Cost Accounting Arab World Edition by

Horngren Question Bank

[Link]
22 Chapters
309 Verified Questions
 Chapter 1: The Manager and Management Accounting
Available Study Resources on Examlex for this Chatper
9 Verified Questions
9 Flashcards
Source URL: [Link]

Sample Questions
Q1) The controller (or chief accounting officer):
A) has overall responsibility for the management accounting function
B) has overall responsibility for purchasing stock
C) gathers all financial data and prepares all financial reports
D) all of the above
Answer: A

Q2) The International Ethics Standards Board for Accountants (IESBA) has developed a
code of ethics for management accountants which includes concepts related to:
A) integrity, objectivity, professional competence and due care, and confidentiality
B) competence, performance, integrity, and reporting
C) experience, integrity, reporting, and objectivity
D) None of these answers are correct.
Answer: A

Q3) Management accounting has to strictly follow the rules of international financial
reporting standards for the purposes of measurement and reporting.
A)True
B)False
Answer: False

To view all questions and flashcards with answers, click on the resource link above.

Page 2
 Chapter 2: An Introduction to Cost Terms and Purposes
Available Study Resources on Examlex for this Chatper
34 Verified Questions
34 Flashcards
Source URL: [Link]

Sample Questions
Q1) Which of the following companies is part of the service sector?
A) Ford
B) Arab Banking Corporation
C) Nokia
D) Microsoft
Answer: B

Q2) Wages of security personnel for the factory

A) Direct
B) Indirect
C) Fixed
D) Variable
Answer: B,D

Q3) Component parts for the product

A) Direct
B) Indirect
C) Fixed
D) Variable
Answer: A, D

To view all questions and flashcards with answers, click on the resource link above.

Page 3
 Chapter 3: Job Costing
Available Study Resources on Examlex for this Chatper
19 Verified Questions
19 Flashcards
Source URL: [Link]

Sample Questions
Q1) The bid price for this special order is:
A) $96,000
B) $60,000
C) $80,000
D) $50,000
Answer: A

Q2) What are the total manufacturing costs of this job?

A) $1,920
B) $1,650
C) $1,200
D) $1,470
Answer: D

Q3) What are the budgeted direct-cost rate and the budgeted indirect-cost rate,
respectively, per professional labor-hour?
A) $32.40; $5.00
B) $27.00; $5.00
C) $29.80; $5.40
D) $27.00; $4.17
Answer: C

To view all questions and flashcards with answers, click on the resource link above.

Page 4
 Chapter 4: Activity-Based Costing
Available Study Resources on Examlex for this Chatper
5 Verified Questions
5 Flashcards
Source URL: [Link]

Sample Questions
Q1) If administrative expense of $62,500 is allocated on the basis of number of
employees, the amount allocated to the Car Rental Department would be:
A) $37,500
B) $62,500
C) $15,625
D) $46,875

Q2) The materials handling activity-cost driver rate is:

A) $0.50
B) $5.00
C) $20.00
D) $2.00

Q3) For each of the following activities, identify an appropriate activity-cost driver.
a. machine maintenance
b. machine setup
c. quality control
d. material ordering
e. production scheduling
f. warehouse expense
g. engineering design

To view all questions and flashcards with answers, click on the resource link above.

Page 5
 Chapter 5: Process Costing
Available Study Resources on Examlex for this Chatper
19 Verified Questions
19 Flashcards
Source URL: [Link]

Sample Questions
Q1) What is the unit cost per equivalent unit of beginning inventory in Department A?
A) $2,000
B) $7,000
C) $3,500
D) $7,500

Q2) What is the direct materials cost per equivalent unit during April?
A) $575.00
B) $1,241.94
C) $1,250.00
D) $581.25

Q3) What are the equivalent units for direct materials and conversion costs, respectively,
for June?
A) 1,050 units; 1,012.5 units
B) 962 units; 990 units
C) 1,050 units; 1,050 units
D) 1,200.5 units; 1,160.64 units

Q4) Most companies do not keep records of their indirect costs from previous years.
A)True
B)False

To view all questions and flashcards with answers, click on the resource link above.
Page 6
 Chapter 6: Master Budgets
Available Study Resources on Examlex for this Chatper
11 Verified Questions
11 Flashcards
Source URL: [Link]

Sample Questions
Q1) What is the amount budgeted for direct material purchases in 2015?
A) $1,520,000
B) $1,160,000
C) $1,200,000
D) $1,040,000

Q2) What is budgeted sales for 2015?

