Question 1 (0.25 points)

An absorption cost is part of the managerial accounting cost method of expensing all costs associated with manufacturing a particular product.

Question 1 options:

True

False

Question 2 (0.5 points)

Question 2 options:

Themeans the cost that has been used u while a company is doing its main revenue generating activities.

Question 3 (0.5 points)

Question 3 options:

involves the coordination of financial and non financial planning to satisfy organisational goals and objectives.

Question 4 (0.5 points)

Question 4 options:

is a tool that managers use to plan and control the use of scarce resources.

Question 5 (0.25 points)

Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical manner than the traditional approach of simply allocating costs on the basis of machine hours.

Question 5 options:

True

False

Question 6 (0.25 points)

The cost of goods sold is reported on the income statement and should be viewed as an expense of the accounting period

Question 6 options:

True

False

Question 7 (0.25 points)

COGS is defined as only the cost of inventory items sold during a given period.

Question 7 options:

True

False

Question 8 (0.25 points)

Cost object means anything about which cost information is collected.

Question 8 options:

True

False

Question 9 (0.25 points)

COGS can easily be manipulated by overstating returns to suppliers.

Question 9 options:

True

False

Question 10 (0.25 points)

Cost of capital includes the costs of investments, interest on working capital, taxes on inventory paid, insurance costs and other costs associate with legal liabilities

Question 10 options:

True

False

Question 11 (0.25 points)

In the average costs method the average price of all the goods in stock, regardless of purchase date, is used to value the goods sold

Question 11 options:

True

False

Question 12 (0.505 points)

Fixed budget acts as a bridge between the original budget (fixed budget) and the actual results.

Question 12 options:

True

False

Question 13 (0.25 points)

Indirect costs do not go beyond the expenses associated with creating a particular product to include the price of maintaining the entire company.

Question 13 options:

True

False

Question 14 (0.25 points)

Examples of Fixed costs include the costs of raw materials and packaging.

Question 14 options:

True

False

Question 15 (0.25 points)

Saved

Labor and direct materials, which are used in creating a specific product, constitute the majority of direct costs.

Question 15 options:

True

False

Question 16 (0.25 points)

The balance sheet only captures a companys financial health at the end of an accounting period

Question 16 options:

True

False