Accounting Topic 5 Review :)

The process of collecting and recording transaction data through the accounting information system is known as

cost accumulation

The organizational process of attributing an appropriate amount of cost incurred to each cost object is known as

cost assignment

Drilling down to varying levels of an organization for the purpose of observing separate and specific cost measurement information is a process for describing:

cost objects

Cost management involves using cost information to manage the activities of an organization that leads to

data collection and performance feedback

A cost that has an indirect relationship with computers being produced is: Multiple choice question.

electricity costs for packaging equipment

A system that focuses on product or process cost accumulation by element of the value chain is known as

lean accounting

Cost Accounting

relates primarily to the accumulation and determination of product, process, or services costs

The term used for the human effort provided by workers who are directly involved in the production of a finished product and to describe an element of the product's costs is known as

direct labor

Cost accounting plays a significant role in which aspects of financial accounting?

-Income measurement -Inventory valuation

Which are true statements about cost accounting?

-It is a subset of both financial and managerial accounting. -It reports the cost of goods manufactured and sold, as well as the cost of goods manufactured and not sold.

Which of the following items represent an increase in the Work in Process Inventory account?

-Raw material used -Direct labor incurred -Manufacturing overhead applied

Which of the following are associated with the cost behavior classification? Multiple select question.

-Variable cost -Mixed cost

What is incurred when an organization acquires the resources used to fund the activities in its value chain?

A cost

Which of the following activities is not included in the organization's value chain?

Accounting

Which of the following costs would be classified as a period cost?

Advertising expense for the product

The machine support and other manufacturing costs, except raw materials and direct labor, incurred as part of a product's costs is known as

Manufacturing Overhead

Identify the following examples of product cost that would be classified as manufacturing overhead.

-Factory maintenance -Production manager's salary -Electricity for factory machines -Depreciation expense for factory building

The process of using cost information to assess and manage the activities of an organization is known as

Cost Management

The total amount of cost accumulated by the accounting information system is logically categorized in different ways, such as by production jobs, which is referred to as

Cost pooling

A cost that is clearly traceable to a product or activity such that the cost would not be incurred if the product or activity were discontinued is known as a ----- cost.

Direct

The term used for the human effort provided by workers who are directly involved in the production of a finished product and to describe an element of the product's costs is known as

Direct Labor