Test Bank For Fundamentals of Cost Accounting, 15th Edition All Chapters - 9781264100842.pdf

9/5/23,k11:54kAM TestkBankkandkSolutionskForkFundamentalskofkCostkAccountingk7thkEditionk
…


ForkAllkChapterskà


FundamentalskofkCostkAccounting,k7ek(Lanen)k Cha
pterk2k CostkConceptskandkBehavior

1) Thekcostkofkank itemk isktheksacrificekofkresourcesk madektokacquirekit.

Answer:k TRUE
Explanation:k Thiskstatementkisktrue.kThiskstatementkiskthekdefinitionkofkcost.k Diffi
culty:k1kEasy
Topic:k WhatkiskakCost?
LearningkObjective:k 02-
01kExplainkthekbasickconceptkofk"cost."k Bloom's:k Remember
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation

2) Ankexpensek iskakcostkchargedkagainstkrevenuek inkankaccountingkperiod.

Answer:k TRUE
Explanation:k Thiskstatementkiskthekdefinitionkofkankexpense.k Diff
iculty:k1kEasy
Topic:k WhatkiskakCost?
LearningkObjective:k 02-
01kExplainkthekbasickconceptkofk"cost."k Bloom's:k Remember
AACSB:k Analyticalk Thinking
Accessibility:k Keyboardk Navigation

3) Ifkakcostkiskrecordedkaskankassetk(forkexample,kprepaidkrentkforkankofficekbuilding),kitkbeco
mesk ankexpensekwhenkthekassetkhaskbeenkconsumed.

Answer:k TRUE
Explanation:k Thiskstatementkisktrue.kThiskstatementkdescribeskthekappropriatektransitionkbetwe
enk assetskandkexpenses.
Difficulty:k2kMediumk
Topic:k WhatkiskakCost?
LearningkObjective:k 02-
01kExplainkthekbasickconceptkofk"cost."k Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation




1




about:blank 1/140

,9/5/23,k11:54kAM TestkBankkandkSolutionskForkFundamentalskofkCostkAccountingk7thkEditionk
…


ForkAllkChapterskà


4) Accountingksystemsktypicallykrecordkopportunitykcostskaskassetskandktreatkthemkaskintangib
lek itemskonkthekfinancialkstatements.

Answer:k FALSE
Explanation:k Opportunitykcostskareknotkreflectedkinkthekaccountingksystem—
theykarekwhatkdidk notkhappen.
Difficulty:k2kMediumk
Topic:k WhatkiskakCost?
LearningkObjective:k 02-
01kExplainkthekbasickconceptkofk"cost."k Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation

5) Totalkcostkofkgoodskpurchasedkminuskbeginningkmerchandisekinventorykpluskendi
ngk merchandisekinventorykequalskcostkofkgoodsksold.

Answer:k FALSE
Explanation:k Thiskstatementkiskfalse.kPurchaseskpluskbeginningkinventorykminuskendingk inve
ntorykequalskcostkofkgoodsksold.
Difficulty:k2kMedium
Topic:k PresentationkofkCostskink FinancialkStatements
LearningkObjective:k 02-
02kExplainkhowkcostskarekpresentedkinkfinancialkstatements.k Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation

6) Costkofkgoodsksoldkincludeskthekactualkcostskofkthekgoodsksoldkandkthekcostskrequiredktok
sellk themktokthekcustomer.

Answer:k FALSE
Explanation:k Thiskstatementkiskfalse.kCostkofkgoodsksoldkdoesknotkincludeksellingkcosts.k Diffi
culty:k2kMedium
Topic:k PresentationkofkCostskink FinancialkStatements
LearningkObjective:k 02-
02kExplainkhowkcostskarekpresentedkinkfinancialkstatements.k Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation




2




about:blank 2/140

,9/5/23,k11:54kAM TestkBankkandkSolutionskForkFundamentalskofkCostkAccountingk7thkEditionk
…


ForkAllkChapterskà


7) Periodkcostskarekthosekcostskassignedktokunitskofkproductionkinkthekperiodkinkwhichktheyk
arek incurred.

