ACCY122_Sp11_Cost_Allocation_Lab

ACCY122_Sp11_Cost_Allocation_Lab - ACCY 122 Spring 2011...

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ACCY 122 – Spring 2011 Cost Allocation Lab Here are some review questions. Key on last page. 1. Cost objects could include: a. products b. customers c. departments d. All of these answers are correct. 2. The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is: a. cost accumulation b. cost assignment c. cost tracing d. conversion costing 3. Cost assignment is: a. always arbitrary b. includes tracing and allocating c. the same as cost accumulation d. finding the difference between budgeted and actual costs 4. Which of the following statements about the direct/indirect cost classification is NOT true? a. Direct costs are always traced. b. Direct costs are always allocated. c. The design of operations affects the direct/indirect classification. d. The direct/indirect classification depends on the choice of cost object. 5. Cost tracing is: a. the assignment of direct costs to the chosen cost object b. a function of cost allocation c. the process of tracking both direct and indirect costs associated with a cost object d. the process of determining the actual cost of the cost object 6. Cost allocation is: a. the process of tracking both direct and indirect costs associated with a cost object b. the process of determining the actual cost of the cost object c. the assignment of indirect costs to the chosen cost object d. a function of cost tracing 7. Classifying a cost as either direct or indirect depends upon: a. the behavior of the cost in response to volume changes b. whether the cost is expensed in the period in which it is incurred c. whether the cost can be easily identified with the cost object d. whether an expenditure is avoidable or not in the future 8. A manufacturing plant produces two product lines: football equipment and hockey equipment. An indirect cost for the hockey equipment line is the: a. material used to make the hockey sticks
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This note was uploaded on 07/05/2011 for the course ACCOUNTING 101 taught by Professor Anyofthem during the Spring '11 term at Kaplan University.

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ACCY122_Sp11_Cost_Allocation_Lab - ACCY 122 Spring 2011...

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