DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
m m m m m m m m m m m
Chapter 02 C m m
ost Concepts and Behavior
m m m
Truem/mFalsemQuestions
1. Themcost mof manmitemmis mthemsacrif icemof mresources mmademto macquiremit.
True False
2. Anmexpensemis mamcost mcharged magainst mrevenueminmanmaccounting mperiod.
True False
3. If mamcost mis mrecorded mas manmasset m(f ormexample, mprepaid mrent mformanmofficembuilding), mitmbecom
es manmexpensemwhenmthemasset mhas mbeenmconsumed.
True False
4. Accounting msystems mtypically mrecord mopportunity mcosts mas massets mand mtreat mthemmas mintang
iblemitems monmthemf inancialmstatements.
True False
5. Totalmcost mofmgoods mpurchased mminus mbeginning mmerchandiseminventory mplus mending mmerchan
diseminventory mequals mcost mof mgoods msold.
True False
2-1
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m m m m m m m m m m m
6. Cost mof mgoods msold mincludes mthemactualmcostsmofmthemgoodsmsoldmand mthemcostsmrequired mto msell
m themmto mthemcustomer.
True False
7. Period mcosts maremthosemcosts massigned mto munits mofmproductionminmthemperiod minmwhichmthe
y maremincurred.
True False
8. Only mdirect mcosts mcanmbemclassified mas mproduct mcosts;mindirect mcostsmaremclassif ied mas mperiod mcosts.
True False
9. Themthreemcategories mof mproduct mcostsmaremdirect mmaterials, mdirect mlabor, mand mmanuf actu
ring moverhead.
True False
10. Themf irst mstep minmdetermining mwhethermamcost mis mdirect mormindirect mis mtomspecify mthemcost malloc
ationmrule.
True False
11. Totalmwork-in-process mduring mthemperiod mis mthemsummof mthembeginning mwork-in-
process minventory mand mthemtotalmmanuf acturing mcosts mincurred mduring mthemperiod.
True False
2-2
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
m m m m m m m m m m m
12. Cost mof mgoodsmsoldmplus mthemending mfinished mgoodsminventory mminus mthembeginning mf inished mg
oods minventory mequals mthemcost mof mgoods mmanuf actured.
True False
13. If mthemcost mofmgoodsmmanuf actured mduring mthemperiodmexceeds mthemcostmof mgoods msold, mtheme
nding mbalancemof mFinished mGoods mInventory maccount mincreased.
True False
14. Totalmvariablemcosts mchangeminversely mwithmchanges minmthemvolumemof mactivity.
True False
15. Fixed mcosts mpermunit mchangeminversely mwithmchanges minmthemvolumemof mactivity.
True False
16. Themrangemwithinmwhichmf ixed mcosts mremainmconstant mas mvolumemofmactivity mvaries mis mknownma
s mthemrelevant mrange.
True False
17. Themtermmf ullmcost mref ers mtomthemcost mofmmanuf acturing mand mselling mamunit mofmproduct mand mincl
udes mbothmf ixed mand mvariablemcosts.
True False
18. Variablemmarketing mand madministrativemcosts maremincluded minmdetermining mf ullmabsorptionmcosts.
True False
2-3
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
m m m m m m m m m m m
19. Revenuemminus mcost mof mgoods msold mequals mcontributionmmargin.
True False
20. Themprimary mgoalmof mthemcost maccounting msystemmis mto mprovidemmanagers mwithminf ormatio
nmto mpreparemtheirmannualmf inancialmstatements.
True False
Multiplem Choicem Questions
21. Anmopportunity mcost mis
A. amcost mthat mis mcharged magainst mrevenueminmanmaccounting mperiod.
B. themf oregonembenef it mf rommthembest malternativemcoursemof maction.
C. themexcess mof moperating mrevenues movermoperating mcosts.
D. themcost massigned mto mthemproducts msold mduring mthemperiod.
22. Whichmof mthemf ollowing mstatements mis m(are)mtrue?
(1). Anmasset mis mamcost mthat mwillmbemmatched mwithmrevenues minmamf uturemaccounting mperiod.
(2). Opportunity mcosts maremrecorded mas mintangiblemassets minmthemcurrent maccounting mperiod.
