Question 1

If a cost can be reduced to zero in the short run without significantly harming the organization, the cost is a

Accepted Answer

A)  variable cost. 
B)  committed cost. 
C)  discretionary cost. 
D)  product cost. 
A)  variable cost. 
B)  committed cost. 
C)  discretionary cost. 
D)  product cost.

Question 2

For cost control purposes, actual costs should be compared to prior period costs.

Accepted Answer

A) True 
 B)False

Question 3

Having sufficient cash to pay liabilities as they become due is referred to as an organization's ________________________.

Accepted Answer

The answer of Having sufficient cash to pay liabilities as...

Question 4

The term "committed costs" refers to costs that

Accepted Answer

A)  management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers. 
B)  are likely to respond to the amount of attention devoted to them by a specified manager. 
C)  are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity. 
D)  fluctuate in total in response to small changes in the rate of utilization of capacity. 
A)  management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers. 
B)  are likely to respond to the amount of attention devoted to them by a specified manager. 
C)  are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity. 
D)  fluctuate in total in response to small changes in the rate of utilization of capacity.

Question 5

What are the five steps involved in implementing a cost control system?

Accepted Answer

The five steps are as follows:
1. Unders

Question 6

A flexible budget compares actual costs to budgeted costs at several activity levels.

Accepted Answer

A) True 
 B)False

Question 7

Costs that are necessary to sustain an organization's operations are referred to as ____________________________.

Accepted Answer

The answer of Costs that are necessary to sustain an...

Question 8

Explain the meaning of the coefficient of determination in cost estimation.

Accepted Answer

The coefficient of determination is the

Question 9

Clarkson Company The following information is provided for Clarkson Company for the month of September:
  Refer to Clarkson Company. What is the fixed spending variance?

Accepted Answer

A)  $590 U 
B)  $590 F 
C)  $190 F 
D)  $190 U 
A)  $590 U 
B)  $590 F 
C)  $190 F 
D)  $190 U

Question 10

Discretionary costs are often difficult to control because

Accepted Answer

A)  it is difficult to measure the cost. 
B)  they cannot be changed in the short run. 
C)  they cannot be changed from period to period. 
D)  it is difficult to measure the benefits of discretionary activities. 
A)  it is difficult to measure the cost. 
B)  they cannot be changed in the short run. 
C)  they cannot be changed from period to period. 
D)  it is difficult to measure the benefits of discretionary activities.

Question 11

The benefits of discretionary costs are usually measurable in monetary terms.

Accepted Answer

A) True 
 B)False

Question 12

The maximum allowable expenditure is the

Accepted Answer

A)  appropriation. 
B)  allowance. 
C)  allocation. 
D)  committed fixed cost. 
A)  appropriation. 
B)  allowance. 
C)  allocation. 
D)  committed fixed cost.

Question 13

For cost control purposes, actual costs should be compared to

Accepted Answer

A)  the original budget. 
B)  actual costs for the prior period. 
C)  a flexible budget. 
D)  a static budget. 
A)  the original budget. 
B)  actual costs for the prior period. 
C)  a flexible budget. 
D)  a static budget.

Question 14

Avoidable costs are usually

Accepted Answer

A)  committed. 
B)  common. 
C)  discretionary. 
D)  joint. 
A)  committed. 
B)  common. 
C)  discretionary. 
D)  joint.

Question 15

A logical structure of activities designed to analyze and evaluate management of expenditures is a cost

Accepted Answer

A)  consciousness system. 
B)  understanding system. 
C)  avoidance system. 
D)  control system. 
A)  consciousness system. 
B)  understanding system. 
C)  avoidance system. 
D)  control system.

Question 16

Clarkson Company The following information is provided for Clarkson Company for the month of September:
  Refer to Clarkson Company. What is the efficiency variance?

