Reviewer in Cost Accounting

Quiz #2
1. According to cost formula Y = P20,000 + P4X, total cost at an activity level of
15,000 units would be: P80,000
2. Manufacturing cost =? Direct materials cost + Direct labor cost +
Manufacturing overhead cost
3. For a manufacturing company, which of the following is a period, but not a
product cost? salary of accounts executive
4. The cost related to the manufacturing function in a company are product costs
5. Mixed cost is also known as semi-variable cost
6. Which of the following costs would be considered production overhead in the
production of bread? electricity/ gas
7. Conversion costs do not include direct materials
8. The cost of raw materials is recorded as product cost when the finished goods
are sols
9. Which cost is also known as inventoriable cost? Product cost
10. If direct materials = P200, direct labor = P150, and manufacturing overhead =
P100, how much is the total conversion cost? P250
11. Variable costs are costs that change regularly while fixed costs remain the same
all the time False
12. Which of the following costs is not a product cost? The cost of shipping
finished products to customers
13. These are all the costs that are expensed on the income statement when they
are incurred Period costs
14. Which of the following costs is treated as indirect labor? Idle time, Overtime
premium, Fringe benefits, all the given items
15. When classified according to traceability to cost objective, the cost of raw
materials is considered a: direct cost

Quiz #1

1. The type or branch of accounting that generates reports for the use of external
parties such as creditors, investors and government agencies is known as:
Financial Accounting
2. The branch of accounting that generates reports and information for the use of
internal management is known as: Managerial or Management Accounting
3. Which one of the following is not an external user of accounting information?
Manager
4. Which of the following is correct about double entry system of accounting? Every
debit entry has a corresponding credit entry., All choices given, Every business
 transaction brings at least two financial changes in business. , Financial changes
are recorded as debits or credits in two or more accounts.
5. In a T-account, the balance is equal to: the difference between the total of
debit entries and the total of credit entries
6. Which one of the following is not a real account? sales account
7. Which one of the following is valuation (or contra) account? Accumulated
depreciation account
8. Which one of the following is a characteristic of a valid business transaction? All
of the choices given, It should be supported by a source document, It is an
event measurable in terms of money, It affects the financial position of the
business
9. When an asset increases, its account is* debited
10. In accounting equation (Assets = Liabilities + Owner’s equity), the liabilities
means the claim of external creditors against: the assets of the business
11. According to modern approach, the accounts are classified as: asset accounts,
liability accounts, capital accounts, withdrawal accounts, revenue
accounts, and expense accounts
12. The main objective of cost accounting is To ascertain the true cost of products
and services
13. Cost accounting emerged mainly due to: limitations of financial accounting
14. Who benefits from cost accounting? management, workers, consumers, and
governments
15. Cost accounting is applied to manufacturing and services concerns
16. Double entry implies Recording two aspects of every transaction
17. Which of the following accounts can be classified as a real account? Cash
account
18. Are assets debited or credited when they increase? Debited
19. What is bookkeeping? The process of recording data relating to accounting
transactions in the accounting books
20. The following are the purpose of cost accounting except: Prediction of events
and actual results
21. Which is mandatory? Financial accounting