COST ACCOUNTING EXAM SCRIPT
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
●● Budget
Answer: Management's operating plans expressed in quantitative terms,
such as units of production and related costs.
●● Certified Management Accountant (CMA)
Answer: A certificate awarded by the Institute of Management
Accountants (IMA) after the candidate completes a four-year degree
from an accredited college or university, two continuous years of
relevant professional experience in management accounting or financial
management, and a rigorous two-part examination consisting of
financial planning, performance, and control and financial decision-
making with a strong emphasis on ethics.
●● Control
Answer: The process of monitoring the company's operations and
determining whether the objectives identified in the planning process are
being accomplished.
●● Conversion Cost
, Answer: The combined cost of direct labor and factory overhead, which
is necessary to convert the direct materials into finished goods.
●● Corporate Governance
Answer: The means by which a company is directed and controlled.
●● Cost Accounting
Answer: An accounting technique where cost information is collected,
analyzed, and used to determine the costs of goods and services for both
management and financial accounting purposes.
●● Cost Accounting Systems
Answer: A set of methods and procedures that track the costs incurred to
produce and sell their diverse product lines.
●● Cost Center
Answer: A unit of activity within the factory to which costs may be
practically and equitably assigned.
●● Cost of Goods Manufactured
Answer: The direct materials, direct labor and factory overhead costs
associated with products completed during the period.
●● Cost of Goods Sold
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
●● Budget
Answer: Management's operating plans expressed in quantitative terms,
such as units of production and related costs.
●● Certified Management Accountant (CMA)
Answer: A certificate awarded by the Institute of Management
Accountants (IMA) after the candidate completes a four-year degree
from an accredited college or university, two continuous years of
relevant professional experience in management accounting or financial
management, and a rigorous two-part examination consisting of
financial planning, performance, and control and financial decision-
making with a strong emphasis on ethics.
●● Control
Answer: The process of monitoring the company's operations and
determining whether the objectives identified in the planning process are
being accomplished.
●● Conversion Cost
, Answer: The combined cost of direct labor and factory overhead, which
is necessary to convert the direct materials into finished goods.
●● Corporate Governance
Answer: The means by which a company is directed and controlled.
●● Cost Accounting
Answer: An accounting technique where cost information is collected,
analyzed, and used to determine the costs of goods and services for both
management and financial accounting purposes.
●● Cost Accounting Systems
Answer: A set of methods and procedures that track the costs incurred to
produce and sell their diverse product lines.
●● Cost Center
Answer: A unit of activity within the factory to which costs may be
practically and equitably assigned.
●● Cost of Goods Manufactured
Answer: The direct materials, direct labor and factory overhead costs
associated with products completed during the period.
●● Cost of Goods Sold
