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T F Cosacc - accounting cost
Accountancy (1233)
Access Computer College
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Chapter 1 TRUE-FALSE QUESTIONS 1. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports. True 2. Managerial accounting internal reports are prepared more frequently than are classified financial statements. True 3. Determining the unit cost of manufacturing product is an output of financial accounting. False 4. Management accounting applies to all forms of business organizations. True 5. Controlling is the process of determining whether planned goals are being met. False 6. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated. False 7. Job order costing system is for allocating costs to group of unique product and is applicable to the production of customer specified products such as the manufacturing cture of special machine. True 8. Process costing is used by companies making one-of-a-kind products. False 9. Operation costing is a hybrid costing system often used in repetitive manufacturing where finished products have common as well as distinguishing characteristics. True 10. Cost accounting help management in gathering the data needed to determine product costs and thus generate meaningful financial statements and other reports. True
Chapter 2 1. The materials, labor, and overhead costs incurred to produce a product are called period costs. False 2. Marketing, Selling, administrative costs are the three broad classifications of costs incurred by a manufacturing company. False 3. Lumber can be both a finished product and a material. True 4. Product cost consists of the sum of prime cost and conversion cost. False 5. Total fixed costs decrease with increase in the number of units produced and increase with decrease in output. False 6. Period costs are found in both merchandising and manufacturing firms. True 7. The three cost elements of manufactured goods are direct materials, direct labor, and marketing costs. False 8. A cost that is present under one alternative but absent in whole or part under another alternative is known as a differential cost. True 9. Like product costs, period costs are not necessarily treated as expenses in the period in which they are incurred. False 10. Variable costs are costs that change, in total, in direct proportion to changes in the level of activity. True 11. The salary paid to the manager in charge of a warehouse is probably a variable cost. False 12. Indirect materials/factory supplies are classified as administrative expense. False
- The salary paid to a factory foreman is classified as factory overhead. True
- In a manufacturing setting, prime costs are fixed. False
- Fixed cost remains constant if expressed on a unit basis. False
- Differential costs can be either fixed or variable. True
- A fixed cost is constant per unit of product. False
- A decrease in production will ordinarily result in an increase in fixed production cost per unit. True
- A factory supervisor's salary would be classified as a direct cost of a unit of product. False
- Factory rent is included in manufacturing overhead, but office rent is a period cost. True
- Product costs are also known as manufacturing costs. True
- Prime costs are always variable. False
- Cost accounting is not needed by a merchandising entity. False
- The statement of financial position of a service business is the same as that of a manufacturing business. False
- Selling and administrative expenses are sometimes called non-manufacturing costs. True
Chapter 3 wala
Chapter 5
TRUE OR FALSE 1. Product costs are historical figures and therefore are of little use to the manager. False 2. A company producing furniture would probably use a job-order cost system. True 3. Both job-order and process costing systems utilize averaging concepts in computing unit costs. True 4. Most factory overhead costs are direct costs and therefore can be easily identified with specific jobs. False 5. The predetermined overhead rate is computed using estimates of cost and activity. True 6. The cost of indirect materials used in production is added to the MFG. OH account rather than added directly to Work in Process. True 7. Actual manufacturing overhead costs are charged directly to the Work in Process account as the costs are incurred. False 8. Selling and administrative expenses should be added to the Manufacturing Overhead Account. False 9. If more overhead is applied to Work in Process than is actually incurred, then overhead will be overapplied. True 10. All of the raw materials purchased during a period are included in the cost of goods manufactured figure. False 11. Any balance in the Work in Process account at the end of a period should be closed to Cost of Goods Sold. False
- The purpose of the quantity schedule is to show the costs charged to the department. True(false)
- If all units do go through all processing departments, then the departments are probably arranged in a sequential pattern. True
Chapter 10 or 11
- Using the FIFO method: If, for any period, the beginning Finished Goods Inventory is zero, then the average ending unit cost in Finished Goods Inventory is either a number between the unit cost in the beginning WIP inventory and the current period unit costs, or it is equal to the current period unit cost. True
- Using the FIFO method: If the units transferred out exceeds the equivalent units in WIP beginning inventory, then the unit cost of the ending WIP inventory will equal the current period unit cost. True
- Using the FIFO method: If the beginning WIP inventory is zero, then the unit cost of units transferred out will always equal the unit costs of the units in ending WIP inventory. True
- Using the FIFO method: The number of units transferred out equals the number of units started and completed plus the equivalent units in the beginning inventory times one minus the degree of completion. False
- Weighted average costing combines costs and equivalent units of a period with the costs and equivalent units in beginning inventory for product costing purposes. True
- When using the weighted-average method, the unit cost assigned to the units transferred out equals the unit costs assigned to the equivalent units in ending inventory .True
- Using the weighted-average method: If the current period unit cost is greater than the unit cost of the units in the beginning inventory, then the unit cost of the goods transferred out will exceed the current average period unit cost. False
- Irrespective of whether the FIFO method or the weighted-average method is used, the total costs to be accounted for are equal for any particular period**. True**
- With zero beginning WIP inventory, the FIFO and weighted-average methods will assign equal peso amounts to the units transferred out and the units in ending inventory. True
- With zero ending WIP inventory, the FIFO and weighted-average methods will assign equal peso amounts to the units transferred out. True
T F Cosacc - accounting cost
Course: Accountancy (1233)
University: Access Computer College
