Management Accounting Analytics Quiz Chapter 2

The salary of a factory supervisor is considered to be a(n) ______ cost that requires ______ of costs to the cost object.

• a. direct; tracing

• b. direct; allocation

• c. indirect; tracing

• d. indirect; allocation

Whereas a ______ cost of a cost object changes in proportion to the changes in its volume, a ______ cost of a cost object does not change regardless of the volume produced.

• a. fixed; variable

• b. variable; fixed

• c. variable; mixed

• d. mixed; fixed

What is the monetary value of the resources used or sacrificed to achieve a certain objective, such as the production of a product or the delivery of a service?

• a. Sales price

• b. Cost

• c. Variable cost

• d. Cost object

Suppose that manufacturing overhead is allocated to a cost object. It is implied that overhead is a(n) ______ cost.

• a. direct

• b. product

• c. period

• d. prime

What is the correct order for cost tracing?

• a. Cost Incurred → Cost Accumulation → Cost Assignment → Cost Object

• b. Cost Incurred → Cost Tracing → Cost Accumulation → Cost Object

• c. Cost Incurred → Cost Assignment → Cost Accumulation → Cost Object

• d. Cost Incurred → Cost Tracing → Cost Assignment → Cost Object

Which type of cost includes a fixed rate for using a base amount, and then an additional variable charge for any usage over a base amount?

• a. Fixed cost

• b. Variable cost

• c. Amalgamated cost

• d. Mixed cost

Advertising a line of products on social media is considered which type of cost?

• a. Direct cost

• b. Product cost

• c. Period cost

• d. Inventoriable cost

The tires and installation for a Tesla Model Y are considered which types of cost?

• Product and prime costs

• Direct and period costs

• Variable and conversion costs

• Variable and period costs

The _____ is the estimated costs per unit that normally occur during the production of a product or performance of a service.

The enterprise system that captures financial transactions and communicates financial performance to interested parties is a _____ system.

• manufacturing information

• human resource management

• financial reporting

• supply chain