Cost Accounting and Control System

Cost Accounting and Control System

Question 1

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

The need of independent examination and verification process for financial accounting
Select one:

Question 2

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Aladin's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the wholesale operation should amount to:
Select one:

Question 3

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What amount of overhead is applied to Job #200?

Select one:

Question 4

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

The one cost that would be classified as part of both prime cost and conversion cost would be:
Select one:

Question 5

Correct
Mark 1.00 out of 1.00
Flag question

Question text

To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: What should be the unit sales to break-even?

Select one:

Question 6

Correct
Mark 1.00 out of 1.00
Flag question

Question text

In comparing financial and management accounting, which of the following more accurately describes management accounting information?
Select one:

Question 7

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Overriding criteria of financial accounting
Select one:

Question 8

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Product Costs are always presented in the income statement as part of cost of goods sold.
Select one:
 

Question 9

Correct
Mark 1.00 out of 1.00
Flag question

Question text

As activity increases within the relevant range, fixed costs remain constant on a per unit basis.
Select one:
 

Question 10

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Activity-based costing systems have a tendency to distort product costs.
Select one:
 

Question 11

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: How much should be the actual peso sales to realize the desired profit?

Select one:

Question 12

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as:
Select one:

Question 13

Correct
Mark 1.00 out of 1.00
Flag question

Question text

If a company opt to use the activity-based costing in allocating overhead costs, companies do not need to classify at which level of activities costs were incurred.
Select one:
 

Question 14

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

It is in the planning phase where the problems and issues of the company are identified.
Select one:
 

Question 15

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

At Break-even Point, there could either be a net income or net loss.
Select one:
 

Question 16

Correct
Mark 1.00 out of 1.00
Flag question

Question text

It is the point of activity level where total revenue is equal to total cost
Select one:

Question 17

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Financial accounting is most concerned with meeting the needs of external users.
Select one:
 

Question 18

Correct
Mark 1.00 out of 1.00
Flag question

Question text

To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: What is the contribution margin per unit?

Select one:

Question 19

Correct
Mark 1.00 out of 1.00
Flag question

Question text

The cost of goods sold of a manufacturing company equals beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory.
Select one:
 

Question 20

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Financial accounting adheres strict compliance to Generally Accepted Accounting Principles (GAAP)
Select one:
 

Question 21

Correct
Mark 1.00 out of 1.00
Flag question

Question text

These are the primary users of financial information
Select one:

Question 22

Correct
Mark 1.00 out of 1.00
Flag question

Question text

The term "normal costing" refers to the use of
Select one:

Question 23

Correct
Mark 1.00 out of 1.00
Flag question

Question text

External parties and management never use product cost information for investment decision and, planning and controlling.
Select one:
 

Question 24

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Overhead costs are applied to products on the basis of volume-related measures.
Select one:
 

Question 25

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Which of the following defines variable cost behavior?

 

 

 

 

        Total cost reaction                    Cost per unit reaction

        to increase in activity                to increase in activity

Select one:

Question 26

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Managerial accounting is most concerned with addressing the needs of the company as a whole.
Select one:
 

Question 27

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Referring to the preceding problem, the cost of wages and salaries and other overhead that would be charged to each delivery is closest to:
Select one:

Question 28

Correct
Mark 1.00 out of 1.00
Flag question

Question text

In the value chain, planning and controlling activities in the organization is to be managed on a sequential order of the business functions.
Select one:
 

Question 29

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Actual Cost is a past cost or historical cost.
Select one:
 

Question 30

Correct
Mark 1.00 out of 1.00
Flag question

Question text

To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q:  What is the amount of total variable cost at break-even point calculation?

Select one:

Question 1

Correct
Mark 1.00 out of 1.00
Flag question

Question text

The emphasis of information of managerial accounting is past oriented.
Select one:
 

Question 2

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Traditional costing is mainly focused on highly automated manufacturing industry
Select one:
 

Question 3

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Prime cost is the sum of direct labor and manufacturing overhead.
Select one:
 

Question 4

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

All costs in a manufacturing company are product costs.
Select one:
 

Question 5

Correct
Mark 1.00 out of 1.00
Flag question

Question text

It is a systematic process of providing financial information of an organization or unit that is intended to be useful in decision making
Select one:

Question 6

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Media, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor cost was projected to be $225,000. During the year, Media incurred actual overhead costs of $146,000, actual direct professional labor hours of 14,500, and actual direct labor cost of $222,000. By year-end, the firm's overhead was:
Select one:

Question 7

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

How much is the factory overhead cost per unit for TV under activity-based costing?

Select one:

Question 8

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Companies can use either direct labor cost or direct labor hours as a cost driver.
Select one:
 

Question 9

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Institute of Management Accountants' (IMA) overarching ethical principles include the following except one:
Select one:

Question 10

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Planning is a function that involves
Select one:

Question 11

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Alamo's customer service department follows up on customer complaints by telephone inquiry. During a recent period, the department initiated 7,000 calls and incurred costs of $203,000. If 2,940 of these calls were for the company's wholesale operation (the remainder were for the retail division), costs allocated to the retail division should amount to:
Select one:

Question 12

Correct
Mark 1.00 out of 1.00
Flag question

Question text

This analysisfocuses on how profits are affected by selling prices, sales volume, unit variable costs, total fixed costs, and mix of products sold
Select one:

Question 13

Correct
Mark 1.00 out of 1.00
Flag question

Question text

The amount that was paid by a company for a building to house its operations is an example of a sunk cost.
Select one:
 

Question 14

Correct
Mark 1.00 out of 1.00
Flag question

Question text

A variable cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units' increases or decreases.
Select one:
 

Question 15

Correct
Mark 1.00 out of 1.00
Flag question

Question text

What amount of these costs would be considered as product costs?