Accepted Answer

A)  $4,450 F 
B)  $4,450 U 
C)  $1,000 F 
D)  $1,000 U 
A)  $4,450 F 
B)  $4,450 U 
C)  $1,000 F 
D)  $1,000 U

Question 17

Setting organizational goals and objectives and preparing a budget are aspects of control

Accepted Answer

A)  during an event. 
B)  before an event. 
C)  after an event. 
D)  before, during, and after an event. 
A)  during an event. 
B)  before an event. 
C)  after an event. 
D)  before, during, and after an event.

Question 18

An organization plans to produce and sell 50,000 units. It actually produces and sells 45,000 units. Total costs would be expected to be below the planned level due to cost

Accepted Answer

A)  consciousness. 
B)  control. 
C)  reductions. 
D)  behavior. 
A)  consciousness. 
B)  control. 
C)  reductions. 
D)  behavior.

Question 19

A coefficient of determination has a value between -1 and +1.

Accepted Answer

A) True 
 B)False

Question 20

An organization's bond rating may cause the organization to hold larger levels of cash than are necessary for operations.

Accepted Answer

A) True 
 B)False

If a cost can be reduced to zero in the short run without significantly harming the organization, the cost is a

For cost control purposes, actual costs should be compared to prior period costs.

Having sufficient cash to pay liabilities as they become due is referred to as an organization's ________________________.

The term "committed costs" refers to costs that

What are the five steps involved in implementing a cost control system?

A flexible budget compares actual costs to budgeted costs at several activity levels.

Costs that are necessary to sustain an organization's operations are referred to as ____________________________.

Explain the meaning of the coefficient of determination in cost estimation.

Clarkson Company The following information is provided for Clarkson Company for the month of September: Refer to Clarkson Company. What is the fixed spending variance?

Discretionary costs are often difficult to control because

The benefits of discretionary costs are usually measurable in monetary terms.

The maximum allowable expenditure is the

For cost control purposes, actual costs should be compared to

Avoidable costs are usually

A logical structure of activities designed to analyze and evaluate management of expenditures is a cost

Clarkson Company The following information is provided for Clarkson Company for the month of September: Refer to Clarkson Company. What is the efficiency variance?

Setting organizational goals and objectives and preparing a budget are aspects of control

An organization plans to produce and sell 50,000 units. It actually produces and sells 45,000 units. Total costs would be expected to be below the planned level due to cost

A coefficient of determination has a value between -1 and +1.

An organization's bond rating may cause the organization to hold larger levels of cash than are necessary for operations.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, Support Department Allocations, and Transfer Pricing

Performance Measurement, Balanced Scorecards, and Performance Rewards

Capital Budgeting

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 16: Managing Costs and Uncertainty

If a cost can be reduced to zero in the short run without significantly harming the organization, the cost is a

For cost control purposes, actual costs should be compared to prior period costs.

Having sufficient cash to pay liabilities as they become due is referred to as an organization's ________________________.

The term "committed costs" refers to costs that

What are the five steps involved in implementing a cost control system?

A flexible budget compares actual costs to budgeted costs at several activity levels.

Costs that are necessary to sustain an organization's operations are referred to as ____________________________.

Explain the meaning of the coefficient of determination in cost estimation.

Clarkson Company The following information is provided for Clarkson Company for the month of September: Refer to Clarkson Company. What is the fixed spending variance?

Discretionary costs are often difficult to control because

The benefits of discretionary costs are usually measurable in monetary terms.

The maximum allowable expenditure is the

For cost control purposes, actual costs should be compared to

Avoidable costs are usually

A logical structure of activities designed to analyze and evaluate management of expenditures is a cost

Clarkson Company The following information is provided for Clarkson Company for the month of September: Refer to Clarkson Company. What is the efficiency variance?

Setting organizational goals and objectives and preparing a budget are aspects of control

An organization plans to produce and sell 50,000 units. It actually produces and sells 45,000 units. Total costs would be expected to be below the planned level due to cost

A coefficient of determination has a value between -1 and +1.

An organization's bond rating may cause the organization to hold larger levels of cash than are necessary for operations.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, Support Department Allocations, and Transfer Pricing

Performance Measurement, Balanced Scorecards, and Performance Rewards

Capital Budgeting

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters