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
... [Show More] Introduction to Cost Terms and Purposes
Objective 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 Less]