costs for the purpose of better decision making.

Where a specific product is the cost object, the hourly wages of assembly workers who work on only that product would be classified as an) _____.

Anything for which a separate measurement of cost is desired in the manufacturing process

Benchmarks can come from within the organization, from competing organizations, or from other organizations having similar products.

The change from traditional costing to activity-based costing may reveal that _____.

Cost can be measured by dollars, yen, and euros, as well as other currencies.

In both merchandising and manufacturing accounting, selling and administrative costs are period costs.

Costs can be classified only as direct or indirect.

A cost object is anything for which a separate measurement of costs is desired.

_____ is an example of the external financial reporting purpose of the cost management systems.

The techniques used to determine the cost of a product or service by collecting and classifying costs and assigning them to cost objectives

Cost-allocation base refers to the _____.

There is no "best" cost allocation system.

Porky, Inc., started the year with $90,000 in direct materials.During the year, Porky Inc.purchased $535,000 in direct materials, and used $500,000 in materials.The direct materials inventory on the balance sheet is _____.

A group of individual costs that is allocated to cost objectives using a single cost driver

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 4: Cost Management Systems and an Introduction to Activity-Based Costing

_____ is an example of the decisions reflecting the strategic purpose of the cost-management system.

Cost allocation is the tracing and reassigning of costs to one or more cost objectives such as departments, customers, or products.

The purpose that tends to dominate cost allocation

_____ is the part of the accounting system that measures costs for the purposes of management decision making and financial reporting.

Costs that can be eliminated without affecting a product's value to the customer

The contribution approach is a method of internal reporting that emphasizes the distinction between variable and fixed costs for the purpose of better decision making.

Where a specific product is the cost object, the hourly wages of assembly workers who work on only that product would be classified as an) _____.

Anything for which a separate measurement of cost is desired in the manufacturing process

Benchmarks can come from within the organization, from competing organizations, or from other organizations having similar products.

The change from traditional costing to activity-based costing may reveal that _____.

Cost can be measured by dollars, yen, and euros, as well as other currencies.

In both merchandising and manufacturing accounting, selling and administrative costs are period costs.

Costs can be classified only as direct or indirect.

A cost object is anything for which a separate measurement of costs is desired.

_____ is an example of the external financial reporting purpose of the cost management systems.

The techniques used to determine the cost of a product or service by collecting and classifying costs and assigning them to cost objectives

Cost-allocation base refers to the _____.

There is no "best" cost allocation system.

Porky, Inc., started the year with $90,000 in direct materials.During the year, Porky Inc.purchased $535,000 in direct materials, and used $500,000 in materials.The direct materials inventory on the balance sheet is _____.

A group of individual costs that is allocated to cost objectives using a single cost driver

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters