Accounting > EXAM > TEST BANK FOR COST ACCOUNTING 15TH EDITION BY CHARLES T. HORNGREN SRIKANT M. DATAR AND MADHAV V. RAJ (All)
TEST BANK FOR COST ACCOUNTING 15TH EDITION BY CHARLES T. HORNGREN SRIKANT M. DATAR AND MADHAV V. RAJAN QUESTION AND ANSWERS 2024 Chapter 2 An Introduction to Cost Terms and Purposes Object... ive 2.1 1) An actual cost is . A) is the cost incurred B) is a predicted or forecasted cost C) is anything for which a cost measurement is desired D) is the collection of cost data in some organized way by means of an accounting system Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking 2) Comparing budgeted costs to actual costs helps managers to improve . A) coordination B) control C) implementation D) planning Answer: B Diff: 1 Objective: 1 AACSB: Analytical thinking 3) Budgeted costs are . A) the costs incurred this year B) the costs incurred last year C) planned or forecasted costs D) competitor's costs Answer: C Diff: 1 Objective: 1 AACSB: Analytical thinking 4) Cost assignment . A) includes future and arbitrary costs B) encompasses allocating indirect costs to a cost object C) is the same as cost accumulation D) is the difference between budgeted and actual costs Answer: B Diff: 1 Objective: 1 AACSB: Analytical thinking 5) A cost system determines the cost of a cost object by . A) accumulating and then assigning costs B) accumulating costs C) assigning and then accumulating costs D) assigning costs Answer: A Diff: 1 Objective: 1 AACSB: Analytical thinking 6) A cost object is anything for which a cost measurement is desired. Answer: TRUE Diff: 1 Objective: 1 AACSB: Analytical thinking 7) Costs are accounted for in two basic stages: assignment followed by accumulation. Answer: FALSE Explanation: Costs are accounted for in two basic stages: accumulation followed by assignment. Diff: 1 Objective: 1 AACSB: Analytical thinking 8) An actual cost is the cost incurred–a historical or past cost. Answer: TRUE Diff: 1 Objective: 1 AACSB: Analytical thinking 9) Accountants define a cost as a resource to be sacrificed to achieve a specific objective. Answer: TRUE Diff: 1 Objective: 1 AACSB: Analytical thinking 10) A cost is a resource sacrificed or forgone to achieve a specific objective. Answer: TRUE Explanation: A cost object could be anything management wishes to determine the cost of, for example, a department. Diff: 1 Objective: 1 AACSB: Analytical thinking 11) Managers use cost accumulation data to make decisions and implement them. Answer: TRUE Diff: 1 Objective: 1 AACSB: Analytical thinking [Show More]
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