ACCT 302: A Trivia Test On Cost Accounting!

9 Questions | Total Attempts: 737

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ACCT 302: A Trivia Test On Cost Accounting! - Quiz

Welcome to this ACCT 302: Test On Cost Accounting! Costs involved in performing any process, project, or product are noted and analyzed. Such analysis helps the management in taking strategic decisions thanks to Cost which you learn how to record and report measurements of the cost of manufacturing goods and performing services in the aggregate and detail. For a better understanding of Cost Accounting, take the test below.


Questions and Answers
  • 1. 
    When 20,000 units are produced, fixed costs are $16 per unit. Therefore, when 16,000 units are produced, fixed costs will ________. 
    • A. 

      Increase to $20 per unit

    • B. 

      Remain at $16 per unit

    • C. 

      Decrease to $10 per unit

    • D. 

      Total $160,000

  • 2. 
    Eigen Manufacturing Corp. provided the following information for last month:                 Sales                                    $40,000               Variable costs                      14,000               Fixed costs                           10,000               Operating income            $16,000   If sales reduce to half of the amount in the next month, what is the projected operating income?
    • A. 

      $15,000

    • B. 

      $6,000

    • C. 

      $16,000

    • D. 

      $3,000

  • 3. 
    Genosis Metals provided the following information for last month:                 Sales                                   $20,000               Variable costs                        8,000               Fixed costs                             4,000               Operating income              $8,000   If sales reduce to half the amount in the next month, what is the projected operating income?
    • A. 

      $0

    • B. 

      $4,000

    • C. 

      $2,000

    • D. 

      $6,000

  • 4. 
    Grip Manufacturing currently produces 1,000 tires per month. The following per unit data for 1,000 tires apply for sales to regular customers:                 Direct materials                                     $30               Direct manufacturing labor                     5               Variable manufacturing overhead         8               Fixed manufacturing overhead             12               Total manufacturing costs                   $55   The plant has a capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires? 
    • A. 

      $110,000

    • B. 

      $98,000

    • C. 

      $68,000

    • D. 

      $88,000

  • 5. 
    Ridez Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers:                 Direct materials                                     $50               Direct manufacturing labor                    8               Variable manufacturing overhead       12               Fixed manufacturing overhead            15                       Total manufacturing costs           $85   The plant has a capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per-unit cost of producing 2,000 bicycles? 
    • A. 

      $78.50 per unit

    • B. 

      $170 per unit

    • C. 

      $72.50 per unit

    • D. 

      $77.50 per unit

  • 6. 
    When making decisions for product mix or and pricing, the focus should be on total costs and not unit costs.
    • A. 

      True

    • B. 

      False

  • 7. 
    Although unit costs are regularly used in financial reports and for making product mix and pricing decisions, managers should think in terms of total costs rather than unit costs for making decisions.
    • A. 

      True

    • B. 

      False

  • 8. 
    A unit cost is computed by dividing total cost by the number of units.
    • A. 

      True

    • B. 

      False

  • 9. 
     A unit cost is also called an average cost.
    • A. 

      True

    • B. 

      False

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