BEC Cost Accounting and Management Accounting 1

Question 1

Which of the following is an example of a variable cost?

Accepted Answer

Direct materials

Answer

Direct materials are variable costs because they increase or decrease proportionally with the level of production.

Question 2

Under absorption costing, which of the following costs is included in product cost?

Accepted Answer

Fixed manufacturing overhead

Answer

Under absorption costing, fixed manufacturing overhead is included in product cost, unlike variable costing where it is treated as a period cost.

Question 3

Contribution margin is best defined as:

Accepted Answer

Sales revenue minus variable costs

Answer

Contribution margin is sales revenue minus variable costs, representing the amount available to cover fixed costs and generate profit.

Question 4

Which costing method assigns manufacturing overhead using a single plant-wide rate?

Accepted Answer

Traditional costing

Answer

Traditional costing assigns overhead using a single plant-wide rate, while activity-based costing uses multiple cost drivers to allocate overhead more accurately.

Question 5

In a job order costing system, which document accumulates all costs for a specific customer order?

Accepted Answer

Job cost sheet

Answer

A job cost sheet accumulates direct materials, direct labor, and applied overhead costs for a specific job or customer order.

BEC - Business Environment and Concepts Practice Test

BEC - Business Environment and Concepts Practice Test

BEC Cost Accounting and Management Accounting 1