A) $252,000
B) $291,200
C) $262,080
D) $280,000

Q3) Purchases budgeted for January total:

A) $130,800
B) $69,840
C) $74,160
D) $72,000

Q4) Purchases budgeted for February total:

A) $64,800
B) $60,480
C) $115,200
D) $69,120

Page 7
To view all questions and flashcards with answers, click on the resource link above.
 Chapter 7: Flexible Budgets, Direct-Cost Variances, and

Management Control
Available Study Resources on Examlex for this Chatper
22 Verified Questions
22 Flashcards
Source URL: [Link]

Sample Questions
Q1) The flexible-budget variance is:
A) $4,800 favorable
B) $28,000 unfavorable
C) $32,800 unfavorable
D) $4,000 favorable

Q2) September's direct labor price variance is:

A) $70.00 favorable
B) $210.00 favorable
C) $70.00 unfavorable
D) $210.00 unfavorable

Q3) The flexible-budget amount is:

A) $160,000
B) $164,000
C) $196,800
D) $192,000

Q4) What is the static-budget variance of operating income?

A) $190,000 unfavorable
B) $60,000 unfavorable
C) $60,000 favorable Page 8
D) $165,000 favorable

To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Flexible Budgets, Overhead Cost Variances, and

Management Control
Available Study Resources on Examlex for this Chatper
19 Verified Questions
19 Flashcards
Source URL: [Link]

Sample Questions
Q1) What is the actual variable overhead cost?
A) $279,000
B) $244,125
C) $250,000
D) $248,063

Q2) What is the budgeted variable overhead cost rate per output unit?
A) $10.75
B) $48.40
C) $11.00
D) $32.25

Q3) Fixed overhead is:

A) overallocated by $44,000
B) underallocated by $44,000
C) overallocated by $4,000
D) underallocated by $4,000

Q4) What is the variable overhead spending variance?

A) $4,500 favorable
B) $3,937.50 unfavorable
C) $4,500 unfavorable Page 9
D) $3,937.50 favorable

To view all questions and flashcards with answers, click on the resource link above.
 Chapter 9: Setermining How Cost Management
Available Study Resources on Examlex for this Chatper
13 Verified Questions
13 Flashcards
Source URL: [Link]

Sample Questions
Q1) How would the cost function be stated?
A) y = $3,562.30 + $0.144X
B) y = $107.20 + $1.12
C) y = $7,850 + $0.132X
D) y = $440 + $1.12X

Q2) What is the estimated total cost at an operating level of 5,000 units?
A) $8,510.00
B) $6,227.20
C) $4,283.20
D) $6,040.00

Q3) How is the cost function stated?

A) y = $10,112 + $8.64X
B) y = $21,360 + $10.40
C) y = $3,600 + $10.40X
D) y = $26,672 + $1.84X

Q4) What is the estimate of the total cost when 300 machine-hours are used?
A) $16,000
B) $8,000
C) $12,000
D) $4,000

Page 10
To view all questions and flashcards with answers, click on the resource link above.
 Chapter 10: Cost-Volume-Profit Analysis
Available Study Resources on Examlex for this Chatper
16 Verified Questions
16 Flashcards
Source URL: [Link]

Sample Questions
Q1) The number of units that Khobar Glass Company must sell to reach targeted
operating income of $30,000 is:
A) 6,500 units
B) 4,334 units
C) 3,334 units
D) 5,000 units

Q2) Contribution margin per unit is:

A) $6.00
B) $4.29
C) $4.00
D) None of these answers are correct.

Q3) The contribution margin percentage is:

A) 37.5%
B) 75.0%
C) 25.0%
D) 12.5%

To view all questions and flashcards with answers, click on the resource link above.

Page 11
 Chapter 11: Decision Making
Available Study Resources on Examlex for this Chatper
10 Verified Questions
10 Flashcards
Source URL: [Link]

Sample Questions
Q1) RAIS Company has offered to sell 10,000 units of the same part to Qamar Corporation
for $36 per unit. Assuming there is no other use for the facilities, Qamar should:
A) make the part, as this would save $2 per unit
B) buy the part, as this would save the company $60,000
C) buy the part, as this would save $6 per unit
D) make the part, as this would save $6 per unit

Q2) What are the relevant costs for Emirate Sounds?

A) $140,000
B) $80,000
C) $105,000
D) $125,000

Q3) What is the contribution margin per machine-hour for a large chair?
A) $6.00
B) $3.60
C) $5.40
D) $2.50

To view all questions and flashcards with answers, click on the resource link above.

