Downloadable Test Bank – Cost Accounting with Integrated Data Analytics, 2nd Edition (Farmer)
$37.00
- 2nd edition, Farmer and Fredin (Wiley, 2025)
- Over 2,500 practice questions, all with answers
- All 18 chapters, cost terms to balanced scorecard
- Hundreds of calculations worked step by step
- Marked by difficulty and learning objective
- PDF and Word, emailed within minutes to hours
Description
Description
Cost accounting calculations with the working shown
Cost accounting is a numbers course: breakeven points, master budgets, overhead rates, variances and equivalent units. This test bank gives you over 2,500 practice questions with answers for the 2nd edition of Farmer and Fredin, across all 18 chapters. On hundreds of calculation questions the explanation works through the arithmetic line by line, so when your answer does not match, you can follow each step and see where your number changed. Try the 15 sample questions below; they come from Chapter 2, which covers cost terms.
Is this your edition?
Cost Accounting with Integrated Data Analytics, 2nd Edition
- Authors
- Karen Congo Farmer and Amy J. Fredin
- Publisher
- Wiley
- Published
- 2025
- ISBN
- 9781394326808
- Chapters
- 18, from cost terms to the balanced scorecard
How the worked answers can help in a numbers course
- Follow the arithmetic, not just the letter. Over 600 multiple choice explanations work the calculation through, for example dividing fixed costs by the contribution margin per unit to reach a breakeven point. The 700+ written questions and problems come with full worked solutions.
- Build up to the hard questions. Questions are marked easy, medium or hard (about 560, 1,680 and 260), so you can open a topic with easier ones and finish on the hard ones before an exam.
- Practice what your class actually covered. Each question names the chapter learning objective it tests (LO 1, LO 2 and so on), so you can pick out the objectives your instructor assigned.
- Get ready for written parts. Short answer questions ask you to explain ideas such as budgetary slack or absorption versus variable costing, not only to compute them.
- Cover the data analytics thread. Chapter 13, Data Analytics, has 141 questions of its own, some about working with Excel and Tableau.
Try 15 sample questions
These questions come from Chapter 2, which covers cost terms. The first two work from a table of costs; questions marked Calculation show the working in their answers. Pick your answer, then press Show answer.
Calculation
1. During April, Northline Components incurred the following production costs. What were its conversion costs and prime costs, respectively?
| Cost item | Amount |
|---|---|
| Direct materials used | $48,000 |
| Direct labor | $72,000 |
| Manufacturing overhead | $54,000 |
- A. Conversion costs of $102,000 and prime costs of $120,000.
- B. Conversion costs of $126,000 and prime costs of $120,000.
- C. Conversion costs of $120,000 and prime costs of $126,000.
- D. Conversion costs of $174,000 and prime costs of $102,000.
Answer: B. Conversion costs of $126,000 and prime costs of $120,000.
Explanation: Conversion: $72,000 + $54,000 = $126,000. Prime: $48,000 + $72,000 = $120,000.
Calculation
2. Willow Bakery reports the following annual results. What is its total contribution margin?
| Item | Amount |
|---|---|
| Sales revenue | $480,000 |
| Variable cost of goods sold | $210,000 |
| Fixed cost of goods sold | $64,000 |
| Variable selling and administrative expenses | $36,000 |
| Fixed selling and administrative expenses | $22,000 |
- A. $206,000
- B. $234,000
- C. $270,000
- D. $148,000
Answer: B. $234,000
Explanation: Contribution margin deducts all variable costs: $480,000 − $210,000 − $36,000 = $234,000.
Theory
3. Which statement best describes the relationship between a cost and an expense?
- A. A cost is recorded only when cash is paid.
- B. A cost may be recognized as an asset or an expense, depending on whether its benefit remains available for future periods.
- C. Every cost must be charged to the income statement immediately.
- D. An expense represents a resource whose benefits will be received in a future period.
