Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

McKinney and Associates provided the following information relative to the times and costs to prepare a simple income tax return:
 $\begin{array}{ll}
\underline{\text { Standards }} & \underline{\text { Actual }} \
2 \mathrm{DLH} @ \$ 50 \text { per DLH } & 500 \text { simple income tax returnwere prepared during the yea } \
& 1.100 \mathrm{DLH} \text { utilized during the ver (Q } \$ 52 \text { per DLH }
\end{array}$
Compute the price and efficiency variances.

Accepted Answer

Compute th

Question 4

All of the following are explanations of cost changes.Which of these influences can be substantially affected by cost containment measures?

Accepted Answer

A) inflation/deflation 
B) changes in quantities purchased 
C) technological change 
D) changes in supply chain costs 
A) inflation/deflation 
B) changes in quantities purchased 
C) technological change 
D) changes in supply chain costs

Question 5

A variance represents the difference between a budgeted and an actual cost.Thus,the variance measures

Accepted Answer

A) only controllable cost differences. 
B) only uncontrollable cost differences. 
C) both uncontrollable and controllable cost differences. 
D) the effectiveness of management. 
A) only controllable cost differences. 
B) only uncontrollable cost differences. 
C) both uncontrollable and controllable cost differences. 
D) the effectiveness of management.

Question 6

Which of the following strategies is used to deal with uncertainty related to estimating future costs?

Accepted Answer

A) Statistical analysis 
B) Cost restructuring 
C) Hedging 
D) Insurance 
A) Statistical analysis 
B) Cost restructuring 
C) Hedging 
D) Insurance

Question 7

A coefficient of determination has a value between 0 and +1.

Accepted Answer

A) True 
 B)False

Question 8

Control of engineered costs is frequently achieved through the use of

Accepted Answer

A) zero-base budgeting. 
B) program budgeting. 
C) standards. 
D) cash budgeting. 
A) zero-base budgeting. 
B) program budgeting. 
C) standards. 
D) cash budgeting.

Question 9

When can a discretionary fixed cost be subjected to control methods that are used for engineered costs?

Accepted Answer

When a discretionary cost is repetitive

Question 10

How does strategic staffing fit in with departmental staffing?

Accepted Answer

Strategic staffing is based on a departm

Question 11

A committed fixed cost can

Accepted Answer

A) never be eliminated. 
B) be eliminated in the short term and in the long term. 
C) be eliminated in the long term but not in the short term. 
D) be eliminated in the short term but not in the long term. 
A) never be eliminated. 
B) be eliminated in the short term and in the long term. 
C) be eliminated in the long term but not in the short term. 
D) be eliminated in the short term but not in the long term.

Question 12

Most discretionary costs relate to

Accepted Answer

A) plant and equipment acquisitions. 
B) long-term investments. 
C) basic personnel costs. 
D) service activities. 
A) plant and equipment acquisitions. 
B) long-term investments. 
C) basic personnel costs. 
D) service activities.

Question 13

Increasing the discount period on accounts receivable will increase an organization's cash levels.

Accepted Answer

A) True 
 B)False

Question 14

Minimizing period-by-period increases in unit variable costs and total fixed costs defines efforts of cost

Accepted Answer

A) control. 
B) avoidance. 
C) containment. 
D) reduction. 
A) control. 
B) avoidance. 
C) containment. 
D) reduction.

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

What factors make discretionary costs difficult to control?

Accepted Answer

Discretionary costs are difficult to con

Question 17

A cost that is found to bear an observable and known relationship to a quantifiable activity base is a(n)

Accepted Answer

A) discretionary cost. 
B) product cost. 
C) period cost. 
D) engineered cost. 
A) discretionary cost. 
B) product cost. 
C) period cost. 
D) engineered cost.

