Question 1

The continuous process of measuring products, services, and activities against the best levels of performance

Accepted Answer

Benchmarking

Question 2

Where a specific product is the cost object, the materials used to manufacture the product would probably 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 A

Question 3

A reason that more organizations in manufacturing and nonmanufacturing industries are adopting activity-based costing systems is that new production techniques have decreased the proportion of indirect costs.

Accepted Answer

A) True 
 B)False  False

Question 4

_____ is not true.

Accepted Answer

A) That a cost may be defined as a sacrifice or consumption of resources for a particular purpose 
B) That costs are frequently measured by the monetary units that must be paid for goods and services 
C) That cost is another term for expense 
D) All of these answers are correct 
A) That a cost may be defined as a sacrifice or consumption of resources for a particular purpose 
B) That costs are frequently measured by the monetary units that must be paid for goods and services 
C) That cost is another term for expense 
D) All of these answers are correct

Question 5

Whenever economically feasible, managers prefer costs to be indirect rather than direct.

Accepted Answer

A) True 
 B)False

Question 6

Allocation of costs to cost objectives may be described as apportion or attribute.

Accepted Answer

A) True 
 B)False

Question 7

An example of an unallocated cost is research and development.

Accepted Answer

A) True 
 B)False

Question 8

_____ need aggregate rather than detailed cost information.

Accepted Answer

A) External users 
B) Internal users 
C) Both internal and external users 
D) Neither internal nor external users 
A) External users 
B) Internal users 
C) Both internal and external users 
D) Neither internal nor external users

Question 9

Traditional costing systems work well with complex production and operating systems.

Accepted Answer

A) True 
 B)False

Question 10

A merchandising firm typically has _____ inventory accounts).

Accepted Answer

A) no 
B) one 
C) two 
D) three 
A) no 
B) one 
C) two 
D) three

Question 11

That part of the cost management system that measures costs for the purposes of management decision-making and financial reporting

Accepted Answer

The answer of That part of the cost management system...

Question 12

Having only one cost driver is acceptable when indirect manufacturing costs are very large as compared to total costs.

Accepted Answer

A) True 
 B)False

Question 13

An example of a cost objective is an account title, such as advertising or office supplies.

Accepted Answer

A) True 
 B)False

Question 14

Sometimes employee benefits are included in direct-labor costs.

Accepted Answer

A) True 
 B)False

Question 15

Accountants can specifically and exclusively identify indirect costs with a given cost objective in an economically feasible way.

Accepted Answer

A) True 
 B)False

Question 16

In general, many more costs are direct when a department is the cost objective than when a product or service is the cost objective.

Accepted Answer

A) True 
 B)False

Question 17

Work-in-process inventory usually decreases when finished goods inventory increases.

Accepted Answer

A) True 
 B)False

Question 18

Units that exist only to support other departments

Accepted Answer

The answer of Units that exist only to support other...

Question 19

A costing system that does not accumulate or report costs of activities or processes

Accepted Answer

Traditiona

Question 20

Depreciation of assembly equipment is an example of a direct cost.

Accepted Answer

A) True 
 B)False

The continuous process of measuring products, services, and activities against the best levels of performance

Where a specific product is the cost object, the materials used to manufacture the product would probably be classified as an) _____.

A reason that more organizations in manufacturing and nonmanufacturing industries are adopting activity-based costing systems is that new production techniques have decreased the proportion of indirect costs.

_____ is not true.

Whenever economically feasible, managers prefer costs to be indirect rather than direct.

Allocation of costs to cost objectives may be described as apportion or attribute.

An example of an unallocated cost is research and development.

_____ need aggregate rather than detailed cost information.

Traditional costing systems work well with complex production and operating systems.

A merchandising firm typically has _____ inventory accounts).

That part of the cost management system that measures costs for the purposes of management decision-making and financial reporting

Having only one cost driver is acceptable when indirect manufacturing costs are very large as compared to total costs.

An example of a cost objective is an account title, such as advertising or office supplies.

Sometimes employee benefits are included in direct-labor costs.

Accountants can specifically and exclusively identify indirect costs with a given cost objective in an economically feasible way.

In general, many more costs are direct when a department is the cost objective than when a product or service is the cost objective.

Work-in-process inventory usually decreases when finished goods inventory increases.

Units that exist only to support other departments

A costing system that does not accumulate or report costs of activities or processes

Depreciation of assembly equipment is an example of a direct cost.

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

The continuous process of measuring products, services, and activities against the best levels of performance

Where a specific product is the cost object, the materials used to manufacture the product would probably be classified as an) _____.

A reason that more organizations in manufacturing and nonmanufacturing industries are adopting activity-based costing systems is that new production techniques have decreased the proportion of indirect costs.

_____ is not true.

Whenever economically feasible, managers prefer costs to be indirect rather than direct.

Allocation of costs to cost objectives may be described as apportion or attribute.

An example of an unallocated cost is research and development.

_____ need aggregate rather than detailed cost information.

Traditional costing systems work well with complex production and operating systems.

A merchandising firm typically has _____ inventory accounts).

That part of the cost management system that measures costs for the purposes of management decision-making and financial reporting

Having only one cost driver is acceptable when indirect manufacturing costs are very large as compared to total costs.

An example of a cost objective is an account title, such as advertising or office supplies.

Sometimes employee benefits are included in direct-labor costs.

Accountants can specifically and exclusively identify indirect costs with a given cost objective in an economically feasible way.

In general, many more costs are direct when a department is the cost objective than when a product or service is the cost objective.

Work-in-process inventory usually decreases when finished goods inventory increases.

Units that exist only to support other departments

A costing system that does not accumulate or report costs of activities or processes

Depreciation of assembly equipment is an example of a direct cost.

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