Question<\/p>\n
Question 1.1. Which one of the following characteristics would likely be associated with a just-in-time inventory method? (Points : 1)<\/p>\n
Ending inventory of work in process that would allow several production runs<\/p>\n
A backlog of inventory orders not yet shipped<\/p>\n
Minimal finished goods inventory on hand<\/p>\n
An understanding with customers that they may come to the showroom and select from inventory on hand<\/p>\n
Question 2.2.The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is (Points : 1)<\/p>\n
manufacturing overhead.<\/p>\n
indirect materials<\/p>\n
indirect labor.<\/p>\n
direct labor<\/p>\n
Question 3.3.For inventoriable costs to become expenses under the matching principle, (Points : 1)<\/p>\n
the product must be finished and in stock.<\/p>\n
the product must be expensed based on its percentage-of-completion.<\/p>\n
the product to which they attach must be sold.<\/p>\n
all accounts payable must be settled.<\/p>\n
Question 4.4.The principle difference between a merchandising and a manufacturing income statement is the (Points : 1)<\/p>\n
cost of goods sold section.<\/p>\n
extraordinary item section.<\/p>\n
operating expense section.<\/p>\n
revenue section.<\/p>\n
Question 5.5.A distinguishing feature of managerial accounting is (Points : 1)<\/p>\n
external users.<\/p>\n
general-purpose reports.<\/p>\n
very detailed reports.<\/p>\n
quarterly and annual reports.<\/p>\n
Question 6.6.Which of the following is one of the components of cost accounting? (Points : 1)<\/p>\n
It involves measuring product costs.<\/p>\n
It involves the determination of company profits.<\/p>\n
It requires GAAP to be applied.<\/p>\n
It requires cost minimizing principles.<\/p>\n
Question 7.7.If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were (Points : 1)<\/p>\n
direct labor.<\/p>\n
indirect labor.<\/p>\n
overtime related.<\/p>\n
regular hours.<\/p>\n
Question 8.8.If, at the end of the year, Manufacturing Overhead has been overapplied, it means that (Points : 1)<\/p>\n
actual overhead costs were greater than the overhead assigned to jobs.<\/p>\n
actual overhead costs were less than the overhead assigned to jobs.<\/p>\n
overhead has not been applied to jobs still in process.<\/p>\n
cost of goods will have to be increased by the amount of the overapplied overhead.<\/p>\n
Question 9.9.In computing equivalent units, ___________ is not part of the equivalent units of production formula. (Points : 1)<\/p>\n
units transferred out<\/p>\n
beginning work in process<\/p>\n
ending work in process<\/p>\n
None of these is correct.<\/p>\n
Question 10.10.The total units accounted for equals units in (Points : 1)<\/p>\n
beginning work in process \u2013 units transferred out.<\/p>\n
beginning work in process + ending work in process.<\/p>\n
ending work in process + units transferred out.<\/p>\n
ending work in process \u2013 units started into production<\/p>\n
Question 11.11.In process cost accounting, manufacturing costs are summarized on a (Points : 1)<\/p>\n
job order cost sheet.<\/p>\n
process order cost sheet.<\/p>\n
production cost report.<\/p>\n
manufacturing cost sheet.<\/p>\n
Question 12.12.Which would be an appropriate cost driver for the ordering activity? (Points : 1)<\/p>\n
Machine setups.<\/p>\n
Purchase orders.<\/p>\n
Machine hours.<\/p>\n
Inspections.<\/p>\n
Question 13.13.Cost behavior analysis applies to (Points : 1)<\/p>\n
retailers.<\/p>\n
wholesalers.<\/p>\n
manufacturers.<\/p>\n
all entities.<\/p>\n
Question 14.14.Which one of the following is not an assumption of CVP analysis? (Points : 1)<\/p>\n
All units produced are sold.<\/p>\n
All costs are variable costs.<\/p>\n
Sales mix remains constant.<\/p>\n
The behavior of costs and revenues are linear within the relevant range.<\/p>\n
Question 15.15.Kohler Corporation sells its product for $40. The variable costs are $18 per unit. Fixed costs are $16,000. The company is considering the purchase of an automated machine that will result in a $2 reduction in unit variable costs and an increase of $5,000 in fixed costs. Which of the following is true about the break-even point in units? (Points : 1)<\/p>\n
It will remain unchanged.<\/p>\n
It will decrease.<\/p>\n
It will increase.<\/p>\n
It cannot be determined from the information provided<\/p>\n
Question 16.16.Which is the true statement? (Points : 1)<\/p>\n
In a CVP income statement, costs and expenses are classified only by function.<\/p>\n
The CVP income statement is prepared for both internal and external use.<\/p>\n
The CVP income statement shows contribution margin instead of gross profit.<\/p>\n
