ACCT 302: Cost Accounting! A True And False Quiz!

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ACCT 302: Cost Accounting! A True And False Quiz! - Quiz

What we have here is an ACCT 302 quiz on cost accounting. For a business to generate income, it has to either sell goods or offer services, but this also means it has to use some money too by obtaining resources. See how well you understand the role of cost accounting when it comes to managing the finances of a business and its resources through this quiz. Good luck!


Questions and Answers
  • 1. 

    A cost object is anything for which a cost measurement is desired. 

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    A cost object refers to anything for which a company wants to measure the cost. This could be a product, service, department, project, or any other entity that incurs costs. By measuring the cost of these objects, a company can analyze and manage its expenses more effectively. Therefore, the statement "A cost object is anything for which a cost measurement is desired" is true.

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  • 2. 

    Costs are accounted for in two basic stages: assignment followed by accumulation. 

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Costs are accounted for in two basic stages: accumulation followed by an assignment.

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  • 3. 

    An actual cost is the cost incurred–a historical or past cost. 

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    An actual cost refers to the cost that has already been incurred in the past. It represents the true cost that has been paid or will be paid for a particular activity or project. This cost is based on the actual expenses and is not an estimate or projection. Therefore, the given statement that an actual cost is a historical or past cost is true.

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  • 4. 

    Accountants define a cost as a resource to be sacrificed to achieve a specific objective. 

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Accountants define a cost as a resource to be sacrificed to achieve a specific objective. This means that in accounting, costs are seen as something that needs to be given up or expended in order to accomplish a particular goal. It implies that costs are not seen as simply expenses, but rather as investments or sacrifices made in pursuit of a desired outcome. This definition aligns with the principles and practices of cost accounting, where costs are analyzed and allocated to various activities or products to determine their impact on profitability and decision-making.

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  • 5. 

    A cost is a resource sacrificed or foregone to achieve a specific objective.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    A cost object could be anything management wishes to determine the cost of, for example, a department.

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  • 6. 

    Managers use cost accumulation data to make decisions and implement them. 

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Managers rely on cost accumulation data to make informed decisions and effectively implement them. This data helps them understand and analyze the costs associated with various activities and resources within the organization. By having accurate cost information, managers can evaluate the profitability of different products or services, identify areas of inefficiency, and make necessary adjustments to improve performance. Therefore, the statement that managers use cost accumulation data to make decisions and implement them is true.

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  • Current Version
  • Mar 18, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jun 06, 2015
    Quiz Created by
    Etiennebuithanh
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