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Exam Chapters 1-3 Answers-2

Exam Chapters 1-3 Answers-2

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Published by: Kimberly A Alaniz on Nov 09, 2010
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Cost AccountingExam Chapters 1-3
1. The branch of accounting that serves as a bridge between financial and managerial accounting is __________ accounting.
ANS:cost2. Costs that can be conveniently traced to a cost object are referred to as ____________ costs.ANS:direct3. The assumed range of activity that reflects the company’s normal operating range is referred to as the _____________________________.ANS:relevant range4. Another name for inventoriable costs is ______________ costs.ANS:product5. The three stages of production for a manufacturing firm are ______________, ________________, and ______________________.ANS:raw materials, work in process, finished goods6. In a(n) _________ cost system, factory overhead is assigned to an overhead control account and thenallocated to products and services.ANS:normal7. If actual overhead exceeds applied overhead, factory overhead is said to be ______________.ANS:underapplied8. If underapplied or overapplied factory overhead is material, it is prorated among ______________________, _________________________, and _______________________.ANS:Work in Process Inventory, Finished Goods Inventory, Cost of Goods Sold9. A performance measure that assumes all production factors are operating perfectly is referred to as ___________________ capacity.ANS:theoretical10. Consider the regression equation
y = a + bX.
The portion of the equation that represents the variablerate is ________.ANS:
11. A __________________________ is a planning document that presents expected variable and fixedoverhead costs at different activity levels.ANS:flexible budget
12. The costing technique that treats all manufacturing costs as inventoriable is referred to as _________________ costing.ANS:absorption or full13. In comparing financial and management accounting, which of the following
accurately describesmanagement accounting information?a.historical, precise, useful b.required, estimated, internalc.budgeted, informative, adaptabled.comparable, verifiable, monetaryANS:C14. Management and financial accounting are used for which of the following purposes?Management accountingFinancial accountinga.
internal external
external internal
internal internal
external external
ANS:A15. Cost accounting is directed toward the needs of a.regulatory agencies. b.external users.c.internal users.d.stockholders.ANS:C16. Cost and management accountinga.require an entirely separate group of accounts than financial accounting uses. b.focus solely on determining how much it costs to manufacture a product or provide aservice.c.provide product/service cost information as well as information for internal decisionmaking.d.are required for business recordkeeping as are financial and tax accounting.ANS:C17. Which of the following statements is
?a.Management accounting is a subset of cost accounting. b.Cost accounting is a subset of both management and financial accounting.c.Management accounting is a subset of both cost and financial accounting.d.Financial accounting is a subset of cost accounting.
ANS:B18. The ethical standards established for management accountants are in the areas of a.competence, licensing, reporting, and education. b.budgeting, cost allocation, product costing, and insider trading.c.competence, confidentiality, integrity, and objectivity.d.disclosure, communication, decision making, and planning.ANS:C19. Which of the following defines variable cost behavior?Total cost reactionto increase in activityCost per unit reactionto increase in activitya.remains constant remains constant b.remains constant increasesc.increases increasesd.increases remains constantANS:D20. Which of the following always has a direct cause-effect relationship to a cost?PredictorCost drivea.
yes yes
yes no
no yes
no no
ANS:C21. The indirect costs of converting raw material into finished goods are calleda.period costs. b.prime costs.c.overhead costs.d.conversion costs.ANS:C22. The distinction between direct and indirect costs depends on whether a costa.is controllable or non-controllable. b.is variable or fixed.

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