NAME: ______________________________________ Course, Year & Section ______________ SCORE: _____________

Quiz #2

I. Matching type: Indicate in the space provided your answer. NO ERASURES.

Cost Management Product Cost Direct Cost

Manufacturing Cost Period Cost Controllable Cost Indirect Cost

Prime Cost Conversion Cost Management Accounting Fixed cost

II. Problem Solving. Double Rule your final answer.
Direct Materials Decision making function planning function organizing function

Non-controllable cost Direct Labor Controlling function Cost Behavior

Factory Overhead Variable Cost Activity Relevant range

Mixed Cost Line function Non-Manufacturing Cost Staff function

Treasurer Controller

1. ____________________ is a cost that is composed of a fixed cost and variable behavior.

2. ____________________ custodian officer of the company’s funds such as investment and short term
financing.
3. ____________________ is a cost that remains unchanged, in total, as the level of activity varies within
the relevant range.
4. ____________________ is the assumed range of activity, which reflects the company’s normal operating
levels where the relationship of cost behavior is assumed valid.
5. ____________________ is a cost that changes, in total, directly proportional to the changes in the level
of activity.
6. ____________________ means how a cost will react or respond to changes in the level of company’s
activity, that is,will it increase, decrease or remain constant.
7. ____________________ refers to a measure of the organization’s output of products or services or
transactions such as units produced, miles driven, and rooms occupied.
8. ____________________ is a cost that the manager cannot significantly influence its incurrence.
9. ____________________ an officer who has responsibility for the accounting aspect of management
control.
10. ____________________ an inherent function of management because all the basic functions requires it
11. ____________________ is a cost that can be traced to a particular segment, work center or department.
12. ____________________ is the application of appropriate techniques and concepts in processing
historical and projected economic data of an entity to assist management in establishing plan to meet economic
objectives and in making rational decisions with a view toward achieving the objectives.
13. ____________________ is a cost that the manager can significantly or heavily influence its incurrence.
14. ____________________ is a cost that is not particularly traceable to a particular department or segment.
15. ____________________ are raw materials or supplies that form the integral part of the finish product
that can be physically identified in the finish product and that can be economically quantified.
16. ____________________ All indirect materials, indirect labor and all other expenses in the factory, such
as, light, power, rent, etc.
 17. ____________________ are salaries and wages of all workers who are directly involve in the conversion
of the direct materials in to the finished product.
18. ____________________ is a cost incurred in the production of the product or service.
19. ____________________ has authority to give advice but not to command others.
20. ____________________ direct materials plus direct labor are called.
21. ____________________ is the execution phase, involving staffing, subordinating, directing and
motivating
22. ____________________ direct labor plus manufacturing overhead are called.
23. ____________________ is a cost incurred in administering (general and administrative) the operation of
the business and commercializing (selling and marketing) the product or services of the company.
24. ____________________ is a cost assigned to good produced. It is also known as inventoriable cost, since
the product is stored is inventory until sold.
25. ___________________ is setting short and long term objectives and deciding which alternative is best
suited to attain the objective.
26. ___________________ is a cost that is matched against revenues in the time period in which it is
incurred.
27. ___________________ all indirect materials, indirect labor and all other expenses in the factory, such
as light, power, rent, etc
28. ___________________ is giving away something of value for an expected benefit greater than such
value given away.
29. ___________________ is a process of planning, organizing and controlling tasks to realize the objective
of the organization
30. ___________________ has authority to give commands or orders to subordinates.

II. Problem Solving. Use high-low method. Double rule your final answer.

Kathryn Company accumulates the following data concerning a mixed cost, using miles as the activity level.

Month Miles Driven Total Cost

January 10,000 P25,000

February 8,000 P14,500

March 9,000 P12,500

April 7,500 P13,000

May 12,000 P28,750

1. How much is the variable cost per unit? __________________

2. How much is the total fixed cost? _____________________

3. What is the cost function/formula? _______________________________

4. if it is estimated that 9,000 miles driven will be run in June, what is the expected total costs for June? _____________