Cost Accounting Trivia Questions

10 Questions | Total Attempts: 2017

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Cost Accounting Quizzes & Trivia

Cost Accountant test.


Questions and Answers
  • 1. 
    Which one of the following best describes direct labor?
    • A. 

      A prime cost.

    • B. 

      A period cost.

    • C. 

      A product cost.

    • D. 

      Both a product cost and a prime cost.

  • 2. 
    The difference between the sales price and total variable costs is
    • A. 

      Gross operating profit.

    • B. 

      Net profit.

    • C. 

      The breakeven point.

    • D. 

      The contribution margin

  • 3. 
    In cost terminology, conversion costs consist of
    • A. 

      Direct and indirect labor.

    • B. 

      Direct labor and direct materials.

    • C. 

      Direct labor and factory overhead.

    • D. 

      Indirect labor and variable factory overhead.

  • 4. 
    Which one of the following categories of cost is most likely not considered a component of fixed factory overhead?
    • A. 

      Rent.

    • B. 

      Property taxes.

    • C. 

      Depreciation.

    • D. 

      Power.

  • 5. 
    • A. 

      Include only the prime costs of manufacturing a product.

    • B. 

      Include only the conversion costs of manufacturing a product.

    • C. 

      Are expensed when products become part of finished goods inventory.

    • D. 

      Are regarded as assets before the products are sold

  • 6. 
    The cost of goods manufactured for X company for the year 2005 was $860,000. Begining work - in - process inventory was $50,000. Ending work - in - process was $60,000. if the begining finished goods inventory was $500,000 and the ending finished goods inventory was $990,000, what was the cost of goods sold for the year?
    • A. 

      $360,000

    • B. 

      $370,000

    • C. 

      $490,000

    • D. 

      $1,350,000

  • 7. 
    If the begining balance for May of the materials inventory account was $27,500, the ending balance for May is $28,750, and $128,900 of materials were used during the month, the material purchased during the month cost
    • A. 

      $101,400

    • B. 

      $127,650

    • C. 

      $130,150

    • D. 

      $157,650

  • 8. 
    X Company produced 600 units of one of its products last year. The standard for labor hours allowed was 2 hours per unit at a standard rate of $6 per hour. Actual hours worked amounted to 1,230 hours. The labor rate variance was $246 unfavorable, and labor efficiency variance was $180 unfavorable. What was the actual direct labor cost for the period?
    • A. 

      $7,134

    • B. 

      $7,200

    • C. 

      $7,380

    • D. 

      7,626

  • 9. 
    A  favorable materials price variance coupled with an unfavorable materials usage variance most likely results from
    • A. 

      Machine efficiency problem

    • B. 

      Product mix production changes.

    • C. 

      The purchase and use of higher - than - standard quality materials

    • D. 

      The purchase and use of lower - than - standard quality materials

  • 10. 
    The breakeven point in units increases when unit costs
    • A. 

      Increase and sales price remains unchanged.

    • B. 

      Decrease and sales price remain unchanged.

    • C. 

      Remain unchanged and sales price increase.