CAA Cost Accounting & Management Flashcards
6 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAA Cost Accounting & Management flashcards as text
Which costing method assigns all manufacturing costs (fixed and variable) to products?
Answer: Absorption costing
Absorption costing (full costing) assigns both fixed and variable manufacturing overhead to each unit produced.
A company has fixed costs of $120,000 and a contribution margin ratio of 40%. What is its breakeven sales revenue?
Answer: $300,000
Breakeven sales = Fixed costs ÷ Contribution margin ratio = $120,000 ÷ 0.40 = $300,000.
In job-order costing, which document accumulates all costs for a specific job?
Answer: Job cost sheet
A job cost sheet tracks direct materials, direct labor, and applied overhead for each individual job.
What is the primary purpose of a standard cost system?
Answer: To set benchmarks for performance measurement and cost control
Standard costs provide predetermined cost benchmarks against which actual costs are compared to identify variances and control operations.
A favorable labor efficiency variance indicates that:
Answer: Fewer labor hours were used than standard hours allowed
A favorable labor efficiency variance means actual hours worked were less than the standard hours allowed for actual output.
Which cost behavior pattern remains constant in total regardless of changes in activity level within the relevant range?
Answer: Fixed cost
Fixed costs remain constant in total as activity level changes within the relevant range, though fixed cost per unit changes.