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13-1
Chapter 13 Cost Accounting and Reporting Answer Key
Multiple Choice Questions
1.
The term "cost" means:
2.
Cost accounting is concerned with:
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3.
Which of the following is more relevant to management accounting than to cost
accounting?
4.
The sequence of activities that add value to the organization are:
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5.
Which of the following activities is
not
included in the organization's value chain?
6.
For the partial value chain functions given below, which sequence is correct?
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7.
An example of a product cost is:
8.
Which of the following costs would be classified as a period cost?
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9.
Direct costs pertain to costs that:
10.
The overhead component of product cost is:
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11.
Product costs are inventoried and treated as assets until:
12.
In the T-account cost flow diagram of balance sheet inventory accounts and the income
statement cost of goods sold account:
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13.
The production cost of a single unit of a manufactured product is determined by:
14.
Cost of Goods Manufactured can be computed as:
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15.
Costs may be allocated to a product or activity for many purposes, but care must be
exercised when using allocated costs because:
16.
Cost accounting is a subset of:
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17.
An example of a cost that is likely to have a direct relationship with products being
manufactured is:
18.
An example of a cost likely to have an indirect relationship with products being
manufactured is:
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19.
An organization's value chain refers to:
20.
Common costs pertain to costs that:
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21.
The three components of product costs are:
22.
Which of the following is NOT an inventory account for a manufacturing company?
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23.
Which of the following is NOT an account that over/under applied overhead is transferred
to at the end of an accounting period?
24.
Which of the following is a
true
statement regarding absorption and/or direct costing?
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25.
A predetermined overhead rate is used to:
26.
The predetermined overhead application rate based on direct labor hours is computed as:
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27.
A debit balance in the manufacturing overhead account at the end of the period indicates
that:
28.
Which of the following costs are included in the "for cost accounting purposes"
classification?
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29.
Which of the following describes the correct sequence of flow of costs for a manufacturing
firm?
30.
An excess of cost of goods manufactured over cost of goods sold for the period
represents:
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31.
The three sections of a statement of cost of goods manufactured include:
32.
Which of the following items would
not
be reported on the statement of cost of goods
manufactured?
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33.
Total manufacturing costs for the month on the statement of costs of goods manufactured
equals:
34.
The primary difference between absorption costing and direct costing is the treatment of:
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35.
Direct costing may be used for:
36.
Which of the following will cause income determined with absorption costing to be higher
than income determined with direct costing?
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37.
If all units produced during the month of September are sold, and no additional units are
sold from the beginning finished goods inventory, then:
38.
In order to achieve higher quality cost information from the assignment of overhead costs
to products manufactured, the use of a predetermined overhead rate is being replaced by:
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39.
An activity-based costing system involves identifying the activity that causes the
incurrence of a cost; this activity is known as a:
40.
The shift in the amount of manufacturing overhead costs applied to the mix of products
produced that occurs when using a single cost driver rate as compared to using activity-
based costing rates is known as:
