COB 242 COURSE MODULE SUPPLEMENT PRACTICAL INSTRUCTION UPDATED ACTUAL
EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
COB 242 Course Module Supplement 2026/2027
Practical Instruction Complete Problems AND
Associated Outcomes Questions and Answers
Verified Solutions Latest Update
Question:
Managerial Accounting.
Answer:
Internal users Unregulated - timeliness over precision Look at subunits Both Financial and
non-financial measures
Question:
Purposes of Managerial Accounting.
Answer:
Provide information for decision making and planning Assist managers in directing and controlling
operations Motivate managers/employees to accomplish organizations' goals Measure performance
against goals Assess competitive position
Question:
direct materials.
Answer:
Those materials that become an integral part of the finished product and whose costs can be
conveniently traced to the finished product
Question:
direct labor.
Answer:
,Those factory labor costs that can easily be traced to individual units of product
Question:
differential cost.
Answer:
Any cost that differs between alternatives in a decision-making situation. In managerial accounting,
this term is synonymous with avoidable cost and relevant cost (
Question:
fixed cost.
Answer:
A cost that remains constant, in total, regardless of changes in the level of activity within the
relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of
activity
Question:
indirect labor.
Answer:
The labor costs of caretakers, supervisors, materials handlers, and other factory workers that cannot
conveniently be traced directly to particular products
Question:
indirect materials.
Answer:
Small items of material such as glue and nails. These items may become an integral part of a
finished product but are traceable to the product only at great cost or inconvenience
Question:
,manufacturing overhead.
Answer:
All costs associated with manufacturing except direct materials and direct labor NOT directly traced
to individual jobs or batched
Question:
overhead application.
Answer:
The process of assigning manufacturing overhead costs to production jobs
Question:
opportunity costs.
Answer:
The potential benefit that is given up when one alternative is selected over another
Question:
period costs.
Answer:
Those costs that are taken directly to the profit and loss account as expenses in the period in which
they are incurred or accrued; such costs consist of selling (marketing) and administrative expenses
Question:
product costs.
Answer:
All costs that are involved in the purchase or manufacture of goods. In the case of manufactured
goods, these costs consist of direct materials, direct labor, and manufacturing overhead.
, Question:
sunk costs.
Answer:
Any cost that has already been incurred and that cannot be changed by any decision made now or in
the future
Question:
variable costs.
Answer:
A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is
constant per unit
Question:
Example of Direct Labor.
Answer:
Cost of salaries, wages, and fringe benefits for personnel who work directly on the product.
Question:
Example of Direct Materials.
Answer:
Cost of raw material that is used to make, and can be conveniently traced, to the finished product.
Question:
Types of Manufacturing Overhead.
Answer:
Indirect Materials Indirect Labor Other Costs
EXAM QUESTIONS CORRECT ANSWERS GRADED A PLUS
COB 242 Course Module Supplement 2026/2027
Practical Instruction Complete Problems AND
Associated Outcomes Questions and Answers
Verified Solutions Latest Update
Question:
Managerial Accounting.
Answer:
Internal users Unregulated - timeliness over precision Look at subunits Both Financial and
non-financial measures
Question:
Purposes of Managerial Accounting.
Answer:
Provide information for decision making and planning Assist managers in directing and controlling
operations Motivate managers/employees to accomplish organizations' goals Measure performance
against goals Assess competitive position
Question:
direct materials.
Answer:
Those materials that become an integral part of the finished product and whose costs can be
conveniently traced to the finished product
Question:
direct labor.
Answer:
,Those factory labor costs that can easily be traced to individual units of product
Question:
differential cost.
Answer:
Any cost that differs between alternatives in a decision-making situation. In managerial accounting,
this term is synonymous with avoidable cost and relevant cost (
Question:
fixed cost.
Answer:
A cost that remains constant, in total, regardless of changes in the level of activity within the
relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of
activity
Question:
indirect labor.
Answer:
The labor costs of caretakers, supervisors, materials handlers, and other factory workers that cannot
conveniently be traced directly to particular products
Question:
indirect materials.
Answer:
Small items of material such as glue and nails. These items may become an integral part of a
finished product but are traceable to the product only at great cost or inconvenience
Question:
,manufacturing overhead.
Answer:
All costs associated with manufacturing except direct materials and direct labor NOT directly traced
to individual jobs or batched
Question:
overhead application.
Answer:
The process of assigning manufacturing overhead costs to production jobs
Question:
opportunity costs.
Answer:
The potential benefit that is given up when one alternative is selected over another
Question:
period costs.
Answer:
Those costs that are taken directly to the profit and loss account as expenses in the period in which
they are incurred or accrued; such costs consist of selling (marketing) and administrative expenses
Question:
product costs.
Answer:
All costs that are involved in the purchase or manufacture of goods. In the case of manufactured
goods, these costs consist of direct materials, direct labor, and manufacturing overhead.
, Question:
sunk costs.
Answer:
Any cost that has already been incurred and that cannot be changed by any decision made now or in
the future
Question:
variable costs.
Answer:
A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is
constant per unit
Question:
Example of Direct Labor.
Answer:
Cost of salaries, wages, and fringe benefits for personnel who work directly on the product.
Question:
Example of Direct Materials.
Answer:
Cost of raw material that is used to make, and can be conveniently traced, to the finished product.
Question:
Types of Manufacturing Overhead.
Answer:
Indirect Materials Indirect Labor Other Costs
