WorksheetsCOST ACCOUNTING - OVERVIEW OF COST ACCOUNTING
Total questions: 10
Worksheet time: 3mins
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
