Test Bank for Cornerstones of Managerial Accounting, 4th Canadian Edition by Mowen.pdf

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1. Itmismbeneficialmto massign mindirectmcostsmto mcostmobjects.
a. True
b. False

ANSWER:m True

2. Pricemmustmbemgreatermthan mcostmin mordermformthemfirmmto mgenerate mrevenue.
a. True
b. False

ANSWER:m False

3. Accumulatingmcostsmismthemway mthatmcostsmaremmeasured mand mrecorded.
a. True
b. False

ANSWER:m True

4. Assigningmcostsminvolvesmthemway mthatmamcostmismlinked mto msome mcostmobject.
a. True
b. False

ANSWER:m True

5. Assigningmcostsmtellsmthemaccountantmwho mspentmthemmoney.
a. True
b. False

ANSWER:m False

6. Amcostmobjectmismanymitemmsuchmasmproducts,mcustomers,mdepartments,mregions,mand mso mon,mformwhichmcost
smaremmeasured mand massigned.
a. True
b. False

ANSWER:m True

7. Costsmaremdirectly,mnotmindirectly,massociated mwith mcostmobjects.
a. True
b. False

ANSWER:m False

8. Directmcostsmaremthosemcostsmthatmcannotmbemeasily mand maccurately mtraced mto mamcostmobject.
a. True
b. False

ANSWER: False
RATIONALE:m Directmcostsmaremthosemcostsmthatmcanmbemeasilymandmaccuratelymtracedmtomamcostmobject.


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9. Indirectm costsm arem costsm thatm arem notmeasily mand maccurately mtraced mto mamcostmobject.
a. True
b. False

ANSWER:m True

10. Allocation mmeansmthatmanmindirectmcostmismassigned mto mamcostmobjectmusingmamreasonable mand mconvenientmmethod.
a. True
b. False

ANSWER:m True

11. Amvariable mcostmismonemthatmdoesmnotmincreasemin mtotalmasmoutputmincrease mandmdoesmnotmdecreasemin mtotalmasmo
utputmdecreases.
a. True
b. False

ANSWER: False
RATIONALE:m Amvariablemcostmismonemthatmdoesmincreaseminmtotalmasmoutputmincreasemandmdoesmnotmdecreaseminmtotalm
asm outputmdecreases.

12. Amfixed mcostmismamcostmthatmdoesmnotmincreasemin mtotalmasmoutputmincreasesmand mdoesmnotmdecreasemin mtotalmasmo
utputmdecreases.
a. True
b. False

ANSWER:m True

13. An mopportunity mcostmismthembenefitmgiven mup mormsacrificed mwhen monemalternativemismchosen movermanother.
a. True
b. False

ANSWER:m True

14. Costmismamdollarmmeasure mof mthemresourcesmused mto machievemamgiven mbenefit.
a. True
b. False

ANSWER:m True

15. Amcostmobjectmismsomethingmformwhich mamcompany mwantsmto mknowmthemcost.
a. True
b. False

ANSWER:m True




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16. Themrevenue mpermunitmismcalled mcost.
a. True
b. False

ANSWER: False
RATIONALE:m Them revenue mpermunitm ismcalledmprice.

17. Asmcostsmaremusedmup minmthemproductionmofmrevenues,mthey maremsaid mto mexpire.mExpired mcostsmaremcalled mexpenses.
a. True
b. False

ANSWER:m True

18. Costsmaremincurred mto mproduce mfuture mbenefits.
a. True
b. False

ANSWER:m True

19. Expired mcostsmaremcalled massets.
a. True
b. False

ANSWER:m False

20. Reducingmthemcostmrequired mto machieve mamgiven mbenefitmmeansmthatmamcompany mismbecomingmlessmefficient.
a. True
b. False

ANSWER:m False

21. Costsmcan mbemassigned mto mcostmobjectsmin monly monemway.
a. True
b. False

ANSWER: False
RATIONALE:m Costsm canm bem assignedm tom costm objectsm inm am numberm of m ways.

22. Property mtaxesmon mamfactory mbuildingmwould mnormally mbemclassified masmamfixed mcost.
a. True
b. False

ANSWER:m True




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