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Cost concept quiz. This document appears to be the beginning of a chapter that discusses cost accounting terms, concepts, and classifications. Cost of sand spread on the factory floor to absorb oil from manufacturing machines. Topics covered include cost concepts, cost sheets, job costing, and more. david_overbay8. and more. E. Indirect Labor 3. Quiz type: Multiple choice questions (MCQs) quiz. Question topics include the classification of costs as product vs. direct materials cost (ie: unassembled parts) 2. If we need to order 1,000 units, we will have higher total ordering cost if we order 200 units every time compared to if we order 250 units every time. The same concept. Learn about the relationship between financial and cost accounting, different cost classifications, flow of costs in service, trading, and manufacturing firms, actual vs. At a sales volume of 40,000 units, Lonnie Company's total fixed costs are £40,000 and total variable costs are £60,000. Chapter 2: Costs - Concepts and Classifications. Completeness QUIZ 1 : TOPIC 2 [COSTS : CONCEPT, CLASSIFICATION & COMPONENT] quiz for University students. C) It is prepared for shareholders. costs necessary to market, distribute, and service a product or service, ex advertising. Aug 25, 2024 · Chapter: Accounting for consignment. Mar 26, 2023 · Test your knowledge on cost behavior and estimation with this quiz. Quiz yourself with questions and answers for Cost Accounting Module 3 Concept Quiz, so you can be ready for test day. Study with Quizlet and memorise flashcards containing terms like Some input or activity that causes changes in total cost for a cost object. Includes: 1. ) ***Must relate to the manufacturing facility itself Study with Quizlet and memorize flashcards containing terms like Cost, Cost Accounting, Cost of sales or costs of goods sold and more. a) High-low method b Chapter 2 : Manufacturing Cost Concept and Components quiz for University students. Preview. kotajian. D. The total of Lake's direct labor cost was Verified Questions and Answers for Quiz 2: Cost Concepts, Behaviour and Estimation b. 10 terms. According to the historical cost concept, acquired assets should be recorded at their original purchase price. Indirect Materials 2. Cost of travel necessary to sell the manufactured product. Quiz 1. manufacturing cost. Verified Questions and Answers for Quiz 1: Managerial Accounting and Cost Concepts Study with Quizlet and memorize flashcards containing terms like Since overhead costs are indirect costs, a) they require some process of allocation. Faithful Representation. 50 terms. g. Multiple Choice Quiz. Verified Questions and Answers for Quiz 2: Management Accounting: Cost Terms and Concepts Test your knowledge on the Cost of Quality concept in Quality Management with this online quiz. All organizations incur the same types of costs. Managers. prime costs (sum of what) direct labor + MOH. , An actual cost system differs from a normal cost system in that an actual cost system a) assigns overhead at the end Study with Quizlet and memorize flashcards containing terms like average cost, avoidable costs, capacity fixed costs and more. It is possible for both fixed cost and variable cost to be combined in only one cost. Passing score: 60%. indirect costs, the components of cost of goods manufactured, and cost behavior. The value of cash or other resources given up in exchange for a resource measures the cost of the resource acquired. B Medium Within the relevant range of activity, variable cost per unit will: a. 42. Problem 2: Classify as to fixed, variable, or mixed. -If Lonnie were to sell 50,000 units, the total expected cost per unit would be: All other costs; Also known as factory overhead. finished goods inventory has increased during the period. costs associated with the general management of the company, ex accountants, CEO. The word cost has the same meaning in all situations in which it is used. Cost of a warehouse used to store finished goods. It is also anything for which a measurement cost is desired; This may be a product (e. Cost data, once classified and recorded, can be used for any purpose. Cost data, once classified and recorded for a specific application, are appropriate for use in any application. Engage with thought-provoking scenarios and real-life examples to comprehend Labor costs incurred during a recent period were: corporate executives, $500,000; assembly-line workers, $180,000; security guards, $45,000; and plant supervisor, $110,000. It includes questions with answers to help you learn better. The fixed cost is $610,000 per year and the variable cost is $62 per standard service hour. doc), PDF File (. work in process inventory has decreased during the period. administrative cost. Find other quizzes for Professional Development and more on Quizizz for free! B. C. Unit variable cost and unit fixed cost. Cost Concepts Princeton Fabrication, Inc. Basic cost management concepts. In order to understand the cost function well, in this article, we will look at various cost concepts. 