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296637005 Cost Accounting Quiz Chapter 1

Cost Accounting (University of Guyana)

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Course Cost Accounting I

Test Chapter 1 Quiz
Started 10/18/15 4:17 PMLATE
Submitted 10/18/15 4:25 PMLATE
Due Date 10/10/15 11:59 PM
Status Needs Grading
Attempt Score 100 out of 100 points
Time Elapsed 8 minutes
Results All Answers, Submitted
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 Question 1

10 out of 10 points

Cost accounting differs from financial accounting in that financial accounting:

Selected d.
Answer: Is mostly concerned with external financial reporting.
Answers: a.
Provides the additional information required for special reports to management.
b.
Puts more emphasis on future operations.
c.
Is mostly concerned with individual departments of the company.
d.
Is mostly concerned with external financial reporting.

 Question 2

10 out of 10 points

A standard cost system is one:

Selected b.
Answer: that uses predetermined costs to furnish a measurement that helps management make decisions regarding
the efficiency of operations.
Answers: a.
that accumulates costs for each department or process in the factory.
b.
that uses predetermined costs to furnish a measurement that helps management make decisions regarding
the efficiency of operations.
c.
where costs are accumulated on a job cost sheet.
d.
that provides a separate record of cost for each special-order product.

 Question 3

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10 out of 10 points

Factory overhead includes:

Selected a.
Answer: Supervisor’s salary.
Answers: a.
Supervisor’s salary.
b.
Tax accountant’s salary.
c.
Wages of office clerk.
d.
Sales manager’s salary.

 Question 4

10 out of 10 points

A typical factory overhead cost is:

Selected d.
Answer: Depreciation on machinery and equipment.
Answers: a.
Freight out.
b.
Postage.
c.
Stationery and printing.
d.
Depreciation on machinery and equipment.

 Question 5

10 out of 10 points

The term "conversion costs" refers to:

Selected c.
Answer: The sum of direct labor costs and all factory overhead costs.
Answers: a.
All costs associated with manufacturing other than direct labor costs.
b.
The sum of direct material costs and direct labor costs.
c.
The sum of direct labor costs and all factory overhead costs.
d.
Direct labor costs incurred to produce units of output.

 Question 6

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10 out of 10 points

A budget:
Selected b.
Answer: is management’s operating plan expressed in units and dollars.
Answers: a.
is a monthly financial statement issued to a company’s shareholders.
b.
is management’s operating plan expressed in units and dollars.
c.
documents the production department’s schedule.
d.
is the basis for the annual sales forecast.

 Question 7

10 out of 10 points

The term "prime cost" refers to:

Selected a.
Answer: The sum of direct material costs and direct labor costs.
Answers: a.
The sum of direct material costs and direct labor costs.
b.
The sum of direct labor costs and all factory overhead costs.
c.
Manufacturing costs incurred to produce units of output.
d.
All costs associated with manufacturing other than direct labor costs and direct material costs.

 Question 8

10 out of 10 points

Examples of service businesses include:

Selected a.
Answer: Airlines, accountants, and hair stylists.
Answers: a.
Airlines, accountants, and hair stylists.
b.
Department stores, poster shops, and wholesalers.
c.
Aircraft producers, home builders, and machine tool makers.
d.
None of these are correct.

 Question 9

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10 out of 10 points

Which of the following is not a key element of the Sarbanes Oxley Act?
Selected b.
Answer: Requiring that the company’s performance reports are prepared in accordance with generally accepted
accounting principles
Answers: a.
The establishment of the Public Company Accounting Oversight Board
b.
Requiring that the company’s performance reports are prepared in accordance with generally accepted
accounting principles
c.
Requiring a company’s annual report to contain an internal control report that includes management’s
opinion on the effectiveness of internal control
d.
Severe criminal penalties for retaliation against “whistleblowers”

 Question 10

10 out of 10 points

At a certain level of operations, per unit costs and selling price are as follows: manufacturing costs, $50; selling and
administrative expenses, $10; selling price, $80. Given this information, the mark-on percentage to manufacturing cost used
to determine selling price must have been:
Selected b.
Answer: 60 percent.
Answers: a.
33 percent.
b.
60 percent.
c.
25 percent.
d.
20 percent.

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