Cost Accounting MCQs

Option A: targeted capacity

Option B: budgeted capacity

Option C: recovery capacity

Option D: unused capacity

Correct Answer: unused capacity ✔

Option A: $70,000

Option B: $75,000

Option C: $65,000

Option D: $73,000

Correct Answer: $75,000 ✔

Option A: elasticity incurrence

Option B: off shoring

Option C: strategy

Option D: engineering

Correct Answer: strategy ✔

Option A: employee turnover rates

Option B: operating capabilities and number of patents

Option C: operating income and revenue growth

Option D: customer satisfaction and market share

Correct Answer: customer satisfaction and market share ✔

Option A: financial perspective

Option B: learning and growth perspective

Option C: customer perspective

Option D: all of above

Correct Answer: all of above ✔

Option A: benchmark engineered productivity

Option B: benchmark total factor productivity

Option C: benchmark partial productivity

Option D: benchmark total productivity

Correct Answer: benchmark total factor productivity ✔

Option A: inelastic demand

Option B: product differentiation

Option C: cost leadership

Option D: elastic demand

Correct Answer: product differentiation ✔

Option A: internal process component

Option B: growth component

Option C: price recovery component

Option D: productivity component

Correct Answer: growth component ✔

Option A: learning perspective

Option B: financial perspective

Option C: internal business process perspective

Option D: customer perspective

Correct Answer: internal business process perspective ✔

Option A: internal process component

Option B: growth component

Option C: price recovery component

Option D: productivity component

Correct Answer: productivity component ✔

Option A: internal business process perspective

Option B: customer perspective

Option C: learning perspective

Option D: financial perspective

Correct Answer: customer perspective ✔

Option A: cost leadership

Option B: demand inelasticity

Option C: differentiated products

Option D: both A and C

Correct Answer: both A and C ✔

Option A: employee turnover rates

Option B: operating capabilities and number of patents

Option C: operating income and revenue growth

Option D: customer satisfaction and market share

Correct Answer: operating capabilities and number of patents ✔

Option A: reengineering

Option B: downsizing

Option C: upgrading

Option D: none of above

Correct Answer: downsizing ✔

Option A: employee turnover rates

Option B: operating capabilities and number of patents

Option C: operating income and revenue growth

Option D: customer satisfaction and market share

Correct Answer: employee turnover rates ✔

Option A: reengineering

Option B: differentiation

Option C: bargaining

Option D: targeting

Correct Answer: reengineering ✔

Option A: differentiation scorecard

Option B: bargaining scorecard

Option C: leadership scorecard

Option D: balanced scorecard

Correct Answer: balanced scorecard ✔

Option A: indirect material cost

Option B: direct material cost

Option C: direct labor cost

Option D: indirect labor cost

Correct Answer: direct material cost ✔

Option A: $60,000

Option B: $6,000

Option C: $65,000

Option D: $6,500

Correct Answer: $60,000 ✔

Option A: internal business process perspective

Option B: external business process perspective

Option C: leadership perspective

Option D: reengineering perspective

Correct Answer: internal business process perspective ✔

Option A: product under costing

Option B: product over costing

Option C: expected under cost

Option D: expected over cost

Correct Answer: product under costing ✔

Option A: manufactured costing

Option B: activity based costing

Option C: allocation costing

Option D: base costing

Correct Answer: activity based costing ✔

Option A: no cost pool

Option B: One or two cost pools

Option C: sustained tracing

Option D: support tracing

Correct Answer: One or two cost pools ✔

Option A: increase in product diversity

Option B: increase in indirect costs

Option C: product market competitions

Option D: all of above

Correct Answer: all of above ✔

Option A: expected under cost

Option B: expected over cost

Option C: product under costing

Option D: product over costing

Correct Answer: product over costing ✔

Option A: refined costing system

Option B: refined selling system

Option C: undefined costing

Option D: defined selling system

Correct Answer: refined costing system ✔

Option A: batch size

Option B: complexity

Option C: process steps

Option D: all of above

Correct Answer: all of above ✔

Option A: different task

Option B: purpose cost

Option C: an activity

Option D: an allocation cost

Correct Answer: an activity ✔

Option A: service-cost across subsidizing

Option B: product-price cross subsidizing

Option C: product-cost cross subsidizing

Option D: product cross subsidizing

Correct Answer: product-cost cross subsidizing ✔

Option A: budgeted direct cost rate

Option B: budgeted indirect cost rate

Option C: expected indirect cost rate

Option D: direct budget percentage

Correct Answer: budgeted indirect cost rate ✔

Option A: purpose level costs

Option B: output-unit level costs

Option C: input-unit level costs

Option D: activity level costs

Correct Answer: output-unit level costs ✔

Option A: indirect costs

Option B: direct cost

Option C: labor cost

Option D: raw material cost

Correct Answer: indirect costs ✔

