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    Cost Accounting MCQ

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    shabukr
    1. Absorption costing measures contribution to profit as sales less the absorption cost of goods sold, which includes unit-level costs as well as an allocation of fixed overhead costs. 2. In a job-order costing system, the journal entry to record depreciation on factory equipment would debit manufacturing overhead and credit accumulated depreciation. 3. The statement that is false regarding traditional cost accounting systems is that they can be sufficient to meet managers' cost information needs as long as indirect costs are relatively high compared to direct costs.

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    Cost Accounting MCQ

    Uploaded by

    shabukr
    844 views1 page
    1. Absorption costing measures contribution to profit as sales less the absorption cost of goods sold, which includes unit-level costs as well as an allocation of fixed overhead costs. 2. In a job-order costing system, the journal entry to record depreciation on factory equipment would debit manufacturing overhead and credit accumulated depreciation. 3. The statement that is false regarding traditional cost accounting systems is that they can be sufficient to meet managers' cost information needs as long as indirect costs are relatively high compared to direct costs.

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    1. Absorption costing measures contribution to profit as sales less the absorption cost of goods sold, which includes unit-level costs as well as an allocation of fixed overhead costs. 2. In a job-order costing system, the journal entry to record depreciation on factory equipment would debit manufacturing overhead and credit accumulated depreciation. 3. The statement that is false regarding traditional cost accounting systems is that they can be sufficient to meet managers' cost information needs as long as indirect costs are relatively high compared to direct costs.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    844 views1 page

    Cost Accounting MCQ

    Uploaded by

    shabukr
    1. Absorption costing measures contribution to profit as sales less the absorption cost of goods sold, which includes unit-level costs as well as an allocation of fixed overhead costs. 2. In a job-order costing system, the journal entry to record depreciation on factory equipment would debit manufacturing overhead and credit accumulated depreciation. 3. The statement that is false regarding traditional cost accounting systems is that they can be sufficient to meet managers' cost information needs as long as indirect costs are relatively high compared to direct costs.

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    of 1

    1.

    Absorption costing measures contribution to profit as:


    A) Sales less unit- level costs spent of goods sold.
    B) Sales less absorption cost of goods sold.
    C) Sales less absorption cost of goods sold.
    D) Sales less all costs including operating expenses.

    2. In a job-order costing system, the journal entry to record depreciation on factory
    equipment would be recorded by a:
    A) Debit to Depreciation Expense, credit to Accumulated Depreciation
    B) Debit to Manufacturing Overhead, credit to Depreciation Expense
    C) Debit to manufacturing Overhead, credit to Work-in-Process
    D) Debit to Manufacturing Overhead, credit to Accumulated Depreciation

    3. Which of the following statements regarding traditional cost accounting systems is False?
    A) Products are often over or under costed in traditional cost accounting systems
    B) Most traditional cost accounting systems do not trace individual costs to products.
    C) The advantage of traditional cost accounting systems is their simplicity.
    D) Traditional cost accounting systems can be sufficient to meet managers' cost
    information needs as long as the level of indirect costs is relatively high compared
    to the level of direct costs.

    4. Which of the following indicates that a company may benefit from an Activity-Based
    Costing system?
    A) Standard high-volume goods and services show significant profits.
    B) Indirect costs are insignificant in proportion to direct costs.
    C) The company loses relatively high priced bids.
    D) Goods and services are complex and may require many different processes or
    inputs

    5. Which of the following is not a planning issue in Activity-Based-Management?
    A) The intended scope of the project
    B) The current customer base
    C) Information gathering
    D) Resistance to change

    6. Under what conditions will the FIFO method produce the same cost of goods
    manufactured as the weighted-average method?
    A) When there is no ending inventory
    B) When the beginning and ending inventories are both 50% complete
    C) When there is no beginning inventory

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