Cost and Management Accountıng (ENG) - İşletme (İngilizce)

Ünite 1

Soru 1

Which of the following is wrong with cost accounting?

Purpose of cost accounting is to find the cost of product or service.

Expense is the sacrifice, measured by the price paid or to be paid, to acquire goods or services.

Cost accounting can be defined as information a system.

Purpose of cost accounting is planning and controlling activities.

Purpose of cost accounting is decision-making process.

Açıklama:

The correct answer is B. Cost is the sacrifice, measured by the price paid or to be paid, to acquire goods or services. The expense is defined as a noun, a decrease in owners’ equity accompanying the decrease in net assets caused by selling goods or rendering services or by the passage of time.

Doğru Cevap: B

Soru 2

Which of the following is not the benefit of unit cost information in making important marketing decisions?

Determining the selling price of a product

Meeting competition

Biddingoncontracts

Provides information to external users.

Analyzing profitability

Açıklama:

The correct answer is D. Unit cost information is also helpful in making important marketing decisions such as:

Determining the selling price of a product
Meeting competition
Biddingoncontracts
Analyzing profitability.

Doğru Cevap: D

Soru 3

Which of the following is one of the production costs?

Direct labor cost

Period expenses

Period earnings

Marketing or selling expenses

Administrative expenses

Açıklama:

The correct answer to question is option A. Manufacturing (product) cost is grouped under three headings:
• Direct raw material cost
• Direct labor cost
• Manufacturing (factory) overhead cost

Doğru Cevap: A

Soru 4

Which of the following is not accurate information about management accounting?

Management accounting is the process of supplying the managers and employees in an organization with relevant information, both financial and nonfinancial.

Management accounting measures and reports financial information as well as other types of information.

Management accounting as an information system that serves information to their ‘clients’, namely the managers.

Management accounting provides information to internal users.

Management accounting provides information to external users.

Açıklama:

The correct answer is question E. Financial accounting focuses on external reporting that is directed by authoritative guidelines. Therefore, financial accounting provides information to external users.

Doğru Cevap: E

Soru 5

In which of the following options have types of inventory of the manufacturing-sector organizations given exactly?

Direct materials inventory, work-inprocess inventory, finished goods inventory

Direct materials inventory, work-inprocess inventory, finished goods inventory and goods

Direct materials inventory and goods

Direct materials inventory and work-inprocess inventory

Work-inprocess inventory and finished goods inventory

Açıklama:

Manufacturing-sector organizations typically have one or more of the following three types of inventory: Direct materials inventory, work-inprocess inventory, finished goods inventory.

Doğru Cevap: A

Soru 6

In which financial statement is the cost of goods sold?

Balance Sheet

Cash Flow Statement

Income Statement

Statement of Changes in Shareholders' Equity

Inventory Card

Açıklama:

The correct answer is C. The cost of goods sold is included in the income statement.

Doğru Cevap: C

Soru 7

I. Not affected by changes in operating volume
II. Varies according to changes in the volume of operations.
Which of the following is the correct matching of the expressions given above?

I- Mixed Costs

II-Fixed Cost

I-Variable Cost

I-Mixed Cost

I-Fixed Cost

Açıklama:

The correct answer is question E. Variable costs represent cost behavior that is directly related to changes in the volume of operations and increases when the volume of activity increases. Fixed costs, on the other hand, are defined as costs that are not affected by changes in operating volume, at least in the short run.

Doğru Cevap: E

Soru 8

Under which group of raw materials is inventory, work in process inventory and finished goods inventory are shown under the balance sheet?

Cash

Inventory

Fixed Assets

Intangible Assets

Cost of goods sold

Açıklama:

The correct answer is B. Raw materials is inventory, work in process inventory and finished goods inventory are shown under the inventory in the balance sheet.

Doğru Cevap: B

Soru 9

Which of the following is not use of maccounting information system in decision making?

Performance evaluation and control

Developing objectives and plans

Allocating resources

Providing useful financial information to external users

Determining costs and benefits

Açıklama:

The correct answer is D. Management accounting provides information to internal users. The areas of management accounting in decision-making can be explained in detail: Developing objectives and plans, performance evaluation and control, allocating resources, determining costs and benefits.

Doğru Cevap: D

Soru 10

...................... is period expenses and recorded as an expense in the
current accounting period.
Which of the following should be brought to the space left above?

Manufacturing Cost

Direct raw material cost

Non-manufacturing Cost

Direct labor cost

Manufacturing (factory) overhead cost

Açıklama:

The correct answer is C. Direct raw material cost, direct labor cost, manufacturing (factory) overhead cost is manufacturing cost. Non-manufacturing cost is period expenses and recorded as an expense in the
current accounting period.

Doğru Cevap: C

Soru 11

I. Globalization,
II. Automatization and Industry 4.0 revolution,
III. Technological developments
Which of the above is among the changes that businesses have been exposed to recently?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Economic and technological changes in
recent years, many organizations, especially in
the manufacturing sector, have faced significant
changes in their business environment. These
challenges can be summarized under three
headings:
• Globalization,
• Automatization and Industry 4.0 revolution,
• Technological developments.

Doğru Cevap: E

Soru 12

Which of the following is a financial statement that concerns only internal users?

Balance sheet

Income statement

Cash flow statement

Statement of Changes in Shareholders' Equity

Cost of sales table

Açıklama:

Financial accounting produces useful
financial information to external users. Whereas,
cost accounting and management accounting
provide information to internal users.

Doğru Cevap: E

Soru 13

I. Financial accounting
II. Cost accounting
III. Management accounting
Which of the above provides information for external users?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

Financial accounting produces useful
financial information to external users. Whereas,
cost accounting and management accounting
provide information to internal users.

Doğru Cevap: A

Soru 14

Which of the following relates to the provision of appropriate information for decision-making, planning, controlling and performance evaluation?

Financaial accounting

General accounting

Management accounting

Cost accounting

Creative accounting

Açıklama:

Management accounting relates to the provision of appropriate information for decision-making, planning, controlling and performance evaluation.

Doğru Cevap: C

Soru 15

I. To find the cost of product or service
II. Planning and controlling activities
III. Decision-making process
Which of the above is one of the objectives of cost accounting?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Cost accounting can be defined as a system in which financial data regarding business transactions are collected, classified, recorded, evaluated and reported for the following three purposes:
• To find the cost of product or service,
• Planning and controlling activities,
• Decision-making process.

Doğru Cevap: E

Soru 16

Which of the following is included in the "Determining Product Costs and Pricing" purpose of cost accounting?

Determining the selling price of a product

Meeting competition

Bidding on contracts

Assigning responsibility

Analyzing profitability

Açıklama:

Assigning responsibility takes place in planning and conrtol.

Doğru Cevap: D

Soru 17

What is the definition of "A decrease in owners’ equity attendant the decrease in net assets caused by selling goods or provide services"?

Cost

Expense

Income

Loss

Revenue

Açıklama:

The expense is defined as a noun, a decrease in owners’ equity attendant the decrease in net assets caused by selling goods or provide services.

Doğru Cevap: B

Soru 18

What is the definition of "A resource sacrificed or forfeit to achieve a specific objective"?

Cost

Expense

Loss

Income

Revenue

Açıklama:

Cost is a resource sacrificed or forfeit to achieve a specific objective.

Doğru Cevap: A

Soru 19

I. Direct raw material cost
II. Direct labor cost
III. Manufacturing (factory) overhead cost
Which of the above is included in manufacturing costs?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

Manufacturing (product) cost is grouped under three headings:
• Direct raw material cost
• Direct labor cost
• Manufacturing (factory) overhead cost

Doğru Cevap: E

Soru 20

Which of the following is not in key qualities of management accounting?

Relevance

Reliability

Comparability

Accountability

Understandability

Açıklama:

Management accounting information system has many key qualities. These are:

Relevance
Reliability
Comparability
Understandability

Doğru Cevap: D

Soru 21

-To find the cost of product or service
-Planning and controlling activities
-Decision-making process
What is the name of the system in which financial data regarding business transactions are collected, classified, recorded, evaluated and reported for the three purposes above?

Cost accounting

Manufacturing costs

Control

Planning

Pricing

Açıklama:

Doğru Cevap: A

Soru 22

I. Determining the selling price of a product
II. Meeting competition
III. Bidding on contracts
IV. Analyzing profitability
Which of the above are among the important marketing decisions in which unit cost information is helpful?

I and II

III and IV

I, II and III

II, III and IV

I, II, III and IV

Açıklama:

All of them are among the important marketing decisions in which unit cost information is helpful.

Doğru Cevap: E

Soru 23

What is the name of the process of establishing objectives or goals for the business and calculating the means by which they will be met?

Control

Planning

Management Accounting

Determining Product Costs

Pricing

Açıklama:

Planning is the process of establishing objectives or goals for the business and calculating the means by which they will be met.

Doğru Cevap: B

Soru 24

I. Assigning Responsibility
II. Periodically Measuring and Comparing Results
III. Taking Necessary Corrective Action
Which of the steps above are necessary for achieving effective control?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

All of them are necessary for achieving effective control.

Doğru Cevap: E

Soru 25

What is the name of resource sacrificed or forfeit to achieve aspecific objective?

Accounting

Function

Cost

Control

Planning

Açıklama:

Cost is a resource sacrificed or forfeit to achieve a specific objective.

Doğru Cevap: C

Soru 26

What is the collection of cost data in some organized way by means of an accounting system?

Cost assignment

Manufacturing overhead costs

Direct costs

Cost accumulation

Indirect costs

Açıklama:

Cost accumulation is the collection of cost data in some organized way by means of an accounting system.

Doğru Cevap: D

Soru 27

What is the name of the general term that includes both tracing accumulated costs that have a direct relationship to a cost object and allocating accumulated costs that have an indirect relationship to a cost object?

Cost accumulation

Cost assignment

Direct costs

Indirect costs

Period costs

Açıklama:

Cost assignment is a general term that includes both tracing accumulated costs that have a direct relationship to a cost object and allocating accumulated costs that have an indirect relationship to a cost object.

Doğru Cevap: B

Soru 28

Which of the following is recognized as an expense in the period in which they are consumed and transferred to the income statement?

Non-manufacturing expense

Period expense

Administrative expense

Operating expense

Selling expense

Açıklama:

Period expenses are recognized as an expense in the period in which they are consumed and transferred to the income statement.

Doğru Cevap: B

Soru 29

What is the name of the costs that are directly identified with a cost object?

Direct costs

Indirect costs

Manufacturing costs

Period costs

The manufacturing overhead costs

Açıklama:

Direct costs: These are the costs that are directly identified with a cost object.

Doğru Cevap: A

Soru 30

Which of the following is a price that can be completely assigned to the production of specific goods or services?

Indirect cost

Manufacturing overhead cost

Direct cost

Period Cost

Direct labor cost

Açıklama:

A direct cost is a price that can be completely assigned to the production of specific goods or services.

Doğru Cevap: C

Soru 31

What is the name of the costs that are not directly identified with a cost object?

Direct costs

Indirect costs

Manufacturing costs

Period costs

The manufacturing overhead costs

Açıklama:

Indirect costs: These are the costs that are not directly identified with a cost object.

Doğru Cevap: B

Soru 32

I. Relevance
II. Reliability
III. Comparability
IV. Understandability
Which of the above are among the key qualities of management accounting information system?

I and II

III and IV

I, II and III

II, III and IV

I, II, III and IV

Açıklama:

All of them are among the key qualities of management accounting information system.

Doğru Cevap: E

Soru 33

Which of the following represent cost behavior that is directly related to changes in the volume of operations and increases when the volume of activity increases and is zero?

Fixed costs

Semi-fixed costs

Semi-variable costs

Variable costs

Manufacturing Costs

Açıklama:

Variable costs represent cost behavior that is directly related to changes in the volume of operations and increases when the volume of activity increases and is zero.

Doğru Cevap: D

Soru 34

I. Raw material and supplies inventory
II. Work-in-process inventory
III. Finished goods inventory
Which of the items above are important inventory items in manufacturing organizations?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

There are three important inventory items in manufacturing organizations:
1. Raw material and supplies inventory
2. Work-in-process inventory
3. Finished goods inventory

Doğru Cevap: E

Soru 35

Which of the following is transferred to the related asset account on the balance sheet when the product is completed?

Inventoriable cost

Cost of goods sold

Product cost

Service cost

Period cost

Açıklama:

Inventoriable costs are transferred to the related asset account on the balance sheet when the product is completed.

Doğru Cevap: A

Soru 36

Which of the key qualities of management accounting information system is related to the its having the ability to influence decisions?

Reliability

Comparability

Understandability

Quality

Relevance

Açıklama:

Management accounting information system has many key qualities. These are (Atrill and McLaney, 2009: 17-18): • Relevance. Management accounting informationmust havethe ability to influence decisions

Doğru Cevap: E

Soru 37

Which of the following will enable managers to identify changes in the business over time?

Relevance

Comparability

Reliability

Quality

Understandability

Açıklama:

Comparability: This quality will enable managers to identify changes in the business over time.

Doğru Cevap: B

Soru 38

What is the first step of a management accounting information system?

Information evaluation

Information reporting

Information analysis

Information identification

Information recording

Açıklama:

There are four following stages of a management accounting information system. In the first stage, the information is defined and recorded in the other stage, in short, the first two stages are related to the preparation of the information. The third stage is the analysis of the information and the final stage is the reporting of the information. The last two stages emerge as the use of collected information.

Doğru Cevap: D

Soru 39

What are the costs of purchasing the goods that are resold in the same form for merchandising-sector organizations?

Product costs

Direct raw material costs

Inventoriable costs

Semi-fixed costs

Semi-variable costs

Açıklama:

For merchandising-sector organizations, inventoriable costs are the costs of purchasing the goods that are resold in the same form.

Doğru Cevap: C

Soru 40

Which of the following accounting information users need management and cost accounting information?

Managers

Shareholders

Creditors

Goverment

Banks

Açıklama:

The correct answer to question is option A. The users of accounting information can be divided into two categories. Internal parties within the organization such as employers, managers, workers and external parties such as shareholders, creditors, goverment and banks outside the organization. Financial accounting produces useful financial information to external users. Whereas, cost accounting and management accounting provide information to internal users.

Doğru Cevap: A

Soru 41

I. Planning
II. Decision making
III. Controlling process within the organization
Which of the following types of accounting are listed above?

Financial Accounting

Corporate Accounting

Government Accounting

Bank Accounting

Cost and Management Accounting

Açıklama:

The correct answer is question E. The role of cost accounting and management accounting have been more strategic in decision making, planning and controlling process within the organization.

Doğru Cevap: E

Soru 42

..................... is a resource sacrificed or forfeit to achieve a specific objective.
Which of the following should be brought to the space left above?

Expense

Cost

Revenue

Profit

Expenditure

Açıklama:

The correct answer is B. Cost is a resource sacrificed or forfeit to achieve a
specific objective.

Doğru Cevap: B

Soru 43

Which of the following is directly recognized as an expense without being included in the manufacturing cost?

Direct raw material cost

Direct labor cost

Manufacturing (factory) overhead cost

Marketing or selling expenses

Conversion costs

Açıklama:

The correct answer is D. Marketing or selling expenses are recognized as period expense.

Doğru Cevap: D

Soru 44

Which of the following is not one of the objectives of cost accounting?

Determination of the cost of the product or service produced

Helping to make a budget for the future

Organize general purpose financial statements for external users

Planning and controlling activities

Decision-making process

Açıklama:

The correct answer is C. The preparation of general purpose financial statements is one of the purposes of financial accounting.

Doğru Cevap: C

Soru 45

Which of the following is an example of costs that can be completely assigned to the production of specific goods or services?

Depreciation Expenses

Direct labor cost

Manufacturing (factory) overhead cost

Marketing or selling expenses

Administrative expenses

Açıklama:

The correct answer is B. Direct raw material cost and direct labor cost is a costs that can be completely assigned to the production of specific goods or services. Manufacturing (factory) overhead cost are assigned to the product or service cost using the distribution key.

Doğru Cevap: B

Soru 46

I. Property taxes
II. Direct material cost
III. Rent expense
Which of the above-listed costs are fixed costs?

I and II

II and III

I, II and III

I and III

Only III

Açıklama:

The correct answer is D. Direct material cost is changes in the volume of operations and increases when the volume of activity increases and is zero.

Doğru Cevap: D

Soru 47

I. Globalization
II. Automatization and Industry 4.0 revolution
III. Technological developments
Which of the above affects the business enviroment?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Economic and technological changes in recent years, many organizations, especially in the manufacturing sector, have faced significant changes in their business environment. These challenges can be summarized under three headings:
• Globalization,
• Automatization and Industry 4.0 revolution,
• Technological developments

Doğru Cevap: E

Soru 48

..................................., inventoriable costs are the costs of purchasing the goods that are resold in the same form.
Which of the following should be brought to the space left above?

Tourism sector organizations

Educational sector organizations

Service-sector organizations

Merchandising-sector organizations

Manufacturing-sector organizations

Açıklama:

The correct answer is D. For merchandising-sector organizations, inventoriable costs are the costs of purchasing the goods that are resold in the same form. Manufacturing-sector organizations, all manufacturing costs are inventoriable costs. In service-sector organizations, there are no inventoriable costs, there are only service costs. Tourism sector and educational sector organizations are service-sector organizations.

Doğru Cevap: D

Soru 49

I. To find the price of product or service
II. Planning and controlling activities
III. Decision-making process
Which of the above is/are takes place in the main purposes of cost accounting?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Cost accounting can be defined as a system in which financial data regarding business transactions are collected, classified, recorded, evaluated and reported for the following three purposes:
• To find the cost of product or service, (NOT THE PRICE OF PRODUCT/SERVICE)
• Planning and controlling activities,
• Decision-making process.

Doğru Cevap: D

Soru 50

Which one of the following is not included in the benefits of unit cost information?

Determining the selling price of a product

Meeting competition

Bidding on contracts

Analyzing profitability

Contact with customers

Açıklama:

Unit cost information is also helpful in making important marketing
decisions such as:

Determining the selling price of a product
Meeting competition
Bidding on contracts
Analyzing profitability

Doğru Cevap: E

Soru 51

Which of the following does the definition "A resource sacrificed or forfeit to achieve a specific objective" mean?

Cost

Purchase

Profit

Loss

Income

Açıklama:

Cost is a resource sacrificed or forfeit to achieve a
specific objective.

Doğru Cevap: A

Soru 52

Which of the following is incorrect information about cost flows and classifications in a manufacturing company?

Cost of goods sold is showed to the balance sheet.

The finished products stand in the balance sheet until they are sold.

When raw materials are used in production, their costs are transferred to the Work in Process inventory account as direct materials.

Direct labor cost is added directly to Work in Process.

Raw materials purchases are recorded in the Raw Materials inventory account.

Açıklama:

The correct answer to question is option A. Cost of goods sold is showed to the income statement.

Doğru Cevap: A

Soru 53

Which of the following is a direct cost?

Zipper in pants

Button in the jacket

Flour in the bread

Glue in the book

Paper in the magazine

Açıklama:

A direct cost is a price that can be
completely assigned to the production
of specific goods or services. However,
indirect costs are costs that are not directly
responsible to a cost object.

Doğru Cevap: C

Soru 54

Which of the following is not one of the area management accounting in decision-making?

Allocating resources

Performance evaluation and control

Determining costs and benefits

Developing objectives and plans

Preparation of financial statements

Açıklama:

The correct answer is question E. The areas of management accounting in decision-making can be explained in detail:

Developing objectives and plans
Performance evaluation and control
Allocating resources
Determining costs and benefits.

Doğru Cevap: E

Soru 55

Which of the following is an indirect cost?

Flour in the cake

Fabric in the jacket

Orange in the fruit juice

Paper in the book

Button in the shirt

Açıklama:

Indirect costs: These are the costs that are not directly identified with a cost object. Example: Lease cost for the company building housing the editors of The X Sports magazine

Doğru Cevap: E

Soru 56

I. Direct raw material cost
II. Direct labor cost
III. Manufacturing (factory) overhead cost
Which of the above takes place in the manufacturing costs?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Manufacturing (product) cost is grouped under three headings:
• Direct raw material cost
• Direct labor cost
• Manufacturing (factory) overhead cost

Doğru Cevap: E

Soru 57

Which of the following contains the costs at which all indirect costs associated with production are monitored?

Direct raw material cost

Direct labor cost

Manufacturing overhead cost

Marketing or selling expenses

Administrative expenses

Açıklama:

The manufacturing overhead costs are the
costs at which all indirect costs associated
with production are monitored.

Doğru Cevap: C

Soru 58

Which of the following represents cost behavior that is directly related to changes in the volume of operations and increases when the volume of activity increases and is zero?

Fixed costs

Variable costs

Mixed costs

Total costs

Overhead costs

Açıklama:

Variable costs represent cost behavior that is directly related to changes in the volume of operations
and increases when the volume of activity increases and is zero.

Doğru Cevap: B

Soru 59

Which of the following can be defined as costs that are not affected by changes in operating volume at least in the short run?

Variable costs

Mixed costs

Fixed costs

Overhead costs

Total costs

Açıklama:

Fixed costs are defined as costs that are not affected by changes in operating volume at least in the short run.

Doğru Cevap: C

Ünite 2

Soru 1

Which one of the following costs are the costs of the material used in the product which can be easily traced?

Indirect costs

Overhead costs

Direct material costs

Labour costs

Managerial costs

Açıklama:

Direct material costs are the costs of the material used in the product which can be easily traced.

Doğru Cevap: C

Soru 2

Which one of the following costs are the costs that are related to the product but cannot be traced easily and also there may be some costs that are not included product, but they are consumed for the production purposes?

Indirect costs

Direct material costs

Standard costs

Process costs

Actual costs

Açıklama:

Indirect costs are the costs that are related to the product but cannot be traced easily and also there may be some costs that are not included product, but they are consumed for the production purposes.

Doğru Cevap: A

Soru 3

Which one of the following is not among the expenses for raw materials and supplies can be traced within a four-step approach?

Determination of purchase costs

Documentation and recording process

Pricing the consumption

Determination of consumption

Determination of production

Açıklama:

Determination of production is not among the expenses for raw materials and supplies can be traced within a four-step approach.

Doğru Cevap: E

Soru 4

Which one of the following is used for drawing materials from the warehouse?

Inventory card

Raw material

Warehouse receipt document

Materials request slip

Economic order quantity

Açıklama:

Materials Request Slip is used for drawing materials from the warehouse.

Doğru Cevap: D

Soru 5

XYZ Company purchased 2.000 pieces (a) raw material for 12.000 TL for shoe production. Company also paid 1.500 TL for insurance and 1.000 TL for custom fee. 4.000 of transportation fee belongs to the supplier community. Calculate the purchase cost of the material.

13.000 TL

13.500 TL

14.500 TL

18.500 TL

22.000 TL

Açıklama:

Cost of the (a) raw material should be calculated as follows: Material cost + insurance + custom fee. 12.000 + 1.500 + 1.000 = 14.500 TL

Doğru Cevap: C

Soru 6

According to the FIFO method which one of the following is the cost of materials used for production?

800 TL

900 TL

1.000 TL

1.200 TL

1.300 TL

Açıklama:

According to FIFO cost of the used material is: (25 x 15 TL) + (15 x 15 TL) + (40 x 15 TL) + (5 x 20 TL) = 1.300 TL

Doğru Cevap: E

Soru 7

According to FIFO, calculate the cost of the material at the warehouse at the end of the period.

700 TL

800 TL

900 TL

1.000 TL

1.100 TL

Açıklama:

According to FIFO, cost of the material at the warehouse should be calculated as follows: (15 x 20 TL) + (20 x 25 TL) = 800 TL
According to FIFO, cost of the material at the warehouse should be calculated as follows: (10 x 20 TL) + (20 x 25 TL) = 700 TL

Doğru Cevap: A

Soru 8

ABC Company produces heating spirals for refrigerators. The daily use of raw material is 350 kg. Lead time is 3 days and the management determined the safety stock level as 60 kg. Calculate the order point for the material.

410 kg

700 kg

810 kg

1.110 kg

1.200 kg

Açıklama:

The daily usage of raw material is 350 kg. With the lead time taken into calculation (3 days), the total amount will be 1.050 kg (350x3). Safety stock is predetermined as 60 kg. So, when lead time and safety stock is considered 1.050 kg + 60 kg = 1.110 kg The company should reorder raw material when the material on hand decreases to 1.110 kg.