Page 12
 Chapter 12: Pricing Decisions and Cost Management
Available Study Resources on Examlex for this Chatper
17 Verified Questions
17 Flashcards
Source URL: [Link]

Sample Questions
Q1) What are estimated life-cycle revenues?
A) $5,600,000
B) $11,200,000
C) $4,000,000
D) $3,200,000

Q2) What is the target rate of return on investment for TTB Company?
A) 15.0%
B) 17.6%
C) 11.1%
D) 10.0%

Q3) For long-run pricing of the coffee tables, what price will most likely be used by
Farouk?
A) $134.76
B) $266.70
C) $161.70
D) $222.25

To view all questions and flashcards with answers, click on the resource link above.

Page 13
 Chapter 13: Strategy, Balanced Scorecard, and Strategic

Profitability Analysis
Available Study Resources on Examlex for this Chatper
15 Verified Questions
15 Flashcards
Source URL: [Link]

Sample Questions
Q1) What is operating income for 2014?
A) $750,000
B) $1,000,000
C) $700,000
D) $450,000

Q2) What is operating income for 2015?

A) $486,000
B) $476,000
C) $726,000
D) $1,045,000

Q3) What is operating income in 2015?

A) $200,000
B) $1,804,500
C) $364,500
D) $1,440,000

Q4) What is the cost effect of the price-recovery component?

A) $2,500 F
B) $30,500 F
C) $31,500 U Page 14
D) $33,000 U

To view all questions and flashcards with answers, click on the resource link above.
 Chapter 14: Capital Budgeting and Cost Analysis
Available Study Resources on Examlex for this Chatper
12 Verified Questions
12 Flashcards
Source URL: [Link]

Sample Questions
Q1) Research indicates there are five machines on the market capable of producing our
product at a competitive cost.
A) Identify projects and uncertainties
B) Analyze available information
C) Determine practical options
D) Make decisions by choosing one from among the practical options
E) Implement the decision, monitor, follow-up, and evaluate performance, and learn

Q2) The need to reduce the costs to process the vegetables used in producing goulash
A) Identify projects and uncertainties
B) Analyze available information
C) Determine practical options
D) Make decisions by choosing one from among the practical options
E) Implement the decision, monitor, follow-up, and evaluate performance, and learn

To view all questions and flashcards with answers, click on the resource link above.

Page 15
Chapter 15: Cost Allocation, Customer-Profitability Analysis,

and Sales-Variance Analysis

Available Study Resources on Examlex for this Chatper
11 Verified Questions
11 Flashcards
Source URL: [Link]

Sample Questions
Q1) What is the budgeted contribution margin per composite unit for the actual mix?
A) $8.60
B) $9.60
C) $8.00
D) $9.00

Q2) Computer operations used in conjunction with manufacturing

A) Number of employees per department
B) Employee wages and salaries per department
C) Production facility square footage
D) Hours of operation of each production department
E) Machine hours by department
F) Operations costs of each department
G) Hours of computer use per month per department
H) Indirect labor-hours per department

Q3) What is the actual contribution margin for the month?

A) $8,800
B) $7,500
C) $8,500
D) $6,900
Page 16
To view all questions and flashcards with answers, click on the resource link above.
 Chapter 16: Allocation of Support-Department Costs,

Common Costs, and Revenues

Available Study Resources on Examlex for this Chatper
2 Verified Questions
2 Flashcards
Source URL: [Link]

Sample Questions
Q1) If a dual-rate cost-allocation method is used, what amount of cost will be allocated
to the Night Light Division? Assume budgeted usage is used to allocate fixed operating
costs and actual usage is used to allocate variable operating costs.
A) $375,000
B) $450,000
C) $390,000
D) $435,000

To view all questions and flashcards with answers, click on the resource link above.

Page 17
Chapter 17: Cost Allocation: Joint Products and Byproducts
Available Study Resources on Examlex for this Chatper
12 Verified Questions
12 Flashcards
Source URL: [Link]

Sample Questions
Q1) When using a physical-volume measure, what is the approximate amount of joint
costs that will be allocated to Mr. DirtOut and Mr. SinkClean?
A) $464,232 and $297,768
B) $461,252 and $298,748
C) $448,400 and $311,600
D) $454,404 and $305,596

Q2) How much (if any) extra income would Mona Company earn if it produced and sold
all of the Xyla from the condensed goat milk? Allocate joint processing costs based upon
relative sales value on the splitoff. (Extra income means income in excess of what Mona
Company would have earned from selling condensed goat milk.)
A) $402,300
B) $106,126
C) $508,426
D) $193,574

Q3) What is the estimated net realizable value of Xyla at the splitoff point?
A) $702,000
B) $505,800
C) $365,300
D) $585,000

To view all questions and flashcards with answers, click on the resource link above.