Answer: B. A cost may be recognized as an asset or an expense, depending on whether its benefit remains available for future periods.
Explanation: A cost is an asset while its future benefit remains; it becomes an expense as that benefit is consumed.
Show 12 more sample questionsShow fewer sample questions
Theory
4. A manufacturer uses available warehouse space to store its own products instead of renting the space to another business. How should the rental income forgone be treated?
- A. As a sunk cost that is excluded from the decision.
- B. As an operating expense recorded in the current period.
- C. As an asset reported on the balance sheet.
- D. As an opportunity cost considered in the decision but not recorded as an expense.
Answer: D. As an opportunity cost considered in the decision but not recorded as an expense.
Explanation: The rental income forgone is the benefit of the alternative use, making it an opportunity cost.
Theory
5. Which cost should a manufacturer classify as a period cost rather than a product cost?
- A. Rent for the production facility.
- B. Depreciation of assembly equipment.
- C. Depreciation of equipment used in the administrative office.
- D. Insurance covering the factory building.
Answer: C. Depreciation of equipment used in the administrative office.
Explanation: Administrative office depreciation is a nonmanufacturing cost expensed in the period incurred.
Theory
6. Production falls while a company remains within its relevant range. Assuming variable input prices and production efficiency are unchanged, how will variable costs behave?
- A. Total variable cost will fall, while variable cost per unit will remain constant.
- B. Total variable cost will remain constant, while variable cost per unit will rise.
- C. Both total variable cost and variable cost per unit will fall.
- D. Total variable cost will rise, while variable cost per unit will remain constant.
Answer: A. Total variable cost will fall, while variable cost per unit will remain constant.
Explanation: Within the relevant range, total variable cost changes with output while the unit variable cost stays constant.
Theory
7. A company increases output without changing its capacity or moving outside its relevant range. What happens to fixed production costs?
- A. Total fixed cost rises, and fixed cost per unit remains constant.
- B. Both total fixed cost and fixed cost per unit remain constant.
- C. Total fixed cost remains constant, and fixed cost per unit falls.
- D. Total fixed cost falls, and fixed cost per unit rises.
Answer: C. Total fixed cost remains constant, and fixed cost per unit falls.
Explanation: The same total fixed cost is spread over more units, reducing fixed cost per unit.
Theory
8. A batch of products has been completed and is ready for sale. Which transfer correctly records the accumulated manufacturing cost of the batch?
- A. From raw materials inventory to work in process inventory.
- B. From work in process inventory to finished goods inventory.
- C. From finished goods inventory to cost of goods sold.
- D. From manufacturing overhead to selling expense.
Answer: B. From work in process inventory to finished goods inventory.
Explanation: Completed products move from work in process to finished goods; the cost becomes cost of goods sold when sold.
Theory
9. How are expenses classified in a contribution margin income statement?
- A. By business function, such as production, selling, and administration.
- B. By whether they relate to products or to the accounting period.
- C. By whether payment occurs in the current period or a later period.
- D. By cost behavior, separating variable costs from fixed costs.
Answer: D. By cost behavior, separating variable costs from fixed costs.
Explanation: The contribution format groups expenses by behavior so variable and fixed costs are shown separately.
Calculation
10. Cedar Advisory reports monthly revenue of $240,000, payroll expense of $72,000, and total operating expenses of $180,000. In a common size income statement using vertical analysis, what percentage of revenue should payroll expense represent?
- A. 30%
- B. 40%
- C. 60%
- D. 75%
Answer: A. 30%
Explanation: $72,000 / $240,000 = 30%.
Calculation
11. At an output of 8,000 units, Meridian Products has a variable cost of $12.50 per unit and a fixed cost of $6.00 per unit. Output is expected to rise to 12,000 units within the same relevant range. If variable cost per unit and total fixed cost remain unchanged, what will total cost be at the higher output?