In a traditional income statement, costs and expenses are classified as either variable or fixed.<\/p>\n
Question 17.17.Which of the following is not an operating budget? (Points : 1)<\/p>\n
Direct labor budget<\/p>\n
Sales budget<\/p>\n
Production budget<\/p>\n
Cash budget<\/p>\n
Question 18.18.The total direct labor hours required in preparing a direct labor budget are calculated using the (Points : 1)<\/p>\n
sales forecast.<\/p>\n
production budget.<\/p>\n
direct materials budget.<\/p>\n
sales budget.<\/p>\n
Question 19.19.The cash budget reflects (Points : 1)<\/p>\n
all revenues and all expenses for a period.<\/p>\n
expected cash receipts and cash disbursements from all sources.<\/p>\n
all the items that appear on a budgeted income statement.<\/p>\n
all the items that appear on a budgeted balance sheet.<\/p>\n
Question 20.20.Instead of a production budget, a merchandiser will prepare a (Points : 1)<\/p>\n
pseudo-production budget.<\/p>\n
merchandise purchases budget.<\/p>\n
master time sheet.<\/p>\n
sales forecast.<\/p>\n
Question 21.21.Limpia Industries produced 320,000 units in 150,000 direct labor hours. Production for the period was estimated at 330,000 units and 165,000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at (Points : 1)<\/p>\n
160,000 hours and 165,000 hours.<\/p>\n
165,000 hours and 150,000 hours.<\/p>\n
160,000 hours and 150,000 hours.<\/p>\n
150,000 hours and 150,000 hours.<\/p>\n
Question 22.22.Costs that relate specifically to one center and are incurred for the sole benefit of that center are (Points : 1)<\/p>\n
common fixed costs.<\/p>\n
direct fixed costs.<\/p>\n
indirect fixed costs.<\/p>\n
noncontrollable fixed costs.<\/p>\n
Question 23.23.The foreign subsidiary of a large corporation is (Points : 1)<\/p>\n
not a responsibility center.<\/p>\n
a profit center.<\/p>\n
a cost center.<\/p>\n
an investment center.<\/p>\n
Question 24.24. Management by exception (Points : 1)<\/p>\n
is most effective at top levels of management.<\/p>\n
can be implemented at each level of responsibility within an organization.<\/p>\n
can only be applied when comparing actual results with the master budget.<\/p>\n
is the opposite of goal congruence.<\/p>\n
Question 25.25.The direct materials quantity standard should (Points : 1)<\/p>\n
exclude unavoidable waste.<\/p>\n
exclude quality considerations.<\/p>\n
allow for normal spoilage.<\/p>\n
always be expressed as an ideal standard.<\/p>\n
Question 26.26.If actual direct materials costs are greater than standard direct materials costs, it means that (Points : 1)<\/p>\n
actual costs were calculated incorrectly.<\/p>\n
the actual unit price of direct materials was greater than the standard unit price of direct materials.<\/p>\n
the actual unit price of raw materials or the actual quantities of raw materials used was greater than the standard unit price or standard quantities of raw materials expected.<\/p>\n
the purchasing agent or the production foreman is inefficient.<\/p>\n
Question 27.27.Which of the following statements is false? (Points : 1)<\/p>\n
The overhead volume variance indicates whether plant facilities were used efficiently during the period.<\/p>\n
The costs that cause the overhead volume variance are usually controllable costs.<\/p>\n
The overhead volume variance relates solely to fixed costs.<\/p>\n
The overhead volume variance is favorable if standard hours allowed for output are greater than the standard hours at normal capacity.<\/p>\n
Question 28.28.Incremental analysis is synonymous with (Points : 1)<\/p>\n
difficult analysis.<\/p>\n
differential analysis.<\/p>\n
gross profit analysis.<\/p>\n
derivative analysis.<\/p>\n
Question 29.29.Opportunity cost is usually (Points : 1)<\/p>\n
a standard cost.<\/p>\n
a potential benefit.<\/p>\n
a sunk cost.<\/p>\n
included as part of cost of goods sold.<\/p>\n
Question 30.30.Capital budgeting is the process (Points : 1)<\/p>\n
used in sell or process further decisions.<\/p>\n
of determining how much capital stock to issue.<\/p>\n
of making capital expenditure decisions.<\/p>\n
of eliminating unprofitable product lines.<\/p>\n","protected":false},"excerpt":{"rendered":"
Question Question 1.1. Which one of the following characteristics would likely be associated with a just-in-time inventory method? (Points : 1) Ending inventory of work in process that would allow several production runs A backlog of inventory orders not yet Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49284","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49284"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49284\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}