Doğru Cevap: D

Soru 9

Which system classifies and ranks the inventories according to their respective costs or usages?

Order cycling system

ABC system

Min-max plan

The two-bin system

VED analysis

Açıklama:

ABC system classifies and ranks the inventories according to their respective costs or usages.

Doğru Cevap: B

Soru 10

In which inventory monitoring system companies classify their materials according to their “absence” costs?

VED analysis

JIT system

The two-bin system

Min-max plan

ABC system

Açıklama:

In VED analysis, companies classify their materials according to their “absence” costs.

Doğru Cevap: A

Soru 11

......................................... are the costs of the material used in the product which can be easily traced.
Which of the following should come to the dotted place according to the whole sentence?

İndirect costs

Direct material costs

Purchase cost

İnverntory flow cost

Continuity cost

Açıklama:

It should be Direct material cost

Doğru Cevap: B

Soru 12

.................................are the costs that are related to the product but cannot be traced easily and also there may be some costs that are not included product, but they are consumed for the production purposes.
Which of the following should come to the dotted place according to the whole sentence?

Direct cost

İndirect cost

labor cost

Continuity cost

Purchase cost

Açıklama:

It should be indirect cost

Doğru Cevap: B

Soru 13

The expenses for raw materials and supplies can be traced within a four-step approach.
Which one is not one of them ?

Documentation and recording process

Determination of purchase costs

Determination of consumption

Pricing the consumption

Determination of labor

Açıklama:

Determination of labor is not one of them

Doğru Cevap: E

Soru 14

The companies use inventory flow assumptions in order to identify the cost of the material issued to production and the ending inventory.
Which one is not one of these assumptions?

Specified Price

First-in-First-Out

Weighted Average Cost

Replacement Cost

Lowest-in-First-Out

Açıklama:

Lowest-in-First-Out is not one of them

Doğru Cevap: E

Soru 15

....................................it is assumed that the material issued to the production is from the initial purchased material from the inventory.
Which of the following should come to the dotted place according to the whole sentence?

Last-in-First-Out

Highest-in-First-Out

Weighted Average Cost

Moving Average Cost

First-in-First-Out

Açıklama:

ıt should be First-in-First-Out

Doğru Cevap: E

Soru 16

......................... an average price is calculated for a period by the relation between quantities and costs.The company calculates just one average price for the whole period.
Which of the following should come to the dotted place according to the whole sentence?

Specified Price

Replacement Cost

Standard Cost

Weighted Average Cost

Highest-in-First-Out

Açıklama:

It should be Weighted Average Cost

Doğru Cevap: D

Soru 17

Inventories are one of the important assets of a company. Monitoring the inventories is as important as controlling them. There are several ways for monitoring the inventories.
Which one is not one of them ?

Min-Max Plan

The Two-Bin System

Order Cycling System

VED Analysis

JIB System

Açıklama:

JIB System is not one of them

Doğru Cevap: E

Soru 18

......................................is one of the oldest inventory monitoring techniques. In this technique, a minimum and a maximum level is determined for each material in the inventory. When the inventory decreases to the minimum level, purchase order is prepared for the material to reach the maximum level.
Which of the following should come to the dotted place according to the whole sentence?

The Two-Bin System

Order Cycling System

ABC Analysis

VED Analysis

Min-Max Plan

Açıklama:

It should be Min-Max Plan

Doğru Cevap: E

Soru 19

..................................... system is the purchase of materials just in time and just as the quantity needed. ......................... system is also used for production.
Which of the following should come to the dotted place according to the whole sentence?

JIT(Just in time) system

VED Analysis

Order Cycling System

The Two-Bin System

ABC System

Açıklama:

It should Just in time(JIT) System

Doğru Cevap: A

Soru 20

Which of the following is not the raw materials of the product?

Hardboard- Wardrobe

Leather-Shoes

Rubber- Tire

Grape- Wine

Paper-Table

Açıklama:

The correct answer is question E. The first item of the table is wood.

Doğru Cevap: E

Soru 21

What is the monetary value of all materials used or consumed in production?

Direct labor cost

Direct cost

İndirect cost

Direct material cost

Manufacturing overhead costs

Açıklama:

The correct answer is D. Direct material costs are the cost of the material used in the product which can be easily traced.

Doğru Cevap: D

Soru 22

Which of the following is the correct information about direct material cost?

It is not possible to directly determine how much the direct material cost is consumed for which product.

The manufacturing company cannot produce its own direct materials directly.

Raw material costs can be assigned directly to the product.

Raw materials do not form the structure of the product.

Raw material is not used directly during production.

Açıklama:

The correct answer is C.

Doğru Cevap: C

Soru 23

Which of the following is not a inventory flow assumptions?

First-in-First-Out (FIFO)

Weighted Average Cost

Factory cost method

Replacement Cost

Last-in-First-Out (LIFO)

Açıklama:

The correct answer is C. The companies use inventory flow assumptions in order to identify the cost of the material issued to production and the ending inventory. These assumptions are;
• Specified Price
• First-in-First-Out (FIFO)
• Last-in-First-Out (LIFO)
• Highest-in-First-Out (HIFO)
• Weighted Average Cost
• Moving Average Cost
• Replacement Cost
• Standard Cost

Doğru Cevap: C

Soru 24

Which of the following cannot be inventory for a enterprises located across?

Shirt- Textile Factory

Bread-Bakery

Peanut- Chocolate Factory

Board-Table Factory

Ink-Hotel

Açıklama:

The correct answer is question E. Hotels is a service business. Therefore they do not have stocks.

Doğru Cevap: E

Soru 25

The inventory movements of the raw material in March of a manufacturing company are as follows:

Date of Purchase	Transaction	Quantity (liters)	Unit Cost	Total Cost
1 March	Beginning Inventory	700	600
12 March	purchase	800	650	420.000
18 March	issued	900	520.000
23 March	purchase	1.000	600	600.000
27 March	issued	1.200

According to this information, what is the cost of the material sent to production in March according to FIFO method?

1.320.000

1.336.000

1.600.000

1.273.000

1.300.000

Açıklama:

According to FIFO method:
18 March: 700X600= 420.000 and 200x650=130.000
27 March: 600x650=390.000 and 600x600=360.000
Inventory cost sent to total production= 1.300.000

Doğru Cevap: E

Soru 26

The inventory movements of the raw material in March of a manufacturing company are as follows:

Date of Purchase	Transaction	Quantity (liters)	Unit Cost	Total Cost
1 March	Beginning Inventory	700	600
12 March	purchase	800	650	420.000
18 March	issued	900	520.000
23 March	purchase	1.000	600	600.000
27 March	issued	1.200

According to this information, what is end of period inventory cost in March according to FIFO method?

1.00.000

1.100.000

1.200.000

1.300.000

1.400.000

Açıklama:

At the end of the period, there are 600 unit inventory with a unit cost of 600 TL. End of period inventory cost is 1.200.000 TL

Doğru Cevap: C

Soru 27

The inventory movements of the raw material in March of a manufacturing company are as follows:

Date of Purchase	Transaction	Quantity (liters)	Unit Cost	Total Cost
1 March	Beginning Inventory	700	600
12 March	purchase	800	650	420.000
18 March	issued	900	520.000
23 March	purchase	1.000	600	600.000
27 March	issued	1.200

According to this information, what is the cost of the material sent to production in March according to LIFO method?

900.000

1.000.000

1.150.000

1.200.000

1.300.000

Açıklama:

According to LIFO method:
18 March: 800X650=520.000 and 100X600=60.000
27 March: 1.000X600=600.000 and 200X600=120.000
Inventory cost sent to total production= 1.300.000

Doğru Cevap: E

Soru 28

The inventory movements of the raw material in March of a manufacturing company are as follows:

Date of Purchase	Transaction	Quantity (liters)	Unit Cost	Total Cost
1 March	Beginning Inventory	700	600
12 March	purchase	800	650	420.000
18 March	issued	900	520.000
23 March	purchase	1.000	600	600.000
27 March	issued	1.200

According to this information, what is the end of period inventory cost in March according to LIFO method?

230.000

240.000

250.000

260.000

270.000

Açıklama:

At the end of the period, there are 400 unit inventory with a unit cost of 600 TL. End of period inventory cost is 240.000 TL

Doğru Cevap: B

Soru 29

The inventory movements of the raw material in March of a manufacturing company are as follows:

Date of Purchase	Transaction	Quantity (liters)	Unit Cost	Total Cost
1 March	Beginning Inventory	700	600
12 March	purchase	800	650	420.000
18 March	issued	900	520.000
23 March	purchase	1.000	600	600.000
27 March	issued	1.200

According to this information, what is the cost of the material sent to production in March according to Weighted Average Method?

1.295.910

1.300.000

1.425.000

1.500.000

1.530.000

Açıklama:

According to Weighted Average Method:
18 March : 900X626,6=563.940 TL
27 March: 1.200X609,975= 731.970 TL
Inventory cost sent to total production: 1.295.910 TL

Doğru Cevap: A

Soru 30

Which one is correct about direct material costs?

Direct maretial costs cannot be traced easily.

Direct material costs are the cost of the material used in the product.

Direct materials can both be in the product and also they are used in the production process.

Direct materials are recognized as overhead costs when they are consumed.

Direct costs have to be allocated for the products produced.

Açıklama:

Direct costs are the costs that can be traced easily within the cost object. These aredirect material costs and direct labor costs. Direct material costs are the cost of the material used in the product which can be easily traced. For example, if the company can calculate the amount of carbon fiber material used in the frame of a carbon bicycle, then the carbon fiber used is assigned as direct material cost for the product.

Doğru Cevap: B

Soru 31

__________ is used for drawing materials from the warehouse.

Materials request slip

Warehouse receipt document

Balance column

Purchase cost

Periodic inventory systems

Açıklama:

Materials are drawn from the warehouse by the Materials Request Slip. This is the substantiating document that shows the inventory flow from the warehouse to the production plant. The slip carries information about the name, code and the quantity of the material, the name of the requester, sender and receiver and some other necessary information.

Doğru Cevap: A

Soru 32

When the material is consumed, it is recorded into ______________ with amount, unit cost and total cost.

Balance column

Issued column

Receipt column

Explanation column

Debit column

Açıklama:

When the company makes purchases the amount and the unit cost of the material is recorded into the Receipts column with the total cost. When the material is consumed, it is recorded into the Issues column with amount, unit cost and total cost. The difference between receipt and consumed is recorded as remaining material into the Balance column.

Doğru Cevap: B

Soru 33

In periodic inventory system what gives us the materials that are consumed?

Beginning inventory-Puchases=Material consumed

Beginning inventory-Ending inventory=Material consumed

Ending inventory+Begiinning inventory=Material used

Material available for consuming+Beginning inventory=Material consumed

Material available for consuming-Ending inventory=Materail consumed

Açıklama:

Doğru Cevap: E

Soru 34

In which method it is assumed that the material issued to the production is from the initial purchased material from the inventory?

FIFO method

LIFO metfod

HIFO

Specified method

Standard Method

Açıklama:

In FIFO method, it is assumed that the material issued to the production is from the initial purchased material from the inventory.

Doğru Cevap: A

Soru 35

In which method an average price is calculated for a period by the relation between quantities and costs?

FIFO

HIFO

LIFO

Weighted avarage method

Moving avarage method

Açıklama:

In weighted average method, an average price is calculated for a period by the relation between quantities and costs. The company calculates just one average price for the whole period. The average price is calculated as;
(Cost of Beginning Inventory+Cost of Receipts)/(Beginning Inventory+TotalQuantityof Receipts)

Doğru Cevap: D

Soru 36

When the company wants to use a simple method for valuing its inventories, which method should it use?

HIFO

Weighted avarage method

Moving avarage method

Replacement cost method

Standard cost method

Açıklama:

When the company wants to use a simple method for valuing its inventories, it is the standard cost method. Standard cost of a material is the cost that is predetermined by specific methods for a period that is affected by various factors like market prices, transportation costs, etc

Doğru Cevap: E

Soru 37

___________ involves order point and economic order quantity.

Investment control

Economic ordering quantity

Inventory planning

Safeguarding of materials

Segregating of duties

Açıklama:

The investment control consisting order point and the economic order quantity. Order point is an important issue for inventory policies. Over investment in materials yields to unproductivity so as lack of materials for production have the same effect on the company.

Doğru Cevap: A

Soru 38

________ is used to determine when the materials should be replenished.

VED analysis

Min-max system

ABC system

The two-bin system

Order cycling system

Açıklama:

The two-bin system is used to determine when the materials should be replenished. The first bin is for the materials that are being used in the production. The second bin is the substitute bin that is used in the lead time. When the materials in the first bin consumed, a new material order is given. Until the arrival of the new material, production is carried on with the materials in the second bin.

Doğru Cevap: D

Soru 39

_________ is the purchase of materials just in time and just as the quantity needed.

VED analysis

ABC system

JIT system

Order cycling system

The two-bin system

Açıklama:

JIT(Just-in-Time) system is the purchase of materials just in time and just as the quantity needed. Just-in-time system is also used for production. As a whole, JIT system aims not only decrease the inventory levels so as the costs related to inventory but also shortens production time, decrease the level of spoilage and defects, leaning the procedures of purchasing and simplifies the accounting transactions.

Doğru Cevap: C

Ünite 3

Soru 1

Which of the following is one of the labour costs related to actual work?

Week and Holiday Pays

Production and Efficiency Premium

Education and Training Payments

Health Payments

Severance Payments

Açıklama:

Labour costs related to actual work are:

Basic pay
Overtime pay
Production and Efficiency Premium

Doğru Cevap: B

Soru 2

Which of the following is not a labor cost related to legal or/and contractual enforcement or discretionary reasons?

Overtime Pay

Night/Shift Premium

Holiday Pay

Social Security Premiums

Allowences

Açıklama:

Labor Costs related to Legal or/and Contractual Enforcement or Discretionary Reasons are:

Week and Holiday Pays
Overtime Premium
Night/Shift Premium
Social Welfare Contributions
Health Payments
Holiday Pay
Allowances
Education and Training Payments
Severance Payments
Social Security Premiums
Unemployment Insurance Premiums

Doğru Cevap: A

Soru 3

I.Time-based system
II. Piece based system
III. Premium based system
Which of the systems above ignores productivity?

Only I

Only II

Only III

I and II

I, II and III

Açıklama:

Under the time-based system, the important point is the time that employee spends at work. The measure of time can be the hour, day, week or month. Under this system, productivity is ignored, only time is considered.

Doğru Cevap: A

Soru 4

In which account are direct labor costs incurred in a manufacturing company tracked?

740 Cost of Production of Services

730 Manufacturing Overhead

723 Direct Labor Time Differences

720 Direct Labor Expenses

722 Direct Labor Wage Differences

Açıklama:

Direct labor costs incurred in a manufacturing company are tracked by 720 Direct Labor Expenses account.

Doğru Cevap: D

Soru 5

Which account shows indirect labor costs incurred in a service company?

721 Reflection Accounts for Direct Labor Expenses

722 Direct Labor Wage Differences

723 Direct Labor Time Differences

730 Manufacturing Overhead

740 Cost of Production of Services

Açıklama:

Direct labor costs incurred in a service company are tracked by 740 Cost of Production of Services account and indirect labor costs incurred in a service company are tracked again by 740 Cost of Production of Services account.

Doğru Cevap: E

Soru 6

Which of the following refers to wages paid for an unproductive time caused by several ordinary and extraordinary reasons?

Overtime Premium

Labor Costs

Idle Time

Payroll

Allowences

Açıklama:

Idle time refers to wages paid for an unproductive time caused by several ordinary and extraordinary reasons.

Doğru Cevap: C

Soru 7

Which of the following terms refers to work which exceeds forty-five hours a week?

Overtime work

Idle time

Labor cost

Time-based system

Premium based system

Açıklama:

Overtime work is defined in the Labor Act of Turkey Law no. 4857. Article 41 states that overtime work is work which exceeds forty-five hours a week.

Doğru Cevap: A

Soru 8

Which is not one of the circumstances in which idle time may occur?

Lack of orders

Machine or computer breakdowns

Poor scheduling

Need to increase output

Maintenance or repair of the machines

Açıklama:

Idle time is not related to a particular product; on the contrary, it is related to ordinary and/or extraordinary circumstances. Those circumstances can be lack of orders, machine or computer breakdowns, work delays, poor scheduling, maintenance or repair of the machines.

Doğru Cevap: D

Soru 9

Which of the following terms refers to the process that includes calculating wages, withholding taxes and other deductions?

Overtime work

Premium

Payroll

Idle time

Labor cost

Açıklama:

Payroll is not a salary or wage. Payroll or payroll register is a process. The process includes calculating wages, withholding taxes and other deductions.

Doğru Cevap: C

Soru 10

Which of the following terms refers to the costs that are traceable to a specific cost object?

Idle time

Overtime work

Premium

Indirect labor cost

Direct labor cost

Açıklama:

Costs that are traceable to a specific cost object are referred to as direct costs; costs that are not traceable to a specific cost object are referred to as indirect costs.

Doğru Cevap: E

Soru 11

Which of the followings is not one of the elements of labor cost?

Week and Holiday Pays

Employment Insurance Premiums

Education and Training Payments

Social Welfare Contributions

Production and Efficiency Premium

Açıklama:

ELEMENTS OF LABOR COSTS
Not Employment Insurance Premiums but Unemployment Insurance Premiums.

Doğru Cevap: B

Soru 12

Which of the followings is one of the labor costs related to actual work?

Week and Holiday Pays

Overtime Premium

Night/Shift Premium

Production and Efficiency Premium

Social Welfare Contributions

Açıklama:

ELEMENTS OF LABOR COSTS
Production and Efficiency Premium is one of the Labor Costs Related to Actual Work

Doğru Cevap: D

Soru 13

Which of the followings is a feature of "Direct Labor Costs"?

It does not matter whether the employee is working for that company for full time or not.

They cover all payments done for indirect labor.

They refer to employees who are necessary for operations but who are not directly involved in the production or service process.

In a manufacturing plant, the supervisor that oversees operations but not involved in the production process is a part of direct labor cost.

In a restaurant payment for cleaning person that works in the kitchen but never works for cooking is a part of direct labor cost.

Açıklama:

Direct Labor Costs
It does not matter whether the employee is working for that company for full time or not. Direct labor comprises not only full- time employees but also part-time employees, temporary employees, and contractual employees as long as they are directly involved in operations.

Doğru Cevap: A

Soru 14

Which of the followings refers to payments made to employees for regular work plus other payments such as premiums, allowances, social welfare payments and etc?

Wage

Basic pay

Vested wage

Gross wage

Net Pay

Açıklama:

DETERMINING LABOR COSTS
Vested wage refers to payments made to employees for regular work plus other payments such as premiums, allowances, social welfare payments and etc.

Doğru Cevap: C

Soru 15

Which of the followings refers to wage, which has not yet been object to any deduction due to legal enforcement?

Wage

Basic wage

Vested wage

Gross wage

Net wage

Açıklama:

DETERMINING LABOR COSTS
Gross wage refers to wage, which has not yet been object to any deduction due to legal enforcement.

Doğru Cevap: D

Soru 16

Which of the followings is a process calculating wages, withholding taxes and other deductions?

Payroll

Payment System

Indirect Labor Cost

Idle Time

Overtime Work

Açıklama:

Payroll Related Issues
Payroll is not a salary or wage. Payroll or payroll register is a process. The process includes calculating wages, withholding taxes and other deductions.

Doğru Cevap: A

Soru 17

Which of the followings refers to wages paid for an unproductive time caused by several ordinary and extraordinary reasons?

Direct labor cost

Indirect Labor Cost

Payment System

Idle Time

Overtime Work

Açıklama:

Idle time refers to wages paid for an unproductive time caused by several ordinary and extraordinary reasons.

Doğru Cevap: D

Soru 18

Which of the following statements is not true regarding labor costs?

Labor is classified as direct labor and indirect labor.

Direct and indirect labor distinction depends on the employer.

If an employee directly involved in the production of goods and services, and then that employee is considered direct labor.

If an employee is not directly involved in the production, that employee is considered as indirect labor.

Direct labor cost includes wages paid to direct labor.

Açıklama:

Identify direct labor costs and indirect labor costs
Labor is classified as direct labor and indirect labor. This kind of distinction depends on the employee.

Doğru Cevap: B

Soru 19

Which of the following statements is true for the premium-based system?

It focuses on the target, and the employee is paid a basic wage and premium for his/her efficient work.

It focuses on output and ignores the time spent at work.

Lack of this system is ignoring the competitiveness among employees to earn much more money.

Management of this system is difficult when the behavior employees are considered.

There are two main applications of this system; money accord and time accord.

Açıklama:

Identify direct labor costs and indirect labor costs
The premium-based system focuses on the target, and the employee is paid a basic wage and premium for his/her efficient work.

Doğru Cevap: A

Soru 20

Which of the following statements is not true regarding the elements that are subject to labor costs?

Wage is the main element of labor cost.

There is no basic wage paid to employees because of their normal work and some other additional payments.

Other than actual work of labor, employees are paid due to legal or/and contractual enforcement or discretionary reasons.

Wage is the amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by him.

Payments are all related to the actual work of labor.

Açıklama:

Define the elements that are subject to labor costs
There is a basic wage paid to employees because of their normal work and some other additional payments such as overtime payment and premium payment for production and efficiency. They are all related to the actual work of labor.

Doğru Cevap: B

Soru 21

Which of the following excludes indirect labor cost?

Holiday payments

Night/shift premium

Over-time premium

Wage

Social welfare contributions

Açıklama:

The correct answer is D. Indirect labor costs includes week and holiday payments, over-time premium, night/shift premium, social welfare contributions, health payments, holiday pay, allowances, education and training payments, severance payments, social security premiums and unemployment insurance premiums.

Doğru Cevap:

Soru 22

.................. are fixed payments to employees for their performance and productivity working on a monthly basis. However, ............. are payments to employees working on an hourly or daily basis.
Which of the following should be brought to the places left blank above?

Salaries- wages

Holiday Pay-Wages

Salaries- Health Payments

Health Payments-Holiday Pays

Wages- Social Security Premiums

Açıklama:

The correct answer to question is option A. Salaries are fixed payments to employees for their performance and productivity working on a monthly basis. However, wages are payments to employees working on an hourly or daily basis.

Doğru Cevap: A

Soru 23

I. Lack of this system is ignoring the competitiveness among employees to earn much more money.
II. It focuses on output.
III. It ignores the time spent at work.
Which of the following options is given above?

Piece-based system

Premium-based system

Money accord system

Time-based system

Time accord system

Açıklama:

The correct answer to question is option A. The piece-based system focuses on output and ignores the time spent at work. Lack of this system is ignoring the competitiveness among employees to earn much more money. There are two main applications of this piece-based system; money accord and time accord.

Doğru Cevap: A

Soru 24

The definition of "the amount of money to be paid by the employer by a third party to a person in return for work performed by him" refers to which of the following?

Wage

Salary

Cost

Income

Spending

Açıklama:

Wage is defined in the Labor Act of Turkey
Law no. 4857 by Article 32 as follows; “Wage
is, in general terms, the amount of money to
be paid in cash by an employer or by a third
party to a person in return for work performed
by him”

Doğru Cevap: A

Soru 25

Direct labor costs incurred in a manufacturing company are tracked by .......................
Which of the following accounts should be brought to the space left above?

730 Manufacturing Overhead account

740 Cost of Production of Services

720 Direct Labor Expenses account

722 Direct Labor Wage Differences

721 Reflection Accounts for Direct Labor Expenses

Açıklama:

The correct answer is C. Direct labor costs incurred in a manufacturing company are tracked by 720 Direct Labor Expenses account.

Doğru Cevap: C

Soru 26

I. Basic Pay
II. Week and Holiday Pays
III. Social Security Premiums
Which of the above takes place in elements of labor cost?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Below the elements of labor cost are listed;
• Basic Pay
• Week and Holiday Pays
• Overtime Payment/Premium
• Night/Shift Payment/Premium
• Production and Efficiency Premium
• Holiday Pay
• Allowances (ie. traveling allowance)
• Education and Training Payments
• Social Welfare Contributions
• Health Payments
• Severance Payments
• Social Security Premiums
• Unemployment Insurance Premiums

Doğru Cevap: E

Soru 27

What is the definition of "fixed payments for employees for their performance and productivity work on a monthly basis" mean?

