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Quiz von smjackson7, aktualisiert more than 1 year ago
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Erstellt von smjackson7
vor mehr als 10 Jahre
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Frage 1
Frage
Product costs for a manufacturing company consists of direct materials, direct labor and overhead
Antworten
- True
- False
Frage 2
Frage
Period cost and product cost are synonymous terms.
Antworten
- True
- False
Frage 3
Frage
For a manufactured product, all costs are incurred to get the product ready for sale are included in the inventory value of the product.
Antworten
- True
- False
Frage 4
Frage
Period costs are not considered when costing products for inventory.
Antworten
- True
- False
Frage 5
Frage
The two primary types of cost behavior are fixed and variable.
Antworten
- True
- False
Frage 6
Frage
Direct materials are the only materials in a product.
Antworten
- True
- False
Frage 7
Frage
Wages of machine operators and other workers involved in actually shaping the product are classified as direct labor costs.
Antworten
- True
- False
Frage 8
Frage
(Direct Materials + Direct Labor + Overhead) / Total Number of Units Produced = Product Unit Cost
Antworten
- True
- False
Frage 9
Frage
At the end of an accounting period, the balance in the Finished Goods Inventory account is made up of the costs of products completed but not sold as of that d ate.
Antworten
- True
- False
Frage 10
Frage
Under activity-based costing (ABC), a product's unit cost may include assigned overhead from several cost pools
Antworten
- True
- False
Frage 11
Frage
Which of the following is not included in the purchase cost of merchandise inventory?
Antworten
-
purchase discounts
-
overhead costs
-
freight-in costs
-
purchase returns and allowances
Frage 12
Frage
An example of a period cost is
Antworten
-
advertising costs
-
indirect materials
-
product design costs
-
direct materials
Frage 13
Frage
Which of the following is a typical example of a variable cost?
Antworten
-
sales commissions
-
rent
-
depreciation
-
salaries
Frage 14
Frage
Materials and supplies that cannot be traced conveniently to specific products are called
Antworten
-
indirect materials
-
raw materials
-
minor materials
-
direct materials
Frage 15
Frage
When a company calculates its product unit cost using estimated costs, it is using which cost measurement method?
Antworten
-
standard costing
-
actual costing
-
full costing
-
normal costing
Frage 16
Frage
Maintenance on factory building
Antworten
-
(OH) Overhead
-
(DL) Direct Labor
-
(DM) Direct Materials
Frage 17
Frage
Cream
Antworten
-
(DL) Direct Labor
-
(OH) Overhead
-
(DM) Direct Materials
Frage 18
Frage
In a process costing system, each product is assigned is the assigned the same amount of costs.
Antworten
- True
- False
Frage 19
Frage
Companies that produce custom-made products usually use a process costing system.
Antworten
- True
- False
Frage 20
Frage
The typical product costing system in a factory incorporates parts of both job order costing and process costing to create a hybrid system.
Antworten
- True
- False
Frage 21
Frage
In a job order costing system, when the goods are sold, the Cost of Goods Sold account is increased, and the Finished Goods Inventory account is decreased for the selling price of the goods sold.
Antworten
- True
- False
Frage 22
Frage
A zero balance in Finished Goods Inventory at the start of the period means all previously completed products have shipped
Antworten
- True
- False
Frage 23
Frage
In a job order costing system, indirect labor costs are transferred to the Overhead account by increasing the Factory payroll account and decreasing the Overhead account.
Antworten
- True
- False
Frage 24
Frage
In a job order costing system, when supplies are issued from inventory to production, the Overhead account is increased.
Antworten
- True
- False
Frage 25
Frage
In a job order costing system, indirect labor costs incurred are charged to the Work in Process Inventory account.
Antworten
- True
- False
Frage 26
Frage
To prepare financial statements at the end of the accounting period, the actual overhead cost for the period and the estimated overhead that was applied during the period must be reconciled in both job order and process costing systems.
