Cost Accounting

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5 Topics
CHAPTER 1: COST MANAGEMENT & STRATEGY

📖Introduction To Cost Accounting

2 Topics
1. ✏️+🎥Introduction to Cost Accounting🟢
2. 🎙️Introduction to Cost Accounting
📖Cost Accounting In Contemporary Business Environment

2 Topics
1. ✏️+🎥Cost Accounting in Contemporary Business Environment🟢
2. 🎙️Cost Accounting in Contemporary Business Environment
📖Michael Porter Competitive Strategies

2 Topics
1. ✏️+🎥Michael Porter Competitive Strategies🟢
2. 🎙️Michael Porter Competitive Strategies
📖Balanced Scorecard

5 Topics
|
1 Quiz
- 🎯Balanced Scorecard: 7 MCQs
📖The 4 Costs Of Quality

4 Topics
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1 Quiz
- 🎯The Four Costs of Quality: 13 MCQs
CHAPTER 2: COST VOLUME PROFIT ANALYSIS

📖Cost Volume Profit Analysis

4 Topics
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1 Quiz
- 🎯Cost-Volume-Profit Analysis: 10 MCQs
📖Contribution Margin Ratio

2 Topics
1. ✏️+🎥Contribution Margin Ratio🟢
2. 🎙️Contribution Margin Ratio
📖Cost Volume Profit Application

6 Topics
📖Break Even Point & Target Profit

3 Topics
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1 Quiz
- 🎯Break-Even Point: 8 MCQs
📖Target & Cost Volume Profit Analysis

3 Topics
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1 Quiz
- 🎯Target-Profit Analysis: 5 MCQs
📖Cost Structure & Profit Stability

2 Topics
1. ✏️+🎥Cost structure and Profit Stability🟢
2. 🎙️Cost structure and Profit Stability
📖Margin Of Safety

3 Topics
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1 Quiz
- 🎯Margin of Safety: 6 MCQs
📖Degree Of Operating Leverage (DOL)

4 Topics
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1 Quiz
- 🎯Degree of Operating Leverage (DOL): 4 MCQs
📖Break Even For Multi-Product

4 Topics
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1 Quiz
- 🎯Break-Even for Multi-Products: 5 MCQs
CHAPTER 3: COST ESTIMATION

📖Account Analysis & Engineering Methods

3 Topics
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1 Quiz
- 🎯Cost Estimation: 9 MCQs
📖High-Low Method

6 Topics
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1 Quiz
- 🎯High-Low Method: 7 MCQs
📖Cost Estimated Regression Analysis

3 Topics
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1 Quiz
- 🎯Regression Analysis: 20 MCQs
CHAPTER 4: BASIC COST ACCOUNTING TERMS & CONCEPTS

📖Basic Cost Accounting Terms

2 Topics
1. ✏️+🎥Basic Cost Accounting Terms🟢
2. 🎙️Basic Cost Accounting Terms
📖Three Basic Manufacturing Cost

4 Topics
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2 Quizzes
- 🎯Manufacturing Costs: 14 MCQs
- 🎯Manufacturing Costs TF
📖Product Cost Vs Period Cost

3 Topics
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1 Quiz
- 🎯Product Cost Vs Period Cost: 14 MCQs
📖Cost Behavior: Variable, Fixed & Mixed Cost

5 Topics
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1 Quiz
- 🎯Cost Behavior: Variable Cost, Fixed Cost, and Mixed Cost: 27 MCQs
📖Traditional Vs Contribution Format Income Statement

3 Topics
CHAPTER 5: JOB ORDER COSTING

📖Job Order Costing

5 Topics
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1 Quiz
- 🎯Job-order Costing System: 11 MCQs
📖Cost Flow In Job Order Costing

5 Topics
📖Cost Of Goods Manufactured

4 Topics
📖Under-Applied & Over-Applied Overhead

5 Topics
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1 Quiz
- 🎯Manufacturing Overhead Allocation: 20 MCQs
CHAPTER 6: PROCESS COSTING

📖Process Costing

12 Topics
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2 Quizzes
- 🎯Process Costing: 17 MCQs
- 🎯Process Costing TF
CHAPTER 7: ACTIVITY-BASED-COSTING

