Test Bank for Cost Accounting A Data Analytics Approach 2022 Release by Margaret Christ, Vernon Richardson

Chapters02s-sCostsConceptssandsBehavior



Objectives2.1

1) Costsobjectssinclude:
A) products
B) customers
C) departments
D) Allsofsthesesanswerssarescorrect.s
Answer:s D
Diff:s2
Terms:s costsobjectsObjecti
ve:s 1
AACSB:s Reflectivesthinking

2) Actualscostssare:
A) thescostssincurred
B) budgetedscosts
C) estimatedscosts
D) forecastedscostss
Answer:s A
Diff:s1
Terms:s actualscostingsObje
ctive:s 1
AACSB:s Reflectivesthinking

3) Thesgeneralstermsusedstosidentifysbothsthestracingsandsthesallocationsofsaccumulatedscostsstos
ascostsobjectsis:
A) costsaccumulation
B) costsassignment
C) coststracing
D) conversionscosting
sAnswer:s B

Diff:s1
Terms:s costsassignmentsO
bjective:s 1
AACSB:s Reflectivesthinking

4) Insorderstosmakesdecisions,smanagerssneedstosknow:
A) actualscosts
B) budgetedscosts
C) bothscosts
D) neitherscosts
Answer:s CsDif
f:s1
Terms:s budgetedscostssObj
ective:s 1


2-1

,Chapters02s-sCostsConceptssandsBehavior
AACSB:s Ethicalsreasoning

5) Thescollectionsofsaccountingsdatasinssomesorganizedswaysis:
A) costsaccumulation
B) costsassignment
C) coststracing
D) conversionscosting
sAnswer:s A

Diff:s1
Terms:s costsaccumulations
Objective:s 1
AACSB:s Reflectivesthinking

6) Budgetedscostssare:
A) thescostssincurredsthissyear
B) thescostssincurredslastsyear
C) plannedsorsforecastedscosts
D) competitor'sscosts
sAnswer:s C

Diff:s2
Terms:s budgetedscostssObj
ective:s 1
AACSB:s Reflectivesthinking

7) Costsassignments:
A) issalwayssarbitrary
B) issincludesstracingsandsallocating
C) issthessamesasscostsaccumulation
D) issfindingsthesdifferencesbetweensbudgetedsandsactualscostss
Answer:s B
Diff:s2
Terms:s costsassignmentsO
bjective:s 1
AACSB:s Reflectivesthinking

8) Ascostssystemsdeterminessthescostsofsascostsobjectsby:
A) accumulatingsandsthensassigningscosts
B) accumulatingscosts
C) assigningsandsthensaccumulatingscosts
D) assigningscosts
sAnswer:s A

Diff:s2
Terms:s costsaccumulations
Objective:s 1
AACSB:s Reflectivesthinking




2-2

,Chapters02s-sCostsConceptssandsBehavior
9) Products,sservices,sdepartments,sandscustomerssmaysbescostsobjects.s
Answer:s TRUE
Diff:s1
Terms:s costsobjectsObjecti
ve:s 1
AACSB:s Reflectivesthinking

10) Costssaresaccountedsforsinstwosbasicsstages:sassignmentsfollowedsbysaccumulation.sA
nswer:s FALSE
Explanation:s Costssaresaccountedsforsinstwosbasicsstages:saccumulationsfollowedsbysassignment.
Diff:s1
Terms:s costsaccumulations
Objective:s 1
AACSB:s Reflectivesthinking

11) Actualscostssandshistoricalscostssarestwosdifferentstermssreferringstosthessamesthing.sA
nswer:s TRUE
Diff:s1
Terms:s budgetedscostssObj
ective:s 1
AACSB:s Reflectivesthinking

12) Accountantssdefinesascostsassasresourcestosbessacrificedstosachievesasspecificsobjective.sAn
swer:s TRUE
Diff:s1sTerms
:s costsObjecti
ve:s 1
AACSB:s Reflectivesthinking

13) Ascostsobjectsissalwaysseithersasproductsorsasservice.sA
nswer:s FALSE
Explanation:s Ascostsobjectscouldsbesanythingsmanagementswishesstosdeterminesthescostsof,sforse
xample,sasdepartment.
Diff:s2
Terms:s costsobjectsObjecti
ve:s 1
AACSB:s Reflectivesthinking

14) Ascustomerscouldsbesconsideredsascostsobject.s
Answer:s TRUE
Diff:s2
Terms:s costsobjectsObjecti
ve:s 1
AACSB:s Analyticalsskills




2-3

, Chapters02s-sCostsConceptssandsBehavior
15) LucassManufacturingshassthreescostsobjectssthatsitsusesstosaccumulatescostssforsitssm
anufacturingsplants.sTheysare:

Costsobjects#1:
Thesphysicalsbuildingssandsequipments
Costsobjects#2: Thesusesofsbuildingssandsequipment
Costsobjects#3: Thesavailabilitysandsusesofsmanufacturingslabor

Thesfollowingsmanufacturingsoverheadscostscategoriessaresfoundsinsthesaccountingsrecords:
a. Depreciationsonsbuildingssandsequipment
b. Lubricantssforsmachines
c. Propertysinsurance
d. Supervisorsssalaries
e. Fringesbenefits
f. Propertystaxes
g. Utilities

Required:
Assignseachsofsthesabovescostsstosthesmostsappropriatescostsobject.sAn
swer:
Costsobjects#s1sincludesscategoriessa,sc,sandsf.sC

ostsobjects#s2sincludesscategoriessbsandsg.

Costsobjects#s3sincludesscategoriessdsandse.sDiff
:s2
Terms:s costsobjectsObjecti
ve:s 1
AACSB:s Analyticalsskillss

Objectives2.2

1) WhichsofsthesfollowingsdoessNOTsaffectsthesdirect/indirectsclassificationsofsascost?
A) theslevelsofsbudgetedsprofitsforsthesnextsyear
B) thesmaterialitysofsthescostsinsquestion
C) availablestechnologystosgathersinformationsaboutsthescost
D) thesdesignsofsthesoperations
Answer:s A
Diff:s2
Terms:s directscostssofsascostsobject,sindirectscostssofsascostsobjectsObj
ective:s 2
AACSB:s Analyticalsskills




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