COST ACCOUNTING COMPREHENSIVE
TEST PAPER QUESTIONS AND SOLUTIONS
VERIFIED FULL SOLUTION
●● When preparing financial statements,__________ are deducted from
revenues associated with an accounting period.
Answer: expenses
●● True or false: The excess of operating revenues over the operating
costs incurred to generate those revenues is net income
Answer: false
●● Which of the following statements are true?
Answer: Labor is the most important single cost for many service
organizations.
Information technology represents the major cost for some service
organizations.
●● True or false: Cost of goods sold includes the actual cost of goods
that were sold and the costs required to sell them.
Answer: false
, ●● A cost ______.
Answer: is a sacrifice of resources
may be recorded as an asset
●● Costs assigned to units of production and expensed when the units
are sold are _________ costs, whereas ________ costs are expensed as
incurred.
Answer: product and period
●● True or false: The focus of cost accounting is on expenses
Answer: false
●● The two types of product costs are _______ and _______.
Answer: direct and indirect
●● To calculate net income, operating profit is adjusted for ______.
Answer: extraordinary items
interest expense
other required regulatory adjustments
TEST PAPER QUESTIONS AND SOLUTIONS
VERIFIED FULL SOLUTION
●● When preparing financial statements,__________ are deducted from
revenues associated with an accounting period.
Answer: expenses
●● True or false: The excess of operating revenues over the operating
costs incurred to generate those revenues is net income
Answer: false
●● Which of the following statements are true?
Answer: Labor is the most important single cost for many service
organizations.
Information technology represents the major cost for some service
organizations.
●● True or false: Cost of goods sold includes the actual cost of goods
that were sold and the costs required to sell them.
Answer: false
, ●● A cost ______.
Answer: is a sacrifice of resources
may be recorded as an asset
●● Costs assigned to units of production and expensed when the units
are sold are _________ costs, whereas ________ costs are expensed as
incurred.
Answer: product and period
●● True or false: The focus of cost accounting is on expenses
Answer: false
●● The two types of product costs are _______ and _______.
Answer: direct and indirect
●● To calculate net income, operating profit is adjusted for ______.
Answer: extraordinary items
interest expense
other required regulatory adjustments
