Exam (elaborations)

Downloadable_Test_Bank_for_Management_Ac

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Course
Management

Institution
Management

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Uploaded on August 26, 2024
Number of pages 36
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

downloadabletestbankformanagementac

Institution Management
Course Management

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02
Student: ___________________________________________________________________________

1. Which of the following statements is false?
i. Qualitative information is not relevant for planning purposes.
ii. Production costs are important for planning purposes, but selling and administration costs are not.
iii. Information on revenues is not important for planning purposes.
A. i
B. iii
C. i and iii
D. i, ii and iii
2. Which of the following statements is true?
A. The word cost has the same meaning in all situations in which it is used.
B. Cost data, once classified and recorded, can be used for any purpose.
C. Different cost concepts and classifications are used for different purposes.
D. None of the given answers
3. Which of the following statements is true? A cost is:
A. always an expense
B. always an asset
C. can be either an expense or an asset
D. always a liability
4. Variable costs:
A. vary indirectly with changes in activity level
B. vary directly with changes in activity level
C. vary on a per unit basis
D. vary indirectly with changes in activity level AND vary on a per unit basis
5. If production increases, variable cost will:
A. remain constant on a per unit basis
B. increase by a variable amount
C. vary on a per unit basis
D. remain unchanged
6. As activity level decreases, unit variable cost:
A. increases proportionately with activity
B. decreases proportionately with activity
C. remains constant
D. decreases by a fixed amount
7. As activity level increases, total variable costs:
A. increase proportionately with activity
B. decrease proportionately with activity
C. increase by a fixed amount
D. decrease by a fixed amount
8. Fixed costs:
A. vary directly with changes in activity level
B. in total remain unchanged as activity levels change
C. vary on a per unit basis
D. B and C

,9. Which of the following is not an example of a variable cost?
A. Straight-line depreciation on a machine expected to last 5 years.
B. Wages paid to assembly line workers at a local manufacturing plant.
C. Timber used to make outdoor furniture.
D. Commissions paid to sales personnel.
10. Which of the following statements is false?
A. Costing is common to both conventional and contemporary management accounting.
B. Activity-based costing is common to both conventional and contemporary management accounting.
C. Performance measurement is common to both conventional and contemporary management
accounting.
D. Contemporary performance measurement covers a range of critical success factors.
11. Which is the correct order of cost incurrence in the value chain?
A. R & D, Product Design, Manufacturing, Marketing, Distribution, Customer Support
B. R & D, Product Design, Customer Support, Marketing, Distribution, Manufacturing
C. R & D, Product Design, Manufacturing, Distribution, Customer Support, Selling
D. R & D, Product Design, Manufacturing, Distribution, Marketing, Customer Support
12. Costs that can be traced to a particular cost object are called:
A. direct costs
B. indirect costs
C. product costs
D. manufacturing costs
13. Indirect costs:
A. cannot be traced to a particular cost object
B. cannot be economically traced to a particular cost object
C. are always variable costs
D. are always fixed costs
14. Whether a cost is classified as direct or indirect will depend on:
A. the nature of the cost object
B. whether the cost can be economically traced to the cost object
C. whether the organisation is in a manufacturing or service industry
D. the nature of the cost object AND whether the cost can be economically traced to the cost object
15. Costs that can be significantly influenced by a particular manager are:
A. product costs.
B. period costs.
C. controllable costs.
D. administrative costs.
16. Which of the following is not an example of a manufacturing overhead?
A. Assembly line workers' wages
B. Factory rent
C. Depreciation of factory machinery
D. Factory lighting
17. Product costs are:
A. expended as they are incurred
B. inventoriable costs
C. period costs
D. expended as they are incurred AND inventoriable costs

,18. Costs that are expended during the period in which the costs are incurred are called:
A. product costs
B. inventoriable costs
C. period costs
D. indirect costs
19. Which of the following costs of a manufactured product is a period cost?
A. Direct material
B. Manufacturing overhead
C. Indirect material
D. Sales commission
20. Which of the following is not a period cost?
A. Marketing costs
B. Administrative costs
C. Research and development
D. Factory overheads
21. Cost of goods purchased includes the:
A. purchase cost
B. transportation inward cost
C. storage cost
D. purchase cost AND transportation inward cost
22. Product costs comprise:
A. direct materials, direct labour and manufacturing overhead
B. direct materials and manufacturing overhead
C. direct labour and manufacturing overhead
D. direct materials and direct labour
23. The prime costs are:
Refer to the following data.

A. $190 000
B. $40 000
C. $150 000
D. $142 000

, 24. The conversion costs are:
Refer to the following data.

A. $150 000
B. $142 000
C. $182 000
D. $190 000
25. The product costs are:
Refer to the following data.

A. $15 000
B. $182 000
C. $190 000
D. $332 000

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