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Test your basic knowledge |
Managerial Accounting And Cost Concepts
Start Test
Study First
Subject
:
business-skills
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product.
Direct Materials
Indirect Materials
Cost behavior is considered linear when...
Contribution Approach
2. Product costs that were initially assigned to inventories.
Inventoriable Costs
2 Categories of Non-manufacturing Costs
ISO 9000 Standards
Statistical Process Control
3. Include all costs associated with the general management of an organization rather than with manufacturing or selling.
Administrative Costs
Manufacturing Overhead
Selling Costs
Contribution Margin
4. Consists of labor costs that can be easily (i.e. physically and conveniently) traced to individual units of product.
Engineering Approach
Direct Labor
Quality of Conformance
Dependent Variable
5. Cost that are incurred when a product or service that is defective is delivered to a customer.
Direct Materials
Sunk Cost
External Failure Costs
Account Analysis
6. Costs that are incurred as a result of identifying defective products before they are shipped to the customers.
Inventoriable Costs
Direct Labor
High-Low Method
Internal Failure Costs
7. Change in cost/ change in activity.
Differential Cost
Variable Cost =
Cost Structure
Account Analysis
8. Refers to an increase in cost from one alternative to another.
Direct Labor
Incremental Cost
Differential Cost
Appraisal Costs
9. A difference in costs between any two alternatives.
Dependent Variable
Discretionary Fixed Costs
Activity Base
Differential Cost
10. An approach to cost analysis that involves a detailed analysis of what cost behavior should be - based on an industrial engineer's evaluation of the production methods to be used - the materials specifications - labor requirements - equipment usage -
Internal Failure Costs
Engineering Approach
Quality Cost
Quality of Conformance
11. The materials that go into the final product.
Statistical Process Control
Raw Materials
Quality Cost Report
Activity Base
12. A charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problems.
Selling Costs
Quality Cost
Direct Labor
Statistical Process Control
13. The third element of manufacturing cost - includes all manufacturing costs except direct materials and direct labor.
Cost of Goods Sold Equation
Inventoriable Costs
Prime Cost
Manufacturing Overhead
14. A measure of whatever causes the incurrence of a variable cost.
Quality of Conformance
Variable Cost
Activity Base
Statistical Process Control
15. A cost that remains constant - in total - regardless of changes in the level of activity.
Contribution Approach
Fixed Cost
Mixed Cost
Indirect Labor
16. Quality control requirements issued by the International Organization for Standardization that relate to products sold in European Countries.
Prime Cost
ISO 9000 Standards
Prevention Costs
Product Costs
17. Refers to how a cost reacts to changes in the level of activity.
Opportunity Cost
Administrative Costs
Cost Behavior
Relevant Range
18. All costs involved in acquiring or making a product.
Committed Fixed Costs
Product Costs
Activity Base
Direct Labor
19. A cost which varies - in total - in direct proportion to changes in level of activity.
High-Low Method Formula
Account Analysis
Opportunity Cost
Variable Cost
20. Beginning merchandise inventory + Purchase - Ending merchandise inventory
Appraisal Costs
Cost of Goods Sold Equation
Dependent Variable
Indirect Labor
21. A difference in revenues between any two alternatives.
Prime Cost
Activity Base
Differential Revenue
Differential Cost
22. A cost that cannot be easily and conveniently traced to a specified cost object.
Prevention Costs
Mixed Cost
Indirect Cost
Direct Labor
23. Include all costs that are incurred to secure customer orders and get the finished product to the customer.
Account Analysis
Contribution Approach
High-Low Method
Selling Costs
24. Method based on the rise-over-run formula for the slope of a straight line.
Statistical Process Control
Variable Cost
High-Low Method
Engineering Approach
25. The relative proportion of each type of cost in an organization.
Cost Structure
Raw Materials
Common Cost
Dependent Variable
26. Whenever a straight line is a reasonable approximation for the relation between cost and activity.
Cost behavior is considered linear when...