Cost

Salary

Wage

Income

Spending

Açıklama:

Salaries are fixed payments to employees for their performance and productivity working on a monthly basis.

Doğru Cevap: B

Soru 28

I. Basic pay
II. Overtime pay
III. Holiday pay
Which of the above is included in labor costs related to actual work?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

Basic pay, overtime pay and production and efficiency payment are directly related to the actual work of the employee.

Doğru Cevap: C

Soru 29

Which of the following is not included in labor costs related to legal or/and contractual enforcement or discretionary reasons?

Social Welfare Contributions

Production and Efficiency Premium

Education and Training Payments

Social Security Premiums

Unemployment Insurance Premiums

Açıklama:

Basic pay, overtime pay and production and efficiency payment are directly related to the actual work of the employee.

Doğru Cevap: B

Soru 30

Which of the following is a direct labor cost?

Allowances

Holiday Pay

Overtime Pay

Severance Payments

Health Payments

Açıklama:

Only basic payment, overtime payment, and production and efficiency payment of direct labor are considered direct labor costs.

Doğru Cevap: C

Soru 31

Which of the following systems is based on "the time that employee spends at work"?

Piece-based system

Time-based system

Accord system

Premium-based system

Salary-based system

Açıklama:

Under the time-based system, the important point is the time that employee spends at work.

Doğru Cevap: B

Soru 32

Which of the following focuses on the units that
employees produce and ignores the time spent

Time-based system

Piece-based system

Premium-based system

Salary-based system

Wage-based system

Açıklama:

Under the piece-based system, the output is
considered. This system focuses on the units that
employees produce and ignores the time spent.

Doğru Cevap: B

Soru 33

Which of the following is the journal entry for the record to of indirect labor
cost in a manufacturing company?

Manufacturing Overhead debit, Payables to Employees, Taxes and Funds Payable, Social Security Premiums Payable credit.

Direct Labor Expenses debit, Payables to Employees, Taxes and Funds Payable credit.

Manufacturing Overhead debit, Payables to Employees credit.

Manufacturing Overhead debit, Payables to Employees, Taxes and Funds Payable credit.

Payables to Employees, Taxes and Funds Payable debit, Manufacturing Overhead credit

Açıklama:

The correct answer to question is option A. The journal entry for the record of indirect labor cost in a manufacturing company is Manufacturing Overhead debit, Payables to Employees, Taxes and Funds Payable, Social Security Premiums Payable credit.

Doğru Cevap: A

Soru 34

Which of the following based on the approach that employee is paid a basic wage and premium for his/her efficient work?

Time-based system

Piece-based system

Premium-based system

Salary-based system

Accord system

Açıklama:

Under premium-based system employee is paid a basic wage and premium for his/her efficient work.

Doğru Cevap: C

Soru 35

Which of the below the account in which direct labor costs incurred in a service
company are tracked?

Manufacturing Overhead

Payables to Employees

Social Security Premiums Payable

Taxes and Funds Payable

Cost of Production of Services

Açıklama:

The correct answer is option E. Direct labor costs incurred in a service company are tracked by 740 Cost of Production of Services account.

Doğru Cevap: E

Soru 36

Which of the following is also known as "accord system"?

Time-based system

Piece-based system

Premium-based system

Salary-based system

Wage-based system

Açıklama:

Piece-based system is also known as "accord system".

Doğru Cevap: B

Soru 37

...................... focuses on the target, and the employee is paid a basic wage and premium for his/her efficient work.
Which of the following should be brought to the space left above?

The piece-based system

The time-based system

The premium-based system

Money accord system

Time accord system

Açıklama:

The correct answer is C. The premium-based system focuses on the target, and the employee is paid a basic wage and premium for his/her efficient work.

Doğru Cevap: C

Soru 38

Which of the following in which accounts indirect labor costs incurred in a manufacturing company are tracked?

721 Reflection Accounts for Direct Labor Expenses

740 Cost of Production of Services

720 Direct Labor Expenses

730 Manufacturing Overhead account.

723 Direct Labor Time Differences

Açıklama:

The correct answer is D. İndirect labor costs incurred in a manufacturing company are tracked by 730 Manufacturing Overhead account.

Doğru Cevap: D

Soru 39

Anadolu Company determines basic wage by money accord approach. This company decided that an employee could produce 5 units of product per hour in normal conditions. Hourly payment is 20 TL ,which has been determined by a collective bargaining agreement. During May 2019, Employee X worked for 150 hours and produced 500 units of product.
According to the information given above, how much is gross Wage per month?

100

200

400

500

600

Açıklama:

Payment per unit= 20/5=4 TL
Gross Wage per month = 4x150 units=600 TL

Doğru Cevap: E

Soru 40

I. It is regarded as indirect labor costs.
II. It refers to wages paid for an unproductive time caused by several ordinary and extraordinary reasons.
III. It is related to ordinary and/or extraordinary circumstances.
Which type of cost is given in the above statements?

Overtime Premium

Idle Time

Tracking Labor Costs

Holiday Pay

Health Payments

Açıklama:

The correct answer is B. Idle time labor costs are regarded as indirect labor costs. Idle time refers to wages paid for an unproductive time caused by several ordinary and extraordinary reasons.

Doğru Cevap: B

Soru 41

Which of the following does the definition "The amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by him" mean?

Wage

Cost

Payment

Income

Cost

Açıklama:

Doğru Cevap: A

Soru 42

Which of the following is not included in the elements of labor cost?

Week and Holiday Pays

Production and Efficiency Premium

Raw material costs

Education and Training Payments

Severance Payments

Açıklama:

Doğru Cevap: C

Soru 43

Which of the following described as fixed payments to employees for their performance and productivity working on a monthly basis?

Wage

Salary

Income

Cost

Profit

Açıklama:

Salaries are fixed payments to employees for their performance and productivity working on a monthly basis.

Doğru Cevap: B

Soru 44

Which of the following is directly related to the actual work of the employee?

Unemployment Insurance Premiums

Social Security Premiums

Production and Efficiency Payment

Social Welfare Contributions

Severance Payments

Açıklama:

Basic pay, overtime pay and production and efficiency payment are directly related to the actual work of the employee.

Doğru Cevap: C

Soru 45

Which of the following is a direct labor cost?

Overtime Pay

Holiday Pay

Allowances

Health Payments

Overtime Premium

Açıklama:

Direct Labor Costs:

Basic Pay
Overtime Pay
Production and Efficiency Premium

Doğru Cevap: A

Soru 46

I. Time-based system
II. Quality-based system
III. Piece-based system
Which of the above is/are takes place in the main methods to determine basic pay?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

There are three main methods to determine basic pay. Those methods are the time-based system, piece-based system (accord system) and premium-based system.

Doğru Cevap: C

Soru 47

Which of the following focuses only the time that employee spends at work and ignores other variances?

Time-Based System

Piece Based System

Accord System

Premium Based System

Salary based system

Açıklama:

Under the time-based system, the important point is the time that employee spends at work. The
measure of time can be the hour, day, week or month. Under this system, productivity is ignored, only time is considered.

Doğru Cevap: A

Soru 48

Which of the following is also known as accord system?

Time-Based System

Piece Based System

Premium Based System

Wage Based System

Salary Based System

Açıklama:

Piece Based System is also known as accord system.

Doğru Cevap: B

Soru 49

Which of the following is a basic pay system that an employee is paid a basic wage and premium for his/her efficient work?

Time-Based System

Piece Based System

Premium Based System

Accord System

Salary Based System

Açıklama:

Under premium-based system employee is
paid a basic wage and premium for his/her efficient work.

Doğru Cevap: C

Soru 50

Which of the following does not related to labor costs?

720 Direct Labor Expenses

722 Direct Labor Wage Differences

730 Manufacturing Overhead

710 Direct Raw Materials

740 Cost of Production of Services

Açıklama:

There are two main types of labor costs; direct
labor costs and indirect labor costs. Direct labor
costs are regulated under the account group 72 in
Turkish Uniform Chart of Accounts. Indirect labor
costs are accumulated in manufacturing overhead;
therefore, in Turkish Uniform Chart of Accounts
the account groups 73 and 74 are used for indirect
labor cost. Details of the accounts are as follows;
• 720 Direct Labor Expenses
• 721 Reflection Accounts for Direct Labor Expenses
• 722 Direct Labor Wage Differences
• 723 Direct Labor Time Differences
• 730 Manufacturing Overhead (General Manufacturing Expenses)
• 740 Cost of Production of Services

Doğru Cevap: D

Ünite 4

Soru 1

Which of the followings is a process of assigning costs to individual products or time periods?

Cost Pool

Cost Allocation

Cost scope

Cost base

Cost decision

Açıklama:

Cost allocation is the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives.

Doğru Cevap: B

Soru 2

Which of the followings is not one of the objectives of the strategic role of cost allocation?

Determine accurate departmental and product costs as a basis for the evaluation of the cost efficiency of departments and the profitability of different products.

Motivate executives for a high level of effort to achieve the goals targeted by senior management.

Right incentives are provided to the managers in order to make a decision consistent with the objectives of the senior management.

Control the consumption of user departments to support services.

Identify the fairly rewards that managers earn for their effectiveness in their decisions.

Açıklama:

The Strategic Role of Cost Allocation
Controlling the consumption of user departments to support services is not one of the objectives of cost allocation.

Doğru Cevap: D

Soru 3

Which of the followings is the task of the Engineering and Production Control Department?

The management and transportation of materials and components required for different jobs.

To support all engineering activities in other departments.

To determine the full cost of making the specialized machinery.

To produce the products or services that constitute the main activities.

To determine the amount of the service to request.

Açıklama:

Allocating One Department’s Costs to Another Department
The task of the Engineering and Production Control Department is to support all engineering activities in other departments.

Doğru Cevap: B

Soru 4

Which of the followings is the ability of the enterprises to produce the products or services that constitute the main activities?

Allocation

Capacity

Incentive

Reimbursement

Asset

Açıklama:

Allocating One Department’s Costs to Another Department
The ability of the enterprises to produce the products or services that constitute the main activities is called capacity.

Doğru Cevap: B

Soru 5

Which of the followings is the amount that an entity can generate if the normal operating disruptions are considered?

Practical capacity

Theoretical capacity

Normal capacity

Expected capacity

Current capacity

Açıklama:

Allocating One Department’s Costs to Another Department
Practical capacity is the amount that an entity can generate if the normal operating disruptions are considered.

Doğru Cevap: A

Soru 6

Which of the following statements is not true regarding "Dual-Rate Method"?

When a company uses a dual-rate method, managers must select allocation bases for both variable and fixed-cost pools of the Material Management Division.

Variable costs are assigned based on the budgeted variable cost per hour of 30 TL for actual hours each department uses.

Fixed costs are assigned based on budgeted fixed costs per hour and the budgeted number of hours for each department.

Budgeted fees are charged from departments for each hour of the actual use of the central facility.

Given the budgeted usage of 800 hours for the Machining Department and 2,800 hours for the Assembly Department, the budgeted fixed-cost rate is 40 TL per hour.

Açıklama:

Dual-Rate Method
Budgeted fees are charged from departments for each hour of the actual use of the central facility with a single rate method.

Doğru Cevap: D

Soru 7

Which of the following support departments deal with the revenue of operating departments?

Administration

Accounting

Housekeeping

Purchasing

Employee training

Açıklama:

Choosing Allocation Bases
Administration department deal with the revenue of operating departments?

Doğru Cevap: A

Soru 8

Which of the following support departments deal with the the direct costs of other departments?

Administration

Accounting

Housekeeping

Purchasing

Employee training

Açıklama:

Choosing Allocation Bases
Accounting deals with the the direct costs of other departments.

Doğru Cevap: B

Soru 9

Which of the following methods allocates each support department’s costs directly to the operating departments?

Direct method

Step-down method

Reciprocal method

Dual-Rate Method

Single-Rate Method

Açıklama:

Doğru Cevap: A

Soru 10

In which of the following methods the cost of service departments will be allocated to other service and operating departments depending on whether they provide services or not?

Direct Method

Step-down method

Reciprocal method

Single-Rate Method

Dual-Rate Method

Açıklama:

Step-down Method
In this method, the cost of service departments will be allocated to other service and operating departments depending on whether they provide services or not. In the method, first of all, the support departments should be ranked in the order that the step-down allocation will continue.

Doğru Cevap: B

Soru 11

Which of the following terms refers to the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives?

Cost objects

Production Departments

Support Departments

Cost allocation

Cost pool

Açıklama:

Cost allocation is the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives.

Doğru Cevap: D

Soru 12

I.Motivate executives for a high level of effort to achieve the goals targeted by senior management.
II. Identify the fairly rewards that managers earn for their effectiveness in their decisions.
III. Right incentives are provided to the managers in order to make a decision consistent with the objectives of the senior management.
Which of the objectives above can be linked to the strategic role of cost allocation?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

The strategic role of cost allocation is linked to four objectives (Blocher, Stout, and Cokins, 2010: 232):
1. Determine accurate departmental and product costs as a basis for the evaluation of the cost efficiency of departments and the profitability of different products, for financial reporting, and for tax compliance.
2. Motivate executives for a high level of effort to achieve the goals targeted by senior management.
3. Right incentives are provided to the managers in order to make a decision consistent with the objectives of the senior management.
4. Identify the fairly rewards that managers earn for their effectiveness in their decisions.

Doğru Cevap: E

Soru 13

Which of the following is directly responsible for creating the products or services sold to customers?

Service department

Operating department

Departmental cost

Single rate

Dual rate

Açıklama:

Operating department is directly responsible for creating the products or services sold to customers.

Doğru Cevap: B

Soru 14

I. Allocate service department costs to operating department
II. Allocate operating department costs to products
III. Direct costs are traced directly and indirect costs are allocated to operating and support departments
Which is the correct order of the stages in the allocation of indirect costs?

I-II-III

II-III-I

III-I-II

III-II-I

II-I-III

Açıklama:

There are three stages in the allocation of indirect costs. The first stage; direct costs are traced directly and indirect costs are allocated to operating and support departments. In addition, if they have period expenses they are also transferred to the income statement. The second stage; allocate service department costs to operating departments. The third stage; allocate operating department costs to products.

Doğru Cevap: C

Soru 15

Which of the following terms refers to the amount that an entity can generate if the normal operating disruptions are considered?

Theoretical capacity

Normal capacity

Practical capacity

Expected capacity

Dual capacity

Açıklama:

Practical capacity is the amount that an entity can generate if the normal operating disruptions are considered

Doğru Cevap: C

Soru 16

Which is not one of the categories of capacity?

Single

Normal

Practical

Expected

Theoritical

Açıklama:

The ability of the enterprises to produce the products or services that constitute the main activities is called capacity. The capacity term is classified into four different headings: theoretical capacity, practical capacity, normal capacity, and expected capacity.

Doğru Cevap: A

Soru 17

I. Direct method
II. Step-down method
III. Reciprocal method
Which of the methods above can be used to allocate support departments costs to operating departments?

Only II

Only III

I and II

II and III

I, II and III

Açıklama:

Three allocation methods can be used to allocate support departments costs to operating departments: • Direct method • Step-down method • Reciprocal method

Doğru Cevap: E

Soru 18

Which is another term for reciprocal method?

Single rate method

Step-down method

Direct method

Algebraic method

Dual rate method

Açıklama:

This method is also known as algebraic method.

Doğru Cevap: D

Soru 19

In which method the cost of service departments is allocated to other service and operating departments depending on whether they provide services or not?

Step-down method

Single-rate method

Dual-rate method

Reciprocal method

Direct method

Açıklama:

In step-down method, the cost of service departments will be allocated to other service and operating departments depending on whether they provide services or not. In the method, first of all, the support departments should be ranked in the order that the step-down allocation will continue.

Doğru Cevap: A

Soru 20

I. Assembly department
II. Plant maintenance
III. Information systems
Which of the departments above is part of support departments?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Support departments:

Information systems
Plant maintenance

Doğru Cevap: D

Soru 21

The process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives is called:

Cost operation.

Cost allocation.

Cost tracing.

Cost discounting.

Cost identification.

Açıklama:

Cost allocation is the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives. Contrast with cost tracing, cost allocations involve the use of a representative rather than direct measures.

Doğru Cevap: B

Soru 22

The product to which the cost is allocated is called:

Cost base.

Allocation base.

Cost driver.

Cost pool.

Cost object.

Açıklama:

Then cost object is the product to which costs are allocated. The basis that is used to allocate costs to cost objects (i.e. the number of material receipts in our example) is called an allocation base or cost driver.

Doğru Cevap: E

Soru 23

The strategic role of cost allocation is linked to four objectives except:

Determine accurate departmental and product costs as a basis for the evaluation of the cost efficiency of departments.

Motivate executives for a high level of effort to achieve the goals targeted by senior management.

Measure income and assets for reporting to external parties.

Right incentives are provided to the managers in order to make a decision consistent with the objectives of the senior management.

Identify the fairly rewards that managers earn for their effectiveness in their decisions.

Açıklama:

The strategic role of cost allocation is linked to four objectives: 1. Determine accurate departmental and product costs as a basis for the evaluation of the cost efficiency of departments and the profitability of different products, for financial reporting, and for tax compliance. 2. Motivate executives for a high level of effort to achieve the goals targeted by senior management. 3. Right incentives are provided to the managers in order to make a decision consistent with the objectives of the senior management. 4. Identify the fairly rewards that managers earn for their effectiveness in their decisions.

Doğru Cevap: C

Soru 24

Which of the followings is an example of an operating department in a furniture making company?

Assembly.

Materials store room.

Cafeteria.

Maintenance.

General factory.

Açıklama:

An operating department (also called a production department in manufacturing companies) adds value to a product or service that is observable by a customer. These departments are directly responsible for creating the products or services sold to customers. In a manufacturing setting such as an automobile manufacturer or a furniture manifacturer, production departments are those that work directly on the products being manufactured (e.g., assembly and painting).

Doğru Cevap: A

Soru 25

"Reciprocal flows" refers to:

Flow of services between support departments.

Flow of services between production departments.

Flow of goods between production departments.

Flow of costs from production departments to the products.

Flow of services between support and production departments.

Açıklama:

The second stage allocates support department costs to the production departments. This is the most complex of the allocation stages because services can flow back and forth between the support departments. These are often called reciprocal flows.

Doğru Cevap: A

Soru 26

The rate charging method which divides the cost of each support department into two different variable and fixed costs pools is called:

Budgeted rate method.

Actual rate method.

Single rate method.

Dual rate method.

Different rate method.

Açıklama:

Doğru Cevap: D

Soru 27

The first step in allocating support department costs to operating departments is:

Assign costs to cost pools.

For each support department cost pool, choose an allocation base.

Identify support and operating department cost pools.

Allocate support costs from the operating departments to units of goods or services.

Explain the purpose of the allocation.

Açıklama:

The process for allocating support department costs to operating departments involves the following steps: 1. Explain the purpose of the allocation. 2. Identify support and operating department cost pools. 3. Assign costs to cost pools. 4. For each support department cost pool, choose an allocation base. 5. Choose and apply a method for allocating support department costs to operating departments. 6. If relevant, allocate support costs from the operating departments to units of goods or services.

Doğru Cevap: E

Soru 28

"The collection of costs to be assigned to a set of cost objects" is a definition for:

Allocation base.

Cost pool.

Support costs.

Cost driver.

Cost base.

Açıklama:

A cost pool is a collection of costs to be assigned to a set of cost objects. Many organizations already accumulate costs by the department within their organizational structure. Departments are often used as cost pools.

Doğru Cevap: B

Soru 29

"The most widely used method of allocating support department costs, where costs accumulated in service departments are allocated directly to the operating departments" is:

Step-down method.

Reciprocal method.

Algeabric method.

Direct allocation method.

Single rate method.

Açıklama:

The direct allocation method (often called the direct method) is the most widely used method of allocating support department costs. This method allocates each support department’s costs directly to the operating departments. In this method costs accumulated in service departments are allocated to the manufacturing departments depending on the services that each of the manufacturing department requires from each of the service department.

Doğru Cevap: D

Soru 30

Direct method, step-down method and reciprocal method are methods of:

Assigning costs to cost pools.

Allocation based on the demand for materials-handling services.

Allocate support departments costs to operating departments.

Allocate operating departments costs to support departments.

Choosing allocation bases.

Açıklama:

Three allocation methods can be used to allocate support departments costs to operating departments:Direct method, step-down method and reciprocal method.

Doğru Cevap: C

Soru 31

Which of the following is not among the objectives of cost allocation?

To provide information for economic decisions

To motivate managers and employees

To justify costs or calculate reimbursement

To measure income and assets for reporting to external parties

To increase the prices for a bigger profit

Açıklama:

Indirect costs are not directly identified with a cost object. Indirect costs of a particular cost object are costs that are related to that cost object but cannot be traced to it in an economically feasible or cost-effective way. Indirect costs often comprise a sizable percentage of the costs assigned to cost objects such as products, distribution channels, and customers. The four objectives for allocating indirect costs to these cost objects are as follows (Bhimani, Horngren, Datar and Rajan, 2015: 124):
1. To provide information for economic decisions,
2. To motivate managers and employees,
3. To justify costs or calculate reimbursement,
4. To measure income and assets for reporting to external parties
The correct answer is E.

Doğru Cevap: E

Soru 32

Which objective linked to strategic role of cost allocation is achieved when the cost allocation effectively empowers authorized individual managers to act autonomously with the goals of the senior management?

Determine accurate departmental and product costs as a basis for the evaluation of the cost efficiency of departments

Identify the fairly rewards that managers earn for their effectiveness in their decisions

Measure income and assets for reporting to external parties

Motivate executives for a high level of effort to achieve the goals targeted by senior management.

Right incentives are provided to the managers in order to make a decision consistent with the objectives of the senior management

Açıklama:

The third objective that provides incentives for decision-making is achieved when the cost allocation effectively empowers authorized individual managers to act autonomously with the goals of the senior management.
The correct answer is E.

Doğru Cevap: E

Soru 33

Which of the following is the term used to refer to the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives?

Financial reporting

Cost efficiency

Practical capacity

Cost allocation

Cost pool

Açıklama:

Cost allocation is the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives.
The correct answer is D.

Doğru Cevap: D

Soru 34

What is the amount that an entity can generate if the normal operating disruptions are considered?

Cost pool

Cost allocation

Cost efficiency

Practical capacity

Financial reporting

Açıklama:

Practical capacity is the amount that an entity can generate if the normal operating disruptions are considered. The correct answer is D.

Doğru Cevap: D

Soru 35

Which of the following terms is used to refer to the collection of costs to be assigned to a set of cost objects?

Cost efficiency

Financial reporting

Cost pool

Cost allocation

Practical capacity

Açıklama:

A cost pool is a collection of costs to be assigned to a set of cost objects.
The ccorrrect answer is C.

Doğru Cevap: C

Soru 36

Which of the following costs should be allocated to all departments?

Direct manufacturing costs

Cost of raw materials

Cost of the responsible manager

Cost of labor

Cost of direct supplies

Açıklama:

Direct manufacturing costs, raw materials, and labor are traced directly to the departments. For example, in particular, direct raw materials and supplies used in the production departments and direct labor costs are directly traced to these departments. In the same way, direct raw materials and supplies and direct labor costs used in the support section are also traced to these departments. Indirect costs (manufacturing overhead), a predetermined cost driver is allocated to the departments that use these resources. For example, in all operating and support sections of the factory, the cost of the responsible manager is an indirect cost and must be allocated to all departments. While the indirect labor for inspection of the output of the two operating departments would be allocated only to those two operating departments (Blocher, Stout, and Cokins, 2010: 234). The correct answer is C.

Doğru Cevap: C

Soru 37

Which of the following methods allocates costs by explicitly including the mutual services provided among all support departments?

Incremental cost-allocation method

Step-down cost-allocation method

Reciprocal cost-allocation method

Single-rate cost allocation method

Dual-rate cost-allocation method

Açıklama:

Reciprocal Method This method is also known as algebraic method. The reciprocal allocation method allocates costs by explicitly including the mutual services provided among all support departments. Theoretically, the direct method and the step-down method are less accurate when support departments provide services to one another reciprocally.
The correct answer is C.

