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    Cost Accounting Questions and Answers

    Uploaded by

    Kyo Tie
    This document contains 5 multiple choice questions related to cost accounting concepts. Question 1 asks about different costing systems, question 2 asks about allocating building costs between production and service departments, question 3 asks about the step-down method for allocating service department costs, question 4 asks about appropriate bases for allocating overhead in automated manufacturing, and question 5 describes how standard costs can motivate employees.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Cost Accounting Questions and Answers

    Uploaded by

    Kyo Tie
    435 views1 page
    This document contains 5 multiple choice questions related to cost accounting concepts. Question 1 asks about different costing systems, question 2 asks about allocating building costs between production and service departments, question 3 asks about the step-down method for allocating service department costs, question 4 asks about appropriate bases for allocating overhead in automated manufacturing, and question 5 describes how standard costs can motivate employees.

    Original Description:

    COST ACCOUNTING

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    This document contains 5 multiple choice questions related to cost accounting concepts. Question 1 asks about different costing systems, question 2 asks about allocating building costs between production and service departments, question 3 asks about the step-down method for allocating service department costs, question 4 asks about appropriate bases for allocating overhead in automated manufacturing, and question 5 describes how standard costs can motivate employees.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    435 views1 page

    Cost Accounting Questions and Answers

    Uploaded by

    Kyo Tie
    This document contains 5 multiple choice questions related to cost accounting concepts. Question 1 asks about different costing systems, question 2 asks about allocating building costs between production and service departments, question 3 asks about the step-down method for allocating service department costs, question 4 asks about appropriate bases for allocating overhead in automated manufacturing, and question 5 describes how standard costs can motivate employees.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    1.

    Costing system that charge the product with the use of an arbitrary overhead
    application rate determined at the end of the period.
    a. Normal costing
    b. Actual costing
    c. Job order costing
    d. Process costing

    2. A company has two productions and two service departments that are housed in
    the same building. The most reasonable basis for allocating building costs (rent,
    insurance, maintenance, security) to the production and service departments is:
    a. Direct labor hours
    b. Number of employees
    c. Square feet of floor occupied
    d. Direct materials used

    3. The method of overhead allocation that usually starts with the service
    department rendering the greatest amount of service to the greatest number of
    other service departments and the progresses in descending order to the service
    department rendering services to the least number of other service departments is
    the:
    a. Step method
    b. Direct method
    c. Step and direct methods
    d. Reciprocal method

    4. In highly automated manufacturing, all of the following may be appropriate bases


    for manufacturing overhead application except:
    a. machine hours
    b. direct labor hours
    c. number of setups
    d. movement of materials

    5. Which of the following is true concerning standard costs?


    a. Standard costs are estimates of costs attainable only under the most ideal
    conditions but rarely practicable.
    b. Standard costs are difficult to use with the process costing system.
    c. If probably used, standard can help motivate employees.
    d. Unfavorable variances, material in amount, should be investigated but large
    favorable variances need not be investigated

    Answers:
    1. a
    2. c
    3. a
    4. c
    5. c

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