ACC337 Review Questions 2 3
REVIEW QUESTIONS CHP 2,3
CHAPTER 2
True/False
____ 1. The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.
____ 2. Cost assignment is one of the key processes of the cost accounting system.
____ 3. The three methods of cost assignment are direct tracing, driver tracing, and allocation.
____ 4. Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.
____ 5. Production costs are costs associated with manufacturing goods or providing services and are classified as direct materials, direct labor, and overhead.
____ 6. Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately.
____ 7. A cost that does not change as output changes is a variable cost, and one that changes is a fixed cost.
____ 8. Fixed costs are costs that, in total, are constant within the relevant range as the level of the associated driver varies.
____ 9. Variable costs are defined as costs that, in total, are constant regardless of change in an activity driver.
____ 10. Mixed costs are costs that have both a fixed and a variable component.
____ 11. Activity-based use of resources can improve both managerial control and decision making because it encourages managers to pay more attention to controlling resource usage and spending.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 12. The overall objective of accounting information systems is to
a.
provide information to users.
b.
manage the organization.
c.
prepare financial reports.
d.
report to the government.
____ 13. Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?
a.
financial accounting information system
b.
operational control
CHAPTER 2
True/False
____ 1. The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.
____ 2. Cost assignment is one of the key processes of the cost accounting system.
____ 3. The three methods of cost assignment are direct tracing, driver tracing, and allocation.
____ 4. Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.
____ 5. Production costs are costs associated with manufacturing goods or providing services and are classified as direct materials, direct labor, and overhead.
____ 6. Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately.
____ 7. A cost that does not change as output changes is a variable cost, and one that changes is a fixed cost.
____ 8. Fixed costs are costs that, in total, are constant within the relevant range as the level of the associated driver varies.
____ 9. Variable costs are defined as costs that, in total, are constant regardless of change in an activity driver.
____ 10. Mixed costs are costs that have both a fixed and a variable component.
____ 11. Activity-based use of resources can improve both managerial control and decision making because it encourages managers to pay more attention to controlling resource usage and spending.
Multiple Choice
Identify the choice that best completes the statement or answers the question.
____ 12. The overall objective of accounting information systems is to
a.
provide information to users.
b.
manage the organization.
c.
prepare financial reports.
d.
report to the government.
____ 13. Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management?
a.
financial accounting information system
b.
operational control