📖Activity Based Costing

11 Topics
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2 Quizzes
- 🎯Activity Based Costing: 20 MCQs
- 🎯Activity Based Costing TF
CHAPTER 8: BUDGETING PROCESS

📖What Is a Budget & Role Of Budgets

2 Topics
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1 Quiz
1. ✏️+🎥What is a Budget and Role of Budgets🟢
2. 🎙️What is a Budget and Role of Budgets
- 🎯Role of Budgets: 8 MCQs
📖Budgetary Process

2 Topics
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1 Quiz
1. ✏️+🎥Budgetary Process🟢
2. 🎙️Budgetary Process
- 🎯Planning a Budget: 9 MCQs
📖Types Of Budgets

2 Topics
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1 Quiz
1. ✏️+🎥Types of Budgets🟢
2. 🎙️Types of Budgets
- 🎯Types of Budgets and Budgetary Process: 9 MCQs
📖Zero Based Budgeting & Rolling Budget

2 Topics
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1 Quiz
1. ✏️+🎥Zero Based Budgeting and Rolling Budget🟢
2. 🎙️Zero Based Budgeting and Rolling Budget
- 🎯Zero Based Budgeting: 8 MCQs
📖Activity Based Budgeting

2 Topics
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1 Quiz
1. ✏️+🎥Activity Based Budgeting🟢
2. 🎙️Activity Based Budgeting
- 🎯Activity Based Budgeting: 7 MCQs
📖Master Budget & Related Schedules

11 Topics
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2 Quizzes
- 🎯Master Budget Quiz : 43 MCQs
- 🎯Budgeting TF
📖Production Budget

5 Topics
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1 Quiz
- 🎯Production Budget and manufacturing Budget: 37 MCQs
CHAPTER 9: VARIABLE COSTING VS ABSORPTION COSTING

📖Absorption & Variable Costing

9 Topics
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3 Quizzes
CHAPTER 10: COST ALLOCATION

📖Intro To Cost Allocation

2 Topics
1. ✏️+🎥Introduction to cost allocation🟢
2. 🎙️Introduction to cost allocation
📖Cost Allocation Direct Method

4 Topics
📖Cost Allocation Step Method

3 Topics
📖Cost Allocation Reciprocal Method

5 Topics
CHAPTER 11: VARIANCE ANALYSIS

📖Flexible Budget & Performance Analysis

10 Topics
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2 Quizzes
- 🎯Flexible Budget and Performance Analysis: 27 MCQs
- 🎯Flexible Budgets TF
📖Direct Material & Labor Variance Analysis

7 Topics
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2 Quizzes
- 🎯Direct Labor Variances: 6 MCQs
- 🎯Direct Material Variances: 9 MCQs
📖Variances Using Journal Entries

5 Topics
📖Variable & Fixed Overhead Variances

4 Topics
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2 Quizzes
- 🎯Variable Overhead Variances: 8 MCQs
- 🎯Fixed Overhead Variances: 8 MCQs
CHAPTER 12: TRANSFER PRICING

📖Transfer Pricing

8 Topics
CHAPTER 13: ECONOMIC ORDER QUANTITY & REORDER POINTS

📖Economic Order Quantity

2 Topics
1. ✏️+🎥Economic Order Quantity🟢
2. 🎙️Economic Order Quantity
📖Reorder Points & Safety Stock

2 Topics
1. ✏️+🎥Reorder Points and Safety Stock🟢
2. 🎙️Reorder Points and Safety Stock
CHAPTER 14: MARGINAL ANALYSIS & DECISION MAKING

📖Relevant & Irrelevant Cost

3 Topics
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2 Quizzes
- 🎯Relevant and Irrelevant Costs: 7 MCQs
- 🎯Relevant and Irrelevant Costs TF
📖Add Or Drop a Segment

5 Topics
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1 Quiz
- 🎯Add or Drop a Segment: 6 MCQs
📖Make Or Buy Component Analysis

5 Topics
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1 Quiz
- 🎯Make or Buy Decisions: 6 MCQs
📖Accepting Or Rejecting Special Order

4 Topics
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1 Quiz
- 🎯Accepting or Rejecting Special Order: 6 MCQs
📖Utilization Of a Constrained Resource

3 Topics
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1 Quiz
- 🎯Utilization of Constrained Resources: 8 MCQs
📖Sell Or Process Further Decisions

