Preliminary Test of Cost Accounting Knowledge--Does not affect your grade! Name___________________________________ Mark one letter for each question response. Note that in some cases there are options like ʺD) Both A and C are correct.ʺ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Cost objects include: A) customers C) products
B) departments D) All of these answers are correct.
2) Cost tracing is: A) the process of tracking both direct and indirect costs associated with a cost object B) a function of cost allocation C) the assignment of direct costs to the chosen cost object D) the process of determining the actual cost of the cost object 3) Cost allocation is: A) the
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A) write-off to cost of goods sold B) proration C) adjusted allocation-rate D) Both A and B are correct. 13) If products are different, then for costing purposes: A) an ABC costing system will yield more accurate cost numbers B) a single indirect-cost rate should be used C) a simple costing system should be used