Doğru Cevap: C

Soru 38

Which of the following methods requires the cost of service departments to be allocated to other service and operating departments depending on whether they provide services, or not?

Incremental cost-allocation method

Step-down cost-allocation method

Reciprocal cost-allocation method

Single-rate cost allocation method

Dual-rate cost-allocation method

Açıklama:

Doğru Cevap: B

Soru 39

Which of the following methods allocates each support department’s costs directly to the operating departments?

Reciprocal cost-allocation method

Direct cost-allocation method

Dual-rate cost-allocation method

Single-rate cost allocation method

Step-down cost-allocation method

Açıklama:

Doğru Cevap: B

Soru 40

Which of the following methods divides the cost of each support department into two separate pools, variable and fixed, and distributes the cost of each pool by using a different charging rate?

Dual-rate cost-allocation method

Incremental cost-allocation method

Single-rate cost allocation method

Step-down cost-allocation method

Reciprocal cost-allocation method

Açıklama:

The single-rate method does not discriminate between fixed and variable costs. It allocates costs in each cost pool to cost objects using a single charging rate. In contrast, the dual-rate method divides the cost of each support department into two separate pools, variable and fixed. It distributes the cost of each pool by using a different charging rate. When using either the single-rate method or the dual-rate method, managers can allocate support-department costs to operating divisions based on either a budgeted rate or the eventual actual cost rate (Datar and Rajan, 2018: 622).
The correct answer is A.

Doğru Cevap: A

Soru 41

Which of the following refers to the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives?

Cost allocation

Operating departments

Departmental cost

Practical capacity

Cost pool

Açıklama:

Cost allocation refers to the process of assigning costs in a cost pool to the appropriate cost objects with the help of representatives.

Doğru Cevap: A

Soru 42

I. To provide information for economic decisions
II. To motivate managers and employees,
III. To justify costs or calculate reimbursement
IV. To measure income and assets for reporting to external parties.
Which of the objectives above are the objectives for allocating indirect costs to cost objects?

Only I

Only IV

II and III

I, III and IV

I, II, III and IV

Açıklama:

The four objectives for allocating indirect costs to these cost objects are as follows (Bhimani, Horngren, Datar and Rajan, 2015: 124): 1. To provide information for economic decisions, 2. To motivate managers and employees, 3. To justify costs or calculate reimbursement, 4. To measure income and assets for reporting to external parties.

Doğru Cevap: E

Soru 43

Which of the following belongs to the operating departments in a bank?

Tellers' salaries

Bankruptcy prediction software

Depriciation on hardware

Telephone costs

Salary of CEO

Açıklama:

Opearting departments in a bank include:
Auto Loans: Loan processors' salaries, Forms and supplies
Commercial Lending: Lending offiicers' salaries, Depreciation on offiice equipment, Bankruptcy prediction software
Personal Banking: Supplies and postage for statements

Doğru Cevap: B

Soru 44

Which of the following does not belong to the support departments of a furniture making company?

Depriciation on building

Security

Depriciation on stoves

Supervisor's salary

Food

Açıklama:

A furniture maker may include the following support departments:
Materials Storeroom: Clerk's salary, Depreciation on forklift
Cafeteria: Food, Cooks' salaries, Depreciation on stoves
Maintenance: Janitors' salaries, Cleaning supplies, Machine oil and lubricants,
General Factory: Depreciation on building, Security, Utilities

Doğru Cevap: D

Soru 45

I. The choice of a single or a dual charging rate
II. The use of budgeted versus actual support department costs
III. The process for allocating support department costs to operating departments
Which of the issues above must be considered while calculating the charging rate?

Only I

Only II

Only III

I and II

I, II and III

Açıklama:

There are two important issues in calculating the charging rate:
1. The choice of a single or a dual charging rate and
2. The use of budgeted versus actual support department costs.

Doğru Cevap: D

Soru 46

Which of the following terms refers to the amount that an entity can generate if the normal operating disruptions are considered?

Allocating costs

Support departments

Practical capacity

Single-rate

Actual rates

Açıklama:

Practical capacity is the amount that an entity can generate if the normal operating disruptions are considered.

Doğru Cevap: C

Soru 47

Which of the following steps of allocating support department costs to operating departments must precede the others?

Choose and apply a method for allocating support department costs to operating departments.

Identify support and operating department cost pools.

Assign costs to cost pools.

For each support department cost pool, choose an allocation base.

Allocate support costs from the operating departments to units of goods or services.

Açıklama:

The process involves the following steps (Eldenburgh and Wolcott, 2005: 301):
1. Explain the purpose of the allocation.
2. Identify support and operating department cost pools.
3. Assign costs to cost pools.
4. For each support department cost pool, choose an allocation base.
5. Choose and apply a method for allocating support department costs to operating departments.
6. If relevant, allocate support costs from the operating departments to units of goods or services.

Doğru Cevap: B

Soru 48

Which of the statements about the direct method is FALSE?

It is also called direct allocation method.

It is the least used method of allocating support department costs.

This method allocates each support department’s costs directly to the operating departments.

Costs accumulated in service departments are allocated to the manufacturing departments depending on the services that each of the manufacturing department requires from each of the service department.

In this method, the service carried out by each of the service department must be identified first.

Açıklama:

Doğru Cevap: B

Soru 49

Which of the following method is also known as algebraic method?

Reciprocal method

Direct method

Step-down method

Dual-rate method

Single-rate method

Açıklama:

Reciprocal method is also known as algebraic method.

Doğru Cevap: A

Soru 50

In which method the cost of service departments will be allocated to other service and operating departments depending on whether they provide services or not?

Direct method

Reciprocal method

Step-down method

Single-rate method

Dual-rate method

Açıklama:

In step-down method, the cost of service departments will be allocated to other service and operating departments depending on whether they provide services or not.

Doğru Cevap: C

Ünite 5

Soru 1

In which method expenditures for all manufacturing related factors are included in the product cost?

Direct costing method

Variable costing method

Full costing method

Throughput costing method

Normal costing method

Açıklama:

In full costing method, expenditures for all manufacturing related factors are included in the product cost.

Doğru Cevap: C

Soru 2

... also suggests covering all manufacturing factors as product cost in parallel to the full costing method; however, in this method costs of indirect manufacturing factors are allocated to products depending on the utilization rates of these factors.
Which one of the following fills the blank correctly?

Normal costing method

Variable costing method

Throughput costing method

Direct costing method

Super variable costing method

Açıklama:

Normal costing method also suggests covering all manufacturing factors as product cost in parallel to the full costing method; however, in normal costing method costs of indirect manufacturing
factors are allocated to products depending on the utilization rates of these factors.

Doğru Cevap: A

Soru 3

In which method product cost is calculated at year-end by using the cost data that incurred during the year?

Standart costing method

Normal costing method

Direct costing method

Actual costing method

Variable costing method

Açıklama:

In actual costing method, product cost is calculated at year-end by using the cost data that incurred during the year.

Doğru Cevap: D

Soru 4

... represents the amount of overhead cost allocated to jobs whenever a unit of allocation base is used/spent during the accounting period.
Which one of the following fills the blank correctly?

Direct costing

Process costing

Normal costing

Job costing

Allocation rate

Açıklama:

Allocation rate represents the amount of overhead cost allocated to jobs whenever a unit of allocation base is used/spent during the accounting period.

Doğru Cevap: E

Soru 5

... is a derived measure of output that reflects the number of completed units that could be produced with the same quantity of input consumed for both finished goods and work-in-process inventories.
Which one of following correctly fills the blank?

Allocation rate

Equivalent unit

Materials requisition records

Job costing

Process costing

Açıklama:

Equivalent unit is a derived measure of output that reflects the number of completed units that could be produced with the same quantity of input consumed for both finished goods and work-in- process inventories.

Doğru Cevap: B

Soru 6

Which one of the following is the name given to a costing system that broadly averages or spreads the cost of resources uniformly to cost objects?

Normal costing

Variable costing

Peanut butter costing

Direct costing

Standard costing

Açıklama:

Peanut butter costing is the name given to a costing system that broadly averages or spreads the cost of resources uniformly to cost objects.

Doğru Cevap: C

Soru 7

Which one of the following is used to define the situation in which over-costing in one or more products results in under-costing in other products?

Process costing

Peanut butter costing

Materials requisition records

Super variable costing

Product-cost-cross subsidization

Açıklama:

Product-cost cross-subsidization is the term used to define the situation in which over-costing in one or more products results in under-costing in other products.

Doğru Cevap: E

Soru 8

Which one of the following is a refined version of simple costing system, with increased number of cost pools and allocation bases?

Process costing

Activity-based costing

Job costing

Actual costing

Standard costing

Açıklama:

Activity-based costing (ABC) is a refined version of simple costing system, with increased number of cost pools and allocation bases.

Doğru Cevap: B

Soru 9

Which one of the following is the first step of the activity-based costing?

Identify the cost object

Identify the direct costs

Identify the indirect costs to allocate

Select the cost allocation base to use in allocation of indirect costs

Calculate the allocation rate per unit of allocation base

Açıklama:

Step 1: Identify the cost object.

Doğru Cevap: A

Soru 10

Which one of the following is the last step of the activity-based costing?

Identify the direct costs

Calculate the indirect cost allocated to products

Identify the indirect costs to allocate

Compute the total cost of the products

Identify the cost object

Açıklama:

Step 7: Compute the total cost of the products

Doğru Cevap: D

Soru 11

There are different types costing methods by the scope of product
cost coverage .
Which one is not one of them?

Full costing method

Normal Costing Method

Variable Costing Method

Indirect Costing Method

Throughput Costing Method

Açıklama:

Indirect Costing Method is not one of them

Doğru Cevap: D

Soru 12

In.......................penditures for all manufacturing related factors are included in the
product cost.
Which of the following should come to the dotted place according to the whole sentence?

Normal Costing Method

Variable Costing Method

Full Costing Method

Direct Costing Method

Throughput Costing Method

Açıklama:

It should be Full Costing Method.

Doğru Cevap: C

Soru 13

.......................................d, which is also called as super variable costing, does not have widespread use in practice. Under this method, only the direct material cost is the product cost, while all other manufacturing related expenditures are considered as period expenses to be reported in the income statement.
Which of the following should come to the dotted place according to the whole sentence?

Full Costing Method

Normal Costing Method

Variable Costing Method

Throughput Costing Method

Direct Costing Method

Açıklama:

It should be Throughput Costing Method

Doğru Cevap: D

Soru 14

To calculate the unit cost, there is a five-step procedure of process costing.
Which one is not one of them ?

Summarize the flow of physical units of output

Compute the cost per equivalent unit

Assign total cost to completed units and ending work-in-process inventory

Compute output in terms of total cost

Summarize the total cost to account for

Açıklama:

Compute output in terms of total cost is not one of them

Doğru Cevap: D

Soru 15

.................................................is the name given to a costing system
that broadly averages or spreads the cost of resources uniformly to cost objects.
Which of the following should come to the dotted place according to the whole sentence?

Peanut butter costing

product-cost cross costing

Refinement costing

Activity-Based costing

Further costing

Açıklama:

It should be Peanut butter costing

Doğru Cevap: A

Soru 16

To calculate the unit cost, there is a five-step procedure of process costing.
The steps are as follows:
1)Summarize the flow of physical units of output.The steps are as follows:
2)Compute the cost per equivalent unit
3)Summarize the total cost to account for
4)Compute output in terms of equivalent units
5)Assign total cost to completed units and ending work-in-process inventory
Which two must change for the ranking to be correct?

2-4

2-3

3-4

4-5

1-5

Açıklama:

2-4 should be change

Doğru Cevap: A

Soru 17

Depending on the product type, managers can choose among different costing systems for assigning costs to products.
Which is one of them?

Job Costing

Requisition costing

Actual costing

Standart costing

Fixed costing

Açıklama:

It should be Job Costing or process costing

Doğru Cevap: A

Soru 18

..........................methodology defines production as the combination of subsequent processes and analyze the cost of each process separately. The product cost is calculated by accumulating the shares that the product gets from the cost of each process.
Which of the following should come to the dotted place according to the whole sentence?

Standart costing

Fixed costing

Actual costing

Requisition costing

Process costing

Açıklama:

It shoudl be Process costing

Doğru Cevap: E

Soru 19

...................................method, product cost is calculated at year-end by using the cost data that incurred during the year. In order to calculate the product cost, it is necessary that the production is completed and all related expenditures have incurred.
Which of the following should come to the dotted place according to the whole sentence?

Standard Costing Method

Actual Costing Method

Fixed costing method

Requisition costing method

Process costing method

Açıklama:

It should be Actual Costing Method

Doğru Cevap: B

Soru 20

In.............................................costs of all manufacturing factors (direct materials, direct labor and manufacturing overhead) are based on the standards that are previously determined using scientific techniques and methods. Thus, product cost is already known at the beginning of the year. At the end of the year, standard costs and actual costs are compared and, if necessary, the standard costs are adjusted to actual
values to be reflected in financial statements.
Which of the following should come to the dotted place according to the whole sentence?

Actual Costing Method

Requisition costing Method

Standard Costing Method

Fixed costing Method

Job costing method

Açıklama:

It should be Standard Costing Method

Doğru Cevap: C

Soru 21

Which is not a costing method?

Full Costing Method

Normal Costing Method

Variable Costing Method

Indirect Costing Method

Throughput Costing Method

Açıklama:

The costing methods by the scope of product cost coverage are;
• Full Costing Method
• Normal Costing Method
• Variable Costing Method
• Direct Costing Method
• Throughput Costing Method

Doğru Cevap: D

Soru 22

In which method, are expenditures for all manufacturing related factors included in the product cost?

Direct Costing Method

Variable Costing Method

Throughput Costing Method

Full Costing Method

Normal Costing Method

Açıklama:

In this method, expenditures for all manufacturing related factors are included in the product cost.

Doğru Cevap: D

Soru 23

In which costing method, are only the variable manufacturing costs included in the product cost?

Variable Costing Method

Full Costing Method

Direct Costing Method

Throughput Costing Method

Normal Costing Method

Açıklama:

In variable costing method, only the variable manufacturing costs are included in the product cost.

Doğru Cevap: A

Soru 24

Which costing method accepts only direct costs such as direct materials cost and direct labor cost?

Throughput Costing Method

Variable Costing Method

Normal Costing Method

Full Costing Method

Direct Costing Method

Açıklama:

Direct costing method accepts only direct costs (direct materials cost and direct labor cost)

Doğru Cevap: E

Soru 25

Under which method, only the direct material cost is the product cost, while all other manufacturing related expenditures are considered as period expenses to be reported in the income statement?

Throughput Costing Method

Full Costing Method

Normal Costing Method

Variale Costing Method

Direct Costing Method

Açıklama:

Throughput costing method, which is also called as super variable costing, does not have widespread use in practice. Under this method, only the direct material cost is the product cost, while all other manufacturing related expenditures are considered as period expenses to be reported in the income statement.

Doğru Cevap: A

Soru 26

In which costing method, does product cost cover all direct costs and all indirect costs, irrespective of whether these factors are really used in production at full capacity or not?

Direct Costing Method

Throughput Costing Method

Full Costing Method

Normal Costing Method

Variable Costing Method

Açıklama:

In this method, expenditures for all manufacturing related factors are included in the product cost (Lazol, 2011: 131). Direct materials cost, direct labor cost, and manufacturing overhead costs are all included in the product cost with their total lump sum amount. In other words, product cost covers all direct costs and all indirect costs, irrespective of whether these factors are really used in production at full capacity or not.

Doğru Cevap: C

Soru 27

All fixed costs are considered as period expenses.
Fixed costs would still exist even if there were no production and this makes those factors irrelevant for calculating the manufacturing cost.
Variable non-manufacturing costs are excluded despite their variable nature.

Which costing method by scope is defined above?

Full Costing Method

Normal Costing Method

Variable Costing Method

Direct Costing Method

Throughput Costing Method

Açıklama:

As the name states, in variable costing method, only the variable manufacturing costs are included in the product cost (Lazol, 2011: 132), irrespective of whether the cost in question is direct or indirect. Within the scope of variable costing method, all fixed costs are considered as period expenses, suggesting that fixed costs would still exist even if there were no production and this makes those factors irrelevant for calculating the manufacturing cost. Only the variable manufacturing costs are treated as product costs under variable costing method, variable non-manufacturing costs are excluded despite their variable nature.

Doğru Cevap: C

Soru 28

It is also called as super variable costing.
It does not have widespread use in practice.
Only the direct material cost is the product cost, while all other manufacturing related expenditures are considered as period expenses to be reported in the income statement.

Which costing method by scope is defined above?

Full Costing Method

Throughput Costing Method

Variable Costing Method

Normal Costing Method

Direct Costing Method

Açıklama:

Doğru Cevap: B

Soru 29

What contains information about the cost of direct materials used on a specific job and in a specific department?

Labor-time sheets

Materials requisition records

Process costing

Job costing

Allocation rates

Açıklama:

Materials requisition records are the records containing information about the cost of direct materials used on a specific job and in a specific department.

Doğru Cevap: B

Soru 30

What is the name given to a costing system that broadly averages or spreads the cost of resources uniformly to cost objects?

Peanut butter costing

Product-cost cross-subsidization

Activity-based costing system

Equivalent unit

Process Costing

Açıklama:

Peanut butter costing is the name given to a costing system that broadly averages or spreads the cost of resources uniformly to cost objects

Doğru Cevap: A

Soru 31

Which of the following is not one of the costing methods based on the scope of product cost coverage?

Full Costing Method

Indirect Costing Method

Normal Costing Method

Variable Costing Method

Throughput Costing Method

Açıklama:

Depending on the nature of the product/production process, management chooses among costing methods that differ in the extent of product cost definition. All manufacturing related factors are considered as part of product cost within the scope of the most extensive method, whereas the definition of the product cost includes only the cost of direct materials used, in the least extensive one. The costing methods by the scope of product
cost coverage are;
• Full Costing Method
• Normal Costing Method
• Variable Costing Method
• Direct Costing Method
• Throughput Costing Method

Doğru Cevap: B

Soru 32

"Actual Costing Method....................." Which of the following best completes the statement above?

At the start of the year, actual costs are calculated first to make predictions about actual values

At the end of the year, standard costs and actual costs are compared to adjust to actual values to be reflected in financial statements.

product cost is already known at the beginning of the year without any prior calculation

costs of all manufacturing factors are based on the standards that are previously determined using scientific techniques and methods.

product cost is calculated at year-end by using the cost data that incurred during the year

Açıklama:

Actual Costing Method
In actual costing method, product cost is calculated at year-end by using the cost data that incurred during the year. In order to calculate the product cost, it is necessary that the production is completed and all related expenditures have incurred. Direct costs (direct material and direct labor) incur in parallel to the production process and they are traced to products, so they can be measured on time. However, for determining the actual manufacturing overhead cost per unit, an allocation is required, and this is possible only at the end of the year, when all
overhead for the year can be measured.

Doğru Cevap: E

Soru 33

Which of the following is one of the main costing systems?

Demand costing

Sales costing

Process costing

Labour costing

Product costing

Açıklama:

Depending on the product type, managers can choose among different costing systems for assigning costs to products. These systems, in fact, are separately applicable, but with the help of technological improvements, it became easier to collect and process cost data; which makes it possible to combine these methods and reach a more accurate costing system by dedicating the same amount of resources in terms of cost and effort. Fundamentally, there are two main costing systems that differ in costing style:
• Job Costing
• Process Costing

Doğru Cevap: C

Soru 34

Which of the following is not one of the steps in process costing?

Summarize the flow of physical units of output

Compute output in terms of equivalent units

Summarize the total cost to account for

Assign predicted cost to all units under production

Compute the cost per equivalent unit

Açıklama:

To calculate the unit cost, there is a five-step procedure of process costing. The steps are as follows:
1. Summarize the flow of physical units of output
2. Compute output in terms of equivalent units
3. Summarize the total cost to account for
4. Compute the cost per equivalent unit
5. Assign total cost to completed units and ending work-in-process inventory

Doğru Cevap: D

Soru 35

"Peanut butter costing........................................."
Which of the following best completes the statement above?

explains the importance of considering the semi-finished products as well as the finished goods

is the name given to a costing system that broadly averages or spreads the cost
of resources uniformly to cost objects

relates the production methods and technologies with the costing methods chosen and comment on the prices

explores the differences between the application of weighted average and FIFO
methods.

produces a small variety of goods with much simpler processes with high costs

Açıklama:

Peanut butter costing is the name given to a costing system that broadly averages or spreads the cost of resources uniformly to cost objects. Producing higher variety of products causes companies to incur a higher variety of costs, as different products need different resources. In other words, every product does not use the same resources. This means that the cost of each unit should include only the cost of resources used in it’s production. Therefore, averaging the total cost to each unit (with the name given to it “peanut butter costing”) does not result in accurate cost calculation anymore.

Doğru Cevap: B

Soru 36

"Product-cost cross-subsidization.............................."
Which of the following best completes the statement above?

is used to compute the number of equivalent units to calculate the work needed to complete the beginning work-in-process

is a term used to exclude sales from cost calculations as they are are already added to the previous period.

is a term used to estimate the costs with the relevant period-specific production volumes and costs per equivalent unit

is the term used to define the situation in which over-costing in one or more products results in under-costing in other products.

is the term incurred to complete the beginning work-in-process inventory added to the cost carried from the previous period

Açıklama:

Product-cost cross-subsidization is the term used to define the situation in which over-costing in one or more products results in under-costing in other products.

Doğru Cevap: D

Soru 37

Which of the following is true about "Refinement of Costing System"?

Refined costing system provides a more detailed analysis of cost assignment

Refined costing system cannot be used indirect costs’ allocation

In refined costing system, the share of direct costs in total is not increased

In refined costing system, the number of indirect cost pools is decreased

In refined costing system, less allocation bases are used for more diversified
activities

Açıklama:

A refined costing system provides a more detailed analysis of cost assignment (rather than broad averaging), especially in terms of indirect costs’ allocation. In order to succeed in this, there are some key points, such as increasing the share of direct costs in total, increasing the number of indirect cost pools, and using more allocation bases for more diversified activities, etc

Doğru Cevap: A

Soru 38

Which of the following is true about Activity-Based Costing System?

In activity-based costing, costs of individual activities are calculated at the end

In activity-based costing, individual activities are not the fundamental cost objects

Activity-based costing is a refined version of simple costing system.

Activity-based costing uses decreased number of cost pools and allocation bases

In activity-based costing, the whole process is considered as seperate units

Açıklama:

Activity-based costing (ABC) is a refined version of simple costing system, with increased number of cost pools and allocation bases. In an ABC system, the whole process is considered as a chain of activities and individual activities are the fundamental cost objects. With the most basic definition of the system, costs of individual activities are calculated at first, and then each of these costs are assigned to products to the extent the relevant activities are needed for their production.

Doğru Cevap: C

Soru 39

"Activity....................." Which of the following best completes the statement above?

allocates each unit if management uses indirect labor hours or machine hours

traces the direct costs as it is more reliable than allocating the indirect costs

increases the direct costs’ share in total cost decreasing the reliability of cost assignment

is defined as any event or task that is carried out in order to meet a specific goal.

is ignored in refined costing system for a more detailed analysis of cost assignment

Açıklama:

Activity can be defined as any event or task that is carried out in order to meet a specific goal, such as designing, assembling, testing, etc.

Doğru Cevap: D

Soru 40

"Equivalent unit....................................."
Which of the following is true about equivalent unit?

covers direct labor and manufacturing overhead costs to incur concurrently with each other

is calculated by accumulating the shares that the product gets from the cost of each process

is defined as the combination of subsequent processes to analyze the cost of each process separately.

is not a possible way to calculate the product cost if all sales figures are not available

is a derived measure of output that reflects the number of completed units that could be produced with the same quantity of inpu

Açıklama:

Doğru Cevap: E

Soru 41

Which of the following takes place in the costing methods by the scope of product cost?

Full Costing Method

Normal Costing Method

Variable Costing Method

Process Costing Method

Throughput Costing Method

Açıklama:

The costing methods by the scope of product cost coverage are;
• Full Costing Method
• Normal Costing Method
• Variable Costing Method
• Direct Costing Method
• Throughput Costing Method

Doğru Cevap: D

Soru 42

In which costing method, product cost covers all direct costs and all indirect costs, irrespective of whether these factors are really used in production at full capacity or not?