A. Only m(1)mis mtrue.
B. Only m(2)mis mtrue.
C. Bothm(1)mand m(2)maremtrue.
D. Neitherm(1)mnorm(2)maremtrue.
2-4
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
m m m m m m m m m m m
Chapter 02 C m m
ost Concepts and Behavior
m m m
Truem/mFalsemQuestions
1. Themcost mof manmitemmis mthemsacrif icemof mresources mmademto macquiremit.
True False
2. Anmexpensemis mamcost mcharged magainst mrevenueminmanmaccounting mperiod.
True False
3. If mamcost mis mrecorded mas manmasset m(f ormexample, mprepaid mrent mformanmofficembuilding), mitmbecom
es manmexpensemwhenmthemasset mhas mbeenmconsumed.
True False
4. Accounting msystems mtypically mrecord mopportunity mcosts mas massets mand mtreat mthemmas mintang
iblemitems monmthemf inancialmstatements.
True False
5. Totalmcost mofmgoods mpurchased mminus mbeginning mmerchandiseminventory mplus mending mmerchan
diseminventory mequals mcost mof mgoods msold.
True False
2-1
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
m m m m m m m m m m m
6. Cost mof mgoods msold mincludes mthemactualmcostsmofmthemgoodsmsoldmand mthemcostsmrequired mto msell
m themmto mthemcustomer.
True False
7. Period mcosts maremthosemcosts massigned mto munits mofmproductionminmthemperiod minmwhichmthe
y maremincurred.
True False
8. Only mdirect mcosts mcanmbemclassified mas mproduct mcosts;mindirect mcostsmaremclassif ied mas mperiod mcosts.
True False
9. Themthreemcategories mof mproduct mcostsmaremdirect mmaterials, mdirect mlabor, mand mmanuf actu
ring moverhead.
True False
10. Themf irst mstep minmdetermining mwhethermamcost mis mdirect mormindirect mis mtomspecify mthemcost malloc
ationmrule.
True False
11. Totalmwork-in-process mduring mthemperiod mis mthemsummof mthembeginning mwork-in-
process minventory mand mthemtotalmmanuf acturing mcosts mincurred mduring mthemperiod.
True False
2-2
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
m m m m m m m m m m m
12. Cost mof mgoodsmsoldmplus mthemending mfinished mgoodsminventory mminus mthembeginning mf inished mg
oods minventory mequals mthemcost mof mgoods mmanuf actured.
True False
13. If mthemcost mofmgoodsmmanuf actured mduring mthemperiodmexceeds mthemcostmof mgoods msold, mtheme
nding mbalancemof mFinished mGoods mInventory maccount mincreased.
True False
14. Totalmvariablemcosts mchangeminversely mwithmchanges minmthemvolumemof mactivity.
True False
15. Fixed mcosts mpermunit mchangeminversely mwithmchanges minmthemvolumemof mactivity.
True False
16. Themrangemwithinmwhichmf ixed mcosts mremainmconstant mas mvolumemofmactivity mvaries mis mknownma
s mthemrelevant mrange.
True False
17. Themtermmf ullmcost mref ers mtomthemcost mofmmanuf acturing mand mselling mamunit mofmproduct mand mincl
udes mbothmf ixed mand mvariablemcosts.
True False
18. Variablemmarketing mand madministrativemcosts maremincluded minmdetermining mf ullmabsorptionmcosts.
True False
2-3
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
mynursytest.store
, DOWNLOAD THE Test Bank for Fundamentals of Cost Accounting 5th Edition Lanen
m m m m m m m m m m m
19. Revenuemminus mcost mof mgoods msold mequals mcontributionmmargin.
True False
20. Themprimary mgoalmof mthemcost maccounting msystemmis mto mprovidemmanagers mwithminf ormatio
nmto mpreparemtheirmannualmf inancialmstatements.
True False
Multiplem Choicem Questions
21. Anmopportunity mcost mis
A. amcost mthat mis mcharged magainst mrevenueminmanmaccounting mperiod.
B. themf oregonembenef it mf rommthembest malternativemcoursemof maction.
C. themexcess mof moperating mrevenues movermoperating mcosts.
D. themcost massigned mto mthemproducts msold mduring mthemperiod.
22. Whichmof mthemf ollowing mstatements mis m(are)mtrue?
(1). Anmasset mis mamcost mthat mwillmbemmatched mwithmrevenues minmamf uturemaccounting mperiod.
(2). Opportunity mcosts maremrecorded mas mintangiblemassets minmthemcurrent maccounting mperiod.
A. Only m(1)mis mtrue.
B. Only m(2)mis mtrue.
C. Bothm(1)mand m(2)maremtrue.
D. Neitherm(1)mnorm(2)maremtrue.
2-4
Copyrightm©m2017 mMcGraw-
HillmEducation. mAllmrights mreserved. mNo mreproduction mor mdistribution mwithoutmthemprior mwritten mconsentmof m McGraw-
HillmEducation.
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