5 Topics
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1 Quiz
- 🎯Sell or Process Further Decisions: 7 MCQs

Participants 2360

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Quiz 14 of 45

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🎯Product Cost Vs Period Cost: 14 MCQs

Cost Accounting
📖Product Cost Vs Period Cost
🎯Product Cost Vs Period Cost: 14 MCQs

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Question 1 of 14

1. Question
All of the following would be a period cost except:
- A. Depreciation of factory maintenance equipment.
- B. The salary of the company president's secretary
- C. The cost of a general accounting office.
- D. Insurance on a company showroom where customers can view new products.
Correct

Incorrect
Question 2 of 14

2. Question
Cost of electricity for production equipment is classified as:
- A. Conversion Cost
- B. Conversion cost and Period cost
- C. Neither Conversion cost nor Period cost
- D. Period Cost
Correct

Incorrect
Question 3 of 14

3. Question
Choose one example of a period cost for a company in the fashion industry.
- A. Fabric used for manufacturing.
- B. Advertising expenses for the summer collection.
- C. Monthly depreciation on production equipment
- D. Salaries of the factory's supervisor.
Correct

Incorrect
Question 4 of 14

4. Question
Which of the following statements is true regarding Product costs?
- A. When the production process is completed, product costs are deducted from revenue.
- B. Product costs are deducted from revenue as expenditures are paid.
- C. Product costs associated with unsold finished goods and work in process will appear on the balance sheet as assets.
- D. Product costs will not appear on the financial statements unless the products are sold.
Correct

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Question 5 of 14

5. Question
The fixed portion of electricity cost in a manufacturing facility is classified as:
- A. A Period cost and a Product cost
- B. Neither a Period cost nor a Product cost
- C. A Product Cost
- D. A Period Cost
Correct

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Question 6 of 14

6. Question
Delta Corporation paid in advance for its four years of insurance coverage. The total premium was $3,500 for four years and was paid at the beginning of the first year. 65% of the premium applies to manufacturing operations and 35% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

Product Period

A) $ 306.25 $ 568.75

B) $568.75 $306.25

C) $ 2,275 $ 1,225

D) $ 1,225 $ 2,275
- A. Choice A
- B. Choice B
- C. Choice C
- D. Choice D
Correct

Incorrect

Question 7 of 14

7. Question

Paul Corporation’s relevant range of activity is 4,000 units to 9,000 units. When it produces and sells 7,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Total Direct materials	$ 6.85
Total Direct labor	$ 6.00
Variable manufacturing overhead	$ 2.75
Fixed manufacturing overhead	$ 4.90
Fixed selling expenses	$ 1.90
Fixed administrative expenses	$ 1.60
Commission on Sale	$ 1.50
Variable administrative expenses	$ 1.45

What will be the total amount of period costs incurred to sell 7,000 units?

A- $20,650
B- $ 45,150
C- $79,450
D- $40,750

Correct

Incorrect

Question 8 of 14

8. Question

Nestle Corporation has recorded the following information:

	Cost per Unit	Cost per Period
Direct materials	$ 7.20
Direct labor	$ 4.70
Variable manufacturing overhead	$ 1.50
Fixed manufacturing overhead		$ 15,000
Sales commissions	$ 1.75
Variable administrative expense	$ 0.75
Fixed selling and administrative expense		$ 9,000

How much is the total amount of product costs incurred to produce 6,000 units?

A- $85,750
B- $ 95,400
C- $80,400
D- $90,750

Correct

Incorrect

Question 9 of 14

9. Question

Hershey Corporation’s relevant range of activity is 4,000 units to 8,000 units. its average costs per unit to produce and sell 6,000 units are as follows:

	Average Cost per Unit
Direct materials	$ 7.55
Direct labor	$ 4.50
Variable manufacturing overhead	$ 2.40
Fixed manufacturing overhead	$ 1.60
Fixed selling expense	$ 0.70
Fixed administrative expense	$ 0.40
Sales commissions	$ 2.50
Variable administrative expense	$ 0.45

For financial reporting purposes, the total amount of period costs incurred to sell 6,000 units is closest to:

