Test Bank For Cost Accounting Foundations and Evolutions
10th Edition Kinney
The cost of units completed during a period is called - ANSWER: cost of goods
manufactured
Which of the following costs would be included as part of direct materials in the
production of an automobile? - ANSWER: steel
Which of the following costs would be included as part of factory overhead? -
ANSWER: depreciation of plant equipment
Which of the following costs would NOT be included in operating product costs? -
ANSWER: research and development
In a company that supplies muffins to bakeries, which of the following would be
considered an input? - ANSWER: flour
The cash or cash equivalent value sacrificed for goods and services that are expected
to bring a current or future benefit to the organization is/are called: - ANSWER: Cost
In a cost management system, the cost view does NOT include - ANSWER: driver
analysis.
Which of the following is a cost management subsystem designed to assign costs to
individual products and services and other objects, as specified by management? -
ANSWER: cost accounting information system
Prime product costs include - ANSWER: direct materials and direct labor.
In a traditional manufacturing company, product costs include - ANSWER: direct
materials, direct labor, and factory overhead.
Which of the following would NOT be included in the conversion cost of an
automobile? - ANSWER: steel
Which of the following items is NEVER relevant to the cost flows of a service
organization? - ANSWER: finished goods inventory
Which of the following costs would be considered a direct material? - ANSWER:
paper used in the production of books
, The set of interrelated parts that performs one or more processes to accomplish
specific objectives is called a(n): - ANSWER: system
Which of the following costs is NOT a product cost? - ANSWER: rent on an office
building
The assignment of indirect costs to cost objects is referred to as: - ANSWER:
Allocation
Which of the following is NOT a trait of a traditional cost management system? -
ANSWER: focus on managing activities
The sum of direct labor and factory overhead is referred to as - ANSWER: conversion
costs.
Error costs can be defined as - ANSWER: the costs associated with making poor
decisions based on bad cost information.
Which of the following is a major subsystem of the cost accounting information
system? - ANSWER: Operational control information system
Which of the following costs is a variable cost? - ANSWER: materials used in
production
If at a given volume total costs and fixed costs are known, the variable costs per unit
may be computed as follows: - ANSWER: (Total costs − Fixed costs)/Unit volume
The linearity assumption is most likely to be a close approximation for an underlying
nonlinear cost function - ANSWER: within a relevant range of activity.
When a firm acquires the resources needed to perform an activity, it is obtaining -
ANSWER: activity capacity.
In the method of least squares, the deviation is the difference between the -
ANSWER: predicted and actual costs.
In the formula Y = F + VX, F refers to the - ANSWER: intercept.
When least squares is used to fit an equation involving two or more independent
variables, the method is called _____. - ANSWER: multiple regression
An equipment lease that specifies a payment of $8,000 per month plus $7 per
machine hour used is an example of a - ANSWER: mixed cost.
Direct material cost is $15,000 when 3,000 units are produced. What is the direct
material cost when 1,500 units produced? - ANSWER: $15,,000 units × 1,500
units = $7,500
10th Edition Kinney
The cost of units completed during a period is called - ANSWER: cost of goods
manufactured
Which of the following costs would be included as part of direct materials in the
production of an automobile? - ANSWER: steel
Which of the following costs would be included as part of factory overhead? -
ANSWER: depreciation of plant equipment
Which of the following costs would NOT be included in operating product costs? -
ANSWER: research and development
In a company that supplies muffins to bakeries, which of the following would be
considered an input? - ANSWER: flour
The cash or cash equivalent value sacrificed for goods and services that are expected
to bring a current or future benefit to the organization is/are called: - ANSWER: Cost
In a cost management system, the cost view does NOT include - ANSWER: driver
analysis.
Which of the following is a cost management subsystem designed to assign costs to
individual products and services and other objects, as specified by management? -
ANSWER: cost accounting information system
Prime product costs include - ANSWER: direct materials and direct labor.
In a traditional manufacturing company, product costs include - ANSWER: direct
materials, direct labor, and factory overhead.
Which of the following would NOT be included in the conversion cost of an
automobile? - ANSWER: steel
Which of the following items is NEVER relevant to the cost flows of a service
organization? - ANSWER: finished goods inventory
Which of the following costs would be considered a direct material? - ANSWER:
paper used in the production of books
, The set of interrelated parts that performs one or more processes to accomplish
specific objectives is called a(n): - ANSWER: system
Which of the following costs is NOT a product cost? - ANSWER: rent on an office
building
The assignment of indirect costs to cost objects is referred to as: - ANSWER:
Allocation
Which of the following is NOT a trait of a traditional cost management system? -
ANSWER: focus on managing activities
The sum of direct labor and factory overhead is referred to as - ANSWER: conversion
costs.
Error costs can be defined as - ANSWER: the costs associated with making poor
decisions based on bad cost information.
Which of the following is a major subsystem of the cost accounting information
system? - ANSWER: Operational control information system
Which of the following costs is a variable cost? - ANSWER: materials used in
production
If at a given volume total costs and fixed costs are known, the variable costs per unit
may be computed as follows: - ANSWER: (Total costs − Fixed costs)/Unit volume
The linearity assumption is most likely to be a close approximation for an underlying
nonlinear cost function - ANSWER: within a relevant range of activity.
When a firm acquires the resources needed to perform an activity, it is obtaining -
ANSWER: activity capacity.
In the method of least squares, the deviation is the difference between the -
ANSWER: predicted and actual costs.
In the formula Y = F + VX, F refers to the - ANSWER: intercept.
When least squares is used to fit an equation involving two or more independent
variables, the method is called _____. - ANSWER: multiple regression
An equipment lease that specifies a payment of $8,000 per month plus $7 per
machine hour used is an example of a - ANSWER: mixed cost.
Direct material cost is $15,000 when 3,000 units are produced. What is the direct
material cost when 1,500 units produced? - ANSWER: $15,,000 units × 1,500
units = $7,500
