Preliminary Test of Cost Accounting Knowledge--Does not affect your grade! Name___________________________________ Mark one letter for each question response. Note that in some cases there are options like ʺD) Both A and C are correct.ʺ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Cost objects include: A) customers C) products
B) departments D) All of these answers are correct.
2) Cost tracing is: A) the process of tracking both direct and indirect costs associated with a cost object B) a function of cost allocation C) the assignment of direct costs to the chosen cost object D) ...view middle of the document...
A) write-off to cost of goods sold B) proration C) adjusted allocation-rate D) Both A and B are correct. 13) If products are different, then for costing purposes: A) an ABC costing system will yield more accurate cost numbers B) a single indirect-cost rate should be used C) a simple costing system should be used D) none of the above 14) Undercosting of a product is most likely to result from: A) misallocating direct labor costs C) underpricing the product 15) ABC systems create: A) homogenous activity-related cost pools B) activity-cost pools containing many direct costs C) activity-cost pools with a broad focus D) one large cost pool 16) The most likely example of an output unit-level cost is: A) engineering costs C) general administrative costs 17) The most likely example of a batch-level cost is: A) machine repairs C) setup costs
B) overcosting another product D) overstating total product costs
B) machine depreciation D) paying suppliers for orders received
B) utility costs D) product-designing costs
18) Unit-level cost drivers are most appropriate as an overhead assignment base when: A) only one product is manufactured B) several complex products are manufactured C) direct labor costs are low D) factories produce a varied mix of products
19) Products make diverse demands on resources because of differences in all of the following EXCEPT: D) selling price A) complexity B) volume C) batch size 20) Budgeting provides all of the following EXCEPT: A) a means to anticipate problems B) support for the management functions of planning and coordination C) an ethical framework for decision making D) a means to communicate the organizationʹs short-term goals to its members 21) Responsibility centers include all of the following EXCEPT: A) customers B) investment C) revenue 22) The regional sales office manager of a national firm is most likely responsible for a(n): A) cost center B) profit center C) revenue center 23) The master budget is: A) developed at the end of the period C) a static budget
D) investment center
B) a flexible budget D) based on the actual level of output
24) An unfavorable variance indicates that: A) the actual amount decreased operating income relative to the budgeted amount B) actual revenues exceed budgeted revenues C) actual costs are less than budgeted costs D) All of these answers are correct. 25) The fixed overhead cost variance can be further subdivided into the: A) spending variance and flexible-budget variance B) flexible-budget variance and the production-volume variance C) production-volume variance and the efficiency variance D) price variance and the efficiency variance 26) The difference between budgeted fixed manufacturing overhead and the fixed manufacturing overhead allocated to actual output units achieved is called the fixed overhead: A) production-volume variance B) flexible-budget variance C) combined-variance analysis D) efficiency variance 27)...