Page 18
 Chapter 18: Inventory Costing and Capacity Analysis
Available Study Resources on Examlex for this Chatper
19 Verified Questions
19 Flashcards
Source URL: [Link]

Sample Questions
Q1) The production-volume variance totals:
A) $2,000
B) 0
C) $1,500
D) $2,400

Q2) What is the cost per statue if throughput costing is used?

A) $7.50
B) $5.00
C) $11.00
D) $9.50

Q3) What are breakeven sales in units using absorption costing?

A) 5,625 units
B) 6,667 units
C) 8,000 units
D) 6,897 units

Q4) What are breakeven sales in units using variable costing?

A) 5,625 units
B) 5,769 units
C) 12,180 units
D) 11,875 units

Page 19
To view all questions and flashcards with answers, click on the resource link above.
 Chapter 19: Inventory Management Methods
Available Study Resources on Examlex for this Chatper
8 Verified Questions
8 Flashcards
Source URL: [Link]

Sample Questions
Q1) What are the relevant total costs at the economic order quantity?
A) $8,485.28
B) $1,414.21
C) $4,242.65
D) $9,000.00

Q2) What is the reorder point?

A) 220.5 lenses
B) 397.5 lenses
C) 312.5 lenses
D) 415.5 lenses

Q3) What are the total relevant costs, assuming the quantity ordered equals 1,000 units?
A) $3,000
B) $9,000
C) $6,000
D) $500

To view all questions and flashcards with answers, click on the resource link above.

Page 20
 Chapter 20: Transfer Pricing, Multinational Considerations,

and Management Information System

Available Study Resources on Examlex for this Chatper
3 Verified Questions
3 Flashcards
Source URL: [Link]

Sample Questions
Q1) Soft Cushion Company is highly decentralized. Each division is empowered to make
its own sales decisions. The Assembly Division can purchase stuffing, a key component,
from the Production Division or from external suppliers. The Production Division has been
the major supplier of stuffing in recent years. The Assembly Division has announced that
two external suppliers will be used to purchase the stuffing at $20 per pound for the next
year. The Production Division recently increased its unit price to $40. The manager of the
Production Division presented the following information - variable cost $32 and fixed
cost $8 - to top management in order to attempt to force the Assembly Division to
purchase the stuffing internally. The Assembly Division purchases 20,000 pounds of
stuffing per month.
What would be the monthly operating advantage (disadvantage) of purchasing the
goods internally, assuming the external supplier increased its price to $50 per pound
and the Production Division is able to utilize the facilities for other operations, resulting in
a monthly cash-operating savings of $30 per pound?
A) $(240,000)
B) $1,000,000
C) $(400,000)
D) $360,000

To view all questions and flashcards with answers, click on the resource link above.

Page 21
 Chapter 21: Key Performance Indicators, Compensation,

and Multinational Considerations

Available Study Resources on Examlex for this Chatper
27 Verified Questions
27 Flashcards
Source URL: [Link]

Sample Questions
Q1) What is the EVA for Brooksville?
A) $415,525
B) $390,000
C) $476,250
D) $428,000

Q2) What were the sales for the Tiller Division?

A) $15,500,000
B) $15,000,000
C) $9,600,000
D) $12,000,000

Q3) What is the EVA for Medina?

A) $557,820
B) $207,180
C) $765,000
D) $225,000

Q4) What is the EVA for Stonybrook?

A) $1,315,063
B) $1,403,063
C) $1,108,000 Page 22
D) $1,168,700

To view all questions and flashcards with answers, click on the resource link above.
 Chapter 22: Balanced Scorecard: Quality, Time, and the

Theory of Constraints
Available Study Resources on Examlex for this Chatper
6 Verified Questions
6 Flashcards
Source URL: [Link]

Sample Questions
Q1) What is the change in the daily contribution margin if the change is made?
A) $2,000
B) $750
C) $800
D) $250

Q2) What is the average waiting time, in minutes?

A) 4.4
B) 28.2
C) 1.6
D) 56.3

Q3) What is the total production per day if the change is made?
A) 400 units
B) 50 units
C) 200 units
D) 600 units

Q4) What is the inspection cost per unit?

A) $7.60
B) $4,000
C) $30.40 Page 23
D) $3,800

To view all questions and flashcards with answers, click on the resource link above.