Variable Costing Method

Full Costing Method

Normal Costing Method

Direct Costing Method

Throughput Costing Method

Açıklama:

In full costing method, expenditures for all manufacturing related factors are included in the
product cost. Direct materials cost, direct labor cost, and manufacturing overhead costs are all included in the product cost with their total lump sum amount.

Doğru Cevap: B

Soru 43

In which costing method costs of indirect manufacturing factors are allocated to products depending on the utilization rates of these factors?

Full Costing Method

Variable Costing Method

Normal Costing Method

Direct Costing Method

Throughput Costing Method

Açıklama:

In normal costing method costs of indirect manufacturing factors are allocated to products depending on the utilization rates of these factors.

Doğru Cevap: C

Soru 44

In which costing method, all fixed costs are considered as period expenses?

Full Costing Method

Normal Costing Method

Variable Costing Method

Direct Costing Method

Throughput Costing Method

Açıklama:

Within the scope of variable costing method, all fixed costs are considered as period expenses, suggesting that fixed costs would still exist even if there were no production and this makes those factors irrelevant for calculating the manufacturing cost.

Doğru Cevap: C

Soru 45

Which costing method accepts only direct costs as the product cost and all indirect costs are treated as period expenses?

Full Costing Method

Normal Costing Method

Variable Costing Method

Throughput Costing Method

Direct Costing Method

Açıklama:

Direct costing method accepts only direct costs (direct materials cost and direct labor cost) as the product cost and all indirect costs are treated as period expenses. The sum of direct materials cost and direct labor cost is also called as prime cost.

Doğru Cevap: E

Soru 46

Which costing method bases on the thought of "only the direct material cost is the product cost"?

Full Costing Method

Normal Costing Method

Variable Costing Method

Direct Costing Method

Throughput Costing Method

Açıklama:

Under throughput costing method, only the direct material cost is the product cost, while all other manufacturing related expenditures are considered as period expenses to be reported in the income
statement.

Doğru Cevap: E

Soru 47

Which costing method is also called as " super variable costing"?

Full Costing Method

Normal Costing Method

Variable Costing Method

Direct Costing Method

Throughput Costing Method

Açıklama:

Throughput costing method is also called as super variable costing

Doğru Cevap: E

Soru 48

Which of the following is a costing method by costing time?

Standard Costing Method

Job Costing Method

Process Costing Method

Direct Costing Method

Normal Costing Method

Açıklama:

In standard costing method, costs of all manufacturing factors (direct materials, direct labor and manufacturing overhead) are based on the standards that are previously determined using scientific techniques and methods. Thus, product cost is already known at the beginning of the year.

Doğru Cevap: A

Soru 49

In which costing metod, product cost is calculated at year-end by using the cost data that incurred during the year?

Standard Costing Method

Actual Costing Method

Direct Costing Method

Full Costing Method

Normal Costing Method

Açıklama:

In actual costing method, product cost is
calculated at year-end by using the cost data that
incurred during the year.

Doğru Cevap: B

Soru 50

Which of the following is a costing method by costing approach?

Actual Costing

Variable Costing

Process Costing

Standard Costing

Direct Costing

Açıklama:

Fundamentally, there are two main costing systems that differ in costing approach:
• Job Costing
• Process Costing

Doğru Cevap: C

Ünite 6

Soru 1

Budget is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both.
Master budgeting is the process of evaluating the feasibility of a project, using some indicators such as rate of return, the time needed to pay back, etc.
Capital budgeting is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time.
The master budget is made of two separate series of schedules and budgets; operating budgets and financial budgets.

Which of the statements above aboout budgets are correct?

I and II

II and III

I and IV

I, III and IV

II, III and IV

Açıklama:

Budget is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both.
Capital budgeting is the process of evaluating the feasibility of a project, using some indicators such as rate of return, the time needed to pay back, etc.
A master budget is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time.
The master budget is made of two separate series of schedules and budgets; operating budgets and financial budgets.

As also understood from the information the statements in the options I and IV are correct, so the correct answer is C. The statements in the option II is not correct because of the fact that capital budgeting is the process of evaluating the feasibility of a project, using some indicators such as rate of return, the time needed to pay back, etc. The statement in the option II is not correct, either because of the fact that a master budget is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time.

Doğru Cevap: C

Soru 2

A budget represents the detailed plan of how the company will acquire and use financial and other resources during the following budget period.
A budget includes both financial and non-financial aspects to better guide the operations and project their results.
In terms of planning, budgets translate the goals and strategies into operational terms for the corresponding time span, usually a fiscal year.
Budgets are the statements that quantitatively represent the management’s plans for a specific period of time.
Budget is a quantitative expression of the managements’ plans for a specific period of time in financial terms only.

Which of the statements above related to budget are correct?

I and II

I, III and IV

II, III and V

I, II, III and IV

II, III, IV and V

Açıklama:

A budget represents the detailed plan of how the company will acquire and use financial and other resources during the following budget period. It includes both financial and non-financial aspects to better guide the operations and project their results. In terms of planning, budgets translate the goals and strategies into operational terms for the corresponding time span, usually a fiscal year. In summary, budgets are the statements that quantitatively represent the management’s plans for a specific period of time. As also understood from the information given, the statements in the options I, II, III and IV are correct, so the correct anser is D. The statement in the option V is not correct because of the fact that budget is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both.

Doğru Cevap: D

Soru 3

allocating the company’s resources to each operation effectively
communicating the objectives and goals to the subordinates
motivating the superiors and subordinates towards the goals
providing coordination among all divisions or employees
comparing the actual and budgeted results, and take corrective actions, if necessary
taking necessary precautions for the possible bottlenecks that the company may face in the following period

Which of the statements above related to the objectives of budget are correct?

I and IV

II and V

I, III and IV

II, IV, V and VI

I, II, III, IV, V and VI

Açıklama:

The overall purpose of budgeting is to plan different phases of business operations, coordinate the activities of different departments of the company and to ensure effective control over it. Managers prepare budgets with the objectives of;

allocating the company’s resources to each operation effectively,
communicating the objectives and goals to the subordinates,
motivating the superiors and subordinates towards the goals,
providing coordination among all divisions or employees,
comparing the actual and budgeted results, and take corrective actions, if necessary,
taking necessary precautions for the possible bottlenecks that the company may face in the following period.

As also understood from the information given, all of the statements in the options related to the objectives of budget are correct, so the correct answer is E.

Doğru Cevap: E

Soru 4

Efficient Resource Allocation
Communication
Coordination
Time Management
Motivation

Which of the above are the benefits resulting from the preparation and use of budgets?

I and II

II and III

I, III and IV

II, III, IV and V

I, II, III, IV and V

Açıklama:

There are many benefits that result from the preparation and use of budgets. For example, businesses can better coordinate their activities, employees become more cost conscious and try to conserve resources, the company reviews its organization plan and changes it when necessary, etc. Benefits of budgeting can be explained as follows:

Efficient Resource Allocation: By preparing the budget, the required amount of all resources to use in operations can be predicted approximately, before the period begins. Therefore, any unnecessary resources in an operation can be transferred to any other operation to full utilization of capacity (Edmonds, et al., 2000: 285). For example, in the case that the company predicts the low volume of production in a product next year, the labors will not fully utilize their capacity next period. By transferring some labor from the production of that product to another (or by not hiring some employees any more), managers may provide full utilization of resources for remaining labors. Unnecessary production and inventory storage can also be prevented by using the sales forecasts for the upcoming period.
Communication: Once the objectives are determined and the plans are prepared, management should ensure that all subordinates and superiors understand the objectives and the short-term plan. The budgets are used at this point as a communication tool that translates the objectives into action plans for the company as a whole. In other words, working to attain the budgeted targets means implying the short-term plans determined by management.
Coordination: Since the organization of a company is a chain of operations, any inefficiency in a division affects the whole organization’s success. In other words, the way to reach the organizational goal is made of paths to attain divisional/departmental goals. Thus, all divisions and employees should work in coordination; otherwise, it becomes almost impossible to reach the common objective. This coordination is provided by the budget because the goals of each division and their interrelationships are determined by the budget. In summary, budgets coordinate all divisions to arrange their activities to attain a common objective (Edmonds, et al., 2000: 285). Performance Evaluation: By determining goals for each division, the budget reveals targets for superiors or subordinates to meet during the budget period. When the period ends, these targets are compared with the actual results and performance of managers and employees can be evaluated by considering the deviations from the target. In summary, the budget determines the standards to meet during the period by management.
Time Management: Comparing the actual results with the targets does not help managers only with evaluating the performance, but also saves their time by identifying current and potential bottlenecks in operations. Management receives the advanced notices of shortages and bottlenecks through the variance analysis, and gain the opportunity to take corrective actions to minimize the anticipated adverse effects for the next period (Edmonds, et al., 2000: 286; Blocher et al., 2010: 365). For example, a manager may realize the need for additional raw materials for the next period and start searching for suppliers with better conditions. If the budget variances on direct (raw) materials had not signed this need, the company would have to purchase the additional materials for higher prices in a short time, when faced with a shortage of the raw material.
Motivation: Providing reasonable targets to employees motivates them to work efficiently in order to attain the expected results. Because they know what is expected from them; and that the results will be evaluated at the end of the period. Therefore, the primary objective of employees become reaching pre-determined goals, which are determined by management and communicated via budgets.

As also understood from the information given, the correct answer is E. Efficient resource allocation, communication, coordination, time management and motivation are the benefits resulting from the preparation and use of budgets.

Efficient Resource Allocation: By preparing the budget, the required amount of all resources to use in operations can be predicted approximately, before the period begins. Therefore, any unnecessary resources in an operation can be transferred to any other operation to full utilization of capacity (Edmonds, et al., 2000: 285). For example, in the case that the company predicts the low volume of production in a product next year, the labors will not fully utilize their capacity next period. By transferring some labor from the production of that product to another (or by not hiring some employees any more), managers may provide full utilization of resources for remaining labors. Unnecessary production and inventory storage can also be prevented by using the sales forecasts for the upcoming period.
Communication: Once the objectives are determined and the plans are prepared, management should ensure that all subordinates and superiors understand the objectives and the short-term plan. The budgets are used at this point as a communication tool that translates the objectives into action plans for the company as a whole. In other words, working to attain the budgeted targets means implying the short-term plans determined by management.
Coordination: Since the organization of a company is a chain of operations, any inefficiency in a division affects the whole organization’s success. In other words, the way to reach the organizational goal is made of paths to attain divisional/departmental goals. Thus, all divisions and employees should work in coordination; otherwise, it becomes almost impossible to reach the common objective. This coordination is provided by the budget because the goals of each division and their interrelationships are determined by the budget. In summary, budgets coordinate all divisions to arrange their activities to attain a common objective (Edmonds, et al., 2000: 285). Performance Evaluation: By determining goals for each division, the budget reveals targets for superiors or subordinates to meet during the budget period. When the period ends, these targets are compared with the actual results and performance of managers and employees can be evaluated by considering the deviations from the target. In summary, the budget determines the standards to meet during the period by management.
Time Management: Comparing the actual results with the targets does not help managers only with evaluating the performance, but also saves their time by identifying current and potential bottlenecks in operations. Management receives the advanced notices of shortages and bottlenecks through the variance analysis, and gain the opportunity to take corrective actions to minimize the anticipated adverse effects for the next period (Edmonds, et al., 2000: 286; Blocher et al., 2010: 365). For example, a manager may realize the need for additional raw materials for the next period and start searching for suppliers with better conditions. If the budget variances on direct (raw) materials had not signed this need, the company would have to purchase the additional materials for higher prices in a short time, when faced with a shortage of the raw material.
Motivation: Providing reasonable targets to employees motivates them to work efficiently in order to attain the expected results. Because they know what is expected from them; and that the results will be evaluated at the end of the period. Therefore, the primary objective of employees become reaching pre-determined goals, which are determined by management and communicated via budgets.

Doğru Cevap: E

Soru 5

Short-term budgets
Long-term budgets
Master budgets
Static (fixed) budgets
Flexible budgets

Which of the above are the budget types depending on the classification according to capacity utilization?

I and II

I and III

II and III

IV and V

I, II and III

Açıklama:

Classification According to Time Covered
A well-organized decision by management consists of two planning phases. First of these phases is attaining the short-term objectives and the second phase is attaining the long-term objectives, which is possible through the first one. Therefore, companies prepare two types of budgets; one for short-term objectives and the other for long-term objectives.
Short-term budgets determine the goals to reach in the short-term period, which is usually a 12 months period. Even if the budget covers 12 months, companies also prepare quarterly budgets as subcomponents in order to keep the operations under control and have the opportunity to take corrective actions, if necessary. Companies are increasingly preparing rolling (perpetual; continuous; revolving) budgets that always utilize the 12-months period by periodically adding an incremental timeperiod to the end of the budget period, upon completion of month/quarter. By using rolling budgets, management stays in connection with the budgeting process and this provides better control over the operations.
Long-term budgets, on the other hand, are prepared considering the strategic goals and the mission of the company. Long-term budgets cover longer periods such as 5 to 10 years. These budgets include the capital budget, which represents the company’s long-term plans regarding the capacity investments, such as the purchase of property, plant, and equipment, or adding a new product line, to assist the shortterm operations. In other words, capital budgets bring the capabilities of companies in line with their long-term plans.
Classification According to the Scope of Coverage
Similar to the fact that successful implementation of short-term plans constructs the way to reach the long-term objectives, attainment of objectives at narrow scope is the path to follow in order to reach the objectives at a broader sense. Therefore, companies prepare different budgets that reveal objectives at a different scope.
Master budget; is the comprehensive set of schedules and budgets that covers all phases of the company’s operations and describes the company’s overall financial plans for the following period. It represents the short-term objectives of a company in all aspects. A master budget can be divided into two budget categories as operating budgets and financial budgets.
Operating budgets; are the budgets that companies assign objectives for the income generating operations of the company, such as sales, production, operating activities, etc. Preparation of the master budget starts with the preparation of operating budgets and the ultimate outcome of operating budgets is the pro-forma (budgeted) income statement. The number and scope of operating budget depends on the company’s characteristics, such as firm size, the complexity of production, etc.
Financial budgets; are the budgets representing the sources and uses of cash during the budget period, as well as the expected financial position as of the end of the period. They represent the plan of how the company is expected to direct its cash flows in terms of both timing and amount. Additionally, the target financial position of the company as of the end of the budget period is also represented by financial budgets.
Functional Budgets; are the components of the master budget, and they are separately prepared for each process or department. Management prepares department -or process- based plans to lead the company through the plans that the operating budgets based on. Managers use functional budgets to determine the cost and income targets for particular departments and communicate them with subordinates.
Classification According to Capacity Utilization
For most companies, once the target is determined, it stays constant until the year-end and at the end of the year, the target is compared with the actual results to assess whether the targets are met or not. However, it may not help the management in determining the reason for any deviation from the target. Because a deviation may arise because of either the difference between the actual and expected sales in units or unit costs and sales prices may be different than the standards.
Static (Fixed) budgets; are the budgets, in which the predetermined sales levels are used in preparing the budgets. In other words, the static budget remains unchanged irrespective of the actual level of activity. This kind of budget does not consider a possible difference between the actual and budgeted production volumes. Therefore, any deviation from the budget may result because of the difference between either the actual and budgeted volume or different-than-standard unit costs/prices. It mainly aims to coordinate sectional activities to attain company objectives.
Flexible budgets; are prepared to prevent the unexpected effects of uncertainties in activity volumes, as opposed to static budgets. The flexible budgets are prepared for a specific interval, rather than a specific activity level, by considering the cost behavior pattern. These budgets help management with the variance analysis and make it easier to match the variances with the corresponding responsibility centers. For example, if the actual income differs from the budgeted income, which portion of the deviation results from the deviation in sales volume and which portion results from the difference between standard and actual unit costs (and/or sales prices) can be revealed with the help of flexible budgets. The effectiveness of using the flexible budget passes through the understanding of cost structure (cost behavior) for a specific time and/ or interval of activity volume. If there is not a direct relationship between the costs and relevant outputs of a specific activity, that activity cannot be budgeted in accordance with the principles of flexible budget.
As also understood from the information given static (fixed) budget and flexible budgets are the budget types depending on the classification according to capacity utilization, so the correct answer is D.

Doğru Cevap: D

Soru 6

The production budget describes how many units to produce in order to satisfy the ending inventory requirements, after selling the expected number of units.
In order to plan the production, managers should consider expected sales volume, units of beginning inventory, and desired level of ending inventory.
If the company is a merchandising company, no production budget is prepared.
Instead of production budget, merchandising companies prepare Merchandise Purchase Budget to identify the needed units of merchandise inventory to purchase during the year.
The basic format of Merchandise Purchase Budget budget is the same as the production budget, except that the bottom line represents “budgeted purchases”.

Which of the statements above are correct?

I and II

II and IV

I, III and IV

I, II, III and V

I, II, III, IV and V

Açıklama:

The production budget describes how many units to produce in order to satisfy the ending inventory requirements, after selling the expected number of units. In order to plan the production, managers should consider expected sales volume, units of beginning inventory, and desired level of ending inventory.
If the company is a merchandising company, no production budget is prepared. Instead, merchandising companies prepare Merchandise Purchase Budget to identify the needed units of merchandise inventory to purchase during the year. The basic format of this budget is the same as the production budget, except that the bottom line represents “budgeted purchases”.
As also understood from the information given all of the statemements in the options are correct, so the answer is E.

Doğru Cevap: E

Soru 7

If the operations are suggested to incur cumulatively over the years which budgeting technique is preferable?

Incremental Budgeting

Zero-Based Budgeting

Activity-Based Budgeting

Kaizen Budgeting

Direct Materials Usage Budget

Açıklama:

Over the years, budgeting techniques have taken different forms in order to improve the efficiency of planning and executing the operations. Different approaches are developed for different companies, depending on the nature and variety of their operations. If the operations are suggested to incur cumulatively over the years, “incremental budgeting” is preferable; whereas “zero-based budgets” may be better for planning each year separate than the preceding one.
As also understood from the information given, if the operations are suggested to incur cumulatively over the years, “incremental budgeting” is preferable, so the correct answer is A.
The information about the budgeting techniques taking place in the options:
Incremental budgeting technique does not require complex calculations or assumptions and can be achieved for various departments easily. Additionally, as the current year’s budget is the basis for it, no large deviations incur in the following year’s assessments, providing the companies a more stable budget year-by-year. Another benefit of using this budget is that the value of equality is created among all departments as all departments are given a small amount of improvement in their targets. However, at this point, this budgeting technique may have some shortcomings as managers may determine lower targets, within which high spending or low revenue generation ability is tolerated. Departments do not need to be innovative or to decrease the costs as far as the budgets are met with the current level of efficiency.
As opposed to traditional budgeting that starts with the current budget, zero-based budgeting requires managers to prepare the budget with zero-base, meaning that all items to be included in the following year’s budget should be analyzed and determined by considering only the next year’s operations. No item can be added to the budget unless the managers justify its need and usefulness for the company.
With the fact that preparing the budget on a departmental basis does not provide accurate information on drivers of success on a company, many companies apply Activity-Based Budgeting (ABB) technique. By applying this technique, the budgeting process is saved from the chart of accounts structure (such as depreciation, marketing, salaries, etc.).
With the kaizen budgets, expectations on continuous improvement are incorporated with the budgeting process. The required amounts of resources are adjusted every time according to the desired levels of efficiency and productivity. Kaizen budgeting approach is much more effective when combined with activity-based budgeting technique.
With the fact that preparing the budget on a departmental basis does not provide accurate information on drivers of success on a company, many companies apply Activity-Based Budgeting (ABB) technique. By applying this technique, the budgeting process is saved from the chart of accounts structure (such as depreciation, marketing, salaries, etc.).
Managers use production budgets to prepare plans for gathering the necessary resources for the budgeted production. One of those necessary resources is direct materials. Plans regarding the direct materials are prepared with the help of two budgets, which are;

Direct materials usage budget, and
Direct materials purchase budget.

Direct materials usage budget, and
Direct materials purchase budget.

Doğru Cevap: A

Soru 8

With the kaizen budgets, expectations on continuous improvement are incorporated with the budgeting process.
Kaizen budgeting approach is much more effective when combined with activity-based budgeting technique.
Kaizen budgeting should not be confused with traditional cost-cutting methods, in which the level of productive activities is decreased in cases of diminishing profits, decreasing sales, etc.
Kaizen budgeting is related to performing the same activities with higher efficiency and higher quality.
Managers may apply kaizen in both internal and external improvements.

Which of the statement/s above about the kaizen budgeting is/are correct?

Only II

I and II

I, III and IV

II, III, IV and V

I, II, III, IV and V

Açıklama:

With the kaizen budgets, expectations on continuous improvement are incorporated with the budgeting process. The required amounts of resources are adjusted every time according to the desired levels of efficiency and productivity. Kaizen budgeting approach is much more effective when combined with activity-based budgeting technique. However, it should not be confused with traditional cost-cutting methods, in which the level of productive activities is decreased in cases of diminishing profits, decreasing sales, etc. Kaizen budgeting is related to performing the same activities with higher efficiency and higher quality. Managers may apply kaizen in both internal and external improvements. By decreasing the waste rates or increasing the capacity utilization rates internal improvements can be reached. On the other hand, many companies are arranging with their suppliers on providing improved quality with cheaper prices; so, they are decreasing their costs while increasing the quality by external improvements. As also understood from the information given, all of the statements in the options about the kaizen budgeting are correct, so the answer is E.

Doğru Cevap: E

Soru 9

Which of the below is one of the behavioral issues of budgeting, which states that managers consciously include higher expenditures and lower revenues than they actually believe will occur?

Budgetary slack

Goal congruence

Authoritative / Participative Budgeting

Difficulty of Target to Reach

Compensation and Budgeted Performance

Açıklama:

There are behavioral issues relating to budgets such as budgetary slack and goal congruence. These behavioral issues become more obvious when subordinates’ actual performance is to be compared with and evaluated against budget performance. Some of the behavioral issues of budgeting are as follows:
Budgetary slack (padding the budget); is one of those behavioral issues, which states that managers consciously include higher expenditures and lower revenues than they actually believe will occur. This provides them to be assessed more successful at the end of the budget period. Budgetary slack also causes lower capacity utilization of resources and may lead labors to make half-hearted efforts to meet the targets (Blocher et al., 2010: 394). As also understood from the information given, the correct answer is A.
The information about the behavioral issues of budgeting taking place in the other options:
Goal congruence; is a term that states the consistency between the objectives of the organization and its subordinates is important to achieve the desired results. A budget that aligns the objectives of the company with those of labors has much more chance of being successful and attaining the goals. The factors explained below are suggested to affect the level of congruence:

Authoritative / Participative Budgeting: “Authoritative (imposed) budgeting” is a top-down process of budgeting, in which managers set the goals and communicate to subordinates. However, “participative budgeting” represents a bottom-up approach that involves all levels of people in the company in the budgeting process. Authoritative budgeting is better for decision-making control but does not provide a commitment of subordinates. On the other hand, participative budgeting provides more realistic goals, because subordinates have in-depth knowledge of what can be done in the field. Additionally, they become more motivated and less fearful about reaching the targets. However, management should ensure that the goals determined by employees are in line with the long-term goals of top management.
Difficulty of Target to Reach: Assignment of an easy target discourages the employees to pay their best efforts, while a very difficult one prevents managers even to try. Instead, a highly achievable target (about 80/85% of all can achieve) works well for companies.
Compensation and Budgeted Performance: By using the difference between actual results and fixed targets as a part of the compensation function, employees can be motivated towards reaching and exceeding the targets determined by management. However, this case may lead managers through budgetary slack to make the performance indicators look better.

