DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
n n n n n n n n n n n
Chapter 02 C n n
ost Concepts and Behavior
n n n
Truen/nFalsenQuestions
1. Thencost nof nannitemnis nthensacrif icenof nresources nmadento nacquirenit.
True False
2. Annexpensenis nancost ncharged nagainst nrevenueninnannaccounting nperiod.
True False
3. If nancost nis nrecorded nas nannasset n(fornexample, nprepaid nrent nfornannofficenbuilding), nitnbecomes nan
n expensenwhennthenasset nhas nbeennconsumed.
True False
4. Accounting nsystems ntypically nrecord nopportunity ncosts nas nassets nand ntreat nthemnas nintangible
n items nonnthenf inancialnstatements.
True False
5. Totalncost nofngoods npurchased nminus nbeginning nmerchandiseninventory nplus nending nmerchandise
n inventory nequals ncost nof ngoods nsold.
True False
2-1
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n n n n n n n n n n n
6. Cost nof ngoods nsoldnincludes nthenactualncostsnofnthengoods nsoldnand nthencostsnrequired nto nsellnthem
n to nthencustomer.
True False
7. Period ncosts narenthosencosts nassigned ntonunits nof nproductionninnthenperiod ninnwhichnthey nare
n incurred.
True False
8. Only ndirect ncosts ncannbenclassif ied nas nproduct ncosts; nindirect ncosts narenclassif ied nas nperiod ncosts.
True False
9. Thenthreencategories nof nproduct ncosts narendirect nmaterials, ndirect nlabor, nand nmanuf acturing
n overhead.
True False
10. Thenf irst nstep ninndetermining nwhethernancost nis ndirect nornindirect nisntonspecify nthencostnallocation
n rule.
True False
11. Totalnwork-in-process nduring nthenperiod nis nthensumnof nthenbeginning nwork-in-
process ninventory nand nthentotalnmanuf acturing ncosts nincurred nduring nthenperiod.
True False
2-2
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionnwithoutnthen priornwritten nconsentn ofn McGraw-HillnEducation.
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,DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
n n n n n n n n n n n
12. Cost nof ngoods nsold nplus nthenending nfinished ngoods ninventory nminus nthenbeginning nfinished ngoods
n inventory nequals nthencost nof ngoods nmanuf actured.
True False
13. If nthencost nofngoods nmanuf actured nduring nthenperiod nexceeds nthencost nof ngoods nsold, nthenending
n balancenof nFinished nGoods nInventory naccount nincreased.
True False
14. Totalnvariablencosts nchangeninversely nwithnchanges ninnthenvolumenof nactivity.
True False
15. Fixed ncosts npernunit nchangeninversely nwithnchanges ninnthenvolumenof nactivity.
True False
16. Thenrangenwithinnwhichnf ixed ncosts nremainnconstant nas nvolumenofnactivity nvaries nis nknownnas nthe
n relevant nrange.
True False
17. Thentermnf ullncost nref ers nto nthencost nofnmanuf acturing nand nselling nanunit nofnproductnand nincludes
n bothnf ixed nand nvariablencosts.
True False
18. Variablenmarketing nand nadministrativencosts narenincluded ninndetermining nf ullnabsorptionncosts.
True False
2-3
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionnwithoutnthen priornwritten nconsentn ofn McGraw-HillnEducation.
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, DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
n n n n n n n n n n n
19. Revenuenminus ncost nof ngoods nsold nequals ncontributionnmargin.
True False
20. Thenprimary ngoalnof nthencostnaccounting nsystemnisntonprovidenmanagers nwithninf ormationnto
n preparentheirnannualnf inancialnstatements.
True False
Multiplen Choicen Questions
21. Annopportunity ncost nis
A. ancost nthat nis ncharged nagainst nrevenueninnannaccounting nperiod.
B. thenf oregonenbenef it nf romnthenbest nalternativencoursenof naction.
C. thenexcess nof noperating nrevenues novernoperating ncosts.
D. thencost nassigned nto nthenproducts nsold nduring nthenperiod.
22. Whichnof nthenf ollowing nstatements nis n(are)ntrue?
(1). Annasset nis nancost nthat nwillnbenmatched nwithnrevenues ninnanf uturenaccounting nperiod.
(2). Opportunity ncosts narenrecorded nas nintangiblenassets ninnthencurrent naccounting nperiod.
