DOWNLOADgTHEgTestgBankgforgFundamentalsgofgCostgAccountingg5thgEditiongLane
n
Chapterg02gC
ostgConceptsgandgBehavior
Trueg/gFalsegQuestions
1. Thegcostgofgangitemgisgthegsacrificegofgresourcesgmadegtogacquiregit.
True False
2. Angexpensegisgagcostgchargedgagainstgrevenuegingangaccountinggperiod.
True False
3. Ifgagcostgisgrecordedgasgangassetg(forgexample,gprepaidgrentgforgangofficegbuilding),gitgbecome
sgangexpensegwhengthegassetghasgbeengconsumed.
True False
4. Accountinggsystemsgtypicallygrecordgopportunitygcostsgasgassetsgandgtreatgthemgasgintangi
blegitemsgongthegfinancialgstatements.
True False
5. Totalgcostgofggoodsgpurchasedgminusgbeginninggmerchandiseginventorygplusgendinggmerchandi
seginventorygequalsgcostgofggoodsgsold.
True False
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6. Costgofggoodsgsoldgincludesgthegactualgcostsgofgtheggoodsgsoldgandgthegcostsgrequiredgtogsellgt
hemgtogthegcustomer.
True False
7. Periodgcostsgaregthosegcostsgassignedgtogunitsgofgproductiongingthegperiodgingwhichgthey
garegincurred.
True False
8. Onlygdirectgcostsgcangbegclassifiedgasgproductgcosts;gindirectgcostsgaregclassifiedgasgperiodgcosts.
True False
9. Thegthreegcategoriesgofgproductgcostsgaregdirectgmaterials,gdirectglabor,gandgmanufacturi
nggoverhead.
True False
10. Thegfirstgstepgingdetermininggwhethergagcostgisgdirectgorgindirectgisgtogspecifygthegcostgalloc
ationgrule.
True False
11. Totalgwork-in-processgduringgthegperiodgisgthegsumgofgthegbeginninggwork-in-
processginventorygandgthegtotalgmanufacturinggcostsgincurredgduringgthegperiod.
True False
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12. Costgofggoodsgsoldgplusgthegendinggfinishedggoodsginventorygminusgthegbeginninggfinishedggo
odsginventorygequalsgthegcostgofggoodsgmanufactured.
True False
13. Ifgthegcostgofggoodsgmanufacturedgduringgthegperiodgexceedsgthegcostgofggoodsgsold,gthegen
dinggbalancegofgFinishedgGoodsgInventorygaccountgincreased.
True False
14. Totalgvariablegcostsgchangeginverselygwithgchangesgingthegvolumegofgactivity.
True False
15. Fixedgcostsgpergunitgchangeginverselygwithgchangesgingthegvolumegofgactivity.
True False
16. Thegrangegwithingwhichgfixedgcostsgremaingconstantgasgvolumegofgactivitygvariesgisgknowngas
gthegrelevantgrange.
True False
17. Thegtermgfullgcostgrefersgtogthegcostgofgmanufacturinggandgsellinggagunitgofgproductgandgincl
udesgbothgfixedgandgvariablegcosts.
True False
18. Variablegmarketinggandgadministrativegcostsgaregincludedgingdetermininggfullgabsorptiongcosts.
True False
2-3
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19. Revenuegminusgcostgofggoodsgsoldgequalsgcontributiongmargin.
True False
20. Thegprimaryggoalgofgthegcostgaccountinggsystemgisgtogprovidegmanagersgwithginformatio
ngtogpreparegtheirgannualgfinancialgstatements.
True False
MultiplegChoiceg Questions
21. Angopportunitygcostgis
A. agcostgthatgisgchargedgagainstgrevenuegingangaccountinggperiod.
B. thegforegonegbenefitgfromgthegbestgalternativegcoursegofgaction.
C. thegexcessgofgoperatinggrevenuesgovergoperatinggcosts.
D. thegcostgassignedgtogthegproductsgsoldgduringgthegperiod.
22. Whichgofgthegfollowinggstatementsgisg(are)gtrue?
(1). Angassetgisgagcostgthatgwillgbegmatchedgwithgrevenuesgingagfuturegaccountinggperiod.
(2). Opportunitygcostsgaregrecordedgasgintangiblegassetsgingthegcurrentgaccountinggperiod.
