Cost Accounting 1

Which one of the following is least likely to be an objective of cost accounting system?

• Product Costing and Inventory Valuation

• Sales Commission Determination

• Department Efficiency

• Income Determination

It is sacrificed resource to achieve a specific objective

• Losses

• Cost

• Expenses

• Expenses

It is expired costs with producing any revenue benefit.

• Cost

• Losses

• Expenses

• Income

It is a cost that expires without producing any revenue benefit.

• Cost

• Income

• Expenses

• Losses

Material that is not become part of a product&can't be conveniently traced to specific product

• Expenses

• Raw Material

• Indirect Materials

• Direct Material

Which of the following items is not included in factory overhead?

• Factory depreciation and supplies

• Costs of Marketing departments

• Costs of Maintenance departments

• Costs of service departments

Financial accounting:

• focuses on the future and includes activities such as preparing next year's operating budget

• must comply with GAAP (generally accepted accounting principles)

• reports include detailed information on the various operating segments of the business such as

  product lines or departments

• is prepared for the use of department heads and other employees

Financial accounting provides the primary source of information for:

• decision making in the finishing department

• improving customer service

• preparing the income statement for shareholders

• planning next year's operating budget

Costs that remain the same in total regardless of changes in the activity level.

• Variable Cost

• Fixed Cost

• Relevant Cost

• Sunk Cost

Are costs that vary in total directly and proportionately with changes in the activity level.

• Fixed Cost

• Variable Cost

• Mixed Cost

• Irrelevant Cost