Question 18

Usually,with respect to a variable cost,optimal control is exerted when the cost

Accepted Answer

A) can be controlled prior to incurrence. 
B) is compared to its budget amount. 
C) increases steadily over time. 
D) is closely monitoreD. 
A) can be controlled prior to incurrence. 
B) is compared to its budget amount. 
C) increases steadily over time. 
D) is closely monitoreD.

Question 19

The distinction between avoidable and unavoidable costs is similar to the distinction between

Accepted Answer

A) variable costs and fixed costs. 
B) variable costs and mixed costs. 
C) step-variable costs and fixed costs. 
D) discretionary costs and committed costs. 
A) variable costs and fixed costs. 
B) variable costs and mixed costs. 
C) step-variable costs and fixed costs. 
D) discretionary costs and committed costs.

Question 20

Taylor Corporation
Taylor Corporation manufactures and sells baseball bats.For a recent period,its production and sales objectives were each set at 20,000 units.Also,for this period the firm had estimated costs as follows:
 $\begin{array}{ll}
\text { V ariable prochuction costs } &  \$ 3\text { per unit } \
\text {Variable selling costs } &  \$ 2\text {  per unit}\
\text {Committed fixed costs } & \$ 30,000  \text {per period}\
\text {Discretionary fixed costs } &\$ 40,000  \text {per period}\
\end{array}$
 
Refer to Taylor Corporation.For this question only,assume that Taylor Corporation actually produced and sold 18,000 baseball bats.Taylor Corporation's operations for the period would (on an overall basis)be regarded as efficient if total costs were below what amount?

Accepted Answer

First,remember how fixed and variable co

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

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

McKinney and Associates provided the following information relative to the times and costs to prepare a simple income tax return: 2@\ 50 per DLH 500 simple income tax returnwere prepared during the yea 1.100 utilized during the ver (Q \ 52 per DLH Compute the price and efficiency variances.

All of the following are explanations of cost changes.Which of these influences can be substantially affected by cost containment measures?

A variance represents the difference between a budgeted and an actual cost.Thus,the variance measures

Which of the following strategies is used to deal with uncertainty related to estimating future costs?

A coefficient of determination has a value between 0 and +1.

Control of engineered costs is frequently achieved through the use of

When can a discretionary fixed cost be subjected to control methods that are used for engineered costs?

How does strategic staffing fit in with departmental staffing?

A committed fixed cost can

Most discretionary costs relate to

Increasing the discount period on accounts receivable will increase an organization's cash levels.

Minimizing period-by-period increases in unit variable costs and total fixed costs defines efforts of cost

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

What factors make discretionary costs difficult to control?

A cost that is found to bear an observable and known relationship to a quantifiable activity base is a(n)

Usually,with respect to a variable cost,optimal control is exerted when the cost

The distinction between avoidable and unavoidable costs is similar to the distinction between

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

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

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

McKinney and Associates provided the following information relative to the times and costs to prepare a simple income tax return: 2@\ 50 per DLH 500 simple income tax returnwere prepared during the yea 1.100 utilized during the ver (Q \ 52 per DLH Compute the price and efficiency variances.

All of the following are explanations of cost changes.Which of these influences can be substantially affected by cost containment measures?

A variance represents the difference between a budgeted and an actual cost.Thus,the variance measures

Which of the following strategies is used to deal with uncertainty related to estimating future costs?

A coefficient of determination has a value between 0 and +1.

Control of engineered costs is frequently achieved through the use of

When can a discretionary fixed cost be subjected to control methods that are used for engineered costs?

How does strategic staffing fit in with departmental staffing?

A committed fixed cost can

Most discretionary costs relate to

Increasing the discount period on accounts receivable will increase an organization's cash levels.

Minimizing period-by-period increases in unit variable costs and total fixed costs defines efforts of cost

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

What factors make discretionary costs difficult to control?

A cost that is found to bear an observable and known relationship to a quantifiable activity base is a(n)

Usually,with respect to a variable cost,optimal control is exerted when the cost

The distinction between avoidable and unavoidable costs is similar to the distinction between

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