- A. $148,000
- B. $150,000
- C. $222,000
- D. $198,000
Answer: D. $198,000
Explanation: Fixed cost: 8,000 × $6.00 = $48,000. Total cost: (12,000 × $12.50) + $48,000 = $198,000.
Calculation
12. Harbor Eyewear began the year with $26,000 of frame material and ended the year with $31,000. It purchased additional material costing $42,000, $51,000, and $47,000 during the year. All material issued was used as direct material in production; there were no other inventory adjustments. What was the cost of direct material used?
- A. $140,000
- B. $145,000
- C. $135,000
- D. $166,000
Answer: C. $135,000
Explanation: $26,000 + $42,000 + $51,000 + $47,000 − $31,000 = $135,000.
Calculation
13. At the start of June, Summit Robotics had $24,000 in work in process inventory. During June, it added $117,000 in direct materials, direct labor, and manufacturing overhead. Work in process inventory was $31,000 at month end. What cost should be transferred to finished goods inventory for products completed during June?
- A. $110,000
- B. $117,000
- C. $124,000
- D. $141,000
Answer: A. $110,000
Explanation: Cost of goods manufactured: $24,000 + $117,000 − $31,000 = $110,000.
Calculation
14. Oakridge Manufacturing reports cost of goods manufactured of $165,000. Beginning and ending work in process inventories are $41,000 and $29,000, respectively. Direct materials used total $62,000, and direct labor totals $53,000. How much manufacturing overhead was applied to production?
- A. $50,000
- B. $62,000
- C. $91,000
- D. $38,000
Answer: D. $38,000
Explanation: Applied overhead: $165,000 − $41,000 + $29,000 − $62,000 − $53,000 = $38,000.
Calculation
15. At annual production and sales of 12,000 units, Atlas Tools sells a product for $18 per unit, incurs variable costs of $11 per unit, and reports fixed costs of $3 per unit. Next year, the selling price will rise to $22 and variable cost to $13 per unit, while total fixed costs will remain unchanged. If 10,000 units are produced and sold next year, what operating income is expected?
- A. $30,000
- B. $60,000
- C. $54,000
- D. $90,000
Answer: C. $54,000
Explanation: Fixed costs: 12,000 × $3 = $36,000. Operating income: [10,000 × ($22 − $13)] − $36,000 = $54,000.
Ready to practice with the full 2nd edition test bank?
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Chapters covered
- Chapter 1: Cost Accounting Has Purpose112 questions
- Chapter 2: Refresher on Cost Terms182 questions
- Chapter 3: Cost Behavior and Cost Estimation101 questions
- Chapter 4: Cost-Volume-Profit Analysis197 questions
- Chapter 5: Relevant Costs for the Decision-Maker134 questions
- Chapter 6: Mastering the Master Budget141 questions
- Chapter 7: Capital Budgeting Choices and Decisions124 questions
- Chapter 8: Job Costing Visualized143 questions
- Chapter 9: Activity-Based Costing141 questions
- Chapter 10: Variance Analysis and Standard Costing144 questions
- Chapter 11: Process Costing141 questions
- Chapter 12: Absorption versus Variable Costing131 questions
- Chapter 13: Data Analytics141 questions
- Chapter 14: Support Department Costing128 questions
- Chapter 15: Joint Costs and Decision-Making131 questions
- Chapter 16: The Art and Science of Pricing to Optimize Revenue130 questions
- Chapter 17: Management Control Systems and Transfer Pricing141 questions
- Chapter 18: Business Strategy, Performance Measurement, and the Balanced Scorecard141 questions
What you get
Included
- Over 2,500 practice questions, each with its answer
- All 18 chapters of the 2nd edition
- Over 1,700 multiple choice questions, most with explanations
- Over 700 short answer questions and problems with worked solutions
- Difficulty and learning objective marked on the questions
- A PDF file and a Word file
Not included
- The textbook, in print or as an eBook
- WileyPLUS homework, Excel or Tableau assignment files
- Wiley instructor slides and lecture notes
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