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Financial Intermediaries

In: Business and Management

Submitted By ChefMoto
Words 2192
Pages 9
University of the West Indies
Cave Hill
Mid-Summer Examination
ACC 2017 Management Accounting

1) Anything for which a separate measurement of costs is desired is a a. cost item. b. cost object c. fixed cost item. d. variable cost object.
2) Using information obtained for a cost object , a manager maybe able to determine all of the following EXCEPT a. the direct manufacturing labor cost of a job. b. the direct manufacturing labor of a work station. c. which customers should be denied discounts. d. which customers accounts require the most effort to maintain.
3) Cost tracing is a. the assignment of direct costs to the chosen cost object. b. a function of cost allocation. c. the process of tracking both direct and indirect costs associated with a cost object. d. the process of determining the actual cost of the cost object
4) Classifying a cost as either direct or indirect depends upon a. the behavior of the cost in response to volume changes. b. whether the cost is expensed in the period in which it is incurred. c. whether the cost can be easily identified with the cost object. d. whether an expenditure is avoidable or not in the future.
5) Which statement is TRUE? a. All variable costs are direct costs. b. Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs. c. All fixed costs are indirect costs. d. All direct costs are variable costs.
6) Within the relevant range, if there is a change in the level of the cost driver then a. total fixed costs and total variable costs will change. b. total fixed costs and total variable costs will remain the same. c. total fixed costs will remain the same and total variable costs…...

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