ACCT 2131 Ch. 2 TB

1) An actual cost is ________. A) is the cost incurred B) is a predicted or forecasted cost C) is anything for which a cost measurement is desired D) is the collection of cost data in some organized way by means of an accounting system

A) is the cost incurred

4) Cost assignment ________. A) includes future and arbitrary costs B) encompasses allocating indirect costs to a cost object C) is the same as cost accumulation D) is the difference between budgeted and actual costs Answer: B

B) associates accumulated costs with certain cost objects

2) Comparing budgeted costs to actual costs helps managers to improve ________. A) coordination B) control C) implementation D) planning

B) control

3) Budgeted costs are ________. A) the costs incurred this year B) the costs incurred last year C) planned or forecasted costs D) competitor's costs Answer: C

C) planned or expected costs