Orderqlink:qhttps://docxstudy.com/product/test-bank-for-fundamentals-of-cost-accounting-7th-edition-
by-william-lanen-shannon-anderson-and-michael-maher/
Student name:__________
q
TRUE/FALSE q-qWriteq'T'qif qtheqstatementqisqtrueqandq'F'qif qtheqstatementqisqfalse.
1) Theq cost q of q anq itemq isq aq sacrificeq of q resources.
⊚ true
⊚ false
2) Anq expenseq isq aq cost q charged q against q revenueq inq anq accountingq period.
⊚ true
⊚ false
3)
If q aq cost q isq recorded qasq anqasset q(forq example,q prepaid q rent qforq anqofficeq building),q it qbecome
sq anq expenseq whenq theq asset q hasq beenq consumed.
⊚ true
⊚ false
4)
Accountingq systemsq typicallyq record q opportunityq costsq asq assetsqandq treat q themq asq intangibl
eq itemsq onq theq financialq statements.
⊚ true
⊚ false
5)
Totalq cost q of q goodsqpurchased q minusq beginningq merchandiseq inventoryq plusq endingqmercha
ndiseq inventoryq equalsq cost q of q goodsq sold.
⊚ true
⊚ false
6)
Cost q of q goodsq sold qincludesq theq actualq costsqof qtheqgoodsq soldq andqtheq costsqrequired q toq sellqt
hemq toq theq customer.
Versionq1 1
,Orderqlink:qhttps://docxstudy.com/product/test-bank-for-fundamentals-of-cost-accounting-7th-edition-
by-william-lanen-shannon-anderson-and-michael-maher/
⊚ true
⊚ false
7) Nonmanufacturingq costsq areq expensed q asq theyq areq incurred.
⊚ true
⊚ false
8)
Onlyq direct q costsq canq beqclassified q asq product q costs;q indirect q costsq areq classified q asq period q c
osts.
⊚ true
⊚ false
9)
Theq threeq categoriesq of q product q costsq areq direct q materials,q direct qlabor,q and qmanufacturingqo
verhead.
⊚ true
⊚ false
10)
Theq first q stepq inq determiningq whetherq aqcost qisq direct q orq indirect q isq toqspecifyqtheqcost qallocat
ionq rule.
⊚ true
⊚ false
11) Totalq work-in-processq duringq theq period q isq theq sumq of q theq beginningq work-in-
processq inventoryq and q theq totalq manufacturingq costsq incurred q duringq theq period.
⊚ true
⊚ false
Versionq1 2
,Orderqlink:qhttps://docxstudy.com/product/test-bank-for-fundamentals-of-cost-accounting-7th-edition-
by-william-lanen-shannon-anderson-and-michael-maher/
12)
Cost q of q goodsq sold qplusq theq endingq finished q goodsq inventoryq minusq theq beginningq finished q
goodsq inventoryq equalsq theq cost q of q goodsq manufactured.
⊚ true
⊚ false
13)
If q theq cost qofq goodsqmanufacturedq duringq theq period qexceedsq theq cost qofq goodsqsold,qtheqend
ingq balanceq of q Finished q Goodsq Inventoryq account q increased.
⊚ true
⊚ false
14) Totalq variableq costsq changeq inverselyq withq changesq inq theq volumeq of q activity.
⊚ true
⊚ false
15) Fixed q costsq perq unit q changeq inverselyq withq changesq inq theq volumeq of q activity.
⊚ true
⊚ false
16)
Theq rangeq withinq whichq fixed q costsqremainq constant q asq volumeq ofq activityq variesq isq knownqa
sq theq relevant q range.
⊚ true
⊚ false
17)
Theq termq fullq cost q refersq toq theqcost qofq manufacturingq and qsellingq aq unit q ofqproductq andqinclu
desq bothq fixed q and q variableq costs.
⊚ true
⊚ false
Versionq1 3
, Orderqlink:qhttps://docxstudy.com/product/test-bank-for-fundamentals-of-cost-accounting-7th-edition-
by-william-lanen-shannon-anderson-and-michael-maher/
18)
Variableq marketingq and q administrativeq costsq areq included q inq determiningq fullq absorptionq co
sts.
⊚ true
⊚ false
19) Revenueq minusq cost q of q goodsq sold q equalsq contributionq margin.
⊚ true
⊚ false
20)
Theq primaryq goalq of q theq cost q accountingq systemq isq toqprovideqmanagersq withq informationq to
q prepareq theirq annualq financialq statements.
⊚ true
⊚ false
MULTIPLEqCHOICEq-
qChooseqtheqoneqalternativeqthatqbestqcompletesqtheqstatementqorqanswersqtheqquestion.
21) Anq opportunityq cost q is:
A)qqq aq cost q that q isq charged q against q revenueq inq anq accountingq period.
B)qqq theq foregoneq benefit q fromq theq best q alternativeq courseq of q action.
C)qqq theq excessq of q operatingq revenuesq overq operatingq costs.
D)qqq theq cost q assigned q toq theq productsq sold q duringq theq period.
22) Whichq of q theq followingq describesq anq outlayq cost?
A)qqq Past,q present,q orq futureq cashq outflow.
B)qqq Forgoneq benefit q fromq theq best q alternativeq courseq of q action.
C)qqq Cost q charged q against q revenueq inq anq accountingq period.
