Cost Accounting Pre-midterm Exam Questions and Answers.
1. The term “variable costs” refers to all costs that are likely to respond to the amount of
attention devoted to them by a specified manager.
a. True
b. False
2. A fixed cost increases on a per-unit basis as production increases.
a. True
b. False
3. The term “relevant range” as used in cost accounting means the range over which cost
relationships are valid.
a. True
b. False
4. A factory overhead cost can either be a fixed cost or a variable cost.
a. True
b. False
5. A cost object can be any of the following: a unit of product, a customer order, a project or a
division of the company.
a. True
b. False
6. An example of a cost that is irrelevant to a future decision is an opportunity cost. a. True
b. False
7. Health and accident insurance is a semi-variable cost.
a. True
b. False
8. Wages of a stockroom clerk is an indirect labor cost.
a. True
b. False
9. Salary of the factory manager is not considered as indirect labor cost.
a. True
b. Flase
10. Costs of idle time due to assembly line breakdown is considered an indirect labor cost. a.
True
b. False
, 11. Expenses that require a series of payments over a long period of time such as long-term
debt and lease rentals are frequently known as committed fixed expenses. a. True
b. False
12. Within a relevant range, the amount of fixed cost per unit differs at each production level on
a per unit basis
a. True
b. False
13. Expenses that are fixed at management’s discretion at a certain level for the period are
referred to as committed fixed cost
a. True
b. False
14.Under job order cost accumulation, the factory overhead control account controls factory
overhead analysis sheets.
a. True
b. False
15. Supplies needed for use in the factory are issued on the basis of job cost sheets. a.
True
b. False
16. Overapplied factory overhead would result if factory overhead costs incurred were
greater than costs charged to production.
a. True
b. False
17. The element of manufacturing cost that supports time tickets is labor. a. True
b. False
18.Work in Process is debited and Materials is credited for indirect materials requisition to
productions.
a. True
b. False
19. The purpose of a time ticket is to record the hours worked or the time spend by
an employee on each job which will be paid in the next payday.
a. True
b. False
20. Job costing is commonly used to estimate costs in beverage production. a. True
b. False
21. Direct costs are traced in the same way for actual costing and normal costing. a.
True
1. The term “variable costs” refers to all costs that are likely to respond to the amount of
attention devoted to them by a specified manager.
a. True
b. False
2. A fixed cost increases on a per-unit basis as production increases.
a. True
b. False
3. The term “relevant range” as used in cost accounting means the range over which cost
relationships are valid.
a. True
b. False
4. A factory overhead cost can either be a fixed cost or a variable cost.
a. True
b. False
5. A cost object can be any of the following: a unit of product, a customer order, a project or a
division of the company.
a. True
b. False
6. An example of a cost that is irrelevant to a future decision is an opportunity cost. a. True
b. False
7. Health and accident insurance is a semi-variable cost.
a. True
b. False
8. Wages of a stockroom clerk is an indirect labor cost.
a. True
b. False
9. Salary of the factory manager is not considered as indirect labor cost.
a. True
b. Flase
10. Costs of idle time due to assembly line breakdown is considered an indirect labor cost. a.
True
b. False
, 11. Expenses that require a series of payments over a long period of time such as long-term
debt and lease rentals are frequently known as committed fixed expenses. a. True
b. False
12. Within a relevant range, the amount of fixed cost per unit differs at each production level on
a per unit basis
a. True
b. False
13. Expenses that are fixed at management’s discretion at a certain level for the period are
referred to as committed fixed cost
a. True
b. False
14.Under job order cost accumulation, the factory overhead control account controls factory
overhead analysis sheets.
a. True
b. False
15. Supplies needed for use in the factory are issued on the basis of job cost sheets. a.
True
b. False
16. Overapplied factory overhead would result if factory overhead costs incurred were
greater than costs charged to production.
a. True
b. False
17. The element of manufacturing cost that supports time tickets is labor. a. True
b. False
18.Work in Process is debited and Materials is credited for indirect materials requisition to
productions.
a. True
b. False
19. The purpose of a time ticket is to record the hours worked or the time spend by
an employee on each job which will be paid in the next payday.
a. True
b. False
20. Job costing is commonly used to estimate costs in beverage production. a. True
b. False
21. Direct costs are traced in the same way for actual costing and normal costing. a.
True
