COST ACCOUNTING - OVERVIEW OF COST ACCOUNTING

Which of the following is correct?

• Cost incurred in one year are always meaningful in the following year

• Different cost concepts and classifications are used for different purposes

• All organization incur the same type of costs

• the word "cost" has the same meaning in all situation in which it is used

One major difference between financial and management accounting is that

• financial accounting reports are prepared primarily for users external to the company

• Management accounting is not under the jurisdiction of the securities and exchange commission

• Government regulations do not apply to management accounting

• all of the given answers are true

the cost of a manufactured product consist of which of the following cost?

• Direct materials cost and Factory overhead cost

• Direct labor cost and factory overhead cost

• Direct materials and direct labor

• Direct materials, direct labor and factory overhead

Financial Accounting

• is primarily concerned with internal reporting

• is more concerned with verifiable, historical information than cost accounting

• Focuses on the parts of the organization rather than the whole

• is specifically directed at management decisions making needs

Cost accounting is drected towards the needs of

• regulatory agencies

• external users

• internal users

• stockholders

Broadly speaking cost accounting can be defined as an

• External reporting system that is based on activity based on costs

• Systems used for providing the government and creditors with information about a company's internal operation

• Internal reporting system that provides product costing and other information used by managers in performing their functions

• Internal reporting system needed by manufacturers to be in compliance with cost accounting standards board and pronouncements

Which of the following is incorrect

• A primary purpose of cost accounting is to determine valuations needed for external financial statements

• A primary purpose of management accounting is to provide information to managers

• The act of converting production inputs into finished products or services necessitates cost accounting

• Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles

Which of the following are two main types of cost accounting system for manufacturing operations

• Process cost and general accounting systems

• Job order cost and process cost systems

• job order cost and general accounting system

• process cost and backflush costing system

Which of the following statements is correct

• Management accounting is a subset of both cost and financial accounting

• Financial accounting is a subset of cost accounting

• Cost accounting is a subset of both management and financial accounting

• management accounting is a subset of cost accounting

All cost related to the manufactuirng function in a company are

• Period cost

• Conversion cost

• Prime cost

• Product cost