A. Onlyg(1)gisgtrue.
B. Onlyg(2)gisgtrue.
C. Bothg(1)gandg(2)garegtrue.
D. Neitherg(1)gnorg(2)garegtrue.
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Chapterg02gC
ostgConceptsgandgBehavior
Trueg/gFalsegQuestions
1. Thegcostgofgangitemgisgthegsacrificegofgresourcesgmadegtogacquiregit.
True False
2. Angexpensegisgagcostgchargedgagainstgrevenuegingangaccountinggperiod.
True False
3. Ifgagcostgisgrecordedgasgangassetg(forgexample,gprepaidgrentgforgangofficegbuilding),gitgbecome
sgangexpensegwhengthegassetghasgbeengconsumed.
True False
4. Accountinggsystemsgtypicallygrecordgopportunitygcostsgasgassetsgandgtreatgthemgasgintangi
blegitemsgongthegfinancialgstatements.
True False
5. Totalgcostgofggoodsgpurchasedgminusgbeginninggmerchandiseginventorygplusgendinggmerchandi
seginventorygequalsgcostgofggoodsgsold.
True False
2-1
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
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6. Costgofggoodsgsoldgincludesgthegactualgcostsgofgtheggoodsgsoldgandgthegcostsgrequiredgtogsellgt
hemgtogthegcustomer.
True False
7. Periodgcostsgaregthosegcostsgassignedgtogunitsgofgproductiongingthegperiodgingwhichgthey
garegincurred.
True False
8. Onlygdirectgcostsgcangbegclassifiedgasgproductgcosts;gindirectgcostsgaregclassifiedgasgperiodgcosts.
True False
9. Thegthreegcategoriesgofgproductgcostsgaregdirectgmaterials,gdirectglabor,gandgmanufacturi
nggoverhead.
True False
10. Thegfirstgstepgingdetermininggwhethergagcostgisgdirectgorgindirectgisgtogspecifygthegcostgalloc
ationgrule.
True False
11. Totalgwork-in-processgduringgthegperiodgisgthegsumgofgthegbeginninggwork-in-
processginventorygandgthegtotalgmanufacturinggcostsgincurredgduringgthegperiod.
True False
2-2
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12. Costgofggoodsgsoldgplusgthegendinggfinishedggoodsginventorygminusgthegbeginninggfinishedggo
odsginventorygequalsgthegcostgofggoodsgmanufactured.
True False
13. Ifgthegcostgofggoodsgmanufacturedgduringgthegperiodgexceedsgthegcostgofggoodsgsold,gthegen
dinggbalancegofgFinishedgGoodsgInventorygaccountgincreased.
True False
14. Totalgvariablegcostsgchangeginverselygwithgchangesgingthegvolumegofgactivity.
True False
15. Fixedgcostsgpergunitgchangeginverselygwithgchangesgingthegvolumegofgactivity.
True False
16. Thegrangegwithingwhichgfixedgcostsgremaingconstantgasgvolumegofgactivitygvariesgisgknowngas
gthegrelevantgrange.
True False
17. Thegtermgfullgcostgrefersgtogthegcostgofgmanufacturinggandgsellinggagunitgofgproductgandgincl
udesgbothgfixedgandgvariablegcosts.
True False
18. Variablegmarketinggandgadministrativegcostsgaregincludedgingdetermininggfullgabsorptiongcosts.
True False
2-3
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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
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19. Revenuegminusgcostgofggoodsgsoldgequalsgcontributiongmargin.
True False
20. Thegprimaryggoalgofgthegcostgaccountinggsystemgisgtogprovidegmanagersgwithginformatio
ngtogpreparegtheirgannualgfinancialgstatements.
True False
MultiplegChoiceg Questions
21. Angopportunitygcostgis
A. agcostgthatgisgchargedgagainstgrevenuegingangaccountinggperiod.
B. thegforegonegbenefitgfromgthegbestgalternativegcoursegofgaction.
C. thegexcessgofgoperatinggrevenuesgovergoperatinggcosts.
D. thegcostgassignedgtogthegproductsgsoldgduringgthegperiod.
22. Whichgofgthegfollowinggstatementsgisg(are)gtrue?
(1). Angassetgisgagcostgthatgwillgbegmatchedgwithgrevenuesgingagfuturegaccountinggperiod.
(2). Opportunitygcostsgaregrecordedgasgintangiblegassetsgingthegcurrentgaccountinggperiod.
A. Onlyg(1)gisgtrue.
B. Onlyg(2)gisgtrue.
C. Bothg(1)gandg(2)garegtrue.
D. Neitherg(1)gnorg(2)garegtrue.
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