Authoritative / Participative Budgeting: “Authoritative (imposed) budgeting” is a top-down process of budgeting, in which managers set the goals and communicate to subordinates. However, “participative budgeting” represents a bottom-up approach that involves all levels of people in the company in the budgeting process. Authoritative budgeting is better for decision-making control but does not provide a commitment of subordinates. On the other hand, participative budgeting provides more realistic goals, because subordinates have in-depth knowledge of what can be done in the field. Additionally, they become more motivated and less fearful about reaching the targets. However, management should ensure that the goals determined by employees are in line with the long-term goals of top management.
Difficulty of Target to Reach: Assignment of an easy target discourages the employees to pay their best efforts, while a very difficult one prevents managers even to try. Instead, a highly achievable target (about 80/85% of all can achieve) works well for companies.
Compensation and Budgeted Performance: By using the difference between actual results and fixed targets as a part of the compensation function, employees can be motivated towards reaching and exceeding the targets determined by management. However, this case may lead managers through budgetary slack to make the performance indicators look better.

Doğru Cevap: A

Soru 10

Authoritative (imposed) budgeting is a top-down process of budgeting, in which managers set the goals and communicate to subordinates.
Participative budgeting represents a bottom-up approach that involves all levels of people in the company in the budgeting process.
Participative budgeting is better for decision-making control but does not provide a commitment of subordinates.
Authoritative budgeting provides more realistic goals, because subordinates have in-depth knowledge of what can be done in the field.

Which of the statements above about Authoritative / Participative Budgeting are correct?

I and II

I and III

II and III

I, II and IV

II, III and IV

Açıklama:

Authoritative / Participative Budgeting: “Authoritative (imposed) budgeting” is a top-down process of budgeting, in which managers set the goals and communicate to subordinates. However, “participative budgeting” represents a bottom-up approach that involves all levels of people in the company in the budgeting process. Authoritative budgeting is better for decision-making control but does not provide a commitment of subordinates. On the other hand, participative budgeting provides more realistic goals, because subordinates have in-depth knowledge of what can be done in the field. Additionally, they become more motivated and less fearful about reaching the targets. However, management should ensure that the goals determined by employees are in line with the long-term goals of top management.
As also understood from the information given, the statements about Authoritative / Participative Budgeting in the options I and II are correct, so the answer is A. The statement in the option III is not correct because of the fact that authoritative budgeting is better for decision-making control but does not provide a commitment of subordinates. The statement in the option IV is not correct because of the fact that participative budgeting provides more realistic goals, because subordinates have in-depth knowledge of what can be done in the field.

Doğru Cevap: A

Soru 11

"Capital budgeting.........................." Which of the following best completes the statement above?

is a quantitative expression of the managements’ plans for a specific period of
time, either in physical or financial terms or both.

should be backed by realities and depend on reasonable expectations and be applicable.

is the process of evaluating the feasibility of a project, using some indicators such as rate of return and the time needed to pay back

represents the detailed plan of how the company will acquire and use financial and other resources during the following budget period

reflect the expected results of their planned actions and control the balance between their revenues and expenses

Açıklama:

The strategy provides the general framework for long-term plans, which are the action plans for 5 to 10 years. This kind of plan is based on capital budgeting techniques. Management synchronizes the company’s capabilities with the long-term objectives by using the capital budgets. The capacity of the company for the following period is determined by using capital budgets. Capital budgeting is the process of evaluating. the feasibility of a project, using some indicators such as rate of return, the time
needed to pay back, etc.

Doğru Cevap: C

Soru 12

Which of the following is true about "Operating budgets"?

Operating budgets prevent the company from failing in the financial aspects of the company, such as the company’s income, cash flows, and financial position

Operating budgets are used to keep a balance in the financial state of the company’s plans, such as the company’s income, cash flows, and financial position

Operating budgets represent the maximum profit of the company in cash flows, and financial position

Operating budgets represent the financial aspects of the company’s plans, such as the company’s income, cash flows, and financial position

Operating budgets reflect the company’s short-term plans related to the implementation of strategic projects

Açıklama:

Operating budgets reflect the company’s short-term plans related to the implementation of strategic projects, and result in the preparation of budgeted income statement. The scope and the number of operating budgets may change from company to company depending on the company’s characteristics, such as company size or the types of existing operations.

Doğru Cevap: E

Soru 13

Which of the following is not an objective of managers for budgeting?

informaing employees about the actual and budgeted results, and take corrective actions

allocating the company’s resources to each operation effectively,

communicating the objectives and goals to the subordinates,

motivating the superiors and subordinates towards the goals

providing coordination among all divisions or employees

Açıklama:

Managers prepare budgets with the objectives of;
a. allocating the company’s resources to each operation effectively,
b. communicating the objectives and goals to the subordinates,
c. motivating the superiors and subordinates towards the goals,
d. providing coordination among all divisions or employees,
e. comparing the actual and budgeted results, and take corrective actions, if necessary,
f. taking necessary precautions for the possible bottlenecks that the company may face in the following period.

Doğru Cevap: A

Soru 14

Which of the following cannot be considered as a benefit of budgetting?

Efficient resource allocation

Cost management

Communication

Coordination

Performance evaluation

Açıklama:

Doğru Cevap: B

Soru 15

Which of the following is not one of the categories of budgets according to scope of coverage?

Master budget

Operating budgets

Financial budgets

Functional budgets

Short-term budgets

Açıklama:

Similar to the fact that successful implementation of short-term plans constructs the way to reach the long-term objectives, attainment of objectives at narrow scope is the path to follow in order to reach the objectives at a broader sense.
Therefore, companies prepare different budgets that reveal objectives at a different scope;
Master budget
Operating budgets
Financial budgets
Functional Budgets

Doğru Cevap: E

Soru 16

Which of the following is not one of the resources of information in budgeting process?

Historical data

Previous year's production figures

Previous year's sales figures

Within comporate competition

Exchange rates

Açıklama:

At the beginning of the budgeting process, budget director alerts every division to the need for gathering information to help to make predictions about the future. There are several resources for gathering the data. Historical data is also a possible source; however, it is not enough for accurate predictions. For example, the previous year’s production may provide good input for predicting the next year’s production, but unless it is supported by market research, it cannot be a reliable source for predictions. Some companies apply a bottom-to-top approach and collect sales predictions from individual salespeople and combine together to have the forecast for the company, region or a product line. Then the upper-level managers consider some additional information to improve the accuracy of these sales forecasts; such as general economic conditions, competition, pricing policies, etc. On the other hand, some companies supplement the sales forecasts by using more formal approaches, such as econometric modeling, industry analysis and trend analysis. Budgeting relies on some other factors as usual. Costs and cash-related items, for example, have important roles in the budgeting process. The same factors that are considered in the sales forecast (inflation, exchange rates, competition, etc.) are used in forecasting the costs for the coming period.

Doğru Cevap: D

Soru 17

"Bill of materials ................................."
Which of the following best completes the statement above?

describes how many units to produce in order to satisfy the ending inventory requirements

identifies the use of direct materials in production, including the sequence and required amount of materials to produce each finished unit.

represents the amount and budgeted cost of direct materials that is required to produce the planned number of units

use production budgets to prepare plans for gathering the necessary resources for the budgeted production

reflects the needed volumes of production for each quarter, considering the seasonality in sales and inventory

Açıklama:

Usually, engineering departments or industrial designers determine the expected usage of direct materials, by analyzing the input-output relationship and update the bill of materials records stored in the computer system of the company. For example, the bill of materials records of MGD Corp. shows that each leather shoe requires 0.70 m of leather. Bill of materials is a kind of recipe for production. It identifies the use of direct materials in production, including the sequence and required amount of materials to produce each finished unit.

Doğru Cevap: B

Soru 18

"The direct labor budget........................."
Which of the following best completes the statement above?

represents the number of hours and corresponding costs of direct labor needed
for making the budgeted production

prefers to make lans by separately considering the variable and fixed overhead costs.

provides an important input for the preparation of both pro forma balance
sheet and cost of goods sold budget

is separated as variable and fixed overhead costs; whereas in others cost hierarchy is considered

is crucial for a company on the way to attaining the shortterm objectives

Açıklama:

The direct labor budget represents the number of hours and corresponding costs of direct labor needed for making the budgeted production. Similar to direct materials, the usage of direct labor hours per unit is determined with the help of technological relationships (such as time-motion analyses of engineers) between the number of labor hours and corresponding output units.

Doğru Cevap: A

Soru 19

"Financial leverage......................"
Which of the following best completes the statement above?

pays the suppliers for direct material purchases

creates a cash inflow at the beginning of the year

is adjusted for the net effect of operations on cash flow

is the use of debt in financing the acquisition of new assets

is the desired minimum ending cash amounts when making purchase

Açıklama:

Financial leverage, is the use of debt in financing the acquisition of new assets. By using debt financing, a return that is generated over equity is increased as well as the tax to pay decreases, because of interest expense.

Doğru Cevap: D

Soru 20

Which of the following is not one of the budgeting techniques?

Incremental Budgeting

Zero-Based Budgeting

Activity-Based Budgeting

Profit-based budgeting

Açıklama:

Doğru Cevap: E

Soru 21

What is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both?

Budget

Capital budgeting

Master budget

Time coverage

Long-term budget

Açıklama:

Budget is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both.

Doğru Cevap: A

Soru 22

What is the process of evaluating the feasibility of a project, using some indicators such as rate of return, the time needed to pay back, etc?

Master budget

Efficient Resource Alocation

Coordination

Performance Evaluation

Capital budgeting

Açıklama:

Capital budgeting is the process of evaluating the feasibility of a project, using some indicators such as rate of return, the time needed to pay back, etc.

Doğru Cevap: E

Soru 23

What is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time?

Capital budgeting

Time management

Master budget

Motivation

Bill of materials

Açıklama:

A master budget is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time

Doğru Cevap: C

Soru 24

Allocating the company’s resources to each operation effectively
Communicating the objectives and goals to the subordinates
Motivating the superiors and subordinates towards the goals
Providing coordination among all divisions or employees

Which of the above are among objectives of budgeting?

I, II and III

I, III and IV

I, II and IV

II, III and IV

I, II, III and IV

Açıklama:

Managers prepare budgets with the objectives of;

allocating the company’s resources to each operation effectively,
communicating the objectives and goals to the subordinates,
motivating the superiors and subordinates towards the goals,
providing coordination among all divisions or employees,
comparing the actual and budgeted results, and take corrective actions, if necessary,
taking necessary precautions for the possible bottlenecks that the company may face in the following period.

Doğru Cevap: E

Soru 25

Efficient resource allocation
Communication
Coordination
Perfomance evaluation
Time management

Which of the above are among the benefits of budgeting?

I, II, III and IV

II, III, IV and V

I, III, IV and V

I, II, III and V

I, II, III, IV and V

Açıklama:

Benefits of budgeting can be explained as follows:

Efficient Resource Allocation
Communication
Coordination
Performance Evaluation
Time Management
Motivation

Doğru Cevap: E

Soru 26

Which type of budgets determines the goals to reach in the short-term period, which is usually a 12 months period?

Long-term budgets

Master budgets

Operating budgets

Short-term budgets

Financial budgets

Açıklama:

Short-term budgets determine the goals to reach in the short-term period, which is usually a 12 months period

Doğru Cevap: D

Soru 27

Which type of budgets is the comprehensive set of schedules and budgets that covers all phases of the company’s operations and describes the company’s overall financial plans for the following period?

Short-term budgets

Master budgets

Functional budgets

Operating budgets

Static budgets

Açıklama:

Master budget; is the comprehensive set of schedules and budgets that covers all phases of the company’s operations and describes the company’s overall financial plans for the following period.

Doğru Cevap: B

Soru 28

These are the budgets, in which the predetermined sales levels are used in preparing the budgets.
This type of budget remains unchanged irrespective of the actual level of activity.
This kind of budget does not consider a possible difference between the actual and budgeted production volumes.

Which kind of budget is defined above?

Financial budgets

Functional budgets

Flexible budgets

Static budgets

Master budgets

Açıklama:

Static (Fixed) budgets; are the budgets, in which the predetermined sales levels are used in preparing the budgets. In other words, the static budget remains unchanged irrespective of the actual level of activity. This kind of budget does not consider a possible difference between the actual and budgeted production volumes. Therefore, any deviation from the budget may result because of the difference between either the actual and budgeted volume or different-than-standard unit costs/prices. It mainly aims to coordinate sectional activities to attain company objectives.

Doğru Cevap: D

Soru 29

These budgets are prepared to prevent the unexpected effects of uncertainties in activity volumes.
This kind of budgets is prepared for a specific interval, rather than a specific activity level, by considering the cost behavior pattern.
These budgets help management with the variance analysis and make it easier to match the variances with the corresponding responsibility centers.

Which type of budgets is defined above?

Flexible budgets

Static budgets

Functional budgets

Operating budgets

Short-term budgets

Açıklama:

Flexible budgets; are prepared to prevent the unexpected effects of uncertainties in activity volumes, as opposed to static budgets. The flexible budgets are prepared for a specific interval, rather than a specific activity level, by considering the cost behavior pattern. These budgets help management with the variance analysis and make it easier to match the variances with the corresponding responsibility centers. For example, if the actual income differs from the budgeted income, which portion of the deviation results from the deviation in sales volume and which portion results from the difference between standard and actual unit costs (and/or sales prices) can be revealed with the help of flexible budgets.

Doğru Cevap: A

Soru 30

Incremental budgeting
Zero-based budgeting
Flexible budgeting
Activity-based budgeting
Kaizen budgeting

Which of the above are among alternative budgeting techniques?

I, II, III and IV

I, III, IV and V

I, II, IV and V

I, II, III and V

I, II, III, IV and V

Açıklama:

Doğru Cevap: C

Soru 31

Which of the following reflects the company’s short-term plans related to the implementation of strategic projects, and result in the preparation of budgeted income statement?

Operating budget

Financial budget

Master budget

Capital budgeting

Strategic plan

Açıklama:

Operating budgets reflect the company’s short-term plans related to the implementation of strategic projects, and result in the preparation of budgeted income statement.

Doğru Cevap: A

Soru 32

Which of the following is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time?

Financial budget

Master budget

Capital budgeting

Operating budget

Financial budget

Açıklama:

A master budget is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time

Doğru Cevap: B

Soru 33

I. Efficient Resource Allocation
II. Communication
III. Coordination
IV. Performance Evaluation
Which of the above are among the benefits of budgeting?

I and II

II and IV

I, II and III

I, III and IV

I, II, III and IV

Açıklama:

Benefits of budgeting can be explained as follows: Efficient Resource Allocation, Communication, Coordination, Performance Evaluation, Time Management, Motivation

Doğru Cevap: E

Soru 34

Which of the following is prepared considering the strategic goals and the mission of the company?

Static budget

Master budget

Long-term budget

Functional Budget

Financial budget

Açıklama:

Long-term budgets, on the other hand, are prepared considering the strategic goals and the mission of the company

Doğru Cevap: C

Soru 35

Which of the following is the comprehensive set of schedules and budgets that covers all phases of the company’s operations and describes the company’s overall financial plans for the following period.

Short-term budget

Operating budget

Long-term budget

Financial budget

Master budget

Açıklama:

Master budget; is the comprehensive set of schedules and budgets that covers all phases of the company’s operations and describes the company’s overall financial plans for the following period.

Doğru Cevap: E

Soru 36

Which of the following is the first budget to prepare in the budgeting process?

Sales budget

Master budget

Operating Bbudget

Production budget

Direct materials budget

Açıklama:

The first budget to prepare in the budgeting process is the sales budget.

Doğru Cevap: A

Soru 37

Which of the following provides an important input for the preparation of both pro forma balance sheet and cost of goods sold budget?

Ending inventories budget

Manufacturing overhead budget

Direct materials purchase budget

Production budget

Açıklama:

Ending inventories budget provides an important input for the preparation of both pro forma balance sheet and cost of goods sold budget.

Doğru Cevap: A

Soru 38

Which of the following is the use of debt in financing the acquisition of new assets?

The budgeted balance sheet

Financial leverage

Budgeted Income Statement

Bill of materials

Budgeted Production

Açıklama:

Financial leverage, is the use of debt in financing the acquisition of new assets.

Doğru Cevap: B

Soru 39

In which technique, must managers adjust the current year’s budget for small changes?

Activity-Based Budgeting

Kaizen Budgeting

Zero-Based Budgeting

Incremental Budgeting

Participative Budgeting

Açıklama:

In this easy-to-implement technique, what managers need to do is just adjusting the current year’s budget for small changes.

Doğru Cevap: D

Soru 40

Which of the following is a term that states the consistency between the objectives of the organization and its subordinates is important to achieve the desired results?

Goal congruence

Budgetary slack

Participative budgeting

Performance indicator

Kaizen budget

Açıklama:

Goal congruence; is a term that states the consistency between the objectives of the organization and its subordinates is important to achieve the desired results.

Doğru Cevap: A

Soru 41

.......................... can be defined as quantitative expressions of management’s
plans of actions for a specific period of time.
Which of the following should be brought to the space left above?

Cost

Revenue

Budget

Mission

Vision

Açıklama:

The correct answer is C. Budget is a quantitative expression of the managements’ plans for a specific period of time, either in physical or financial terms or both

Doğru Cevap: C

Soru 42

Which is the combination of operational and financial budgets covering all aspects of company’s operations for a period of time?

Zero-Based Budget

Flexible Budget

Static Budget

Master budget

Capital budgeting

Açıklama:

The correct answer is D. Master budget translates the objectives into actions by reflecting the operational and financial plans for the following period. Therefore, it is made of two separate series of schedules and budgets; operating budgets and financial budgets.

Doğru Cevap: D

Soru 43

Which of the following is not one of the benefits of budgets?

Efficient allocation of resources

Communicate business expectations to subordinates

Ensuring coordination by setting a goal for everyone

Calculate the cost of products and services

Opportunity to save their time by foreseeing the possible bottlenecks in operations

Açıklama:

The correct answer is D. Budgets help the companies by providing efficient allocation of resources among operations. They are used in communicating the expectations from each component of the business to all subordinates and provides coordination among every component by assigning a common goal for all. Besides, budgets provide an opportunity to save their time by foreseeing the possible bottlenecks in operations and taking preventive actions.

Doğru Cevap: D

Soru 44

Which of the following is classification according to time covered budget type?

Master budget

Operating budget

Short-term budget

Financial budget

Functional Budget

Açıklama:

The correct answer is C. The other budget types given in the options are among the budget types according to their scope.

Doğru Cevap: C

Soru 45

I. It is among the budgets according to its scope.
II. It is budget representing the sources and uses of cash during the budget period.
What is the type of budget that the features listed above?

Financial budgets

Functional Budgets

Long-term budgets

Operating budgets

Static budgets

Açıklama:

The correct answer to question is option A. Financial budgets are the budgets representing the sources and uses of cash during the budget period, as well as the expected financial position as of the end of the period.

Doğru Cevap: A

Soru 46

Which of the following is not an example of a financial budget?

Capital Budget

Cash Budget

Pro Forma Balance Sheet

Cost of Goods Sold Budget

Budgeted Statement of Cash Flows

Açıklama:

The correct answer is D. Cost of Goods Sold Budget is an example of an operating budget.

Doğru Cevap: D

Soru 47

Which of the following is the type of budget that managers focus on the activities and resources needed to meet the customer demands for the following year?

Kaizen Budgeting

Incremental Budgeting

Activity-Based Budgeting

Fixed Budget

Short term budget

Açıklama:

The correct answer is C. In ABB, managers focus on the activities and resources needed to meet the customer demands for the following year.

Doğru Cevap: C

Soru 48

If the operations are suggested to incur cumulatively over the years, ......................is preferable; whereas ................. may be better for planning each year separate than the preceding one.
Which of the following should be brought to the places left blank above?

İncremental budgeting- Zero-based budgets

Fixed budget-Capital budget

Financial budget- Capital budget

Activity-Based Budgeting-Kaizen budgeting

Capital budget- Operational budget

Açıklama:

The correct answer to question is option A. If the operations are suggested to incur cumulatively over the years, incremental budgeting is preferable; whereas zero-based budgets may be better for planning each year separate than the preceding one.

Doğru Cevap: A

Soru 49

Which of the following is not one of the negative behavioral aspects of budgeting?

All levels of personnel are included in the budgeting process.

Managers must create a proper atmosphere to motivate the subordinates

Goals of the company should be in line with the goals of subordinates.

Managers provide the consistency between the objectives of the organization and its subordinates is important to achieve the desired results.

Managers consciously include higher expenditures and lower revenues than they actually believe will occur.

Açıklama:

The correct answer is question E. When managers consciously include higher expenditures and lower revenues than they actually believe will occur, budgetary slack (padding the budget is occured. Budgetary slack is one of those negative behavioral issues. Because budgetary slack causes lower capacity utilization of resources and may lead labors to make half-hearted efforts to meet the targets

Doğru Cevap: E

Soru 50

The final stage of which budget is the preparation of the proforma income statement?

Operating budget

Cash budget

Capital budget

Budgeted balance sheet

Budgeted statement of cash flows

Açıklama:

The correct answer to question is option A. Once the revenues and costs are calculated, budgets for operating activities are created and all input become ready for a pro forma income statement. This statement is the last schedule for the operating budget.

Doğru Cevap: A

Ünite 7

Soru 1

Which standards reflect the production process that is as efficient as possible under normal conditions?

Currently achievable standards

The level of difficulty

Fixed standards

Level of participation to the standard-setting process

Kaizen standards

Açıklama:

Many managers prefer currently achievable standards to the ideal standards. Because these standards reflect the production process that is as efficient as possible under normal conditions.

Doğru Cevap: A

Soru 2

For which costs, purchasing and consumption incur at the same time?

Manufacturing Overhead Costs

Direct Labor Costs

Cost of Goods Sold

Direct Material Costs

Variable Overhead Costs

Açıklama:

The difference is that for labor cost, purchasing and consumption incur at the same time.

Doğru Cevap: B

Soru 3

Which of the following terms refers to the difference between the actual results and budgeted amounts?

Variance

Standards

Costing

Cost Flows

Finished Goods

Açıklama:

The difference between the actual results and budgeted amounts is called “variance”.

Doğru Cevap: A

Soru 4

"In order to use their time more effectively, managers separate the deviations as significant and insignificant deviations and follow up only the material ones." What is this procedure called?

Setting the Standards

Flexible Budget Variance

Management by Exception

Efficiency Variance

Standard Cost Sheet

Açıklama:

In order to use their time more effectively, managers separate the deviations as significant and insignificant deviations and follow up only the material ones. This is called management by exceptions.

Doğru Cevap: C

Soru 5

Which of the following reflects the production process that is as efficient as possible under normal conditions?

Ideal standards

Currently achievable standards

Fixed standards

Kaizen standards

Authoritative standards

Açıklama:

Currently achievable standards reflect the production process that is as efficient as possible under normal conditions. These standards allow for inefficiencies and imperfections at a reasonable level, and it should be kept in mind that, in intensely competitive environments, the allowed level of inefficiency may negatively affect the success of operations.

Doğru Cevap: B

Soru 6

I. Fixed standards
II. Authoritative standards
III. Kaizen standards
Which of the above standards fall under the classification according to updating frequency?

Only II

Only III

I and II

I and III

I, II and III

Açıklama:

Classification According to Updating Frequency: The two contrast types of standards are “fixed standards” and “kaizen (continuous-improvement) standards”. Fixed standards are determined for the conditions at the beginning and not changed for many years. Kaizen standards are exactly opposite of fixed standards because they require continuous updating by their nature. These standards are continuous-improvement standards that reflect planned improvements year by year.

Doğru Cevap: D

Soru 7

I. Kaizen standards
II. Ideal standards
III. Authoritative standards
Which of the above standards fall under the classification according to subject of the standard?

Only I

Only III

I and III

II and III

I, II and III

Açıklama:

Classification According to the Level of Participation to Standard Setting Process: The standards are called either “authoritative standards” or “participative standards” depending on the level of inclusion of others in the standard-setting process.

Doğru Cevap: B

Soru 8

Which of the following is not one of the merits of standard costing?

Traditional standard costing systems focus on the efficiency of direct labor.

It is easier to compare the actual results with budgeted results.

Managers can spend their time on significant problems rather than wasting for insignificant ones.

Variances provide benchmark points for the managers to evaluate the performance.

Timeliness of cost data to use in pricing decisions eases the pricing process.

Açıklama:

Traditional standard costing systems are blamed for focusing too much on the efficiency of direct labor, which loses its relative value in modern production systems. Therefore, this is not one of the benefits; it shows a drawback.

Doğru Cevap: A

Soru 9

What is "the record that specifies the details of standard costs for all manufacturing factors needed for producing one unit" called?

