WorksheetsCost Accounting Quiz Chapters One & Two
Total questions: 22
Worksheet time: 18mins
Cost accounting is needed most by which type of user?
Internal users
External users
Which of the following is the accurate formula for Conversion Cost?
Direct Material Cost+Direct Labour Cost
Direct Labour Cost+Manufacturing Overhead Cost
Direct Material Cost+Direct Labour Cost+Manufacturing Overhead Costs
Direct Material Cost+Direct Labour Cost+Manufacturing Overhead Cost+Non Manufacturing Overhead Cost
Prime cost is calculated as:
Direct Material + Direct Labour + Direct Expense
Direct Labour - Direct Expense
Direct Expense + overheads
Direct Cost + Indirect Cost
It is expired costs with producing any revenue benefit.
Cost
Losses
Expenses
Income
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
What distinguishes cost accounting from financial accounting?
Cost accounting focuses on internal reporting, while financial accounting is for external stakeholders.
Financial accounting deals with production costs, while cost accounting addresses revenue streams.
Cost accounting emphasizes long-term financial planning, while financial accounting focuses on short-term goals.
Financial accounting is solely concerned with manufacturing costs, while cost accounting covers all business expenses
INDIRECT LABOR, INDIRECT MATERIALS, DEPRECIATION OF FACTORY EQUIPMENT AND THE LIKE ARE MANUFACTURING COSTS KNOWN AS
SUPPLIES
DIRECT MATERIALS
PRIME COSTS
FACTORY OVERHEAD
What is the meaning of overtime?
Idle time
Unproductive time of employees for which they are still paid
Any hours worked that exceed normally scheduled working hours
A sum of money added to a person's wages as a reward for good performance
Cost of Raw Material Used is $500,000 Beginning raw material is $50,000 and Ending raw material is $25,000. What is the cost of raw material purchased?
$450,000.
$525,000
$475,000
$550,000
"Manufacturing overhead" includes all of the following except:
Direct labor.
Indirect materials.
Indirect labor.
Depreciation on factory equipment.
Which of the following is an example of a fixed cost?
Raw materials used in production.
Electricity cost for the factory.
Rent for a factory building.
Direct labor hours.
Indirect costs are:
Directly traceable to a cost object.
Costs that cannot be easily traced to a specific cost object.
Always variable costs.
Always fixed costs.
What is the formula to calculate the cost of goods manufactured?
Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory
Beginning WIP Inventory - Total Manufacturing Costs + Ending WIP Inventory
Total Manufacturing Costs - Beginning WIP Inventory - Ending WIP Inventory
Total Manufacturing Costs + Beginning WIP Inventory - Ending WIP Inventory
What is the purpose of preparing a cost of goods schedule in manufacturing companies?
To track the sales revenue
To calculate the profit margin
To determine the cost of goods sold
To analyze the marketing expenses
A company incurred the following costs during a production period:
Direct materials cost: $10,000
Direct labor cost: $8,000
Factory overhead cost: $5,000
Calculate the prime cost for the period.
$10,000
13,000
18,000
23,000
A manufacturing company has the following costs for a production run:
Direct materials cost: $15,000
Direct labor cost: $10,000
Factory overhead cost: $8,000
Calculate the conversion cost for the production run.
15,000
18,000
23,000
33,000
What is the cost of goods manufactured if beginning work in process inventory is $50, total manufacturing cost is $345, and ending work in process inventory is $65?
$330
$250
$280
$400
What is the formula for calculating cost of goods manufactured directly?
Beginning work in process inventory + Total manufacturing cost - Ending work in process
Beginning finished goods inventory balance + Cost of goods manufactured - Ending finished goods
Total manufacturing cost - Beginning work in process inventory + Ending work in process
None of the above