Appraisal Costs
Direct Labor
Incremental Cost
27. Provides managers with an income statement that clearly distinguishes between fixed and variable costs and therefore aids in planning - controlling - and decision making.
Conversion Cost
Quality Cost Report
High-Low Method
Contribution Approach
28. An account is classified as either variable of fixed based on the analyst's prior knowledge of how the cost in the account behaves.
Account Analysis
Internal Failure Costs
Period Costs
Relevant Range
29. Labor costs that cannot be physically traced to particular products or that can be traced only at great cost and inconvenience.
Variable Cost =
Least-Squares Regression Method
Indirect Labor
Raw Materials
30. Represent organizational investments with a multiyear planning horizon that can't be significantly reduced even for short period of time without making fundamental changes.
Committed Fixed Costs
Differential Revenue
Administrative Costs
External Failure Costs
31. The sum of direct materials cost and direct labor cost -
Fixed Cost
Prime Cost
Inventoriable Costs
Selling Costs
32. All the costs that are not product costs.
Quality of Conformance
Independent Variable
Relevant Range
Period Costs
33. A report that details prevention costs - appraisal costs - and the costs of internal and external failures.
Independent Variable
Quality Cost Report
Administrative Costs
Dependent Variable
34. (1.)Selling costs (2.)Administrative costs
Engineering Approach
Selling Costs
Raw Materials
2 Categories of Non-manufacturing Costs
35. The range of activity within which the assumption that cost behavior is strictly linear is reasonably valid.
Discretionary Fixed Costs
Relevant Range
Cost of Goods Sold Equation
Manufacturing Overhead
36. Materials that are included as part of manufacturing overhead.
Indirect Materials
Variable Cost
Conversion Cost
Direct Materials
37. (Y2-Y1)/(X2-X1)
High-Low Method Formula
Incremental Cost
Raw Materials
Differential Cost
38. A cost that can be easily and conveniently traced to a specified cost object.
Independent Variable
Internal Failure Costs
Direct Cost
Indirect Labor
39. Contains both variable and fixed cost elements. (Also known as semi-variable costs)
Relevant Range
Mixed Cost
Indirect Cost
Quality of Conformance
40. A cost that has already been incurred and that cannot be changed by any decision made now or in the future.
Variable Cost =
Common Cost
Opportunity Cost
Sunk Cost
41. (Also known as the 'Y' variable); The amount of cost incurred during a period depends on the level of activity for the period.
Relevant Range
Product Costs
Dependent Variable
Sunk Cost
42. Small groups of employees that meet on a regular basis to discuss ways of improving quality.
Variable Cost
Variable Cost =
Quality Circles
Cost Object
43. A method that uses all of the date to separate a mixed cost into its fixed and variable cost components.
External Failure Costs
Dependent Variable
Least-Squares Regression Method
Selling Costs
44. Costs that are incurred to identify defective products before the products are shipped to customers.
Opportunity Cost
Sunk Cost
Administrative Costs
Appraisal Costs
45. Costs that usually arise from annual decisions by management to spend on certain fixed cost items. (Also known as 'managed fixed costs').
Discretionary Fixed Costs
Cost Structure
Inventoriable Costs
Differential Cost
46. The potential benefit that is given up when one alternative is selected over another.
Period Costs
Opportunity Cost
Indirect Labor
Cost Object
47. The amount remaining from sales revenues after variable expenses have been deducted. (This amount contributes toward covering fixed expenses and then towards profits for the period.)
Dependent Variable
Contribution Margin
External Failure Costs
Direct Cost
48. A cost that is incurred to support a number of cost objects - but cannot be traced to them individually.
Relevant Range
2 Categories of Non-manufacturing Costs
Common Cost
Quality Cost Report
49. Cost that are incurred to keep defects from occurring.
Prevention Costs
2 Categories of Non-manufacturing Costs
Indirect Cost
Incremental Cost
50. (Also known as the 'X' variable); Refers to activity because it causes variations in the cost.
Prime Cost
Independent Variable
Contribution Margin
Cost Structure