D)qqq Expenseq assigned q toq productsq sold q duringq aq period.
Versionq1 4
by-william-lanen-shannon-anderson-and-michael-maher/
Student name:__________
q
TRUE/FALSE q-qWriteq'T'qif qtheqstatementqisqtrueqandq'F'qif qtheqstatementqisqfalse.
1) Theq cost q of q anq itemq isq aq sacrificeq of q resources.
⊚ true
⊚ false
2) Anq expenseq isq aq cost q charged q against q revenueq inq anq accountingq period.
⊚ true
⊚ false
3)
If q aq cost q isq recorded qasq anqasset q(forq example,q prepaid q rent qforq anqofficeq building),q it qbecome
sq anq expenseq whenq theq asset q hasq beenq consumed.
⊚ true
⊚ false
4)
Accountingq systemsq typicallyq record q opportunityq costsq asq assetsqandq treat q themq asq intangibl
eq itemsq onq theq financialq statements.
⊚ true
⊚ false
5)
Totalq cost q of q goodsqpurchased q minusq beginningq merchandiseq inventoryq plusq endingqmercha
ndiseq inventoryq equalsq cost q of q goodsq sold.
⊚ true
⊚ false
6)
Cost q of q goodsq sold qincludesq theq actualq costsqof qtheqgoodsq soldq andqtheq costsqrequired q toq sellqt
hemq toq theq customer.
Versionq1 1
,Orderqlink:qhttps://docxstudy.com/product/test-bank-for-fundamentals-of-cost-accounting-7th-edition-
by-william-lanen-shannon-anderson-and-michael-maher/
⊚ true
⊚ false
7) Nonmanufacturingq costsq areq expensed q asq theyq areq incurred.
⊚ true
⊚ false
8)
Onlyq direct q costsq canq beqclassified q asq product q costs;q indirect q costsq areq classified q asq period q c
osts.
⊚ true
⊚ false
9)
Theq threeq categoriesq of q product q costsq areq direct q materials,q direct qlabor,q and qmanufacturingqo
verhead.
⊚ true
⊚ false
10)
Theq first q stepq inq determiningq whetherq aqcost qisq direct q orq indirect q isq toqspecifyqtheqcost qallocat
ionq rule.
⊚ true
⊚ false
11) Totalq work-in-processq duringq theq period q isq theq sumq of q theq beginningq work-in-
processq inventoryq and q theq totalq manufacturingq costsq incurred q duringq theq period.
⊚ true
⊚ false
Versionq1 2
,Orderqlink:qhttps://docxstudy.com/product/test-bank-for-fundamentals-of-cost-accounting-7th-edition-
by-william-lanen-shannon-anderson-and-michael-maher/
12)
Cost q of q goodsq sold qplusq theq endingq finished q goodsq inventoryq minusq theq beginningq finished q
goodsq inventoryq equalsq theq cost q of q goodsq manufactured.
⊚ true
⊚ false
13)
If q theq cost qofq goodsqmanufacturedq duringq theq period qexceedsq theq cost qofq goodsqsold,qtheqend
ingq balanceq of q Finished q Goodsq Inventoryq account q increased.
⊚ true
⊚ false
14) Totalq variableq costsq changeq inverselyq withq changesq inq theq volumeq of q activity.
⊚ true
⊚ false
15) Fixed q costsq perq unit q changeq inverselyq withq changesq inq theq volumeq of q activity.
⊚ true
⊚ false
16)
Theq rangeq withinq whichq fixed q costsqremainq constant q asq volumeq ofq activityq variesq isq knownqa
sq theq relevant q range.
⊚ true
⊚ false
17)
Theq termq fullq cost q refersq toq theqcost qofq manufacturingq and qsellingq aq unit q ofqproductq andqinclu
desq bothq fixed q and q variableq costs.
⊚ true
⊚ false
Versionq1 3
, Orderqlink:qhttps://docxstudy.com/product/test-bank-for-fundamentals-of-cost-accounting-7th-edition-
by-william-lanen-shannon-anderson-and-michael-maher/
18)
Variableq marketingq and q administrativeq costsq areq included q inq determiningq fullq absorptionq co
sts.
⊚ true
⊚ false
19) Revenueq minusq cost q of q goodsq sold q equalsq contributionq margin.
⊚ true
⊚ false
20)
Theq primaryq goalq of q theq cost q accountingq systemq isq toqprovideqmanagersq withq informationq to
q prepareq theirq annualq financialq statements.
⊚ true
⊚ false
MULTIPLEqCHOICEq-
qChooseqtheqoneqalternativeqthatqbestqcompletesqtheqstatementqorqanswersqtheqquestion.
21) Anq opportunityq cost q is:
A)qqq aq cost q that q isq charged q against q revenueq inq anq accountingq period.
B)qqq theq foregoneq benefit q fromq theq best q alternativeq courseq of q action.
C)qqq theq excessq of q operatingq revenuesq overq operatingq costs.
D)qqq theq cost q assigned q toq theq productsq sold q duringq theq period.
22) Whichq of q theq followingq describesq anq outlayq cost?
A)qqq Past,q present,q orq futureq cashq outflow.
B)qqq Forgoneq benefit q fromq theq best q alternativeq courseq of q action.
C)qqq Cost q charged q against q revenueq inq anq accountingq period.
D)qqq Expenseq assigned q toq productsq sold q duringq aq period.
Versionq1 4