A. Only n(1)nis ntrue.
B. Only n(2)nis ntrue.
C. Bothn(1)nand n(2)narentrue.
D. Neithern(1)nnorn(2)narentrue.
2-4
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionnwithoutnthen priornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
n n n n n n n n n n n
Chapter 02 C n n
ost Concepts and Behavior
n n n
Truen/nFalsenQuestions
1. Thencost nof nannitemnis nthensacrif icenof nresources nmadento nacquirenit.
True False
2. Annexpensenis nancost ncharged nagainst nrevenueninnannaccounting nperiod.
True False
3. If nancost nis nrecorded nas nannasset n(fornexample, nprepaid nrent nfornannofficenbuilding), nitnbecomes nan
n expensenwhennthenasset nhas nbeennconsumed.
True False
4. Accounting nsystems ntypically nrecord nopportunity ncosts nas nassets nand ntreat nthemnas nintangible
n items nonnthenf inancialnstatements.
True False
5. Totalncost nofngoods npurchased nminus nbeginning nmerchandiseninventory nplus nending nmerchandise
n inventory nequals ncost nof ngoods nsold.
True False
2-1
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionnwithoutnthen priornwritten nconsentn ofn McGraw-HillnEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
n n n n n n n n n n n
6. Cost nof ngoods nsoldnincludes nthenactualncostsnofnthengoods nsoldnand nthencostsnrequired nto nsellnthem
n to nthencustomer.
True False
7. Period ncosts narenthosencosts nassigned ntonunits nof nproductionninnthenperiod ninnwhichnthey nare
n incurred.
True False
8. Only ndirect ncosts ncannbenclassif ied nas nproduct ncosts; nindirect ncosts narenclassif ied nas nperiod ncosts.
True False
9. Thenthreencategories nof nproduct ncosts narendirect nmaterials, ndirect nlabor, nand nmanuf acturing
n overhead.
True False
10. Thenf irst nstep ninndetermining nwhethernancost nis ndirect nornindirect nisntonspecify nthencostnallocation
n rule.
True False
11. Totalnwork-in-process nduring nthenperiod nis nthensumnof nthenbeginning nwork-in-
process ninventory nand nthentotalnmanuf acturing ncosts nincurred nduring nthenperiod.
True False
2-2
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionnwithoutnthen priornwritten nconsentn ofn McGraw-HillnEducation.
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,DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
n n n n n n n n n n n
12. Cost nof ngoods nsold nplus nthenending nfinished ngoods ninventory nminus nthenbeginning nfinished ngoods
n inventory nequals nthencost nof ngoods nmanuf actured.
True False
13. If nthencost nofngoods nmanuf actured nduring nthenperiod nexceeds nthencost nof ngoods nsold, nthenending
n balancenof nFinished nGoods nInventory naccount nincreased.
True False
14. Totalnvariablencosts nchangeninversely nwithnchanges ninnthenvolumenof nactivity.
True False
15. Fixed ncosts npernunit nchangeninversely nwithnchanges ninnthenvolumenof nactivity.
True False
16. Thenrangenwithinnwhichnf ixed ncosts nremainnconstant nas nvolumenofnactivity nvaries nis nknownnas nthe
n relevant nrange.
True False
17. Thentermnf ullncost nref ers nto nthencost nofnmanuf acturing nand nselling nanunit nofnproductnand nincludes
n bothnf ixed nand nvariablencosts.
True False
18. Variablenmarketing nand nadministrativencosts narenincluded ninndetermining nf ullnabsorptionncosts.
True False
2-3
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionnwithoutnthen priornwritten nconsentn ofn McGraw-HillnEducation.
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, DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
n n n n n n n n n n n
19. Revenuenminus ncost nof ngoods nsold nequals ncontributionnmargin.
True False
20. Thenprimary ngoalnof nthencostnaccounting nsystemnisntonprovidenmanagers nwithninf ormationnto
n preparentheirnannualnf inancialnstatements.
True False
Multiplen Choicen Questions
21. Annopportunity ncost nis
A. ancost nthat nis ncharged nagainst nrevenueninnannaccounting nperiod.
B. thenf oregonenbenef it nf romnthenbest nalternativencoursenof naction.
C. thenexcess nof noperating nrevenues novernoperating ncosts.
D. thencost nassigned nto nthenproducts nsold nduring nthenperiod.
22. Whichnof nthenf ollowing nstatements nis n(are)ntrue?
(1). Annasset nis nancost nthat nwillnbenmatched nwithnrevenues ninnanf uturenaccounting nperiod.
(2). Opportunity ncosts narenrecorded nas nintangiblenassets ninnthencurrent naccounting nperiod.
A. Only n(1)nis ntrue.
B. Only n(2)nis ntrue.
C. Bothn(1)nand n(2)narentrue.
D. Neithern(1)nnorn(2)narentrue.
2-4
Copyrightn ©n 2017 n McGraw-
Hilln Education. nAlln rightsnreserved.nNonreproduction nor ndistributionnwithoutnthen priornwritten nconsentn ofn McGraw-HillnEducation.
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