ACCT 302: A Quiz On Cost Accounting! Knowledge Test

8 Questions | By Etiennebuithanh | Last updated: Mar 20, 2022 | Total Attempts: 255

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

Are you practicing to sit for the ACCT cost accounting exam? The quiz below is perfect for seeing just how much you have studied and if it is enough to give you a peaceful night's sleep. How about you give it a shot and get to see how well you will do all things considered? All the best, and keep revising!

Questions and Answers

1.

Inventoriable costs and period costs flow through the income statement at a merchandising company similar to the way costs flow at a manufacturing company.
- A.
  
  True
- B.
  
  False
2.

The cost of goods sold refers to the products brought to completion, whether they were started before or during the current accounting period.
- A.
  
  True
- B.
  
  False
3.

For last year, Wampum Enterprises reported revenues of $420,000, cost of goods sold of $108,000, cost of goods manufactured at $101,000, and total operating costs of $70,000. Operating income for that year was ________.
- A.
  
  $319,000
- B.
  
  $312,000
- C.
  
  $249,000
- D.
  
  $242,000
4.

Operating income is sales revenue minus operating expenses.
- A.
  
  True
- B.
  
  False
5.

Conversion costs include all direct manufacturing costs.
- A.
  
  True
- B.
  
  False
6.

Designing, marketing, customer services, research and development expenses are operating costs.
- A.
  
  True
- B.
  
  False
7.

Because costs that are inventoried are not expensed until the units associated with them are sold, a manager can produce more units than are expected to be sold in a period without reducing a firm's net income.
- A.
  
  True
- B.
  
  False
8.

Indirect costs such as rent, telephone, and depreciation are always costs of the period in which they are incurred and are not associated with inventories.
- A.
  
  True
- B.
  
  False