Home > Cost Accounting > Quizzes > Cost Accounting 101 Practice Test: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
Cost Accounting 101 Practice Test: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
Fast practice, instant feedback. Timer auto-submits when time’s up.
Avg score: 57% • Most missed: “The sales-mix variance can be explained in terms of the budgeted contribution ma…”
Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. Cost objects can be activities or items, such as a product, research project, customer, sales region, or department. Cost allocation is used for financial reporting to help inventory or spread costs among different departments.  Customer profitability analysis (CPA): A management accounting and credit underwriting method that allows businesses and lenders to determine the profitability of each customer or segments of customers. CPA looks at the revenue (or profit) that each individual customer... Show more
Cost Accounting 101 Practice Test: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
Time left 00:00
25 Questions

1. Once a cost pool has been established, it should NOT need to be revisited or revised.
2. The benefits of implementing a more-complex cost allocation system are relatively easy to quantify for application of the cost-benefit approach.
3. The direct materials mix variance is the:
4. Top management and general administration costs would most likely be classified as a:
5. The allocation of corporate-sustaining costs is useful for:
6. To guide cost allocation decisions, the fairness or equity criterion is:
7. ABC systems use the concept of a ________ to identify the cost drivers that best demonstrate the cause-and-effect relationship between each activity and the costs in the related cost pool.
8. Some companies only allocate corporate costs to divisions that are:
9. To motivate engineers to design simpler products, costs for production, distribution, and customer service may be included in product-cost estimates.
10. Homogeneous cost pools lead to:
11. To guide cost allocation decisions, the benefits-received criterion:
12. Which corporate costs should be allocated to divisions?
13. To reduce distribution-channel costs, a company could:
14. To allocate corporate costs to divisions, the allocation base used should:
15. For May, Woodruff will report a(n):
16. Which cost-allocation criterion is most likely to subsidize poor performers at the expense of the best performers?
17. Costs which are NOT economically feasible to trace but which are related to a cost object are known as:
18. Price discounts are influenced by:
19. The direct materials mix variance will be favorable when:
20. ________ categorizes costs related to customers into different cost pools on the basis of either different classes of cost drivers or different degrees of difficulty in determining the cause-and-effect (or benefits-received) relationships.
21. Customer actions will LEAST affect:
22. Indirect costs:
23. The flexible-budget variance is the difference between an actual result and the flexible-budget amount based on the level of output actually achieved in the budget period.
24. A customer cost hierarchy may include distribution-channel costs.
25. The greater the degree of homogeneity, the:

⚡ Recently practiced quizzes in this topic
Live quiz activity
CMA Intermediate Exam: Cost Accounting CMA Foundation Exam: Fundamentals of Costing Practice Test CMA Final Exam: Cost and Management Audit CMA Intermediate Exam: Financial Management Cost Accounting 101 Practice Test: Inventory Management, Just-in-Time, and Simplified Costing Methods Cost Accounting 101 Practice Test: Flexible Budgets, Overhead Cost Variances, and Management Control CMA Intermediate Exam: Financial Accounting Practice Test CMA Foundation Exam: Fundamentals of Ethics Practice Test CMA Foundation Exam: Fundamentals of Management Practice Test CMA Intermediate Exam: Financial Accounting Practice Test 2 (Fill the blanks)
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.