1- by its function (period vs product cost) 2- Behavior - how a cost will react to changes in the level of activity (variable vs fixed cost ) 3- Traceability - Direct vs. d. direct materials + direct labor. Other/Miscellaneous Costs (Maintenance & Repairs on equipment, Utilities, Rent, Taxes, Depreciation, Insurance, Etc. Customer service of Globe), project (R&D of Oppo), customer (e. External parties C. Assumptions by accountants regarding the behavior of fixed costs rest heavily on the concept of the relevant range. Cost analysis is all about the study of the behavior of cost with respect to various production criteria like the scale of operations, size of output, etc. FASB Statement of Concepts #6 says expense is. 1-273 (Static) A number of costs are listed below. The quiz/worksheet combo is designed to check your understanding of the historical cost concept. Study with Quizlet and memorize flashcards containing terms like If a buyer has a choice between carriers who offer the same price, which inventory-related costs should be considered?, To estimate average in-transit inventory, the transit time (days) should be multiplied by the _______________. Therefore, if a balance sheet shows an asset at a certain value, it should be assumed that this is its cost unless it is categorically stated otherwise. Any new costs are considered product costs. Cost is. The cost of inventory classified according to financial statement. Mar 26, 2023 · This multiple choice question (MCQs) test contains 14 questions. Study with Quizlet and memorize flashcards containing terms like Cost Accounting, Cost Accounting (Horngren), Cost Accounting (Raiborn) and more. Any end to which cost is assigned, collected, or accumulated. labor costs for production-related activities that cannot be conveniently and economically . Cost-Concept-and-Classification-Quiz-and-Solution - Free download as PDF File (. You have collected the following information from the accounting records: Required a. The relevant range is 30,000 to 50,000 units. Fixed costs expressed on a per unit basis will react inversely with changes in activity. Costs incurred in one year are always meaningful in the following year. Study online for free at Quizlet. Chapter 1 Managerial Accounting and Cost Concepts. Learn with flashcards, games, and more — for free. It also delves into statistical methods such as Regression Analysis and key break-even concepts like the Margin of Safety. Find other quizzes for Other and more on Quizizz for free! Feb 21, 2023 · The cost concept of accounting states that all acquisitions of items (e. finished goods inventory has decreased during the period. Creditors B. At the end of the current year the company reported the $200,000 as a liability on its balance sheet. increase in proportion with the level of activity. Cost Cost Object Direct cost Indirect cost Ex. Expense definition. How this concept works and acceptable measurement bases in accounting are topics you need to know a. This document contains a series of multiple choice questions about cost accounting terms, concepts, and classifications. This quiz covers essential concepts in cost behavior analysis including techniques like the High-Low Method and Curvilinear Costs. Historical Cost Concept. Study with Quizlet and memorize flashcards containing terms like Increases, Capital Expenditures/Expenses, Operating Expenditures/Expenses and more. Your result will be displayed at the end of the quiz. Test your knowledge on basic concepts in cost accounting, including methods of cost ascertainment and implementation of costing systems. Flashcards; Learn; Test Oct 8, 2024 · Quiz yourself with questions and answers for Exam 1, Chapter 2. b. fixed costs, examples of direct vs. You need to choose the correct answer from 4 or 5 responses to move onto the next question. Unit fixed cost and total fixed cost. Cost of wiring used in making a personal computer A particular personal computer 3. Financial accounting information is used for reporting to: A. Unit fixed costs and total variable cost. Cost Description Cost Object 1. , produced and sold 800 units of the company's only product in March. Wages of carpenters on a home building site A particular home 2. Study with Quizlet and memorize flashcards containing terms like Cost, Cost of sales, Operating Expenses and more. Hard Study with Quizlet and memorize flashcards containing terms like If using less-than-truckload transportation, which aspects of total cost are affected? (Check all that apply) Cycle stock cost In-transit inventory cost Safety stock cost Transit cost Setup cost, If using truckload transportation, which aspects of total cost are affected? Cycle stock cost In-transit inventory cost Safety stock Cost Concepts: Practice Quiz Questions TB Problem Qu. Fixed costs frequently represent long-term investments in property, plant, and equipment. B) It is prepared based on SEC rules and FASB accounting principles. Cost of guided public tours through the company's facilities. Click here to begin Cost Concept Study with Quizlet and memorize flashcards containing terms like A(n)_____is anything for which cost data are desired—including products, customers, plants, office locations, and departments. Study with Quizlet and memorize flashcards containing terms like Cost object, Examples of Cost object, Two types of costs and more. , How does the in-transit carrying cost % typically relate to the inventory carrying cost % when the Verified Questions and Answers for Quiz 2: Basic Cost Management Concepts This approach assumes that management determines which costs are associated with the product and should be considered product costs. Quiz 01 – Cost Concept Part 1. 41 terms. All are true C. The maximum output is 214,000 hours per year. 15 42. 