cost accounting testbank_Ch4.docVIP

Cost Accounting, 14e, Global Edition (Horngren/Datar/Rajan) Chapter 4 Job Costing Objective 4.1 1) Job costing information is used: A) to develop strategies B) to make pricing decisions C) for external financial reporting D) All of these answers are correct. Answer: D Diff: 1 Terms: job Objective: 1 AACSB: Reflective thinking 2) Product costing information is used by managers: A) to make decisions and strategy B) for planning and control C) for cost management D) All of these answers are correct. Answer: D Diff: 1 Terms: job-costing system Objective: 1 AACSB: Communication 3) A ________ is a grouping of individual indirect cost items. A) cost allocation base B) cost assignment C) cost pool D) job-costing system Answer: C Diff: 1 Terms: cost pool Objective: 1 AACSB: Reflective thinking 4) Each indirect-cost pool of a manufacturing firm: A) utilizes a separate cost-allocation rate B) is a subset of total indirect costs C) relates to one cost object D) All of these answers are correct. Answer: D Diff: 1 Terms: cost pool Objective: 1 AACSB: Reflective thinking 5) Direct costs A) are anything for which a measurement of costs is desired. B) are costs related to a particular cost object that can be traced to that cost object in an economically feasible (cost-effective) way C) focus specifically on the costing needs of the CFO D) provide all information for management decision needs Answer: B Diff: 2 Terms: direct costs of a cost object Objective: 1 AACSB: Reflective thinking 6) In a costing system: A) cost tracing allocates indirect costs B) cost allocation assigns direct costs C) a cost-allocation base can be either financial or nonfinancial D) a cost object should be a product and not a department or a geographic territory Answer: C Diff: 2 Terms: cost-allocation base Objective: 1 AACSB: Reflective thinking 7) Assigning direct costs to a cost object is called: A) cost allocation B) cost assignment C) cost