Fundamentals of Cost Accounting Exam Questions and Answers Fully Solved
Cost Accounting - Answers System recording, summarizing, analyzing costs of materials, labor, overhead.
Cost - Answers Measurement in monetary terms of resources used for a purpose.
Cost Pool - Answers Account accumulating similar costs before allocation to cost objects.
Cost Object - Answers Disposition of cost pools, like product, job, or process.
Cost Driver - Answers Factor causing change in cost pool for an activity.
Activity - Answers Event, action, transaction incurring costs during production or service.
Manufacturing - Answers Process converting materials into finished goods with labor and overhead.
Direct Materials - Answers Raw materials significant in finished goods production.
Direct Labor - Answers Employees directly working with raw materials in production.
Manufacturing Overhead - Answers Costs in factory not direct materials or labor.
Indirect Materials - Answers Materials in small amounts or not easily traced to products.
Factory Supplies - Answers Items used in manufacturing but not part of finished goods.
Indirect Labor - Answers Salaries of factory personnel not directly working on materials.
Other Manufacturing Overhead - Answers Costs like payroll taxes, rent, depreciation, and repairs in
factory.
Prime Cost - Answers Sum of direct materials and direct labor in production.
Conversion Cost - Answers Total of direct labor and manufacturing overhead in production.
Raw Materials Inventory - Answers Cost of materials and supplies for manufacturing.
Work in Process Inventory - Answers Cost of materials, labor, and overhead for unfinished goods.
Finished Goods Inventory - Answers Costs of completed goods ready for sale.
Actual Cost System - Answers Determines costs as they occur during manufacturing.
Standard Cost System - Answers Determines costs in advance based on analysis and forecasts.
Normal Cost System - Answers Combines actual and standard cost systems for cost accumulation.
Cost Accounting - Answers System recording, summarizing, analyzing costs of materials, labor, overhead.
Cost - Answers Measurement in monetary terms of resources used for a purpose.
Cost Pool - Answers Account accumulating similar costs before allocation to cost objects.
Cost Object - Answers Disposition of cost pools, like product, job, or process.
Cost Driver - Answers Factor causing change in cost pool for an activity.
Activity - Answers Event, action, transaction incurring costs during production or service.
Manufacturing - Answers Process converting materials into finished goods with labor and overhead.
Direct Materials - Answers Raw materials significant in finished goods production.
Direct Labor - Answers Employees directly working with raw materials in production.
Manufacturing Overhead - Answers Costs in factory not direct materials or labor.
Indirect Materials - Answers Materials in small amounts or not easily traced to products.
Factory Supplies - Answers Items used in manufacturing but not part of finished goods.
Indirect Labor - Answers Salaries of factory personnel not directly working on materials.
Other Manufacturing Overhead - Answers Costs like payroll taxes, rent, depreciation, and repairs in
factory.
Prime Cost - Answers Sum of direct materials and direct labor in production.
Conversion Cost - Answers Total of direct labor and manufacturing overhead in production.
Raw Materials Inventory - Answers Cost of materials and supplies for manufacturing.
Work in Process Inventory - Answers Cost of materials, labor, and overhead for unfinished goods.
Finished Goods Inventory - Answers Costs of completed goods ready for sale.
Actual Cost System - Answers Determines costs as they occur during manufacturing.
Standard Cost System - Answers Determines costs in advance based on analysis and forecasts.
Normal Cost System - Answers Combines actual and standard cost systems for cost accumulation.
