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 Displayed

All Answers, Submitted Answers

false

Question 1
10 out of 10 points

Cost accounting differs from financial accounting in that financial accounting:

Selected Answer:

d.
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
Answer:

b.
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

10 out of 10 points
Factory overhead includes:
Selected Answer:

a.
Supervisors salary.

Answers:

a.
Supervisors salary.
b.
Tax accountants salary.
c.
Wages of office clerk.
d.
Sales managers salary.

Question 4
10 out of 10 points

A typical factory overhead cost is:

Selected Answer:

d.
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 Answer:

c.
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
10 out of 10 points

A budget:
Selected Answer:

b.
is managements operating plan expressed in units and dollars.

Answers:

a.
is a monthly financial statement issued to a companys shareholders.
b.
is managements operating plan expressed in units and dollars.
c.
documents the production departments schedule.
d.
is the basis for the annual sales forecast.

Question 7
10 out of 10 points

The term "prime cost" refers to:

Selected
Answer:

a.
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 Answer:

a.
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
10 out of 10 points

Which of the following is not a key element of the Sarbanes Oxley Act?
Selected
Answer:

b.
Requiring that the companys 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 companys performance reports are prepared in accordance with generally accepted
accounting principles
c.
Requiring a companys annual report to contain an internal control report that includes managements
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 Answer:

b.
60 percent.

Answers:

a.
33 percent.
b.
60 percent.
c.
25 percent.
d.
20 percent.