LYCEUM OF ALABANG

ISO 9001:2015 CERTIFIED

COLLEGE OF BUSINESS MANAGEMENT AND EDUCATION

BACHELOR OF SCIENCE IN ACCOUNTANCY

COURSE/SECTION: EXAM: QUIZ

SUBJECT: DATE:

I. MULTIPLE CHOICE

1. The activity that causes resources to be consumed is called a

a. Non-value added activity c. just-in-time activity
b. Cost driver d. extracurricular activity
2. It refers to anything ( a product, product line or business segment) for which cost is
computed.
a. Cost object c. cost control
b. Cost driver d. cost variance
3. It is a grouping of individual cost items, or an account in which a variety of similar costs
are accumulated.
a. Cost driver c. income statement
b. Cost variance d. cost pool
4. It is an event, action, transaction, task, or unit of work that consumes resources and with
a specified purpose.
a. Cost object c. cost driver
b. Activity d. direct labor
5. An activity that adds cost to the product or service, but does not make such product or
service more valuable to customers is called
a. Non-value adding activity c. costly activity
b. Value adding activity d. valuable activity
6. Manufacturing costs do not include
a. Prime costs c. conversion costs
b. Indirect materials d. salary of company president
7. Direct labor cost is a
a. Prime cost c. product cost
b. Conversion cost d. all of the above
8. The salaries of the factory janitorial and maintenance staff should be classified as
a. Direct labor cost c. prime cost
b. Period cost d. factory overhead cost
9. For decision making purposes, relevant costs are
a. Variable past costs
b. All fixed and variable costs
c. Anticipated future costs that will differ among various alternatives.
d. Costs incurred within relevant range of production.
10. Differential costs are
a. Variable costs
b. Anticipated future costs that will differ among various alternatives
c. The differences in costs between any two alternative courses of action.
d. Costs that differ under alternatives.

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11. An income or benefit that is given up when one alternative is selected over another is
called
a. Loss c. relevant cost
b. Opportunity cost d. differential cost
12. In cost accounting, the term relevant range refers to the range over which
a. Relevant costs are incurred c. production should be confined
b. Total fixed costs fluctuate d. cost relationships are valid
13. Depreciation computed using the straight line method is classified as
a. Variable cost c. relevant cost
b. Fixed cost d. opportunity cost
14. Within the relevant range, variable costs
a. Are constant per unit, regardless of units produced or sold
b. Vary directly with the activity level
c. Vary inversely with the activity level
d. Are at the minimum
15. It involves a systematic examination of the relationships among costs, cost driver and
profit.
a. Financial statement analysis c. Cost-Volume-Profit Analysis
b. Gross profit analysis d. Cost-Benefit Analysis
16. The elements of C-V-P analysis include the following, except
a. Total fixed cost c. volume or number of units
b. Unit variable cost d. relevant costs
17. In decision making, which of the following costs is generally not relevant?
a. Avoidable cost c. opportunity cost
b. Historical cost d. differential cost
18. Which of the following costs is not likely to contain a relevant cost component?
a. Labor cost c. depreciation of an existing asset
b. Selling cost d. factory overhead cost
19. In a make or buy decision, the cost to buy is compared with
a. Total cost to make c. variable manufacturing costs
b. Relevant cost to make d. cost to purchase
20. Which of the following formulas best describes the return on investment calculation?
a. Return on sales x Asset turnover c. net income divided by sales
b. Sales divided by total assets d. Sales x profit ratio
21. The performance of an investment center should be evaluated based on
a. Amount of investment c. residual value of investment
b. Return on investment d. average investment
22. The transfer price usually set by absorption costing calculation is called the
a. Selling price c. full cost price
b. Market price d. retail price
23. Which of the following is not a perspective of balanced scorecard?
a. Financial c. Environmental
b. Customer d. learning and growth
24. On a balanced scorecard, which of the following would be most appropriate to measure
customer service?
a. Corporate profits c. on-time production
b. On-time delivery d. decrease in re-work cost of defective units.

Km.30, National Road, Tunasan, Muntinlupa City, Philippines

Tel. Nos. (02)856-93-23 / (02)856-9246 / (02)403-8248
 LYCEUM OF ALABANG
ISO 9001:2015 CERTIFIED

25. A mathematical expression of the phenomenon that incremental unit costs to produce
decrease as managers and labor gain experience from practice.
a. Probability c. learning curves
b. Decision tree d. queuing

<<<<<<<<<<<<<<<<GOOD LUCK>>>>>>>>>>>>>>>>>>>

Km.30, National Road, Tunasan, Muntinlupa City, Philippines

Tel. Nos. (02)856-93-23 / (02)856-9246 / (02)403-8248