A- $27,800
B- $17,700
C- $14,400
D- $24,300

Correct

Incorrect

Question 10 of 14

10. Question

Pantaloon Corporation has provided the following information:

	Cost per Unit	Cost per Period
Direct materials	$ 7.00
Direct labor	$ 3.35
Variable manufacturing overhead	$ 1.75
Fixed manufacturing overhead		$ 8,800
Sales commissions	$ 2.00
Variable administrative expense	$ 0.40
Fixed selling and administrative expense		$ 6,000

For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

A- $16,000
B- $18,000
C- $26,800
D- $12,000

Correct

Incorrect

Question 11 of 14

11. Question

Caster Corporation has provided the following information:

	Per unit cost	Per Period Cost
Direct materials	$ 8.05
Direct labor	$ 4.50
Variable manufacturing overhead	$ 2.65
Fixed manufacturing overhead		$ 15,000
Sales commissions	$ 1.00
Variable administrative expense	$ 0.40
Fixed selling and administrative expense		$ 6,500

For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to:

A- $91,000
B- $82,500
C- $81,000
D- $76,000

Correct

Incorrect

Question 12 of 14

12. Question

A partial listing of costs incurred at Sipchem Corporation during June appears below:

Direct materials	$ 123,000
Utilities, factory	$ 6,000
Administrative salaries	$ 81,000
Indirect labor	$ 35,000
Sales commissions	$ 48,000
Depreciation of production equipment	$ 20,000
Depreciation of administrative equipment	$ 30,000
Direct labor	$ 120,000
Advertising	$ 135,000

The total of the product costs listed above for June is:

A- $304,000
B- $284,000
C- $269,000
D- $352,000

Correct

Incorrect

Question 13 of 14

13. Question

Bently corporation has reported the partial listing of costs for the month of June as shown below:

Factory supplies	$ 10,000
Administrative wages and salaries	$ 95,000
Direct materials	$ 136,000
Sales staff salaries	$ 40,000
Factory depreciation	$ 43,000
Corporate headquarters building rent	$ 33,000
Indirect labor	$ 36,000
Marketing	$ 75,000
Direct labor	$ 109,000

What are the total period costs for June?

A- $286,00
B- $253,000
C- $203,000
D- $243,000

Correct

Incorrect

Question 14 of 14

14. Question

Chic Corporation, a merchandising company, has a relevant range of activity from 4,000 units to 8,000 units. Its average costs per unit to produce and sell 6,000 units are shown below:

	Average Cost per Unit
Direct materials	$ 7.90
Direct labor	$ 5.35
Variable manufacturing overhead	$ 3.65
Fixed manufacturing overhead	$ 5.00
Fixed selling expense	$ 2.55
Fixed administrative expense	$ 2.45
Sales commissions	$ 3.55
Variable administrative expense	$ 2.55

The total amount of product costs incurred to make 6,000 units is closest to:

A- $55,400
B- $131,400
C- $101,400
D- $134,400

Correct

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Jessica 21 July 2025

Hi, I’m confused that there are fixed expenses that are given as cost per unit. Aren’t costs that vary based on quantity normally considered variable costs? Or in this context does it just mean that cost per unit it is not affected if quantity is outside the relevant range? This also appears in questions 8, 9 and 14.

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1. Maroun, CPA 23 July 2025
  
  Hi Jessica,
  
  When fixed expenses are provided as a “cost per unit,” it means that the total fixed expense was divided by a specific activity level (in this case, 7,000 units). The key here is the relevant range—within this range (4,000 to 9,000 units), total fixed costs remain constant.
  
  Thus, even though they’re shown on a per-unit basis, total fixed costs won’t change when production volume changes within that relevant range. However, as production volume increases, the fixed cost per unit will actually decrease, since you’re spreading the same total amount of fixed costs over more units.
  
  This concept often appears in similar questions on the exam, so it’s great you’re clarifying it now!
  
  I hope this clears things up. Let me know if you have any more questions!
  
  Log in to Reply

	Product	Period
A)	$ 306.25	$ 568.75
B)	$568.75	$306.25
C)	$ 2,275	$ 1,225
D)	$ 1,225	$ 2,275

Cost Accounting

CHAPTER 1: COST MANAGEMENT & STRATEGY

Participants 2360

🎯Product Cost Vs Period Cost: 14 MCQs

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