CCA CCA Cost Accounting & Management

Question 1

Which costing method assigns manufacturing overhead to products based on the activities that drive costs?

Accepted Answer

Activity-based costing (ABC)

Answer

Job-order costing

Answer

Process costing

Answer

Standard costing

Question 2

A company has fixed costs of $120,000, a selling price of $40 per unit, and variable costs of $25 per unit. What is the break-even point in units?

Accepted Answer

8,000 units

Answer

4,800 units

Answer

3,000 units

Answer

6,000 units

Question 3

Under absorption costing, which of the following is treated as a product cost?

Accepted Answer

Fixed manufacturing overhead

Answer

Selling expenses

Answer

Administrative salaries

Answer

Marketing costs

Question 4

What does a favorable materials price variance indicate?

Accepted Answer

Material was purchased at less than standard price

Answer

More material was used than expected

Answer

Labor efficiency improved

Answer

Overhead was overapplied

Question 5

Which of the following is a characteristic of a joint cost?

Accepted Answer

It is incurred before the split-off point in producing multiple products

Answer

It can be directly traced to a single product

Answer

It is always allocated using the physical units method

Answer

It is only relevant to service industries

Question 6

Which inventory valuation method results in the highest net income during a period of rising prices?

Accepted Answer

FIFO

Answer

LIFO

Answer

Weighted-average

Answer

Specific identification