Option A: expected sustaining

Option B: input sustaining

Option C: output sustaining

Option D: product sustaining costs

Correct Answer: product sustaining costs ✔

Option A: cost hierarchy

Option B: price hierarchy

Option C: activity hierarchy

Option D: purpose hierarchy

Correct Answer: cost hierarchy ✔

Option A: individual sustaining costs

Option B: facility sustaining costs

Option C: sustained tracing

Option D: support tracing

Correct Answer: facility sustaining costs ✔

Option A: heterogeneous price pool

Option B: homogenous cost pool

Option C: heterogeneous cost pool

Option D: homogenous price pool

Correct Answer: homogenous cost pool ✔

Option A: activity list

Option B: activity dictionary

Option C: active purpose

Option D: both A and B

Correct Answer: both A and B ✔

Option A: activity level costs

Option B: input level costs

Option C: batch level costs

Option D: output level costs

Correct Answer: batch level costs ✔

Option A: indirect wages

Option B: health wages

Option C: idle time wages

Option D: shortage time wages

Correct Answer: idle time wages ✔

Option A: $13,500

Option B: $55,600

Option C: $60,000

Option D: $110,000

Correct Answer: $110,000 ✔

Option A: $19,500

Option B: $30,500

Option C: $45,500

Option D: $22,500

Correct Answer: $19,500 ✔

Option A: payroll fringe costs

Option B: health costs

Option C: premium costs

Option D: workers costs

Correct Answer: payroll fringe costs ✔

Option A: finished goods inventory

Option B: indirect material inventory

Option C: direct materials inventory

Option D: work in process inventory

Correct Answer: finished goods inventory ✔

Option A: manufacturing labor costs

Option B: direct labor costs

Option C: direct manufacturing labor costs

Option D: indirect manufacturing labor costs

Correct Answer: manufacturing labor costs ✔

Option A: direct material costs

Option B: indirect material costs

Option C: direct labor costs

Option D: indirect labor costs

Correct Answer: direct material costs ✔

Option A: $55,000

Option B: $37,500

Option C: $95,000

Option D: $26,000

Correct Answer: $95,000 ✔

Option A: information accounting

Option B: cost accounting

Option C: analyzing accounts

Option D: marketing costs

Correct Answer: cost accounting ✔

Option A: $5,850

Option B: $5,950

Option C: $9,950

Option D: $10,050

Correct Answer: $9,950 ✔

Option A: discuss costs

Option B: prime costs

Option C: resale cost

Option D: merchandise costs

Correct Answer: prime costs ✔

Option A: $4,450

Option B: $6,450

Option C: $21,500

Option D: $14,300

Correct Answer: $6,450 ✔

Option A: $40,000

Option B: $60,000

Option C: $52,000

Option D: $20,000

Correct Answer: $40,000 ✔

Option A: inventoriable costs

Option B: finished costs

Option C: factory overhead costs

Option D: manufacturing overhead costs

Correct Answer: inventoriable costs ✔

Option A: manufacturing costs

Option B: prime costs

Option C: conversion costs

Option D: both B and C

Correct Answer: both B and C ✔

Option A: $27,000

Option B: $13,000

Option C: $130,000

Option D: $29,500

Correct Answer: $13,000 ✔

Option A: direct manufacturing labor costs

Option B: indirect manufacturing labor costs

Option C: work in process cost

Option D: finished costs

Correct Answer: direct manufacturing labor costs ✔

Option A: transaction costs

Option B: conversion costs

Option C: resale costs

Option D: merchandise costs

Correct Answer: conversion costs ✔

Option A: manufacturing costs

Option B: prime costs

Option C: conversion costs

Option D: both B and C

Correct Answer: both B and C ✔

Option A: workers premium

Option B: overtime premium

Option C: factory premium

Option D: wage premium

Correct Answer: overtime premium ✔

Option A: indirect costs

Option B: overhead costs

Option C: premium costs

Option D: both a and b

Correct Answer: both a and b ✔

Option A: labor costs

Option B: factory overhead costs

Option C: finished costs

Option D: manufacturing costs

Correct Answer: factory overhead costs ✔

Option A: direct overheads

Option B: overhead costs

Option C: factory overhead

Option D: manufacturing overhead cost

Correct Answer: manufacturing overhead cost ✔

Option A: $47,000

Option B: $33,000

Option C: $57,000

Option D: $18,000

Correct Answer: $47,000 ✔

Option A: contracting costs

Option B: product cost

Option C: government costs

Option D: marketing costs

Correct Answer: product cost ✔

Option A: inventory costs

Option B: period costs

Option C: timed costs

Option D: labor overheads

Correct Answer: period costs ✔

Option A: prime overhead

Option B: conversion overhead

Option C: factory overhead

Option D: manufacturing overhead

Correct Answer: manufacturing overhead ✔

Option A: work in process costs

Option B: finished costs

Option C: direct manufacturing labor costs

Option D: indirect manufacturing labor costs

Correct Answer: direct manufacturing labor costs ✔

Option A: inventory costs

Option B: product costs

Option C: non-manufacturing costs

Option D: manufacturing costs

Correct Answer: non-manufacturing costs ✔

Option A: factory overhead costs

Option B: manufacturing overhead costs

Option C: Inventoriable Costs

Option D: finished costs

Correct Answer: Inventoriable Costs ✔

Option A: direct materials inventory

Option B: work in process inventory

Option C: finished goods inventory

Option D: indirect material inventory

Correct Answer: work in process inventory ✔