Chapter 3 International Convergence of Financial Reporting
Multiple Choice Questions
1. According to Sir Bryan Carsberg, former IASC Secretary-General, what is the most
significant cost of accounting diversity?
A) The time expended by accountants to creat
Chapter 07 - Foreign Currency Transactions and Hedging Foreign Exchange Risk
FOREIGN CURRENCY TRANSACTIONS AND
HEDGING FOREIGN EXCHANGE RISK
There are a variety of exchange rate arrangements in use around the world. A majority
a graph of the series of successive observations of a particular step, procedure or operation taken at regular intervals of time is a
A graphical method that organizes a
Chapter: 04 Number: 211
attempts: 3 scored: 4
PVW Company manufactures products to customer specifications. A job costing system is used to
accumulate production costs. Factory overhead cost was appli
Question #: 1
Points scored: 4
Pandra Manufacturing specifies the quality characteristic of one of its popular products to be 0.661 0.027. An analysis of company records for
the last tw
Chapter 9 MULTIPLE CHOICE
1. Which characteristics below is not a characteristic of auditing?
a) b) c) d) evidence collection establishing audit criteria objectivity systems development
2. Auditing involves the
a) b) c) d) collection, review, and document
The journal entry required to record factory depreciation includes:
A debit to the Cost of Goods Manufactured account.
A debit to the Factory Overhead account.
A debit to the Depreciation Expense account.
A debit to the Accumulated Depreciat
1. Since indirect cost cannot be conveniently or economically traced
directly to a cost pool or cost object, the management accountant will: A. B.
C. D. Assign them by means of cost allocation. Assign them where
needed. Assign them randomly to even
1. 4 Student: Product costing provides useful cost information for the
following except: A. B. C. D. E. Both manufacturing and non-manufacturing
firms. Product and service cost determination and inventory measurement.
Management planning, cost control, an
attempts: 1 scored: 16 answer: D
The weighted-average method of process costing makes no distinction between the cost incurred
prior to the current period and the cost incurred in:
Cost Accounting Test 1 Study List
Distinguish financial accounting from managerial accounting: Financial Accounting deal with
external users and
investors, financial statements must be based on GAAP. Managerial Accounting measures and analyzes
1. Since indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object, the management accountant will:
Assign them by means of cost allocation.
Assign them where needed.
Assign them randomly to even
Cost behavior for variable overhead is more difficult to predict than for direct material or direct labor cost
for all the following reasons except:
A. Multiple cost drivers are involved with variable overhead.
B. Direct material and dire
17 KEY 1.
The Taguchi Quality Loss Function (QLF) demonstrates that as the quality
measure of a product declines, the loss due to quality defects: A. B. C. D.
E. Increases as a quadratic function. Increases as a linear function.
Increases as an exponentia
1. Firms should use a process costing system when they produce products that:
Pass through a series of manufacturing processes.
Pass through only one department.
Have small batch sizes.
Blocher - Chapter 06 #1
1. The major limitation of volume-based costing systems is the use of volume-based:
Blocher - Chapter 05 #1
Learning Objective: 5-1
2. Volume-based rates produce in
1. Cost behavior for variable overhead is more difficult to predict than for
direct material or direct labor cost for all the following reasons except: A. B.
C. D. Multiple cost drivers are involved with variable overhead. Direct
material and direc
12 KEY 1. Especially for projects with long lives, estimation of revenues (or
benefits), costs, and cash flows of a capital investment project is a difficult
task principally because of: A. B. C. D. E. The lack of good data.
Uncertainty about future event
1. Especially for projects with long lives, estimation of revenues (or benefits), costs, and cash flows of a capital investment project is a
difficult task principally because of:
The lack of good data.
Uncertainty about future event
I. LEARNING OBJECTIVES
1. Understand the assumptions of cost-volume-profit (CVP) analysis 2. Explain the features of CVP analysis 3. Determine the breakeven point and output level needed to achieve a target operating
1. The objectives of cost allocation are to:
Motivate, provide incentives, and determine fair awards.
Accurately define, divide and spread direct costs.
Value, measure, and interpret cost data.
Connect, communicate, and discern inform
1. By convention, short-term financial control is accomplished by all the
following except: A. B. C. D. E. Comparing actual to budgeted financial
results. Calculating a series of cost and revenue variances at the end of
the period. The use of flexi
Break-Even Analysis - Contribution Margin & Income Statement
Contribution margin %
Profit before Tax
16 KEY 1. Which one of the following uses the number of units of an input
factor in its assessment of productivity? A. B. C. D. Partial financial
productivity. Total productivity. Operational productivity. Partial
productivity. Blocher - Chapter 16 #1 Dif
Chapter 14 In-class Exercises
Example #1 Bonds issued between interest dates
On March 1, 2012, Calvin Corporation issues 10-year bonds, dated January 1, 2012, with a par value of
$800,000. These bonds have an annual interest rate of 9 percent, payable sem
By convention, short-term financial control is accomplished by all the following except:
A. Comparing actual to budgeted financial results.
B. Calculating a series of cost and revenue variances at the end of the period.
C. The use of flex
19 KEY 1. Under the notion of controllability, it is appropriate for top
management to evaluate the profitability of investment center in terms of:
A. B. C. D. E. Profits in relation to the amount of capital invested in the
unit. Returns expressed as a pe
1. Which of the following does not represent a main focus of cost management information?
Planning and decision making.
Preparation of financial statements.
Internal auditing and c
Inventory Costing and Capacity Analysis
Variable vs. Absorption Costing; Effects on Income Statement
Variable costing (also known as direct costing) is a method of inventory costing in which all
_ manufacturing costs are included as inventoriabl