Antworten
- True
- False
Frage 27
Frage
If applied overhead exceeds actual overhead, cost of good sold must be reduced by the amount of the overcharge in a job costing system.
Antworten
- True
- False
Frage 28
Frage
Job costing and process costing are systems of
Antworten
-
inventory costing
-
cost flow assumptions
-
product costing
-
product pricing
Frage 29
Frage
Product costs appear on the income statement in the form of
Antworten
-
cost of goods sold
-
material inventory
-
sales commissions
-
none of these
Frage 30
Frage
A company should use process costing rather than job order costing if
Antworten
-
production is only partially completed during the accounting period
-
the produce is produced in bathes only as orders are received
-
the product is composted of mass-produced homogenous units
-
the product goes through several stages of production
Frage 31
Frage
Which of the following characteristics applies to process costing, but does not apply to job order costing?
Antworten
-
the need for averaging
-
the use of equivalent units
-
separate, identifiable jobs
-
the use of predetermined overhead rates
Frage 32
Frage
The basic document for keeping track of costs in a job order costing system is a
Antworten
-
job order cost card
-
labor time card
-
process cost report
-
materials requisition form
Frage 33
Frage
Cost behavior is defined as the manner in which cost respond to changes in volume or activity.
Antworten
- True
- False
Frage 34
Frage
Total variable and fixed costs will be the same regardless of how many units are produced.
Antworten
- True
- False
Frage 35
Frage
Fixed costs always remain constant.
Antworten
- True
- False
Frage 36
Frage
Normal capacity is the average annual level of operating capacity needed to meet expected sales demand, adjusted for seasonal changes and industry and economic cycles.
Antworten
- True
- False
Frage 37
Frage
Regression analysis can be performed using one or more activities to predict costs.
Antworten
- True
- False
Frage 38
Frage
Cost-volume profit analysis assumes a constant sales mix.
Antworten
- True
- False
Frage 39
Frage
The contribution margin equals total fixed costs at the breakeven point.
Antworten
- True
- False
Frage 40
Frage
If revenue was $120,000,000, variable costs were $90,000,000, and fixed costs were $15,000,000, then the contribution margin ratio was 25%.
Antworten
- True
- False
Frage 41
Frage
If targeted sales are 12,000 units, the sales price/unit is $70, fixed costs are #130,000, and variable costs are $40/unit, then planned profit must be $230,000.
Antworten
- True
- False
Frage 42
Frage
For profit planning purposes, the following equation is used: Target Sales Units = (FC + P) divided by CM per Unit.
Antworten
- True
- False
Frage 43
Frage
Which of the following statements most accurately explains the behavior of costs?
Antworten
-
there is no norm; rather costs can be fixed, variable or a combination of both
-
the majority of costs are variable per unit of production
-
the majority of costs are fixed per unit of production
-
costs can be fixed or variable, but usually not a combination of both
Frage 44
Frage
An insurance company pays its employees a commission of 6% on each sale. What is the proper classification of the cost of sales commissions?
Antworten
-
constant cost
-
variable cost
-
mixed cost
-
fixed cost
Frage 45
Frage
Suppose a company rents a building for $250,000/year for the purpose of manufacturing between 80,000 and 140,000 units (the relevant range of activity). The rental cost per unit of production will __________________ as production levels increase.
Antworten
-
behave in a nonlinear fashion
-
increase
-
decrease
-
remain fixed
Frage 46
Frage
When fixed costs are $18,000 and the contribution margin per unit is $4, the breakeven point is
Antworten
-
4,500 units
-
2,230 units
-
$22,300
-
$72,000
Frage 47
Frage
If the contribution margin on a new product line is $15, fixed costs are $165,000, and the total market for the product is 22,000 units, then the breakeven analysis would recommend that the company.
