1) Which of the following is the best definition of a cost?

- usage of a source
2) Which of the following are examples of an organization’s resources?- time, material, land,
cash
3) Jeff, a production supervisor for OK Furniture Company, is meeting with employees.-
Gina, Jocelyn and ryan
4) True or false? Costs are always measurable in currency terms. - false
5) Which of the following best defines the concept of an opportunity cost?- next best alt
6) Jerry, a manager at Wildcat Incorporate, is explaining basic management concepts to
new employees.- Wildcat incurs cost, not all of Wildcat’s
7) Which of the following factors drive organizations’ need for a cost system?- variety of
sources, difficulty in knowing/ variety, variety/
8) What differentiates direct materials and direct labor from overhead?- direct materials and
direct labor are costs that are traceable to products, overhead excludes all material and
labour,
9) Which of the following reflect process costing systems?- high volume and quantity
10) Which of the following reflect job costing systems?- organizes costs by project or
engagement, allocates costs based on usage of different resources
11) Which of the following organizations would likely rely on a process costing system?-
Manufacturer of socks, package delivery, custom sailboat(?)
12) Which statements best relate to activity-based costing systems.- designed to increase
accuracy of cost information, activities use resources, breaks down overhead/ breaks
down overhead, heavily reliant,
13) A consultant who has worked on multiple engagements compares two clients in terms of
likelihood- ----
14) True or false? The disadvantages of activity-based costing systems always exceed the
advantages.- false
15) True or false? Organizations who require the most accurate cost information will organize
costs according to cost behavior.- false
16) Which of the following statements are accurate regarding cost behavior? - tvc fluctuates
with the volume of activity, TFC do not fluctuate with the volume of activity
17) Hawkeye & Associates provides legal services. Assuming the activity of interest is
billable hours, which of the following are variable costs?- travel costs, wages paid
18) Sharon owns a restaurant and also caters food for special events.- separating costs into,
activity based/ separating costs, process costing/ separating costs, job costing/
separating
19) True or false? A cost is best defined as the price paid for a good or service.- false
20) True or false? All resources are tangible- false
21) True or false? Jeff, a production supervisor, normally works 9 hours per day.- false
22) True or false? Time spent performing an activity does not involve a cost if an employee’s
time can not be valued accurately- false
23) Gina, a manager, is trying to explain the concept of an opportunity cost to Stacey, an
employee.- good luck, opp cost are
24) Jonathan, a manager at a grocery store is creating additional shelf space.- the opp cost
is the value, the opp cost is difficult
25) Which of the following best defines a cost system?- method of organizing cost
information to facilitate, but not influence, decisions/ method of accounting for financial
and non-financial costs separately/
26) Which of the following is not a category of product costs?- direct overhead
27) True or false? An organization implementing activity-based costing likely intends to
decrease the costs of creating cost information.- false
28) Gina, a manager at Badger Express, is explaining cost behavior to her employees.- costs
that are classified as fixed costs, mixed cost have both
29) Gopher Inc. produces televisions.- electricity, wages
30) True or false? A cost is best defined as the usage of a resource.- true
31) True or false? Like cash and materials, time is an example of a resource.- true
32) True or false? Managers tend to rely on cost systems to facilitate decisions, but such
systems are less useful for influencing decisions.- false
33) True or false? An organization implementing activity-based costing likely intends to
increase the accuracy of cost information.- true
34) Which of the following reflect disadvantages of activity-based costing?- requires more
cost, provides less accurate costgophe
35) Which of the following are examples of an organization’s costs? (Check all that apply)-
raw materials, cash paid, materials in their raw form/ cash paid, raw materials/
36) True or false? A cost system is a method of organizing cost information to facilitate
and/or influence decisions.- true
37) True or false? Decisions that require predictions about what costs will be will benefit from
organizing cost information according to cost behavior.- True
38) True or false? Costs are sometimes difficult to measure accurately.- true
39) True or false? Opportunity costs are often difficult to quantify.- true
40) True or false? A cost system is a method that separates financial and non-financial
costs.- false
41) Gordon Enterprises manufactures sports equipment.- wages paid, salaries paid, the price
paid for leather…/wages, the price paid for leather/
42) Which of the following reflect advantages of activity-based costing?- provides a more
flexible, provides the opp, provides more accurate/ allows managers, provides more,
provides a more flexible/
43) Which of the following best characterizes organizations’ need to organize costs according
to behavior?- many decisions require making…