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1st Year - First Sem (Midterm) > Cost Accounting Chapter 1-4 > Flashcards

Cost Accounting Chapter 1-4 Flashcards

1
Q

A cost that remains constant in totals but varies in per unit with changes in activity

A

Fixed Cost

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2
Q

Indirect cost of converting raw material into finished goods are called

A

Overhead costs

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3
Q

Conversation does not include

A

Direct Materials

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4
Q

Costs that are related to manufacturing of a company

A

Product Cost

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5
Q

All costs are applicable and valid only within contemplated level of activity. Hence, total variable costs may be constant in total outside such range.

A

True

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6
Q

Fixed Cist increase per unit as the activity level increases and decreases per unit as the activity level falls

A

False

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7
Q

Party Company .. formula

A

Y = a + bX

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8
Q

There is no single definition of cost.

A

False

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9
Q

A cost that is useful for one decision may not be useful for another decision.

A

True

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10
Q

Opportunity costs are the additional costs incurred when the best alternative is chosen.

A

False

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11
Q

Product cost are expenses on the income statement when raw materials are issued to production.

A

False

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12
Q

Advertising cost is an example of period cost expensed in the period incurred.

A

True

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13
Q

An example of direct costs to an educational institution is the wages paid to its faculty members.

A

True

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14
Q

Salary of company driver who delivers finished goods to distributors is treated as factory overhead.

A

False

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15
Q

In a RTW cost of threads, buttons, and zippers are treated as direct costs.

A

True

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16
Q

For a cost to be variable it must be variable to uts activity base. Such activity base should directly affect variability of this cost and is synonymous to the cost driver.

A

True

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17
Q

Fixed costs increase per unit as the activity level rises and decreases per unit as the activity level falls.

A

False

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18
Q

In analyzing mixed cost, the variable portion represents the costs incurred for the actual consumption of the service. This means that its fixed component does not necessarily represent the level of activity that actually took place

A

True

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19
Q

Itemizing each major class of factory overhead which is later divided into variable and fixed components is a step involved under work measurement method of cost estimation.

A

False

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20
Q

For a purposes of profit analysis and control, a peso increase in contribution margin is a peso increase in operating profit. Fixed costs constant, decrease in CM directly reduces operating profit too.

A

True

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21
Q

Wages of raw materials inventory clerk

A

MOH

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22
Q

Transportation and representation allowance of plant managers and supervisors

A

MOH

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23
Q

Transportation and representation allowance of sales managers

A

Marketing

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24
Q

Paper and plastic bags used by supermarket

A

Marketing

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25
Q

Lubricating oil used by factories

A

MOH

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26
Q

Freight in cost of direct materials

A

DM

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27
Q

Depreciation of delivery truck of manufacturing company used in transporting finised goods to customers.

A

Marketing

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28
Q

Cloth used by advertising companied in making billboards

A

DM

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29
Q

OT paid to employee who repaired company’s copying machine

A

G&A

30
Q

Depreciation of sports equipment by fitness center

A

MOH

31
Q

Salaries paid to factory workers during idle time

A

MOH

32
Q

Factory supplies such as glue, soap, floorwax etc

A

MOH

33
Q

Manufacturing costs include raw materials used and wages paid to factory workers but do not include costs of wages paid to factory personnel who are not directly involved in the conversion of raw materials into finished product.

A

False

34
Q

A manufacturing plant produces two product lines: canned meat products and bottled drinks. Direct costs for the two product lines include the compensation and benefits paid to the company president since he is the overall in-charge person to supervise the whole company’s operations.

A

False

35
Q

For a company engaged in the manufacture of books, the bond paper used in printing company announcements are indirect costs.

A

True

36
Q

Product costs for a trading company include the costs of merchandise purchased and the freight costs to bring the goods to the place of thebuyer.

A

False

37
Q

Management accounting produces certain information that are exclusively available for internal users only at all times, unlike the reports furnished by financial accounting which are available to both internal and external users.

A

False

38
Q

Even though accounting in general needs to follow the promulgated standards by standard-setting bodies, management accounting is an exception since it need not follow such rules.

A

True

39
Q

Product costs are deducted from revenue when cash is already paid for them and the production is completed.

A

False

40
Q

Signing off on financial statements is an activity done by the chief financial officer; not by the treasurer or the controller.

A

True

41
Q

Cost and expenses can be interchangeably used since both of them refer to the expenditures recorded in a business.

A

False

42
Q

An increase in the cost driver would always increase the cost related to it.

A

True

43
Q

Compliance with the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management means maintaining a fair level of ethical conduct.

A

False

44
Q

In analyzing a mixed cost, the variable portion represents the costs incurred for the actual consumption of the service. This means that its fixed component does not necessarily represent the level of activitythat actually took place.

A

True

45
Q

The state where costs do not react with changes in the factor selected for estimating their behavior would produce a low coefficient of determination. This means that the performance of the entity withregards to controlling such costs is poor.

A

False

46
Q

An increase in the contribution margin rate would always result to an increase in the net income after taxes even if total fixed costs behave outside the relevant range

A

False

47
Q

The breakeven point formula used in firms selling multi-products is thesame with that of single-product businesses except that thedenominator is average contribution margin per unit or peso

A

False

48
Q

A facet of accounting that determines the cist of services, products, and processes with the goals of reporting the correct amounts on a company’s financial statements, assisting management in the planning and control of the organization, and preparing special analysis in arriving at the best decision.

A

Cost Accounting

49
Q

Set of activities that transforms raw resources into the goods and services that end users purchase and consume and the treatment of disposal of any waste generated by them.

A

Value Chain

50
Q

Business Functions in the Value Chain: (6)

A

Research and Development
Design of products…
Production
Marketing
Distribution
Customer Service

51
Q

What kind of cost is marketing and administrative

A

Period Costs

52
Q

Control Account

A

Actual Costs

53
Q

Applied Account

A

Actual or Budgeted Costs

54
Q

process of accumulating, classifying, and assigning direct materials, direct labor and factory overhead costs to products or services.

A

Product Costing

55
Q

Nag accumulate/absorb ng cost

A

Cost object

56
Q

Cost object: Job or Batch of products

A

Job order

57
Q

Costing system used for heterogeneous items or products.

A

Job order

58
Q

Costing system which is more costly.

A

Job order

59
Q

What costing system is used for construction companies

A

Job order

60
Q

What costing system is used for printing companies

A

Job order

61
Q

What costing system is used for medical services

A

Job order

62
Q

Costing system used for homogeneous items or products

A

Process Costing

63
Q

In this costing system the cost object is process

A

Process Costing

64
Q

What costing system is used for petroleum companies

A

Process Costing

65
Q

What costing system is used for bottling companies and food products

A

Process Costing

66
Q

Types of Cost: Normal Costing
FOH- inaassume or nag eestimate ka based sa mga pased data mo then iaaverage

A

Applied

67
Q

Types of Costs
Desired level of activity/cost

A

Standard Cost

68
Q

Overhead Assignment:
Uses one common cost driver (DLH, no. of units produced)

A

Volume-based

69
Q

Overhead Assignment:
Uses multiple cost drivers based on a cause and effect association

A

Activity Based

70
Q

Raw Materials Inventory and Direct Materials Inventory are synonymous

A

False Raw Materials Inventory can have both/either Direct or Indirect

71
Q

Is a factory janitor cost a product or period cost?
Product
Period

A

Product

72
Q

Is the cost of market research a product or period cost?

A

period

1st Year - First Sem (Midterm) (3 decks)

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