Bus-A 325 – Cost Accounting | Latest Questions With Verified Answers – Latest Updated

BUS-A 325 – COST ACCOUNTING | LATEST QUESTIONS
WITH VERIFIED ANSWERS – LATEST UPDATED




BUS-A 325 Cost Accounting




1. Direct materials are a: A) Product cost B) Period cost C) Fixed cost
D) Sunk cost. CORRECT ANSWER : A
2. Factory rent is a: A) Direct material B) Direct labor C)
Manufacturing overhead D) Period cost. CORRECT ANSWER : C
3. Sales commissions are a: A) Product cost B) Period cost C)
Manufacturing overhead D) Direct labor. CORRECT ANSWER : B
4. Prime cost equals: A) DM + DL B) DM + MOH C) DL + MOH D) DM +
DL + MOH. CORRECT ANSWER : A
5. Conversion cost equals: A) DM + DL B) DM + MOH C) DL + MOH D)
DM + DL + MOH. CORRECT ANSWER : C
6. Manufacturing overhead is a: A) Direct cost B) Indirect cost C)
Period cost D) Sunk cost. CORRECT ANSWER : B
7. Total manufacturing cost equals: A) DM + DL + MOH B) DM + DL C)
Prime + Conversion D) COGS + EI - BI. CORRECT ANSWER : A
8. Cost of Goods Manufactured (COGM) equals: A) Total Mfg Cost + BI
WIP - EI WIP B) Total Mfg Cost C) COGS + BI FG - EI FG D) DM + DL.
CORRECT ANSWER : A
9. Cost of Goods Sold (COGS) equals: A) BI FG + COGM - EI FG B)
COGM C) Sales - Gross Margin D) A and C. CORRECT ANSWER : D
10. A variable cost per unit: A) Changes with volume B) Remains
constant C) Increases as volume decreases D) Is irrelevant.
CORRECT ANSWER : B

,11. Total fixed cost: A) Changes with volume B) Remains constant
within relevant range C) Increases per unit as volume increases D)
Decreases as volume increases. CORRECT ANSWER : B
12. A mixed cost: A) Has only fixed element B) Has only variable
element C) Has both fixed and variable elements D) Is a step cost.
CORRECT ANSWER : C
13. The high-low method separates mixed costs using: A) All data
points B) Highest and lowest activity levels C) Regression D)
Averages. CORRECT ANSWER : B
14. A sunk cost is: A) Relevant to decisions B) Irrelevant to
decisions C) A future cost D) An opportunity cost. CORRECT
ANSWER : B
15. An opportunity cost is: A) Recorded in accounting B) The
benefit forgone from the next best alternative C) A sunk cost D) A
fixed cost. CORRECT ANSWER : B
16. Direct costs can be: A) Only DM B) Only DL C) Traced easily
and cost-effectively to a cost object D) Always MOH. CORRECT
ANSWER : C
17. Indirect costs are allocated using: A) Direct tracing B)
Allocation bases C) Sunk cost analysis D) Opportunity rates.
CORRECT ANSWER : B
18. Finished goods inventory consists of: A) Raw materials B)
Incomplete units C) Completed, unsold units D) Sold units.
CORRECT ANSWER : C
19. Raw materials inventory consists of: A) Completed goods B)
Materials waiting to be used C) Materials in process D) Supplies.
CORRECT ANSWER : B
20. Work in process inventory consists of: A) Raw materials only
B) Partially completed units C) Finished goods D) Sold goods.
CORRECT ANSWER : B
21. A period cost is expensed: A) When the product is sold B)
When incurred C) When produced D) Never. CORRECT ANSWER : B

, 22. A product cost is expensed: A) When incurred B) When the
product is sold C) When produced D) As an asset. CORRECT
ANSWER : B
23. Depreciation on factory equipment is a: A) Period cost B)
Product cost (MOH) C) Direct cost D) Sunk cost. CORRECT ANSWER
:B
24. Depreciation on sales office equipment is a: A) Period cost B)
Product cost C) MOH D) Direct cost. CORRECT ANSWER : A
25. The relevant range is: A) Where cost behavior is valid B) The
range of time C) The maximum output D) The minimum output.
CORRECT ANSWER : A
26. A step-variable cost is: A) Fixed B) Variable C) Approximates a
variable cost but in small steps D) Approximates a fixed cost.
CORRECT ANSWER : C
27. Administrative salaries are a: A) Product cost B) Period cost
C) MOH D) Direct labor. CORRECT ANSWER : B
Module 2: Job-Order Costing (28-55)
28. Job-order costing is used for: A) Homogeneous products B)
Heterogeneous/customized products C) Continuous production D)
Mass production. CORRECT ANSWER : B
29. A job cost sheet accumulates costs for a: A) Department B)
Time period C) Specific job D) Product line. CORRECT ANSWER : C
30. Direct materials requisitioned are debited to: A) DM Inventory
B) WIP Inventory C) MOH D) FG Inventory. CORRECT ANSWER : B
31. Direct labor is debited to: A) WIP B) MOH C) Payroll Expense
D) FG. CORRECT ANSWER : A
32. Manufacturing overhead applied is debited to: A) WIP B) MOH
C) COGS D) Cash. CORRECT ANSWER : A
33. Manufacturing overhead applied is credited to: A) WIP B)
MOH C) COGS D) Cash. CORRECT ANSWER : B
34. The predetermined overhead rate (POHR) is calculated as: A)
Actual MOH / Actual Base B) Estimated MOH / Estimated Base C)