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Cost Accounting

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Phase 2—Cost Terms and Cost Behaviors

MULTIPLE CHOICE

1 . The term " relevant range" as used in cost accounting means the range over which a. | costs may change.

b. | cost human relationships are valid.

c. | production may vary.

d. | relevant costs are received.

ANS: BPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Reflective Thinking

LOC: AICPA Efficient Competencies: Measurement, Reporting

2 . Which with the following specifies variable price behavior?

Total cost reactionto increase in activity| Cost every unit reactionto increase in activity

a. | remains continuous remains constant| b. | remains frequent increases

c. | improves increases

deb. | increases remains frequent

ANS: DPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Reflective Thinking

ZONA: AICPA Efficient Competencies: Measurement, Reporting

3. When expense relationships happen to be linear, total variable primary costs will change in proportion to changes in a. | immediate labor hours.

b. | total materials cost.

c. | total overhead price.

d. | production volume.

ANS: DPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Reflecting Thinking

LOC: AICPA Useful Competencies: Measurement, Reporting

4. Which of the following could generally often be a fixed manufacturing plant overhead cost?

Straight-line| Factory| Units-of-production

depreciation| insurance| devaluation

a. | no zero no

n. | yes no yes

c. | yes certainly no

deb. | no yes not any

ANS: CPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Refractive Thinking

LOC: AICPA Practical Competencies: Way of measuring, Reporting

five. An example of a fixed cost is

a. | total indirect material cost.

w. | total hourly income.

c. | cost of electrical energy.

d. | straight-line devaluation.

ANS: DPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Refractive Thinking

LOC: AICPA Functional Competencies: Dimension, Reporting

6th. A cost that remains frequent in total nevertheless varies on the per-unit basis with changes in activity is referred to as a(n) a. | out of date cost.

n. | fixed cost.

c. | varying cost.

deb. | mixed cost.

ANS: BPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Reflective Thinking

LOC: AICPA Functional Expertise: Measurement, Reporting

7. A(n) ____ price increases or decreases in intervals because activity changes. a. | historical cost

b. | fixed expense

c. | step cost

d. | budgeted cost

ANS: CPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Reflective Thinking

ZONA: AICPA Functional Competencies: Measurement, Reporting

almost eight. When the number of units made increases, the most important change in unit cost will probably be reflected as a(n) a. | embrace the set element.

b. | reduction in the variable element.

c. | embrace the merged element.

g. | reduction in the fixed element.

ANS: DPTS: 1DIF: EasyOBJ: 2-2

NAT: AACSB: Reflective Thinking

LOC: AICPA Functional Expertise: Measurement, Reporting

9. Which will of the pursuing always has a direct cause-effect romance to a price?

Predictor| Price driver

a. | certainly yes

n. | yes no

c. | zero yes

g. | no no

ANS: CPTS: 1DIF: ModerateOBJ: 2-2

NAT: AACSB: Reflective Thinking

LOC: AICPA Functional Competencies: Measurement, Credit reporting

10. A cost driver

a. | causes fixed costs to rise because of production alterations. | m. | provides a direct cause-effect relationship into a cost.

c. | may predict the fee behavior of a variable, although...

31.08.2019

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