Podcast
Questions and Answers
Which of the following best describes the primary focus of cost accounting?
Which of the following best describes the primary focus of cost accounting?
- Providing information for strategic decision-making and long-term planning.
- Analyzing variances between actual and budgeted performance to improve efficiency.
- Determining the cost of products or services accurately for inventory valuation and cost control. (correct)
- Creating financial plans and budgets for the future operations of an organization.
Management accounting is primarily used for which of the following?
Management accounting is primarily used for which of the following?
- Determining the cost of goods sold for tax purposes.
- Providing information for internal decision-making, planning, and performance evaluation. (correct)
- Ensuring compliance with accounting standards and regulations.
- Preparing financial statements for external stakeholders.
How does activity-based costing (ABC) differ from traditional costing methods?
How does activity-based costing (ABC) differ from traditional costing methods?
- ABC is only suitable for service industries, while traditional methods are used in manufacturing.
- ABC allocates overhead costs based on a single plant-wide rate, while traditional methods assign costs to activities first.
- ABC is used for homogeneous products, while traditional methods are used for unique products.
- ABC assigns costs to activities and then allocates costs to products or services based on their consumption of activities, while traditional methods may use simpler allocation bases. (correct)
Which of the following cost behavior patterns describes costs that remain constant in total regardless of changes in activity level within a relevant range?
Which of the following cost behavior patterns describes costs that remain constant in total regardless of changes in activity level within a relevant range?
What is the purpose of variance analysis in cost and management accounting?
What is the purpose of variance analysis in cost and management accounting?
Which of the following is an example of a non-financial key performance indicator (KPI)?
Which of the following is an example of a non-financial key performance indicator (KPI)?
In cost-volume-profit (CVP) analysis, what does the break-even point represent?
In cost-volume-profit (CVP) analysis, what does the break-even point represent?
Which of the following costs is considered irrelevant when making a short-term special order decision?
Which of the following costs is considered irrelevant when making a short-term special order decision?
Target costing primarily involves:
Target costing primarily involves:
Responsibility accounting assigns responsibility for costs and revenues to:
Responsibility accounting assigns responsibility for costs and revenues to:
What is the focus of Lean accounting?
What is the focus of Lean accounting?
Which type of responsibility center is evaluated based on its ability to control costs?
Which type of responsibility center is evaluated based on its ability to control costs?
Which of these represent what should be done in the presence of a conflict of interest?
Which of these represent what should be done in the presence of a conflict of interest?
When deciding whether to accept a special order, which of the following factors should be considered?
When deciding whether to accept a special order, which of the following factors should be considered?
A company is deciding whether to make a component internally or buy it from an external supplier. Which of the following costs is most relevant to this make-or-buy decision?
A company is deciding whether to make a component internally or buy it from an external supplier. Which of the following costs is most relevant to this make-or-buy decision?
Flashcards
Cost Accounting
Cost Accounting
Measuring, recording, and reporting costs. Helps determine product/service costs.
Management Accounting
Management Accounting
Provides broad financial and non-financial info for internal decision-making (planning, control, etc.)
Job Costing
Job Costing
Tracking costs for unique products/services made to order.
Process Costing
Process Costing
Signup and view all the flashcards
Activity-Based Costing (ABC)
Activity-Based Costing (ABC)
Signup and view all the flashcards
Fixed Costs
Fixed Costs
Signup and view all the flashcards
Variable Costs
Variable Costs
Signup and view all the flashcards
Budgeting
Budgeting
Signup and view all the flashcards
Variance Analysis
Variance Analysis
Signup and view all the flashcards
Key Performance Indicators (KPIs)
Key Performance Indicators (KPIs)
Signup and view all the flashcards
Cost-Volume-Profit (CVP) Analysis
Cost-Volume-Profit (CVP) Analysis
Signup and view all the flashcards
Opportunity Cost
Opportunity Cost
Signup and view all the flashcards
Make-or-Buy Decisions
Make-or-Buy Decisions
Signup and view all the flashcards
Target costing
Target costing
Signup and view all the flashcards
Responsibility Accounting
Responsibility Accounting
Signup and view all the flashcards
Study Notes
No new information was provided, therefore the study notes are unchanged.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Cost and management accounting provide information for internal use by managers in planning, decision-making, and controlling activities. Cost accounting measures, records, and reports product, process, and service costs. Management accounting provides a broader scope of information to managers for decision-making.