25 terms. txt) or read online for free. Test your understanding of these fundamental principles in cost accounting. Study with Quizlet and memorize flashcards containing terms like Which of the following statements is true? A. Preview likely be a direct cost or an indirect cost of the specified cost object by placing an X in the appropriate column. Whether you're an aspiring economist or a curious learner, this quiz is your chance to explore the intricacies of resource allocation. a) Engineered estimate of cost b) Mixed costs c) Cost driver d) Piecewise linear cost function, Rate at which labour hours decrease as the volume of production or services increases. 1. Estimated time required: 15 - 20 minutes. Test your knowledge of cost concepts and classifications with this quiz. Cost terms, concepts, And classifications, ACC Exam 4 Review, Acc Exam 3, so you can be ready for test day. Verified Questions and Answers for Quiz 2: Cost Concepts and Behavior Study with Quizlet and memorize flashcards containing terms like Indirect Materials, Indirect Labor, Cost definition and more. Study with Quizlet and memorize flashcards containing terms like cost, actual cost, budgeted cost and more. It is all about the financial aspects of production. 22. Accounting Final Exam. direct labor cost (ie: hires workers to assemble) 3. Different cost concepts and classifications are used for different purposes. D) It co-ordinates product design, production, and marketing decisions. Study with Quizlet and memorize flashcards containing terms like Cost, Cost pools, Cost drivers and more. normal costing methods, and separating variable and fixed components of mixed costs. , Manufacturing costs include _____. Room service beverages A particular hotel guest X 1 The salary of the head chef The hotel’s restaurant X 2 The salary of the head chef A particular restaurant customer. product cost. selling expense. Hard Test Bank - Chapter 2 Cost Concepts - Free download as Word Doc (. , assets or items needed for expending) should be recorded and retained in books at cost. pdf), Text File (. Also see Cumulative average-time learning curve. Study with Quizlet and memorize flashcards containing terms like Outlay Cost, Three inventory accounts for manufacturing companies, Basic inventory formula and more. Indirect costs Cost Concept and Classification (Prelims) TMIG QUIZ. For example, management could decide that promotional campaigns associated with a new product are product Study with Quizlet and memorize flashcards containing terms like cost accounting, Horngren, Raiborn and more. A cost that is easily traceable to a particular cost object is known as: indirect cost. the cost of workers who do not do work directly on the product yet are required so that the factory can operate, such as supervisors, maintenance workers, and inventory storekeepers About us About Quizlet Quiz your students on Cost Concepts practice problems using our fun classroom quiz game Quizalize and personalize your teaching. BMW), service (e. Dec 22, 2023 · Dive into the fascinating world of economics with our Opportunity Cost Quiz! Delve into the core concept of opportunity cost, where every decision involves sacrificing alternatives. total manufacturing costs must be greater than cost of goods manufactured. Management asks whether adding a product will incur new costs. customers of Lenovo laptops), activity (machine set-up in the factory), or department (accounting dept of SM). administrative costs. 18. Explore quizzes and practice tests created by teachers and students or create one from your course material. Number of questions: 30. b) they can be easily traced to production. The amount paid for a resource or asset. c. selling costs. Correct answers are identified for each question to test the Near the end of the current year, a company required a customer to pay $200,000 as a deposit for work that is to begin in the following year. This document contains an activity from a cost accounting chapter that provides examples of classifying different costs as direct materials, direct labor, overhead, or selling and administrative expenses. Total fixed costs and total variable cost. Learning Objectives: Upon completion of this chapter, you should be able to: Distinguish between cost, expenses, and losses. period costs and variable vs. c) a predetermined overhead rate is not advantageous. The portion of cost that relates to the portion of the resource or asset that has been used up. B. Explore the total costs incurred by organizations to ensure product or service quality, including costs associated with achieving and maintaining a certain level of quality, as well as costs incurred due to poor quality. If you read our article on cost accounting, this will help you to prepare for your exams, clarify the main concepts, and toget ready to appear in interviews. , As manufacturing companies become more An accounting and management consulting firm charge- out rate is $112 per hour. The faithful representation principle ensures that financial information is without bias and presents a true picture of the financial situation. , Selling costs include _____. other manufacturing costs ( or manufacturing overhead) (ie: depreciation of the factory building, taxes on factory assets, etc). d) they cannot be allocated. X b. Products and services are generally cost A) It focuses on documenting past business actions of a firm. Investors D. aql nlvylqk ivw scf bmozkg dfc zakdug zyhb dtuwoqu gpoamv