Select one:

Question 16

Correct
Mark 1.00 out of 1.00
Flag question

Question text

All of the following are examples of product costs except:
Select one:

Question 17

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Fletcher, Inc. disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was underapplied by $15,000. If sales revenue totaled $1,400,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin:

 

Select one:

Question 18

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

The accountant is the personnel assigned in overseeing the overall financial operations of the company.
Select one:
 

Question 19

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Purpose of information of managerial accounting
Select one:

Question 20

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

The Graphic Approach is the widely used method in calculating the break-even point.
Select one:
 

Question 21

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

P0.83 per factory overhead

Select one:

Question 22

Correct
Mark 1.00 out of 1.00
Flag question

Question text

If direct labor is a good cost driver, increases in direct labor are matched with increases in manufacturing overhead.
Select one:
 

Question 23

Correct
Mark 1.00 out of 1.00
Flag question

Question text

A tailoring company has gathered information on utility costs for the past year. The accountant has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs:

                    Hours worked             Utility cost incurred

Low point       1,300                          P   903

High point      1,680                               1,074

 

If 1,425 hours are worked in a month, total utility cost (rounded to the nearest peso) using the high-low method should be

Select one:

Question 24

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Prime costs consist of:
Select one:

Question 25

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Which of the following would not likely be used by service providers to accumulate job costs?
Select one:

Question 26

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Thread used in the production of bed sheet set, an indirect material, is classified as manufacturing overhead.
Select one:
 

Question 27

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Inventoriable costs that have become expenses can be found in:
Select one:

Question 28

Correct
Mark 1.00 out of 1.00
Flag question

Question text

Which of the following is the proper sequence of events in an activity-based costing system?
Select one:

Question 29

Incorrect
Mark 0.00 out of 1.00
Flag question

Question text

Traditional costing systems tend to distort unit manufacturing costs when numerous goods are made that have widely varying production requirements.
Select one:
 

Question 30

Correct
Mark 1.00 out of 1.00
Flag question

Question text

If the resolution efforts of resolving ethical issues are not successful, the member may wish to consider disassociating from the organization.
Select one:
 

 

Question 1

Answer saved
Marked out of 1.00
Flag question

Question text

At Break-even Point, there could either be a net income or net loss.
Select one:

Question 2

Answer saved
Marked out of 1.00
Flag question

Question text

Businesses are established because owners are just after the break-even point.
Select one:

Question 3

Answer saved
Marked out of 1.00
Flag question

Question text

A tailoring company has gathered information on utility costs for the past year. The accountant has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs:

                    Hours worked             Utility cost incurred

Low point       1,300                          P   903

High point      1,680                               1,074

 

If 1,425 hours are worked in a month, total utility cost (rounded to the nearest peso) using the high-low method should be

Select one:

Question 4

Answer saved
Marked out of 1.00
Flag question

Question text

Break-even Point is the point of activity level where total revenue is equal to total cost.
Select one:

Question 5

Answer saved
Marked out of 1.00
Flag question

Question text

Net Income is the amount available to cover fixed costs
Select one:

Question 6

Answer saved
Marked out of 1.00
Flag question

Question text

It is the point of activity level where total revenue is equal to total cost
Select one:

Question 7

Answer saved
Marked out of 1.00
Flag question

Question text

To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q:  What is the amount of total variable cost at break-even point calculation?

Select one:

Question 8

Answer saved
Marked out of 1.00
Flag question

Question text

Product Costs are treated as outright expenses.
Select one:

Question 9

Answer saved
Marked out of 1.00
Flag question

Question text

To be able to answer the following questions, kindly refer to the problem below:

ABC Co. provided the following information related to the production of a single product

Selling price per unit                              P        250

Total fixed cost                                         P150,000

Contribution margin percentage           40%

Desired profit after tax                          P250,000

Income tax rate 20%

 

Q: What is the amount of income tax?

Select one:

Question 10

Answer saved
Marked out of 1.00
Flag question

Question text

Within the relevant range, the two main cost behaviors are direct and indirect costs.
Select one:

Question 1

Answer saved
Marked out of 1.00
Flag question

Question text

Generally speaking, cost accounting can be defined as aNo
Select one:

Question 2

Answer saved
Marked out of 1.00
Flag question

Question text

If the resolution efforts of resolving ethical issues are not successful, the member should stay at the organization and must find other ways to resolve such issues.
Select one:

Question 3

Answer saved
Marked out of 1.00
Flag question

Question text

External parties and management uses product cost information for investment decision and, planning and controlling
Select one:

Question 4

Answer saved
Marked out of 1.00
Flag question

Question text

Financial accounting is most concerned with meeting the needs of external users.
Select one:

Question 5

Answer saved
Marked out of 1.00
Flag question

Question text

In comparing financial and management accounting, which of the following more accurately describes management accounting information?
Select one:

Question 6

Answer saved
Marked out of 1.00
Flag question

Question text

It is the position in the organization structure wherein the personnel assigned are directly involved in the responsibility of achieving the goals of an organization
Select one:

Question 7

Answer saved
Marked out of 1.00
Flag question

Question text

The emphasis of information of financial accounting is future oriented.
Select one:

Question 8

Answer saved
Marked out of 1.00
Flag question

Question text

Scope of information of managerial accounting
Select one:

Question 9

Answer saved
Marked out of 1.00
Flag question

Question text

Overriding criteria of financial accounting
Select one:

Question 10

Answer saved
Marked out of 1.00
Flag question

Question text

Overriding criteria of managerial accounting
Select one:
Labels: