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Cost & Fixed Asset Accounting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. A printer worth $30,000 with a life expectancy of 5 years has a yearly depreciation of what using the straight-line depreciation method?

Question 2 2. A car cost $40,000 to purchase. It has a life of 10 years. Using the double declining balance depreciation method, what is the value of the car after the second year?

Question 3 3. What is the difference between cost accounting and financial accounting?

Question 4 4. Who regulates a company's cost accounting systems?

Question 5 5. Which would be an example of who's involved in the contract costing agreement?

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Question 6 6. What does it mean to allocate costs?

Question 7 7. If the government asks a company to design a computer application for a specified amount by a specific date, what type of costing is being used?

Question 8 8. When a graphic designer creates business cards for a company, what costing method is used if the costs include material, labor, and overhead costs?

Question 9 9. Which one is NOT included in the calculation for absorption costing?

Question 10 10. Which one is an example of a fixed manufacturing overhead?

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Question 11 11. Which of these items does NOT get a depreciation expense?

Question 12 12. Which item listed below is NOT a capital expenditure?

Question 13 13. When production increases, what typically happens to variable costs?

Question 14 14. What is an advantage of variable costing?

Question 15 15. What is the difference between traditional costing and activity-based costing systems?

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Question 16 16. What is a cost pool?

Question 17 17. What is the difference between fixed assets and inventory?

Question 18 18. What happens to fixed assets on the financial statements if no fixed assets are purchased or sold?

Question 19 19.

Given the following information, what is the pre-determined overhead allocation?

Total factory overhead costs = $25,000

Total direct labor hours = 5,000

Total direct labor costs = $10,000

Total materials cost = $15,000

Question 20 20. Which form would contain the materials used for a custom-ordered job?

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Question 21 21. Why would a company choose a process costing system over a job costing system?

Question 22 22. How do process costing systems allocate expenses to products?

Question 23 23. This type of costing is used by Good Fuel Company when it's not cost effective for the company to assign different costs for each gallon of gas produced.

Question 24 24. This type of costing method combines job and process costing.

Question 25 25. A trade association uses this to establish uniform costing within an industry.

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Question 26 26. Uniform costing methods can specify certain ways to calculate profit. _____ takes expenses into account.

Question 27 27. A single-serve coffee machine worth $30,000 can make 60,000 cups of coffee in its life. Using the units of production depreciation method, what is the depreciation for the year where 5,000 cups of coffee were made?

Question 28 28. Which one of the following correctly states why financial accounting information should conform to GAAP (Generally Accepted Accounting Principles)?

Question 29 29. What is the purpose behind contract costing?

Question 30 30. If several variations of a product are manufactured in a way where their differences cannot be identified or costed separately, what type of costing method should be used?

Cost & Fixed Asset Accounting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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