Which of the following differentiates cost accounting and financial accounting?
The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers.
Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.
Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions.
Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties.
The Standards of Ethical Conduct for management accountants include concepts related to ________.
competence, performance, diligence, and reporting
competence, confidentiality, integrity, and credibility
experience, diligence, reporting, and objectivity
diligence, objectivity, conflicts of interest, and credibility
Which item is NOT an indication of competence under the Standards of Ethical Conduct?
Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
Keep information confidential except when disclosure is authorized or legally required.
Perform professional duties in accordance with relevant laws, regulations, and technical standards.
Provide decision support information and recommendations that are accurate, clear, concise, and timely.
A cost system determines the cost of a cost object by ________.
accumulating and then assigning costs
accumulating costs
assigning and then accumulating costs
assigning costs
Cost tracing is ________.
the assignment of direct costs to the chosen cost object
a function of cost allocation
the process of tracking both direct and indirect costs associated with a cost object
the process of determining the actual cost of the cost object
A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of indirect cost for the soccer equipment line is the ________.
material used to make the soccer balls
labor to shape the leather used to make the soccer ball
material used to manufacture the soccer studs
salary paid to plant supervisor
Which one of the following items is a direct cost?
Customer-service costs of a multiproduct firm; Product A is the cost object.
Printing costs incurred for payroll check processing; payroll check processing is the cost object.
The salary of a maintenance supervisor in a multiproduct manufacturing plant; Product B is the cost object.
Utility costs of the administrative offices; the accounting department is the cost object.
Within the relevant range, if there is a change in the level of the cost driver, then ________.
total fixed costs and total variable costs will change
total fixed costs and total variable costs will remain the same
total fixed costs will remain the same and total variable costs will change
total fixed costs will change and total variable costs will remain the same
For merchandising companies, inventoriable costs include ________.
sales costs
incoming freight costs
distribution costs
outgoing freight costs
In the cost classification system used by manufacturing firms, assembly workers' wages would be included in all of the following EXCEPT:
product cost
prime cost
conversion cost
period cost
Manufacturing overhead costs may include all of the following EXCEPT:
salary of the plant supervisor
labor that can be traced to individual products
material that can be traced to individual products
overtime premiums paid to plant workers
Which of the following is a mixed cost?
monthly rent payment
manager's salary
monthly electric bill
direct materials
