Question

I write ‘ True’ it the statement is correct and ; false’ if the statement in correct

1. The higher one operational costs are one higher one profit
2. Double entry principle is applied in one case of management accounting
3. Direct costs are costs mat can be directly traced to a cost object in an economically feasible way
4. Production order are a manufacturer can produce in response to a customer order or just for stock
5. The use of applied overhead cost are accurate as the actual overhead costs
6. In process costing system , manufacturing cost direct materials direct labor & manufacturing overhead costs are accumulated in one some way
7. A cost transferred form a preceding department is called transferred in cost
8. Net reliable value is measure of a products contributions to profit after the split off paint and is computed as one difference of sales revenue less further processing cost
9. Unlike direct materials and direct labor, factory overhead is an invisible part of the finished product
10. When there are boon beginning and ending work in process inventory it is important to assume as to the flow of cost

choose the best answer
1. Which of one of the following are true about cost accounting
A. It is not constrained by GAAP
B. It is used in accordance with one GAAP
C. Future activities are primarily considered
D. None

2. Which on of the following are not examples of variable costs
A. Direct material
B. Direct labor
C. Factory super incident salary
D. Electrically used to run machineries

3. ------- are costs other than direct material and direct labor that are necessary to transform the raw materials into finished goods
A. Purchase order
B. Costs of goods sold
C. Manufacturing over head
D. None

4. A typical purchase order may contain:-
A. The name of one company giving the order
B. A purchase order number
C. The date of the purchase order
D. All

5. ------ are payroll costs for a specified time period is accumulated for one department
A. Direct Labor
B. Direct materials
C. Manufacturing overhead
D. None
6. -----------method assume that one first unit to be completed are from the beginning work in process and thus assign the cost of the beginning work in process to one first units completed
A. Weighted average method
B. First in first out method
C. Last in first out method
D. None

7. Why should cost managers be overly concerned with allocation of joint cost
A. measuring performance
B. estimating causality loses
C. determining and responding to required rates
D. all

8. An outputs net realizable value is negative and is disposed of legally at minimum cost
A. Main- product
B. Scrap
C. By products
D. All

9. Which of the following are cost allocation method
A. Direct method
B. Step method
C. Reciprocal method
D. All

10. The standard price & standard quantity are 10,000 & 200 the standard cost is
A. 20,000
B. 10200
C. 2,000,000
D. None

Answer 1

The correct statement about cost accounting is that it is not constrained by GAAP. The Option A is correct.

Cost accounting is a branch of accounting that focuses on recording, analyzing and managing the costs associated with producing goods or services within an organization.

Unlike financial accounting that follows GAAP to report financial information to external stakeholders, cost accounting is primarily used for internal purposes. This means that it is not constrained by GAAP because it doesn't have to adhere to the same set of rules and regulations that financial accounting does.

The cost accounting is tailored to meet the specific needs of an organization, helping it make informed decisions about pricing, production and resource allocation based on cost data. Therefore, the Option A is correct.

The answered question is:

Which of one of the following are true about cost accounting

A. It is not constrained by GAAP

B. It is used in accordance with one GAAP

C. Future activities are primarily considered

D. None