Management Accounting - Quiz 1 LastName TAimane —Fosado inst Name_ AD@an Section: $i, S2, $3, S5 1) Cost tracing is _ @ the assignment of direct costs to the chosen cost object B) a function of cost allocation C) the process of tracking both direct and indirect costs associated with a cost object D) the process of determining the actual cost of the cost object 2) Cost allocation is A) the process of tracking both direct and indirect costs associated with a cost object B) the process of determining the opportunity cost of a cost object chosen © the assignment of indirect costs to the chosen cost object D) made based on material acquisition document 3) Classifying a cost as either direct or indirect depends upon ‘A) the behavior of the cost in response to volume changes B) whether the cost is expensed in the period in which it is incurred ‘whether the cost can be easily traced with the cost object, D) whether a cost is fixed or variable 4) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of direct costs for the golf equipment line is ‘A) beverages provided daily in the plant break room monthly lease payments for a specialized piece of equipment needed to manufacture the golf driver ©) salaries of the clerical staff that work in the company administrative offices D) overheads incurred in producing both golf and soccer equipment 5) A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of indirect cost for the soccer equipment ine is the A) material used to make the soccer balls B) labor to shape the leather used to make the soccer ball. 8 ‘material used to manufacture the soccer studs (D) salary paid to plant supervisor 6) Indirect manufacturing costs 'A) can be traced to the proclact that created the costs B) can be easily identified with the cost object ©) generally include the cost of material and the cost of labor 1D) may include both variable and fixed costs