Ch 21 & 11 cost accounting T/F

Ch 21 & 11 cost accounting T/F Questions And Answers
2025\2026




1) Cost accounting provides information for both management accounting and
financial accounting professionals. - CORRECT ANSWER-T


2) Management accounting information and reports do not have to follow set
principles or rules such as GAAP. - CORRECT ANSWER-T


3) For management accounting, internal measurement and reporting are based on
cost-benefit analysis. - CORRECT ANSWER-T


4) The two broad strategies that companies follow are cost leadership strategy
and product differentiation strategy. - CORRECT ANSWER-T


5) The best-designed strategies are valuable whether or not they are effectively
implemented. - CORRECT ANSWER-F


6) Managers use cost accumulation data to make decisions and implement them. -
CORRECT ANSWER-T


7) Assigning indirect costs is easier than assigning direct costs. - CORRECT
ANSWER-F

, 8) A direct cost of one cost object can be an indirect cost of another cost object. -
CORRECT ANSWER-T


9) The distinction between direct and indirect costs is clearly set forth in Generally
Accepted Accounting Principles (GAAP). - CORRECT ANSWER-F


10) All manufacturing costs are period costs. - CORRECT ANSWER-F


11) The difference between total revenues and total variable costs is called profit
margin. - CORRECT ANSWER-F


12) Contribution margin = Contribution margin percentage × Revenues (in dollars).
- CORRECT ANSWER-T


13) If planned net income is $30,000 and the tax rate is 30%, then planned
operating income would be $39,000. - CORRECT ANSWER-F


14) A planned increase in advertising would be considered an increase in variable
costs in CVP analysis. - CORRECT ANSWER-F


15) If variable costs per unit increase, then the breakeven point will decrease. -
CORRECT ANSWER-F