21.
What is "marginal cost"?
A
The additional cost incurred to produce one more unit
B
The total cost of production
C
The cost of direct materials
D
The total fixed costs for a given period
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What is "marginal cost"?
The additional cost incurred to produce one more unit
The total cost of production
The cost of direct materials
The total fixed costs for a given period
In job order costing, how are costs assigned to each job?
Based on average costs
Based on a predetermined rate
Directly traced to the job
Using standard cost methods
What is a "controllable cost" in cost accounting?
Costs that can be influenced or controlled by a manager
Costs that remain constant regardless of the decision
Costs that are fixed for a given period
Costs that cannot be influenced
In cost accounting, what is "inventory costing"?
The method of allocating production costs to inventory
The process of tracking raw material costs
The method of allocating fixed costs to products
The method of pricing goods for sale
What is the "cost-plus pricing" method used for?
To calculate the selling price of a product by adding a markup to the cost
To determine the cost of raw materials
To set a price based on competition
To establish the fixed cost of a product
What does the term "budgetary control" involve?
Establishing budgets and comparing actual performance against these budgets
Allocating fixed costs to different departments
Tracking sales revenue and production costs
Estimating future production costs
What is the "contribution margin" of a product?
The total sales revenue minus the variable costs
The total fixed costs minus the sales revenue
The fixed costs per unit produced
The total manufacturing cost per unit
What is "cost control"?
The process of reducing fixed costs
Monitoring costs and ensuring they stay within the budget
The allocation of overhead costs
A method to calculate gross profit margin
In "job order costing," the "job cost sheet" is used to:
Track the direct labor cost
Record all costs associated with a specific job
Assign overhead costs to products
Calculate the total production cost for the period
What is "fixed cost per unit" in the context of cost accounting?
Fixed costs divided by the total number of units produced
Variable costs divided by the number of units sold
The cost of production that varies with output
The total fixed cost for a production period
What does "absorption costing" include in the cost of a product?
Only direct labor and direct materials
Only variable manufacturing costs
Both fixed and variable manufacturing costs
Only fixed costs
What is the "cost driver" in activity-based costing (ABC)?
A factor that causes the cost of an activity to change
The fixed cost of production
The direct labor cost for a product
The total sales for a period
Which of the following is a direct cost?
Direct materials
Factory overhead
Office rent
Sales staff salaries
What is "process costing" used for?
To assign costs to unique jobs
To assign costs to each individual product
To assign costs to identical units produced in a continuous process
To allocate fixed costs across departments
What does the "contribution margin ratio" represent?
The percentage of each sales dollar that contributes to covering fixed costs
The fixed cost percentage in product costing
The ratio of variable costs to sales revenue
The break-even point in units
Which of the following is a "discretionary cost"?
Salaries of production workers
Research and development expenses
Direct materials used in production
Depreciation of factory equipment
The "high-low method" is used to estimate:
Variable costs and fixed costs
Total production costs
Depreciation on machinery
The cost of labor
What is "activity-based costing" (ABC) used to allocate?
Only variable costs
Both direct and indirect costs based on activities
Fixed costs
Direct materials costs
Which of the following is NOT a feature of job order costing?
Used for large-scale mass production
Costs are assigned to specific jobs or orders
Products are unique and customized
It is typically used in service industries
What is "variable costing" used for?
To determine the selling price of products
To allocate fixed costs to products
To calculate total production costs
To make internal management decisions