Antworten
-
abandon the new product line
-
decrease the sales price per unit
-
increase the fixed costs (such as advertising) to lower the breakeven units
-
adopt the new product line
Frage 48
Frage
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Direct Materials
Antworten
-
FC
-
VC
-
MC
Frage 49
Frage
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Electricity
Antworten
-
FC
-
VC
-
MC
Frage 50
Frage
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Factory building rent
Antworten
-
FC
-
VC
-
MC
Frage 51
Frage
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Advertising Expense
Antworten
-
FC
-
VC
-
MC
Frage 52
Frage
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Shipping Expense
Antworten
-
FC
-
VC
-
MC
Frage 53
Frage
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Insurance on the factory building
Antworten
-
FC
-
VC
-
MC
Frage 54
Frage
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Costs of Good Sold
Antworten
-
FC
-
VC
-
MC
Frage 55
Frage
A performance management and evaluation system is mainly utilized to account for and report on financial performance.
Antworten
- True
- False
Frage 56
Frage
A performance management and evaluation system allows a company to identify how well it is doing, where it is going, and what improvements will make it more profitable.
Antworten
- True
- False
Frage 57
Frage
A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a profit center.
Antworten
- True
- False
Frage 58
Frage
A flexible budget is derived by multiplying actual unit output by the standard unit costs.
Antworten
- True
- False
Frage 59
Frage
When calculating ROI, assets invested represent the average of the beginning and ending asset balances for a given period.
Antworten
- True
- False
Frage 60
Frage
How effective a performance management and evaluation system is depends on how well the goals of the entire compare coordinated rather than on how well the goals of responsibility centers, managers, and the entire organizations will be well coordinated.
Antworten
- True
- False
Frage 61
Frage
Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers, managers, and the entire organization will be well coordinated.
Antworten
- True
- False
Frage 62
Frage
Incentive awards are utilized mainly to encourage long-term performance.
Antworten
- True
- False
Frage 63
Frage
A manager can improve the economic value of an investment center by decreasing assets.
Antworten
- True
- False
Frage 64
Frage
Cost of capital is the maximum desired rate of return on a particular investment.
Antworten
- True
- False
Frage 65
Frage
A performance management and evaluation system is a set of procedure that account for and report on
Antworten
-
qualitative performance
-
quantitative performance
-
employee performance
-
qualitative and quantitative performance
Frage 66
Frage
Which of the following is an example of a performance measurement?
Antworten
-
product quality
-
number of customer complaints
-
customer satisfaction
-
all of these choices
Frage 67
Frage
The manager of Center A is responsible for generating cash inflows and incurring costs with the goal of making money for the company. The manager has no responsibility for assets. What type of responsibility center is Center A.
Antworten
-
cost center
-
discretionary cost center
-
profit center
-
revenue center
Frage 68
Frage
In developing performance measures, management must consider which of the following?
Antworten
-
how should we measure?
-
how can managers monitor financial performance?
-
what should we measure?
-
all of these choices.
Frage 69
Frage
Budgeting is the process of identifying, gathering, summarizing, and communicating financial and nonfinancial information about an organization's future activities.
Antworten
- True
- False
Frage 70
Frage
A budget can contain nonfinancial information.
Antworten
- True
- False
Frage 71
Frage
Participating budgeting involves only personnel at top levels of the organization.
Antworten
- True
- False
Frage 72
Frage
The short-term plan or budget involves every part of the enterprise and is much more detailed than the long-term plan.
Antworten
- True
- False
Frage 73
Frage
Projected financial statements are the final product of the budgeting process.
Antworten
- True
- False
Frage 74
Frage
Operating budgets are plans used in daily operations.
Antworten
- True
- False
Frage 75
Frage
The direct materials purchases budget reflect both the quantity and cost of direct materials purchases.
Antworten
- True
- False
Frage 76
Frage
The overhead budget must be separate into variable and fixed cost segments.
Antworten
- True
- False
Frage 77
Frage
The direct labor budget is needed to prepare the production budget.
