Cost Accounting MCQs
Practice and Learn through MCQs and Quizzes. W3Definitions.com have 1082 Cost Accounting MCQs
A company must eliminate all those activities that do not add value to all products or services in planning of
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A. variable overhead cost
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B. fixed overhead cost
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C. fixed batch cost
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D. variable batch cost
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Correct Answer: Option A
A concept used to define learning curve in broader application is called
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A. discrete curve
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B. fixed curve
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C. mixed curve
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D. experience curve
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Correct Answer: Option D
A concept which explains a received money in present time, is more valuable than money received in future is called
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A. lead value of money
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B. storage value of money
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C. time value of money
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D. cash value of money
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Correct Answer: Option C
A cost, consists of some fixed and some variable cost with respect to machine setup hours is termed as
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A. setup cost
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B. batch cost
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C. facility cost
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D. lump sum cost
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Correct Answer: Option A
A costing system, which focuses on individual activities as particular cost object is classified as
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A. activity based costing
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B. improved costing
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C. learned improvements
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D. positive effectiveness
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Correct Answer: Option A
A desire of an individual to give good performance for self-satisfaction is known as
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A. intrinsic motivation
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B. extrinsic motivation
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C. monetary motivation
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D. bounded motivation
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Correct Answer: Option A
A desire to achieve a particular goal with pursuit of that goal is called
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A. motivation
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B. goal congruence
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C. effort
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D. autonomy
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Correct Answer: Option A
A document which consists information about labor time usage, for specific job in a specific department, is known as
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A. selling time record
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B. labor time record
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C. buying time record
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D. direct time record
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Correct Answer: Option B
A document which contains information about materials of specific product, in specific department comes under
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A. costing method
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B. selling method
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C. material acquisition method
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D. none of above
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Correct Answer: Option C
A group of individual indirect cost item is defined as
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A. direct pool
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B. cost pool
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C. indirect pool
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D. item pool
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Correct Answer: Option B
A helpful technique, for accurate forecasts about costs to be incurred in future is a part of
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A. unit estimation
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B. production estimation
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C. cost estimation
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D. price estimation
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Correct Answer: Option C
A joint cost allocation method is based on relative value of total sales, at point of split off is classified as
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A. sales value at split off method
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B. joint costs at split off point method
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C. joint products value at split off method
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D. main product cost at split off method
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Correct Answer: Option A
A manager who is responsible for only cost of company belongs to
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A. cost center
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B. revenue center
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C. profit center
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D. investment center
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Correct Answer: Option A
A manager, who is responsible for both cost and revenues belongs to department of
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A. cost center
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B. revenue center
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C. profit center
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D. investment center
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Correct Answer: Option C
A measure which evaluates overall tradeoff and effect among non-financial performance measure is
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A. non-financial measures
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B. financial measures
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C. effective measure
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D. lump sum measure
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Correct Answer: Option B
A particular term for which specific revenue measurement is required is known as
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A. revenue allocation
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B. revenue object
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C. revenue increment
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D. reciprocal revenue
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Correct Answer: Option B
A problem which arises because of presence of systematic pattern in residual value sequence is considered as
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A. parallel correlation
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B. serial correlation
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C. auto correlation
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D. both B and C
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Correct Answer: Option D
A process by which employees can make decisions is divided by total number of processes to calculate
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A. employee turnover ratio
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B. employee empowerment ratio
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C. employee satisfaction ratio
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D. employee training percentage
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Correct Answer: Option B
A product performance in comparison to its features and design is classified as
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A. learning quality
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B. design quality
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C. conformance quality
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D. business process quality
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Correct Answer: Option C
A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as
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A. in-time production
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B. materials requirement planning
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C. on-time production
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D. pull strategy of production
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Correct Answer: Option B
A situation when groups and individuals work together for achieving a particular goal can be classified as
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A. motivation
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B. goal congruence
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C. effort
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D. autonomy
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Correct Answer: Option B
A technique for estimating regression line, which minimizes sum of vertical deviations squares is classified as
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A. variable technique
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B. least square technique
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C. indexed technique
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D. fixed technique
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Correct Answer: Option B
A technique which minimizes sum of squared vertical difference, to determine regression line is considered as
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A. negative square technique
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B. positive square technique
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C. least square technique
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D. most square technique
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Correct Answer: Option C
A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D; to final customer support, is called
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A. product life cycle
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B. life cycle budgeting
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C. life cycle costing
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D. target costing
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Correct Answer: Option C
A theory which describes techniques of operating income maximization, facing with non-bottleneck and bottle neck operations is
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A. theory of contribution
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B. theory of constraints
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C. theory of conflicts
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D. theory of maximization
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Correct Answer: Option B
A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as
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A. accounting period costing system
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B. process costing system
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C. job costing system
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D. none of above
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Correct Answer: Option B
According to incremental method, party which receives highest ranking in allocation of common cost is classified as
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A. Third incremental party
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B. second incremental party
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C. primary party
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D. First incremental party
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Correct Answer: Option C
According to net present value, projects that would be acceptable must have a
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A. negative net present value
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B. zero net present value
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C. positive net present value
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D. both b and c
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Correct Answer: Option D
Activities related to coordinating, controlling and planning flow of inventory are classified as
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A. decisional management
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B. throughput management
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C. inventory management
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D. manufacturing management
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Correct Answer: Option C
Actual price of material is less than budgeted price, this means that
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A. price variance is favorable
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B. price variance is unfavorable
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C. cost variance is favorable
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D. cost variance is unfavorable
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Correct Answer: Option A
After-tax average cost of funds used by company in long run is equal to
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A. weighted average cost of capital
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B. economic value added
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C. after-tax operating income
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D. net income
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Correct Answer: Option A
All choices for decision that are easily available to managers are classified as
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A. outcome
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B. actions
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C. events
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D. distribution
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Correct Answer: Option B
All costs, which are assigned to manufactured products for specific calculations are classified as
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A. contracting costs
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B. product cost
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C. government costs
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D. marketing costs
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Correct Answer: Option B
All salaries are paid to supervisors and engineers and cost of leasing equipment are classified as
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A. variable setup costs
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B. fixed setup costs
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C. variable batch costs
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D. fixed batch costs
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Correct Answer: Option B
Amount of money by which total revenues exceed breakeven revenues is classified as
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A. margin of safety
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B. margin of profit
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C. margin of loss
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D. margin of income
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Correct Answer: Option A
An ability of an accounting system, to point out use of resources in every step of production process is called
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A. back-flush trails
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B. audit trails
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C. trigger trails
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D. lead manufacturing trails
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Correct Answer: Option B
An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called
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A. inelastic demand
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B. product differentiation
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C. cost leadership
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D. elastic demand
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Correct Answer: Option B
An accounting approach, in which expected benefits exceed expected cost is classified as
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A. benefit approach
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B. cost approach
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C. cost-benefit approach
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D. accounting approach
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Correct Answer: Option C
An accounting which records and measures business transactions and is followed by general accepted accounting principles is classified as
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A. external accounting
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B. internal accounting
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C. business accounting
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D. financial accounting
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Correct Answer: Option D
An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as
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A. direct material costs
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B. indirect material costs
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C. direct labor costs
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D. indirect labor costs
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Correct Answer: Option A