Management by exceptions

Standard costing

Manufacturing overhead

Cost for direct materials

Standard cost sheet

Açıklama:

A standard cost sheet is a record that specifies the details of standard costs (including both price and quantity) for all manufacturing factors needed for producing one unit.

Doğru Cevap: E

Soru 10

Which of the following terms refers to the amount of cost allocated to each unit of the allocation base?

Debit

Credit

Rate

Cost

Variance

Açıklama:

The rate refers to the amount of cost allocated to each unit of the allocation base.

Doğru Cevap: C

Soru 11

Which of the following adjusts the revenues and expenses according to actual sales volume?

Financial control

Favorable variance

Overhead costs

Flexible budget

Direct materials cost

Açıklama:

Flexible budget is the budget that adjusts the revenues and expenses according to actual sales volume.

Doğru Cevap: D

Soru 12

Direct labors in XYZ Company have worked for 43,200 hours in order to produce 8,000 trays. The actual wage rate that the Company has incurred for each hour is 15TL, although the standard wage rate was 13TL for the year. Can you calculate the direct labor price variance?

28,800TL

32,000TL

43,200TL

51,200TL

86,400TL

Açıklama:

Direct labor price variance = (Actual rate - Budgeted rate) x Actual labor hours worked
Direct labor price variance = (15 - 13) x 43,200 = 86,400TL (U)

Doğru Cevap: E

Soru 13

According to which standats are there two contrast types of standards as “fixed standards” and “kaizen standards?

Subject of Standard

The Level of Difficulty

Updating Frequency

The Level of Participation to Standard Setting Process

Length of time

Açıklama:

Classification According to Updating Frequency: The two contrast types of standards are “fixed standards” and “kaizen (continuous-improvement) standards”

Doğru Cevap: C

Soru 14

I. Quality
II. Quantity
III. Price
Which of the following is/are the facets of the standard cost for direct materials?

Only I

Only III

I ve II

I ve III

I, II VE III

Açıklama:

The standard cost for direct materials has three facets as quality, quantity, and price.

Doğru Cevap: E

Soru 15

I. It makes it easier to compare the actual results with budgeted results.
II. Using the standard costs helps management with pricing decisions.
III. Standard costing is worse than the actual costing in terms of timeliness of cost data to use in pricing decision.
Which of the statements above are true about standart costing?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

Use of standard costing makes it easier to compare the actual results with budgeted results, by providing the opportunity to determine a new target that is adjusted for the actual output level, instead of a fixed level of production. Next to planning, correction, and performance evaluation benefits, using the standard costs instead of the actual costs helps management with pricing decisions, too. Additionally, standard costing is better than the actual costing in terms of timeliness of cost data to use in pricing decisions.

Doğru Cevap: C

Soru 16

Which of the following incur at the same time as a difference in labor cost?

Labor and consumption

Material and consumption

Purchasing and material

Purchasing and labor

Purchasing and consumption

Açıklama:

The difference is that for labor cost, purchasing and consumption incur at the same time.

Doğru Cevap: E

Soru 17

Which of the following refers to the amount of cost allocated to each unit of the allocation base?

Allocation

Capacity

Cost

Rate

Budget

Açıklama:

The rate refers to the amount of cost allocated to each unit of the allocation base.

Doğru Cevap: D

Soru 18

Which costs are generally accepted as the investments that companies incur in order to create the needed capacity?

Variable Overhead Costs

Fixed Overhead Costs

Direct Labor Costs

Direct Material Costs

Cost of Goods Sold

Açıklama:

These costs are generally accepted as the investments that companies incur in order to create the needed capacity.

Doğru Cevap: B

Soru 19

Which of the following reflects the company’s efficiency in using the materials?

Direct materials efficiency variance

Materials usage ratio

Direct labor flexible-budget variance

Direct Materials Price Variance

Flexible-Budget Variance on Finished Goods

Açıklama:

The second component of direct materials flexible-budget variance is the direct materials efficiency variance, which reflects the company’s efficiency in using the materials. Efficiency variance is the difference between the actual quantity of materials used and the standard quantity that should have been used for producing the actual output, multiplied by the standard price per unit of direct material.

Doğru Cevap: A

Soru 20

Which of the following is the cost determined by careful analyses that states how much something cost to the company under normal conditions?

Normal cost

Standard cost

Actual cost

Estimated cost

Optimum cost

Açıklama:

Standard cost is the cost determined by careful analyses that states how much something cost to the company under normal conditions.

Doğru Cevap: B

Soru 21

Which of the following is the difference between the actual results and budgeted amounts?

Variance

Error

Loss

Mistake

Profit

Açıklama:

The difference between the actual results and budgeted amounts is called “variance”.

Doğru Cevap: A

Soru 22

Which of the following is not in the classification of the standards of costs?

The level of difficulty

Updating frequency

Subject of standards

Level of participation to the standard-setting
process

Time of cost realization

Açıklama:

There are several types of standards that can be classified from different perspectives, such as:
a. the level of difficulty,
b. updating frequency,
c. subject of standards, and
d. level of participation to the standard-setting process.

Doğru Cevap: E

Soru 23

Which of the following reflects the peak operating efficiency without any production disruptions?

Fixed standards

Practical standards

Attainable standards

Available standards

Ideal standards

Açıklama:

Ideal standards reflect the peak operating efficiency without any
production disruptions.

Doğru Cevap: E

Soru 24

Which of the following are continuous-improvement standards that reflect planned improvements year-by-year?

Kaizen standards

Fixed standards

Attainable standards

Practical standards

Currently achievable standards

Açıklama:

Kaizen standards are exactly the opposite of fixed standards because they require continuous updating by their nature. These standards are continuous-improvement standards that reflect planned improvements year-by-year.

Doğru Cevap: A

Soru 25

Which of the following divides standards into "quantity standard" and "price standard"?

Classification According to the Level of Difficulty

Classification According to Updating Frequency

Classification According to Subject of Standard

Classification According to the Level of Participation to Standard Setting Proces

Classification According to the time of cost realization

Açıklama:

Classification According to Subject of Standard divides standards into "quantity standard" and "price standard" According to the answer to the question “what should be the …. of inputs to use in producing one unit”, the name of the standard is determined. If the answer specifies the needed quantity of resource consumption the standard is “quantity standard”; however, if the answer gives the price information on inputs, it is “price standard” that the company sets.

Doğru Cevap: C

Soru 26

"If the standards are set solely or primarily by the management only, they are called the .............. standards."
Which of the following correctly completes the blank in the above sentence?

Authoritative

Participative

Kaizen

Fixed

Ideal

Açıklama:

If the standards are set solely or primarily by the management only, they are called the authoritative standards.

Doğru Cevap: A

Soru 27

"The accounting system, in which standard costs and associated variances are recorded in the
formal accounting records is called the ......."
Which of the following correctly completes the blank in the above sentence?

Order costing

Actual costing

Stage costing

Standard costing

Variable costing

Açıklama:

The accounting system, in which standard costs and associated variances are recorded in the
formal accounting records is called the “standard costing”.

Doğru Cevap: D

Soru 28

Which of the following is the budget that adjusts the revenues and expenses according to actual sales volume?

Variable budget

Static budget

Flexible budget

Historical budget

Tight budget

Açıklama:

Flexible budget is the budget that adjusts the revenues and expenses according to actual sales volume.

Doğru Cevap: C

Soru 29

How can we calculate the sales-volume variance?

(Actual sales volume + Budgeted sales volume) x Budgeted selling price

(Actual sales volume - Budgeted sales volume) x Budgeted selling price

(Actual sales volume + Budgeted sales volume) / Budgeted selling price

(Actual sales volume - Budgeted sales volume) / Budgeted selling price

(Actual sales volume + Budgeted sales volume) x Actual selling price

Açıklama:

Sales-volume variance = (Actual sales volume - Budgeted sales volume) x Budgeted selling price

Doğru Cevap: B

Soru 30

What is the purpose of management's standards in budgeting?

Evaluate the efficiency of the activity

Compare actual and budgeted results

Calculate income and expenses

Performance evaluation

Evaluate productivity

Açıklama:

The correct answer is B. The management uses standards to prepare the budgets of the coming period; so that at the end of the period they can evaluate the performance of operations by comparing the actual results with the budgeted targets that are determined with the help of standards.

Doğru Cevap: B

Soru 31

I. Managers work together with the engineers to determine the standards. II. Historical data has no use. III. In this method is analyzed the tasks during the production. What is setting the standard method that fetures listed above?

Analysis of historical data

Task Analysis

Variance

Standard Cost

Management-by-exception

Açıklama:

The correct answer is B. Managers use two methods for setting the cost standards: historical data analysis and task analysis. Task Analysis method, historical data has no use. Managers work together with the engineers to determine the standards. By analyzing the tasks during the production the standards.

Doğru Cevap: B

Soru 32

Which of the following is a feature of kaizen standards?

These standards are continuous-improvement standards.

These standards not changed for many years.

These standards are determined for the conditions.

These standards are not appropriate for analyzing the effectiveness of operations.

These standards can be used for analyzing the trend.

Açıklama:

The correct answer to question is option A. The features given in other options are those of fix standards.

Doğru Cevap: A

Soru 33

Which of the following matching is incorrect?

Classification According to the Level of Difficulty- İdeal Standards

Classification According to Updating Frequency- Fixed standards

Classification According to the Level of Participation to Standard Setting Process- Authoritative standards

Classification According to Updating Frequency- Quantity standard

Classification According to the Level of Participation to Standard Setting Process- Participative standards

Açıklama:

The correct answer is D. Quantity standard is classification according to subject of standard. Classification According to Updating Frequency are fixed standards and kaizen standards.

Doğru Cevap: D

Soru 34

Which of the following is accurate information about establishing the standard cost for direct materials?

İndustrial engineers, production personnel, labor union representatives and managerial accountants work together.

The industrial engineering techniques such as time-motion studies and job samplingare used.

During this process, opinions of experienced employees are used.

The standard cost for direct materials has three facets as quality, quantity, and price.

İn this establishing standards is considered the transactions and qualifications
required for the work.

Açıklama:

The correct answer is D. The statements in the other embodiments refer directly to establishing the standard cost for direct labor.

Doğru Cevap: D

Soru 35

........................is a record that specifies the details of standard costs (including both price and quantity) for all manufacturing factors needed for producing one unit.
Which of the following should be brought to the space left above?

Flexible Budget Variance

Authoritative standards

A standard cost sheet

Production Volume Variance

Participative standards

Açıklama:

The correct answer is C. A standard cost sheet is a record that specifies the details of standard costs (including both price and quantity) for all manufacturing factors needed for producing one unit.

Doğru Cevap: C

Soru 36

Which of the following these two variances that managers consider to learn about efficiencies (inefficiencies) in purchasing or using the resources, and if necessary, take corrective actions?

Price and Quantity

Quantity and Cost

Price and Revenue

Sales and Revenue

Cost and Revenue

Açıklama:

The correct answer to question is option A. Managers consider these two variances for price and quantity (efficiency) to learn about efficiencies (inefficiencies) in purchasing or using the resources, and if necessary, take corrective actions.

Doğru Cevap: A

Soru 37

Which of the following variance arises when the wage rate that a company pays is different from the standard rates predetermined before the beginning of the period?

Sales-volume variance

Direct materials price variance

Direct materials efficiency variance

Direct labor price variance

Selling price variance

Açıklama:

The correct answer is D. Direct labor price variance arises when the wage rate that a company pays is different from the standard rates predetermined before the beginning of the period.

Doğru Cevap: D

Soru 38

Which of the following is wrong with the materials usage ratio?

Many companies use materials usage ratios to evaluate the necessity of material purchases.

It represents the relationship between the quantity used and the quantity purchased.

A low value of this ratio suggests that the company purchases direct materials for inventories.

This ratio is used when it may be required to consider the price variance together with the amount of purchases, for performance evaluation purposes.

This ratio is evaluated direct materials efficiency.

Açıklama:

The correct answer is question E. Because this ratio is evaluated the necessity of material purchases.

Doğru Cevap: E

Soru 39

In the Çelik Company budgeted price is 42 per kg of steel, but the Company has paid 45 for each kg. Company has purchased 30,000 kg of steel. According to this information, what is direct material price variance?

50.000

60.000

70.000

80.000

90.000

Açıklama:

Direct Price Variance = (45-42) x (30.000) =90.000 is the total variance on purchases.

Doğru Cevap: E

Soru 40

____________ is the cost determined by careful analyses that states how much something cost to the company under normal conditions.

Analysis of historical data

Standard cost

Updating frequency

Subject of standards

Standard setting process

Açıklama:

In a budgetary control system, the standards are set, at first. These standards represent what it should cost the company to produce one unit of finished goods. Then, the standards are multiplied with the production volume to determine the total budgeted production cost for the upcoming period. When the period ends, the actual production cost is measured and deviations from the budgeted costs are determined. Standard cost is the cost determined by careful analyses that states how much something cost to the company under normal conditions.

Doğru Cevap: B

Soru 41

The difference between the actual results and budgeted amounts is called ________.

Deviation

Standard cost

Variance

Exception

Standard

Açıklama:

The difference between the actual results and budgeted amounts is called “variance”. The amount of variation also depends on the standards as the benchmark point. For providing the variances tell the true story, standards must also be determined correctly. If the targets are mistaken, even if the operations are effective, they will seem to need corrections. Therefore, the effectiveness of the controlling process depends partially on the effectiveness of standard setting.

Doğru Cevap: C

Soru 42

In which clarification type standards are classified as “ideal (perfection; theoretical) standards” and “currently achievable (practical; attainable) standards”?

Clarification according to difficulty

Clarification according to experience

Clarification according to level of participation to the standard-setting process

Clarification according to subject of standards

Clarification according to updating frequency

Açıklama:

Classification According to the Level of Difficulty: Standards are classified as “ideal (perfection; theoretical) standards” and “currently achievable (practical; attainable) standards” according to the difficulty in attaining the standards. Ideal standards reflect the peak operating efficiency without any production disruptions.

Doğru Cevap: A

Soru 43

Which one is among the benefits of standard costing?

Traditional standard costing systems focus too much on the efficiency of direct labor.

Shortening product-life-cycles shortens the duration of standards’ validity.

New standard development is required each time a new product is launched.

They tend to focus only on cost minimization.

Managers may spend their time on significant problems.

Açıklama:

Use of standard costing makes it easier to compare the actual results with budgeted results, by providing the opportunity to determine a new target that is adjusted for the actual output level, instead of a fixed level of production. Considering the size of variations from target results, managers may spend their time on significant problems rather than wasting for insignificant ones. These variances also provide benchmark points for the managers to evaluate the performance. As a result of the evaluations, employees may be punished or rewarded; both motivate them to meet the standards.

Doğru Cevap: E

Soru 44

Quality
Purchase
Price

Which one(s) above can be counted as the facest of the standard cost for direct materials?

Only I

Only II

Only III

I and III

II and III

Açıklama:

The standard cost for direct materials has three facets as quality, quantity, and price. The first step is to specify the desired quality of direct materials. The quality of direct materials determines the quality of the product and changes the production schedules to some extent. Because, the amount of direct materials needed for desired production level, time to process and complete the production, needed extent and frequency of supervision, and the purchase price are all affected by the quality of direct materials.

Doğru Cevap: D

Soru 45

_____________ are those that increase operating income.

Static budget

Unfavorable variance

Favorable variance

Financial control

Fixed overhead cost

Açıklama:

The financial dimension of control is provided by comparing the budgeted numbers with actual results. The budgeted numbers represent the standard amounts that signal the targets to reach and provides benchmark points for the company to evaluate the performance. In this frame, budgets are important tools for financial control. By comparing the actual results with the budgeted targets, the deviations (variances) are calculated. Considering the amounts and directions of variances (either favorable or unfavorable) management takes actions either to keep the ongoing processes or correct the inefficient operations.

Doğru Cevap: C

Soru 46

____________ is the budget that adjusts the revenues and expenses according to actual sales volume.

Flexible budget

Financial control

Static budget

Sales volume variance

Selling price variance

Açıklama:

The master budget is useful for planning and coordination purposes; however, its static nature limits its usefulness for performance evaluation. Operating conditions usually do not match the conditions that management expects or forecasts at the time budgets are prepared. In order to evaluate the short-term financial performance, companies at first revise the static budgets for the actual sales volume and this newly created budget is called “flexible budget”.

Doğru Cevap: A

Soru 47

How is sales-volume variance for sales revenue calculated?

Sales-volume variance =(Actual rate - Budgeted rate) x Actual labor hours worked

Sales-volume variance = (Actual quantity - Budgeted quantity) x Budgeted price

Sales-volume variance = (Actual price - Budgeted price) x Actual quantity purchased

Sales-volume variance = (Actual sales volume - Budgeted sales volume) x Budgeted selling price

Sales-volume variance =(Actual selling price - Budgeted selling price) x Actual sales-volume

Açıklama:

The Sales-Volume Variance explains the difference as a result of selling at different volumes. The calculation of Sales-Volume Variance for sales revenue is as follows:
Sales-volume variance = (Actual sales volume - Budgeted sales volume) x Budgeted selling price

Doğru Cevap: D

Soru 48

In a company, budgeted price is 25tl per kg of steel, but the Company has paid 27tl for each kg. Company has purchased 30,000 kg of steel. What is the direct materials price variance?

70.000

60.000

50.000

40.000

30.000

Açıklama:

DM Price Variance = (T27 - T25) x (30,000) =T60,000 (U) is the total variance on purchases.

Doğru Cevap: B

Soru 49

Direct labors in a company have worked for 49,400 hours in order to produce 13,000 swords. The actual wage rate that the Company has incurred for each hour is 11tl (=T543,400 total labor cost /49,400 hours worked), although the standard wage rate was T10 for the year. What is the resulting unfavorable price variance?

69,400

59,500

59,400

49,500

49,400

Açıklama:

Direct labor price variance = (11 - 10) x 49,400 = 49,400tl (U)

Doğru Cevap: E

Soru 50

Which of the following can be described as "The cost determined by careful analyses that states how much something cost to the company under normal conditions."

Standard cost

Actual cost

Variable cost

Fixed cost

Residual cost

Açıklama:

Standard cost is the cost determined by careful
analyses that states how much something cost to the
company under normal conditions.

Doğru Cevap: A

Soru 51

Which of the following can be described as "The difference between the actual results and budgeted amounts."

Ratio

Variance

Gap

Difference

Distinction

Açıklama:

The difference between the actual results and budgeted amounts is called “variance”.

Doğru Cevap: B

Soru 52

I. Historical data analysis
II. Actual data analysis
III. Task analysis
Which of the above is/are takes placa in the methods that managers use for
setting the cost standards?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Generally, managers use two methods for setting the cost standards: historical data analysis and task analysis.

Doğru Cevap: C

Soru 53

Which of the following does not take place in the standard clasification perspectives?

Classification According to the Level of Difficulty

Classification According to Updating Frequency

Classification According to Subject of Standard

Classification According to the Level of Participation to Standard Setting Process

Classification According to Market Concentration

Açıklama:

Doğru Cevap: E

Soru 54

In which classification perspective, standards are calassified as "ideal standards” and “currently achievable standards”?

Classification According to the Level of Difficulty

Classification According to Updating Frequency

Classification According to the Level of Participation to Standard Setting Process

Classification According to Market Concentration

Classification According to Subject of Standard

Açıklama:

Doğru Cevap: A

Soru 55

I. Fixed standards
II. Kaizen standards
III. Ideal standards
Which of the above is/are takes place under the classification according to updating frequency?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

Classification According to Updating Frequency: The two contrast types of
standards are “fixed standards” and “kaizen (continuous-improvement) standards”.

Doğru Cevap: C

Soru 56

Which of the following is the budget that adjusts the revenues and expenses according to actual sales volume.

Stable budget

Comparative budget

Flexible budget

Traditional budget

Operational budget

Açıklama:

Flexible budget is the budget that adjusts the revenues and expenses according to actual sales volume.

Doğru Cevap: C

Soru 57

Which of the following is the ratio that represents the relationship between the quantity used and the quantity purchased.

Proprietary ratio

Absolute liquidity ratio

Net working capital ratio

Inventory turnover ratio

Materials usage ratio

Açıklama:

Materials usage ratio is the ratio that represents the relationship between the quantity used and the quantity purchased.

Doğru Cevap: E

Soru 58

Which of the followig correctly calculates the direct materials price variance?

(Actual price + Budgeted price) x Actual quantity purchased

(Actual price - Budgeted price) x Actual quantity purchased

(Actual quantity - Budgeted quantity) x Budgeted price

(Actual quantity + Budgeted quantity) x Budgeted price

(Actual rate - Budgeted rate) x Actual labor hours worked

Açıklama:

Direct materials price variance = (Actual price - Budgeted price) x Actual quantity purchased

Doğru Cevap: B

Soru 59

Which of the followig correctly calculates the direct labor efficiency variance?

(Actual overhead cost - Budgeted overhead cost) x Actual quantity purchased

(Actual rate - Budgeted rate) x Actual labor hours worked

(Actual price - Budgeted price) x Actual quantity purchased

(Actual labor hours - Budgeted labor hours) x Budgeted rate

(Actual quantity - Budgeted quantity) x Budgeted price

Açıklama:

Direct labor efficiency variance = (Actual labor hours - Budgeted labor hours) x Budgeted rate

Doğru Cevap: D

Ünite 8

Soru 1

Which one of the following is the first stage of decision making activity?

Collecting all the data needed for decision making

Identifying and explaining the problems

Determining which basis to decide

Formulating an application plan

Reviewing the alternatives

Açıklama:

Determining which basis to decide is the first stage of decision making activity

Doğru Cevap: C

Soru 2

Which one of the following are the routinely repeated decisions?

Strategic decisions

Managerial decisions

Non-programmed decisions

Operational decisions

Programmed decisions

Açıklama:

Programmed (Routine) Decisions: Programmed decisions are routinely repeated decisions.

Doğru Cevap: E

Soru 3

Which one of the following are related to the implementation of general plans and programs?

Managerial decisions

Operational decisions

Strategic decisions

Programmed decisions

Non-programmed decisons

Açıklama:

Decisions related to the implementation of general plans and programs are called operational decisions.

Doğru Cevap: B

Soru 4

Which one of the following is not among the costs for decision making?

Variable cost

Marginal cost

Differential cost

Relevant cost

Opportunity cost

Açıklama:

Variable cost is not among the costs for decision making

Doğru Cevap: A

Soru 5

Which one of the following are affected by the decisions to be taken and are therefore obligatory to be taken into account in a managerial decision?

Opportunity cost

Sunk cost

Marginal cost

Relevant cost

Differential cost

Açıklama:

Relevant Cost: These are the costs affected by the decisions to be taken and are therefore obligatory to be taken into account in a managerial decision.

Doğru Cevap: D

Soru 6

The expected revenue of an alternative is 14.000 TL and the expected expenditure is 11.000 TL. The opportunity cost is 1.200 TL. What is the net economic earning of this alternative?

1.000 TL

1.200 TL

1.600 TL

1.800 TL

2.200 TL

Açıklama:

Expected Profit = Expected Revenue - Expected
Expenditure
= 14.000 - 11.000
= 3.000
Net Economic Earning = Expected Profit -
Opportunity Cost
= 3.000 - 1.200
= 1.800 TL

Doğru Cevap: D

Soru 7

The main function of cost accounting is to produce cost information related to the production activity of the business. The information produced by cost accounting contributes to somethings.
Which of the following is not one of them?

Planning

Contributing special purpose decisions

Providing expense control

Determination of unit cost

Determination of every improtant cost

Açıklama:

E is not one of them.

Doğru Cevap: E

Soru 8

............................is a choice among two or more alternatives.
which of the following should come to the dotted place according to the continuation of the sentence?

Decision

Effecient

Practicable

Made on time

Decision making

Açıklama:

ıt should be decision

Doğru Cevap: A

Soru 9

which of the following is not a quality characteristic of good decision making?

Effective

Efficient

Practicable

Made on time

unsustainable

Açıklama:

answer should be unsustainable

Doğru Cevap: E

Soru 10

When decision making is handled systematically, since decision-making activity is considered as a process, it naturally has several stages.
which of the following is not one of them?

determining which basis to decide

collecting all the data needed for decision making

reviewing the alternatives

formulating an application plan

establishing non-objectives

Açıklama:

establishing non-objectives is not one of them

Doğru Cevap: E

Soru 11

As cost information is used within the decisionmaking process and to measure activity, various cost information concepts have emerged. Costs for decision making can be classified.
which of the following is not one of them?