Antworten
- True
- False
Frage 78
Frage
A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.
Antworten
- True
- False
Frage 79
Frage
A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.
Antworten
- True
- False
Frage 80
Frage
A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.
Antworten
- True
- False
Frage 81
Frage
Budgets
Antworten
-
should contain both revenues and expenses
-
contain as much information as possible
-
are presented in dollars only; nondollar data should be excluded
-
are synonymous with managing an organization
Frage 82
Frage
Which type of budgeting utilizes employes at all levels of the company?
Antworten
-
group budgeting
-
selective budgeting
-
target budgeting
-
participative budgeting
Frage 83
Frage
A master budget is a compilation of forecasts for the coming year or operating cycle by various departments or functions within an organization. What is the most basic forecast made in a master budget?
Antworten
-
sales forecast
-
production forecast
-
labor forecast
-
materials forecast
Frage 84
Frage
A master budget is a compilation of forecasts for the coming year or operating cycle by various departments or functions within an organization. What is the most basic forecast made in a master budget?
Antworten
-
sales forecast
-
production forecast
-
labor forecast
-
materials forecast
Frage 85
Frage
The first budget to be prepared when making a master budget is the
Antworten
-
sales budget
-
production budget
-
cash budget
-
direct labor budget
Frage 86
Frage
Which of the following would most likely be considered a short-term goal?
Antworten
-
modernization and expansion of the plant
-
a product line change
-
a unit sales forecast
-
a marketing plan to gain a higher percentage of control of the market in five years.
Frage 87
Frage
Once standard costs for direct materials, direct labor and variable and fixed overhead have been developed, a total standard unit cost can be determined over time.
Antworten
- True
- False
Frage 88
Frage
Variance analysis involves computing the difference between standard and actual costs.
Antworten
- True
- False
Frage 89
Frage
The final step in variance analysis is determining the cause of the variance.
Antworten
- True
- False
Frage 90
Frage
The flexible budget formula is an equation that determines unexpected costs at any level of output.
Antworten
- True
- False
Frage 91
Frage
The "flex" in the flexible budget formula occurs in the variable cost segment.
Antworten
- True
- False
Frage 92
Frage
Another name for a flexible budget is a variable budget.
Antworten
- True
- False
Frage 93
Frage
Comparing "what did happen" with "what should have happened" aids in the performance evaluation of a company.
Antworten
- True
- False
Frage 94
Frage
A production manager usually is responsible for direct material used and direct labor hours used.
Antworten
- True
- False
Frage 95
Frage
It is not necessary to provide an area on the performance report for a manager's reasons for variances.
Antworten
- True
- False
Frage 96
Frage
Variance analysis includes all of the following except:
Antworten
-
taking corrective action
-
investigating all variances
-
developing performance measures to track activities causing the variance
-
identification of the cause
Frage 97
Frage
A summary of expected costs for a range of activity levels that is geared to changes in the level of productive output is the definition of a
Antworten
-
continuous budget
-
flexible budget
-
master budget
-
period budget
Frage 98
Frage
The primary difference between a fixed (static) budget and a flexible budget is that a fixed budget
Antworten
-
cannot be change after the period begins, whereas a flexible budget can be changed after the period ends
-
is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales.
-
is a plan for a simple level of production, whereas a flexible budget is several plans (one for each of several production levels)
-
includes only fixed costs, whereas a flexible budget includes only variable costs
Frage 99
Frage
If a company's flexible budget formula is $9.50 per unit plus $68,550, what would be the total budget for evaluating operating performance if 23,850 units were sold and 28,460 units were produced.
Antworten
-
$295,125
-
$338,920
-
$309,985
-
$226,575
Frage 100
Frage
A flexible budget is most useful
Antworten
-
for budgeting and planning purposes
-
when actual output equals budget output
-
as a cost control tool to help evaluate performance
-
when a product's cost structure includes variable costs only
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