CAA CAA Cost Accounting & Management

Question 1

Which costing method assigns all manufacturing costs (fixed and variable) to products?

Accepted Answer

Absorption costing

Answer

Variable costing

Answer

Direct costing

Answer

Marginal costing

Question 2

A company has fixed costs of $120,000 and a contribution margin ratio of 40%. What is its breakeven sales revenue?

Accepted Answer

$300,000

Answer

$48,000

Answer

$168,000

Answer

$480,000

Question 3

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

Accepted Answer

Job cost sheet

Answer

Production order

Answer

Bill of materials

Answer

Work-in-process ledger

Question 4

What is the primary purpose of a standard cost system?

Accepted Answer

To set benchmarks for performance measurement and cost control

Answer

To record actual costs only

Answer

To calculate tax liability

Answer

To determine market prices

Question 5

A favorable labor efficiency variance indicates that:

Accepted Answer

Fewer labor hours were used than standard hours allowed

Answer

Workers were paid less than the standard rate

Answer

More labor hours were used than standard hours allowed

Answer

Overhead was under-applied

Question 6

Which cost behavior pattern remains constant in total regardless of changes in activity level within the relevant range?

Accepted Answer

Fixed cost

Answer

Variable cost

Answer

Mixed cost

Answer

Step cost