Accounting Online Program Cost Accounting 2

Question 1

A standard cost system differs from an actual cost system in that it:

Accepted Answer

Uses predetermined costs for materials, labor, and overhead

Answer

A standard cost system uses pre-established costs for materials, labor, and overhead, and then compares these standards to actual costs to identify and analyze variances.

Question 2

Which variance measures the difference between the actual quantity of materials used and the standard quantity allowed, at standard price?

Accepted Answer

Material quantity (usage) variance

Answer

The material quantity variance isolates the efficiency of material usage by comparing actual quantity used vs. standard quantity allowed for actual output, both at standard price.

Question 3

What does the term 'cost of goods manufactured' represent?

Accepted Answer

Total manufacturing costs for goods completed and transferred to finished goods during the period

Answer

Cost of goods manufactured is the total production cost of all units completed during the period and transferred from work-in-process to finished goods inventory.

Question 4

Throughput costing (super-variable costing) treats which costs as product costs?

Accepted Answer

Only direct materials

Answer

Throughput costing, associated with the theory of constraints, treats only direct materials as product (inventory) costs, expensing all other costs (including direct labor and overhead) immediately.

Question 5

Joint costs in cost accounting refer to:

Accepted Answer

Manufacturing costs incurred up to the split-off point that produce two or more products simultaneously

Answer

Joint costs are incurred before the split-off point in a joint production process and result in two or more products (joint products or by-products) that cannot be separated until that point.

Accounting Online Program Practice Test

Accounting Online Program Practice Test

Accounting Online Program Cost Accounting 2