Relevant cost

Differential cost

Opportunity cost

Sunk cost

Strong cost

Açıklama:

Strong cost is not one of them

Doğru Cevap: E

Soru 12

...............................is the most economically beneficial alternative which has been missed out when choosing one alternative over another. In other words, an ........................... represents the explicit earnings from the given up alternative.
Which of the following should come to the dotted place according to the whole sentence?

Sunk cost

Opportunity cost

Strong cost

Relevant cost

Marginal cost

Açıklama:

ıt should be opportunity cost

Doğru Cevap: B

Soru 13

.........................is the additional cost incurred when making or producing (of a good or service) one additional unit. In other words, the change in total cost that arises from the quantity changes by one unit is called ........................
Which of the following should come to the dotted place according to the whole sentence?

Sunk cost

marginal cost

relevant cost

strong cost

Differential

Açıklama:

ıt should be marginal cost

Doğru Cevap: B

Soru 14

There are many internal and external factors that determine the profit that a business will provide. We can list the essential factors that have a role in making a profit.
If we list which one is not one of them?

Price of the product (service) per unit

Sales amount of the product (service)

Variable cost of the product (service) per unit

Total amount of fixed cost of the product
(service)

Unit amount of fixed cost of product

Açıklama:

Unit amount of fixed cost of product is not one of them

Doğru Cevap: E

Soru 15

It is essential to make assumptions in CVP analysis so as to help managers while decision making. Managers should evaluate the results by taking these assumptions into consideration.
Assumptions can be grouped under some heading which one is not one of them?

Expenses must be classified as fixed and variable.

It must be assumed that total fixed expenses aren’t affected by the rise in the volume of activity and that variable expenses can change regarding the rise in the volume of
activity. In other words, the cost function is assumed to be linear

It is assumed that the efficiency of production factors are constant

No extraordinary income or expenditure has emerged

Risks and uncertain conditions are accepted

Açıklama:

Risks and uncertain conditions are accepted is not one of them

Doğru Cevap: E

Soru 16

As one of the essential means in decision making, all or some of the advantages of CVP Analysis can be used while decision making in businesses.The advantages of CVP analysis for business managers is too much.
Which one is not one of them ?

It determines the lowest amount of production that will prevent the business to make a loss.

It determines the unit cost and the working capital needed in various amounts of production

It evaluates the implemented managerial policies by comparing the planned and the actual breakeven point

It helps to choose the most profitable production types and helps to generate product mix

It determines the highest sale price of production

Açıklama:

It determines the lowest sale price of production

Doğru Cevap: E

Soru 17

I. Programmed Decisions
II. Strategic Decisions
III. Operational Decisions
Which of the decision types above is related to management levels?

Only I

Only III

I and II

II and III

I, II and III

Açıklama:

Decisions which are related to management levels are:

Strategic Decisions
Operational Decisions
Managerial Decisions.

Doğru Cevap: D

Soru 18

Which of the following terms refers to the amount found out when the opportunity cost is subtracted from the expected profit?

Net economic earning

Sunk cost

Marginal cost

Expected revenue

Cost-Volume-Profit

Açıklama:

Net economic earning is the amount found out when the opportunity cost is subtracted from the expected profit.

Doğru Cevap: A

Soru 19

Which of the statements about cost - volume - profit analysis assumptions is false?

Expenses must be classified as fixed and variable.

It is assumed that the efficiency of production factors are constant.

Risks and uncertain conditions are taken into consideration.

No extraordinary income or expenditure has emerged.

There is a complete synchronization between sales and inventories.

Açıklama:

These assumptions can be grouped under the following headings (Horngren, Foster and Datar, 2001, p:60):

Expenses must be classified as fixed and variable.
It must be assumed that total fixed expenses aren’t affected by the rise in the volume of activity and that variable expenses can change regarding the rise in the volume of activity. In other words, the cost function is assumed to be linear.
Since the sales price is supposed to be fixed, the total revenue function is accepted to be linear.
It is assumed that there will be no change in the product mix in case multiple products are sold.
It is assumed that the efficiency of production factors are constant.
There is a complete synchronization between sales and inventories.
Tangible fixed assets are constant despite various production volumes.
Risks and uncertain conditions are ignored.
No extraordinary income or expenditure has emerged.
The analysis method is accepted as accurate for the short-term. Thus, it is implementable.

Doğru Cevap: C

Soru 20

Which is one of the advantages of CVP analysis?

The errors in the analysis can be caused due to market conditions.

Most of the fixed cost factors have the feature of semi-variable cost, which can be ignored in the analysis.

It is assumed that the total revenue and total cost are linear.

A great number of production is made.

It determines the lowest sale price of production.

Açıklama:

The advantages of CVP analysis for business managers are as follows (ICSI, 2017: 326):

It determines the lowest amount of production that will prevent the business to make a loss.
It determines the unit cost and the working capital needed in various amounts of production.
It evaluates the implemented managerial policies by comparing the planned and the actual breakeven point.
It helps to choose the most profitable production types and helps to generate product mix.
It determines the lowest sale price of production.
It determines the necessary activity volume to achieve profit targets.
It determines the effects of the products, their selling prices, their costs and the changes in demand on profit.
It determines the activity volume that will meet the new investments.
It helps the decisions on products to be produced, investments to be made and the sales prices of the products.
It determines the sales price that will meet the rise in activity volume.

Doğru Cevap: E

Soru 21

Which is one of the disadvantages of CVP analysis?

It determines the lowest amount of production.

It determines the activity volume that will meet the new investments.

It evaluates the implemented managerial policies by comparing the planned and the actual breakeven point.

It is assumed that the total revenue and total cost are linear.

It helps to choose the most profitable production types and helps to generate product mix.

Açıklama:

Business managers should take some aspects into consideration while implementing CVP analysis in decision making. The disadvantages of CVP analysis are listed as follows:

The variable and fixed cost classification used in CVP analysis may not reflect the truth. This can make the managers take wrong decisions.
Most of the fixed cost factors have the feature of semi-variable cost. This can be ignored in the analysis.
It is assumed that the total revenue and total cost are linear. In fact, this relationship is not linear or is about to be linear in most businesses.
The errors in the analysis can be caused due to market conditions.
If numerous products are produced, the determination of their contribution to total sales will be hard. This may cause errors in the results of the analysis.
As a product contributes the production of other products, a great number of production is made. Thus, there would be difficulties in determining the cost of the products.

Doğru Cevap: D

Soru 22

Which of the following terms refers to the difference between the unit sales price and the unit variable cost?

Profit

Contribution

Revenue

Cost

Volume

Açıklama:

Contribution (Margin) is the difference between the unit sales price and the unit variable cost.

Doğru Cevap: B

Soru 23

In a production business, the unit sales price of each product is 2,200TL. It is defined that the total fixed cost of the business is to be 1,800,000TL and variable cost of each product is to be 1,700TL. Since the business management has targeted income of 300,000TL, what is the units of products to achieve the target income?

500

1,800

2,200

3,900

4,200

Açıklama:

Total Revenue (TR) - Total Cost (TC) = Profit (P)
(SP x X) - (V x X) - TFC = P
(2,200 x X) - (1,700 x X) - 1,800,000 = 300,000
500X - 1,800,000 = 300,000
500X = 2.100,000
X = 4.200 units of products

Doğru Cevap: E

Soru 24

Which of the following terms refers to the volume of production or sales where total costs are equal to revenue?

Contribution

Total revenue

Unit sales price

Net economic earning

Break even point

Açıklama:

Break Even Point is the volume of production or sales where total costs are equal to revenue.

Doğru Cevap: E

Soru 25

Which is not one of the factors taken into consideration while making pricing decisions?

Customer Demands

Market Skimming

Impacts of the Competitors

Political and Legal Regulations

Costs

Açıklama:

Businesses should take these four factors into consideration while making pricing decisions (Kaygusuz and Dokur, 2012: 235).

Customer Demands
Impacts of the Competitors
Costs
Political and legal regulations

Doğru Cevap: B

Soru 26

"Production businesses can get subcontractors to carry on some services which are out of their production field."
Which of the special decisions based on the information of cost accounting below is the statement above relevant to?

The Use of Cost Information in the Decisions of Outsourcing

The Use of Cost Information in Investment Decisions

The Use of Cost Information in the Decision of Ceasing or Breakdown of a Product

The Use of Cost Information While Accepting a Special Sales Price

The Use of Cost Information in Determining the Appropriate Product Mix

Açıklama:

The Use of Cost Information in the Decisions of Outsourcing: Businesses are able to reduce their costs and gain competitive advantage via meeting their activities which are not in their professional field over other businesses specialized in this field. Production businesses can get subcontractors to carry on some services which are out of their production field. In addition to services such as cleaning, security, automation, technical unit, catering service or staff transportation, production businesses may prefer outsourcing in marketing and advertising services

Doğru Cevap: A

Soru 27

Which of the following is not one of the contribution of the information produced
by cost accounting?

Determination of unit cost

Providing expense control

Planning

Contributing special purpose decisions

Decreasing costs

Açıklama:

The main function of cost accounting is to produce cost information related to the production activity of the business. The information produced by cost accounting contributes to the following functions:
• Determination of unit cost,
• Providing expense control,
• Planning,
• Contributing special purpose decisions

Doğru Cevap: E

Soru 28

Which of the following is not expected to be effective in managers' decision making processes?

Financial matters

Their judgement

Their intution

Their mood

Personal values

Açıklama:

Decision making is a flexible action. In decision making, the manager’s judgment, intuition, mood, and personal values can also be effective.

Doğru Cevap: A

Soru 29

Which of the following is not a type of administrative decision?

Routine decisions

Operational decisions

Managerial decisions

Emotional decisions

Strategic decisions

Açıklama:

It is possible to classify administrative decisions into two categories as programmed (routine) and non-programmed (nonroutine) decisions.
Decisions which are taken in businesses can be classified into three categories: top-level management, mid-level management, low-level management.
Strategic Decisions, Managerial Decisions and Operational Decisions.

Doğru Cevap: D

Soru 30

Which of the following is not one category of costs for decision making?

Relevant cost

Opportunity cost

Marginal cost

Differential cost

Unexpected cost

Açıklama:

Doğru Cevap: E

Soru 31

Which of the following is not one of the essential factors that have a role in making a profit?

Price of the product (service) per unit

Total amount of order for product (service)

Sales amount of the product (service)

Variable cost of the product (service) per unit

Total amount of fixed cost of the product (service)

Açıklama:

We can list the essential factors that have a role in making a profit as follows:
• Price of the product (service) per unit
• Sales amount of the product (service)
• Variable cost of the product (service) per unit
• Total amount of fixed cost of the product (service

Doğru Cevap: B

Soru 32

"Cost-Volume-Profit analysis ..........................." Which of the following best completes the statement above?

is the additional cost incurred when making or producing one additional unit

is selling price(s) of the product(s) ordered to achieve targeted profit in a trade business

is the amount of sales and sales volume needed to achieve a profit within a company

is the study of the effects on future profit of changes in fixed cost, variable cost, sales price, quantity as a whole.

make assumptions about the future planning of the activities owing to the problems experienced

Açıklama:

Cost-Volume-Profit analysis is the study of the effects on future profit of changes in fixed cost, variable cost, sales price, quantity as a whole

Doğru Cevap: D

Soru 33

Which of the following is not a factor affecting the pricing decisions?

Company Structure

Customer Demands

Impacts of the Competitors

Costs

Political and legal regulations

Açıklama:

How companies price their products or services are mainly based on supply and demand for products and services. However, on supply and demand,there areeffects of customers, competitors, costs and political and legal regulations. For this reason, businesses should take these four factors into consideration while making pricing decisions.
Customer Demands
Impacts of the Competitors
Costs
Political and legal regulations

Doğru Cevap: A

Soru 34

Which of the following is not an objective of pricing?

Maintaining or increasing market share

Determining socially responsible prices

Maintaining the minimum return on investment rate

Being customer focused

Advertising the company

Açıklama:

One or more of the following objectives are taken into account in pricing decisions:
• Maximizing profits: Maximizing business profitability is the leading objective of any pricing policy.
• Maintaining or increasing market share: Maintaining and increasing the market
share of the business in the sector is closely related to the pricing decisions.
• Determining socially responsible prices: Today, most of the businesses take various social objectives such as environmental factors, legal restrictions, moral factors into consideration while determining their pricing policies.
• Maintaining the minimum return on investment rate: Businesses consider each
product or service as an investment. They do not invest in any production or service unless they provide a minimum return. Businesses try to determine a price that will provide a minimum return on their investments.
• Being customer focused: It is aimed to make the customer feel that the customer needs and sensitivities have been reflected in the price while determining the prices.
• Maximizing sales revenues: In the case of cash need or uncertainty in the market, businesses can set a price to increase their sales instead of their profits.

Doğru Cevap: E

Soru 35

Which of the following is a method that is used in implementing market-skimming pricing strategies?

Penetrating the market

Retaining pricing

Market barriers

Promoting

Driving out the competitors

Açıklama:

Market - skimming pricing strategies can be implemented by the following:
• Market skimming
• Award pricing
• Image - creating pricing
• Retaining pricing

Doğru Cevap: B

Soru 36

"Production businesses............................." Which of the following best completes the statement below?

able to reduce their costs and gain competitive advantage via meeting their activities

will provide significant benefits to the managers while making decisions in production businesses

are businesses that use advanced technology in production processes and have
to follow technology closely

have to be higher than the cash outflows for producing the product cost.

may end up with the production of all the products, services or may have a breakdown

Açıklama:

Production businesses are businesses that use advanced technology in production processes and have to follow technology closely. Accordingly, they allocate shares in their budgets so as to purchase new equipment and machines or to renovate the current ones.

Doğru Cevap: C

Soru 37

Which one of the following is the study of the effects on future profit of changes in fixed cost, variable cost, sales price, quantity as a whole?

Cost-volume-profit analysis

Differential cost

Marginal cost

Relevant cost

Sunk cost

Açıklama:

Cost-Volume-Profit analysis is the study of the effects on future profit of changes in
fixed cost, variable cost, sales price, quantity as a whole.

Doğru Cevap: A

Soru 38

Which one of the following is the difference between the unit sales price and the unit variable cost?

Sunk cost

Cost-volume-profit analysis

Contribution

Net profit

Differential cost

Açıklama:

Contribution (Margin) is the difference between the unit sales price and the unit variable cost.

Doğru Cevap: C

Soru 39

In a production business, each product is sold by a unit price of 500 TL and the total fixed cost 6.000 TL monthly. In this production business, there is a 200 TL variable cost for each unit. So, what is the units of products to be produced and sold in order to reach the break-even point?

10 units

20 units

25 units

30 units

50 units

Açıklama:

500 - 300 = 200 TL
6.000 / 200 = 30 units

Doğru Cevap: B

Soru 40

Which one of the following is not among the factors that taken into consideration while making pricing decisions by businesses?

Costs

Political and legal regulations

Customer demands

Impacts of the competitors

Size of the company

Açıklama:

Size of the company is not among the factors that taken into consideration while making pricing decisions by businesses.

Doğru Cevap: E

Soru 41

Sorting alternatives through their significance
Selecting and evaluating the most optimal alternative
Introducing all alternatives that may be the basis of the decision

Which of the above is a stage of decision making?

Only II

I and II

II and III

I and III

I, II and III

Açıklama:

Decision making is a flexible action. In decision making, the manager’s judgment, intuition, mood, and personal values can also be effective. Decisionmaking problem basically involves three stages:

Introducing all alternatives that may be the basis of the decision,
Sorting alternatives through their significance,
Selecting and evaluating the most optimal alternative

Doğru Cevap: E

Soru 42

Effective
Efficient
Morally Good
Practicable
Made on Time

Which of the above are qualities of a good decision?

I, II, III and IV

I, II, IV and V

II, III, IV and V

I, II, III and V

I, II, III, IV and V

Açıklama:

A good decision should have the following qualities:

Effective
Efficient
Practicable
Made on time

Doğru Cevap: B

Soru 43

These decisions are routinely repeated decisions.
Most of the daily decisions are considered as this type of decisions.
Managers don’t need to allocate time for these types of decisions.
Most of the decisions taken by lower-level managers and mid-level managers are scheduled decisions.
Decisions related to staff affairs or decisions related to the purchase of raw materials and supplies are examples of this type of decisions.

Which type of decision are defined above?

Programmed Decisions

Non-programmed Decisions

Strategic Decisions

Managerial Decisions

Operational Decisions

Açıklama:

Programmed (Routine) Decisions: Programmed decisions are routinely repeated decisions. Such decisions are implemented in the same way as they have been once taken. Most of the daily decisions are considered as this type of decisions. Managers don’t need to allocate time for these types of decisions. Most of the decisions taken by lower-level managers and mid-level managers are scheduled decisions. Decisions related to staff affairs or decisions related to the purchase of raw materials and supplies are examples of this type of decisions.

Doğru Cevap: A

Soru 44

These decisions are special decisions that will affect the profitability of businesses in future periods.
This type of decisions are often unacceptable and can not be taken as a reference.
These decisions can be taken by top level managers.
Good examples of these decisions are purchasing additional machinery to increase the capacity of the business or changing the location of the business.

Which type of decisions are defined above?

Programmed (Routine) Decisions

Non-programmed (Nonroutine) Decisions

Strategic Decisions

Managerial Decisions

Operational Decisions

Açıklama:

Non-programmed (Nonroutine) Decisions: Non-programmed decisions are special decisions that will affect the profitability of businesses in future periods. This type of decisions are often unacceptable and can not be taken as a reference. Non-programmed decisions can be taken by toplevel managers. Purchasing additional machinery to increase the capacity of the business or changing the location of the business can be given as an example for non-programmed decisions.

Doğru Cevap: B

Soru 45

Relevant cost
Sunk cost
Opportunity cost
Marginal cost
Differential cost

Which of the above are important cost concepts in decision making?

I, II, III and IV

I, II, III and V

I, III, IV and V

I, II, IV and V

I, II, III, IV and V

Açıklama:

Relevant cost
Sunk cost
Opportunity cost
Marginal cost
Differential cost

Doğru Cevap: E

Soru 46

What is the value of benefit sacrificed in favor of an alternative course of action?

Sunk cost

Relevant cost

Marginal cost

Opportunity cost

Differential cost

Açıklama:

Opportunity cost is the value of benefit sacrificed in favor of an alternative course of action.

Doğru Cevap: D

Soru 47

This is the additional cost incurred when making or producing (of a good or service) one additional unit.
The change in total cost that arises from the quantity changes by one unit is this type of cost.

Which type of cost is defined above?

Differential cost

Marginal cost

Opportunity cost

Sunk cost

Relevant cost

Açıklama:

Marginal cost is the additional cost incurred when making or producing (of a good or service) one additional unit. In other words, the change in total cost that arises from the quantity changes by one unit is called marginal cost.

Doğru Cevap: B

Soru 48

This type of cost is excluded from future business decisions.
It doesn’t need to be taken into consideration while decision making.
All costs that do not qualify as relevant costs are this type of cost.
They are not related to future decisions and they do not change between various alternatives.

Which type of cost is defined above?

Sunk cost

Opportunity cost

Differential cost

Relevant cost

Marginal cost

Açıklama:

The sunk cost is excluded from future business decisions. Thus, it doesn’t need to be taken into consideration while decision making. In other words, all costs that do not qualify as relevant costs are called sunk costs. Main features of sunk costs are that they are not related to future decisions and they do not change between various alternatives.

Doğru Cevap: A

Soru 49

Which type of cost is the difference in total cost that will arise from the selection of one alternative to the other?

Marginal cost

Sunk cost

Differential cost

Relevant cost

Opportunity cost

Açıklama:

Differential cost is the difference in total cost that will arise from the selection of one alternative to the other

Doğru Cevap: C

Soru 50

Price of the product (service) per unit
Sales amount of the product (service)
Variable cost of the product (service) per unit
Total amount of fixed cost of the product (service)

Which of the above are among the essential factors that have a role in making a profit?

I, II and III

I, III and IV

II, III and IV

I, II and IV

I, II, III and IV

Açıklama:

We can list the essential factors that have a role in making a profit as follows:

Price of the product (service) per unit
Sales amount of the product (service)
Variable cost of the product (service) per unit
Total amount of fixed cost of the product (service)

Doğru Cevap: E

Soru 51

Which of the following does not take place in functions of cost accounting information?

Determination of unit cost

Providing expense control

Planning

Contributing special purpose decisions

Estimating sale amounts

Açıklama:

The main function of cost accounting is to
produce cost information related to the production
activity of the business. The information produced
by cost accounting contributes to the following
functions:
• Determination of unit cost,
• Providing expense control,
• Planning,
• Contributing special purpose decisions.

Doğru Cevap: E

Soru 52

I. Effective
II. Efficient
III. Practicable
Which of the above is/are takes place in the qualities of a good decision?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

A good decision should have the following qualities:
• Effective
• Efficient
• Practicable
• Made on time

Doğru Cevap: E

Soru 53

Which one of the following decisions is classified in types of administrative decisions?

Programmed Decisions

Strategic Decisions

Managerial Decisions

Operational Decisions

Effective decisions

Açıklama:

It is possible to classify administrative decisions
into two categories as programmed (routine)
and non-programmed (nonroutine) decisions.

Doğru Cevap: A

Soru 54

I. Decision making under certainty
II. Decision making under risk
III. Decision making under pressure
Which of the following is/are takes place in the types of decision-making conditions?

Only I

Only III

I and II

I and III

I, II and III

Açıklama:

There are three types of decision-making conditions
• Decision making under certainty,
• Decision making under risk,
• Decision making under uncertainty

Doğru Cevap: C

Soru 55

I. Cost information
II. Management information
III. Market information
Which of the above is not provided by cost accounting system?

Only I

Only III

II and III

I and II

I, II and III

Açıklama:

Information provided by cost accounting system
can be divided into two groups:
• cost information (related to the balance
sheet and income statement)
• management information (related to
utilization in the decision making process)

Doğru Cevap: D

Soru 56

I. are related to past
II. can be changed among the alternatives
III. are affected by the decisions
Which of the above is/are takes place in the main
features of relevant cost?

Only I

Only II

I and III

II and III

I, II and III

Açıklama:

Main features of relevant cost are as follows:
• are related to future
• can be changed among the alternatives
• are affected by the decisions

Doğru Cevap: D

Soru 57

Which of the following can be described as "The most economically beneficial alternative which has been missed out when choosing one alternative over another."?

Opportunity Cost

Sunk Cost

Marginal Cost

Differential Cost

Variable cost

Açıklama:

Opportunity cost is the most economically
beneficial alternative which has been missed out
when choosing one alternative over another. In
other words, an opportunity cost represents the
explicit earnings from the given up alternative

Doğru Cevap: A

Soru 58

Which of the following can be described as "the additional cost incurred when making or producing one additional unit."?

Opportunity Cost

Marginal Cost

Differential Cost

Sunk Cost

Relevant Cost

Açıklama:

Marginal cost is the additional cost incurred when making or producing (of a good or service) one
additional unit. In other words, the change in total cost that arises from the quantity changes by one unit is called marginal cost.

Doğru Cevap: B

Soru 59

Which of the following can be described as "The increase in total cost in case one alternative is chosen among various alternatives."?

Relevant Cost

Sunk Cost

Opportunity Cost

Marginal Cost

Differential Cost

Açıklama:

Differential cost is the difference in total cost that will arise from the selection of one alternative to the other.

Doğru Cevap: E

Soru 60

Which of the following is the correct profit function?

Total Revenue (Sales) (TR) + Total Cost (TC)

Total Revenue (Sales) (TR) - Total Cost (TC)

Total Cost (TC) - Total Revenue (Sales) (TR)

Total Revenue (Sales) (TR) / Total Cost (TC)

Total Cost (TC) / Total Revenue (Sales) (TR)

Açıklama:

Total Profit (P) = Total Revenue (Sales) (TR) - Total Cost (TC)

Doğru Cevap: B

Cost and Management Accountıng (ENG) - Tüm Sorular

Ünite 1

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Ünite 2

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