Scribd
Upload
3 views2 pages

Module Exercises

The document contains a series of true or false statements and fill-in-the-blank exercises related to cost accounting concepts. It covers topics such as direct and indirect costs, fixed and variable costs, relevant range, and cost drivers. The exercises are designed to test understanding of these financial principles.

Uploaded by

Ashantee Saphire Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
3 views2 pages

Module Exercises

The document contains a series of true or false statements and fill-in-the-blank exercises related to cost accounting concepts. It covers topics such as direct and indirect costs, fixed and variable costs, relevant range, and cost drivers. The exercises are designed to test understanding of these financial principles.

Uploaded by

Ashantee Saphire Dela Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

MODULE EXERCISES

TRUE OR FALSE

1. The portion of an asset’s value on the Statement of Financial Position is referred to as an


expired cost. F

2. The portion of an asset that was consumed during a period is referred to an expired cost. T

3. A variable cost remains constant on a per-unit basis as production increases T

4. A fixed cost remains constant on a per-unit basis as production changes. F

5. The relevant range is valid for all levels of activity F

6. An indirect cost can be easily traced to a cost object. F

7. Both accountants and economists view variable costs as linear in nature. F

8. Fixed cost per unit varies directly with production. F

9. Variable cost per unit remains constant within the relevant range. T

10. A cost that shifts upward or downward when activity changes by a certain interval is
referred to as a mixed cost. F

11. A cost that shifts upward or downward when activity changes by a certain interval is
referred to as a step cost. T

12. If the cost of an additive is P5,000 + P0.50 for every unit of solvent produced, the cost is
classified as a mixed cost. T

13. If the cost of an additive is P5,000 + P0.50 for every unit of solvent produced, the cost is
classified as a step cost. F

14. A predictor which has an absolute cause and effect relationship to a cost is referred to a cost
driver. T

15. A mixed cost will be an effective cost driver. F

16. A variable cost will be an effective cost driver. T

17. Unexpired costs are reflected on the balance sheet. T

18. Expired costs are reflected on the balance sheet. F

19. Distribution costs are an example of product costs. F

20. Distribution costs are an example of period costs. T


FILL-IN THE BLANKS

1. Costs that can be conveniently traced to a cost object are referred to as ____________ costs.
direct
2. Anything for which management wants to accumulate or collect costs is known as a
______________________.
cost object
3. Costs that cannot be conveniently traced to a cost object are known as __________________
costs.
indirect
4. A cost that remains unchanged in total within the relevant range is known as a
_____________ cost.
fixed
5. A cost that varies in total in direct proportion to changes in activity is known as a
_______________ cost
variable
6. The assumed range of activity that reflects the company’s normal operating range is
referred to as the _____________________________.
relevant range
7. A cost that remains constant on a per unit basis within the relevant range is a
________________________ cost.
variable
8. A cost that varies inversely with the level of production is known as a _______________ cost.
fixed
9. A cost that has both fixed and variable components is known as a __________________ cost.
mixed
10. Another name for inventoriable costs is ______________ costs.
product
11. Consider the regression equation y = a + bX. The portion of the equation that represents
fixed costs is ________
ANS: a
12. Consider the regression equation y = a + bX. The portion of the equation that represents
the variable rate is ________.
ANS: b
13. Consider the regression equation y = a + bX. The portion of the equation that represents
the activity base is ________.
ANS: X
14. An observation that is found outside the relevant range is referred to as a(n)
______________.
ANS: outlier
15. When a relationship between several independent variables and one dependent variable is
analyzed, the regression is referred to as _____________.
ANS: multiple

16. When a relationship between one independent variable and one dependent variable is
analyzed, the regression is referred to as _____________.
ANS: simple

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy