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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 "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!

Page 1

Question 1 1. What does it mean to allocate costs?

Question 2 2. Which would be an example of who's involved in the contract costing agreement?

Question 3 3. 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 4 4. A photocopier has a value of $2,000 and a life of 5 years. What is the percentage depreciation each year using the double declining balance method?

Question 5 5. Nevermind Manufacturing must complete 6 jobs of 10,000 widgets every year. Each job is costed individually. What type of costing method is Nevermind Manufacturing using?

Page 2

Question 6 6. 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 7 7. What is the difference between traditional costing and activity-based costing systems?

Question 8 8. What is manufacturing overhead?

Question 9 9. To what products or services can variable costs apply?

Question 10 10. Why do companies use variable costing?

Page 3

Question 11 11. What is the formula to calculate per unit cost in a process costing system?

Question 12 12. What is an example of a direct materials cost?

Question 13 13. Which of the following is NOT a cost component included in a job-order costing system?

Question 14 14. Where would a manager find all the costs associated with a particular job or project, including materials, labor, and overhead costs?

Question 15 15. What does DL stand for in the absorption costing calculation?

Page 4

Question 16 16. The gathering of all manufacturing costs and assigning them to the final product is what?

Question 17 17. What are fixed assets?

Question 18 18. What is the difference between fixed assets and inventory?

Question 19 19. A trade association uses this to establish uniform costing within an industry.

Question 20 20. Uniform costing methods can specify certain ways to calculate profit. _____ takes expenses into account.

Page 5

Question 21 21. This type of costing method is used when the product contains components that are costed using two or more costing methods:

Question 22 22. 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 23 23. Which is NOT a revenue expenditure?

Question 24 24. Which of these items does NOT get a depreciation expense?

Question 25 25. Who regulates a company's cost accounting systems?

Page 6

Question 26 26. Who are the principal users of cost accounting information?

Question 27 27. Which of the following statements is true?

Question 28 28. 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 29 29. This type of costing method combines job and process costing.

Question 30 30. If the cost-pool for labor has a total of $125,000 and the driver for that pool is 45,000 labor-hours, what is the activity-based costing rate for labor?

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 "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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