28689015-Module-12-Cost-Accounting-Systems

28689015-Module-12-C - MODULE 12 COST ACCOUNTING SYSTEMS A TRADITIONAL COST ACCOUNTING THEORIES 1 Cost accounting involves the measuring recording

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MODULE 12 COST ACCOUNTING SYSTEMS A. TRADITIONAL COST ACCOUNTING THEORIES: 1. Cost accounting involves the measuring, recording, and reporting of A. product costs B. manufacturing process C. future costs D. managerial accounting decisions 2. The cost management information system provides information A. that the accountant needs to prepare the financial statements. B. that the manager needs to effectively manage the firm. C. that the manager needs to effectively manage not-for-profit organization. D. b and c. 3. The cost management function is usually under A. the chief information officer. B. treasurer. C. purchasing manager. D. controller. 4. The main focus of cost management information must be A. usefulness and accuracy. B. timeliness and accuracy. C. usefulness and timeliness. D. relevance and good format. 5. With regard to the task of management's decision making, cost "management information is needed to A. make sound strategic decisions regarding choice of product methods, and techniques. B. support recurring decisions regarding replacement equipment, managing cash flow, etc. C. provide a fair and effective basis for identifying inefficient operations. D. provide accurate accounting for inventory, receivables, and other assets. 6. Product costing system design or selection: A. requires an understanding of the nature of the business B. should provide useful cost information for strategic and operational decision needs C. should be cost effective in design and selection D. all the above answers are correct 7. Which of the following is, an example of a committed fixed costs? A. direct materials B. depreciation on a factory building C. supervisor's salary D. insurance on a building
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8. Which of the following is an example of discretionary fixed cost? A. direct labor B. insurance on a building C. property taxes on a factory building D. depreciation on a factory building 9. The distinction between direct and indirect costs depends whether a cost A. is controllable or non-controllable. B. is variable or fixed C. can be conveniently and physically traced to a cost object under consideration. D. will increase with changes in levels of activity. 10. Controllable costs are: A. Costs that management decides to incur in the current period to enable the company to achieve operating objectives other than the filling of orders placed by customers. B. Costs that are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity. C. Costs that will unaffected by current managerial decisions. D. Costs that are likely to respond to the amount of attention devoted to them by a specified manager. 11. Controllable costs for responsibility accounting purposes are directly influenced
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This note was uploaded on 08/12/2010 for the course ACC 452 taught by Professor Mr.cula during the Spring '10 term at Abraham Baldwin Agricultural College.

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28689015-Module-12-C - MODULE 12 COST ACCOUNTING SYSTEMS A TRADITIONAL COST ACCOUNTING THEORIES 1 Cost accounting involves the measuring recording

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