COST-INTERMEDIATE ACADEMIC CUP

1.) Which of the following is not an internal user?

• Creditor

• Department manager

• Cost accountant

• Controller

2.) Prime cost and conversion cost share what common element of total cost?

• Variable cost

• Fixed overhead

• Direct materials

• Direct labor

3.) Example of factory overhead costs are

• Lubricants or factory machinery

• Depreciation of factory machinery

• Both of the above

• None of the above

4.) The difference between the sales price and total variable costs is

• Gross Operating profit

• Net profit

• The breakeven point

• The contribution margin

5.) A manufacturing company reports cost of goods manufactured as

• A current on the balance sheet

• An administrative expense on the income statement

• A component in the calculation of cost of goods sold

• A component of the raw materials inventory on the balance sheet

6.) This is the cash equivalent price that would be exchanged currently to purchase or replace equivalent goods or services.

• Historical cost

• Current cost

• Realizable value

• Present value

7.) What is the major purpose of an imprest petty cash fund?

• To effectively plan cash inflows and outflows

• To ease the payment of cash to vendors

• To determine the honesty of the petty cash cashier

• To effectively control cash disbursements

8.) When preparing a bank reconciliation, bank credits are

• Added to the bank statement balance

• Deducted from the bank statement balance

• Added to the balance per book

• Deducted from the balance per book

9.) A method of estimating doubtful accounts that emphasizes asset valuation rather than income measurement is the allowance method based on

• Aging the accounts receivable

• Direct writeoff

• Gross sales

• Credit sales less returns and allowances

10.) The inventories of a service provider may simply be described as

• Work in progress

• Unbilled services

• Billed services

• Services inventory