Cost Accounting

Which of the following is NOT an area where cost accounting assists management?

• A) Cost behavior

• B) Cost-volume-profit relationships

• C) Marketing strategies

• D) Budgeting

Cost accounting helps in analyzing ______.

• cost behavior

• cost-volume-profit relationships

• budgeting

• all of the above.

What is the term for what a company gives up in resources to obtain a benefit or any other resource?

• Profit

• Cost

• Revenue

• Investment

Fill in the blank: Examples of resources a company can give up to produce a product include materials, electricity, depreciation, and ________.

• A) Taxes

• B) Labor and wages

• C) Marketing

• D) Insurance

Which of the following is not a category of cost?

• Product cost

• Period cost

• Prime cost

• Revenue cost

Fill in the blank: _______ cost refers to the potential benefit that is given up when one alternative is selected over another.

• A) Fixed

• B) Variable

• C) Sunk

• D) Opportunity

What is the cost assigned to the manufacture of products and recognized for financial reporting when sold?

• Product Cost

• Overhead Cost

• Direct Cost

• Variable Cost

Product cost is treated as inventory and does not show up on the firm's ________.

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Equity Statement

Which of the following is considered a direct material in product cost?

• A) Wages for workers

• B) Raw materials

• C) Advertising costs

• D) Office supplies

Fill in the blank: The time a baker spends making a cake is an example of ______.

• Direct material

• Direct labor

• Overhead

• Indirect cost