MODEL((B)).doc

PAGE  PAGE 7 MODEL ((B)) Cost accounting 1Final exam 2010/2011Islamic university – Gaza Sunday 16/01/2011College of commerce 2 hoursAccounting department Name: ………………………………………………………………………………………………………………………………. Id.:……………………………….……………… Question 1 (10 marks): Identify whether of the following statements is true or false. a#StatementF1Managers always require the information in an accounting system to be presented in the same format.F2The balance sheet, income statement, and statement of cash flows are used for financial accounting, but not for management accounting. T3Products, services, departments, and customers may be cost objects.F4Costs are accounted for in two basic stages: assignment followed by accumulationT5A cost function is a mathematical description of how a cost changes with changes in the level of an activity relating to that cost.F6All cost functions are linear. F7The longer the time horizon, the more likely that a cost will have a fixed cost behaviorF8Raw materials that can be traced to a cost object are an example of an indirect cost.T9Fixed and variable costs may be allocated to a cost object.T10Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job.  Question 2(10marks) : choose the best answer. 1Which of the following descriptors refers to management accounting information?AIt is verifiable and reliable.BIt is driven by rules.CIt is prepared for shareholders.#DIt provides reasonable and timely estimates. 2Which of the following statements refers to management accounting information?#AThere are no regulations governing the reports.BThe reports are generally delayed and historical. CThe audience tends to be stockholders, creditors, and tax authorities. DIt primarily measures and records business transactions.  3In order to make decisions, managers need