Answer:k FALSE
Explanation:k Thiskstatementkiskfalse.kThiskstatementkdescribeskproductkcosts,knotkperiodkcosts
.k Difficulty:k2kMedium
Topic:k PresentationkofkCostskink FinancialkStatements
LearningkObjective:k 02-
02kExplainkhowkcostskarekpresentedkinkfinancialkstatements.k Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation

8) Onlykdirectkcostskcankbekclassifiedkaskproductkcosts;kindirectkcostskarekclassifiedkaskperi
odk costs.

Answer:k FALSE
Explanation:k Thiskstatementkiskfalse.kProductkcostskcankincludekbothkdirectkandkindirectkcosts.
k Difficulty:k2kMedium
Topic:k PresentationkofkCostskink FinancialkStatements
LearningkObjective:k 02-
02kExplainkhowkcostskarekpresentedkinkfinancialkstatements.k Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation

9) Thekthreekcategorieskofkproductkcostskarekdirectkmaterials,kdirectklabor,kandkmanufacturi
ngk overhead.

Answer:k TRUE
Explanation:k Thiskstatementkisktrue.kThiskstatementkiskthekdefinitionkofkproductkcos
t.k Difficulty:k1kEasy
Topic:k PresentationkofkCostskink FinancialkStatements
LearningkObjective:k 02-
02kExplainkhowkcostskarekpresentedkinkfinancialkstatements.k Bloom's:k Remember
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation




3




about:blank 3/140

, 9/5/23,k11:54kAM TestkBankkandkSolutionskForkFundamentalskofkCostkAccountingk7thkEditionk
…


ForkAllkChapterskà


10) Thekfirstkstepkinkdeterminingkwhetherkakcostkiskdirectkorkindirectkisktokspecifykthekc
ostk allocationkrule.

Answer:k FALSE
Explanation:k Thekfirstkstepkinkdeterminingkwhetherkakcostkiskdirectkorkindirectkiskdefiningkthekco
stk object.
Difficulty:k2kMediumk
Topic:k CostkAllocation
LearningkObjective:k 02-
03kExplainkthekprocesskofkcostkallocation. k Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation

11) Totalkwork-in-processkduringkthekperiodkisktheksumkofkthekbeginningkwork-in-
processk inventorykandkthektotalkmanufacturingkcostskincurredkduringkthekperiod.

Answer:k TRUE
Explanation:k Thiskstatementkisktrue.kThiskiskthekcorrectkformulakforktotalkwork-in-
process.k Difficulty:k2kMedium
Topic:k HowkCostskFlowkthroughkthekStatements
LearningkObjective:k 02-
04kUnderstandkhowk material,klabor,kandkoverheadkcostskarekaddedktokak productkatkeachkstage
kofkthekproductionkprocess.
Bloom's:k Understand
AACSB:k AnalyticalkThinkingk Accessibili
ty:k KeyboardkNavigation

12) Costkofkgoodsksoldkpluskthekendingkfinishedkgoodskinventorykminuskthekbeginningkfinish
edk goodskinventorykequalskthekcostkofkgoodskmanufactured.

Answer:k TRUE
Explanation:k Thiskstatementkisktrue.kThiskstatementkworkskbackwardskfromkcostkofkgoodsksoldkt
ok costkofkgoodskmanufactured.
Difficulty:k2kMedium
Topic:k HowkCostskFlowkthroughkthekStatements
LearningkObjective:k 02-
04kUnderstandkhowk material,klabor,kandkoverheadkcostskarekaddedktokak productkatkeachkstage
kofkthekproductionkprocess.
Bloom's:k Understandk AACS
B:k AnalyticalkThinking
Accessibility:k Keyboardk Navigation




4




about:blank 4/140