976878
Descripción
Test por smjackson7, actualizado hace más de 1 año
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Creado por smjackson7
hace casi 10 años
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Pregunta 1
Pregunta
Product costs for a manufacturing company consists of direct materials, direct labor and overhead
Respuesta
- True
- False
Pregunta 2
Pregunta
Period cost and product cost are synonymous terms.
Respuesta
- True
- False
Pregunta 3
Pregunta
For a manufactured product, all costs are incurred to get the product ready for sale are included in the inventory value of the product.
Respuesta
- True
- False
Pregunta 4
Pregunta
Period costs are not considered when costing products for inventory.
Respuesta
- True
- False
Pregunta 5
Pregunta
The two primary types of cost behavior are fixed and variable.
Respuesta
- True
- False
Pregunta 6
Pregunta
Direct materials are the only materials in a product.
Respuesta
- True
- False
Pregunta 7
Pregunta
Wages of machine operators and other workers involved in actually shaping the product are classified as direct labor costs.
Respuesta
- True
- False
Pregunta 8
Pregunta
(Direct Materials + Direct Labor + Overhead) / Total Number of Units Produced = Product Unit Cost
Respuesta
- True
- False
Pregunta 9
Pregunta
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.
Respuesta
- True
- False
Pregunta 10
Pregunta
Under activity-based costing (ABC), a product's unit cost may include assigned overhead from several cost pools
Respuesta
- True
- False
Pregunta 11
Pregunta
Which of the following is not included in the purchase cost of merchandise inventory?
Respuesta
-
purchase discounts
-
overhead costs
-
freight-in costs
-
purchase returns and allowances
Pregunta 12
Pregunta
An example of a period cost is
Respuesta
-
advertising costs
-
indirect materials
-
product design costs
-
direct materials
Pregunta 13
Pregunta
Which of the following is a typical example of a variable cost?
Respuesta
-
sales commissions
-
rent
-
depreciation
-
salaries
Pregunta 14
Pregunta
Materials and supplies that cannot be traced conveniently to specific products are called
Respuesta
-
indirect materials
-
raw materials
-
minor materials
-
direct materials
Pregunta 15
Pregunta
When a company calculates its product unit cost using estimated costs, it is using which cost measurement method?
Respuesta
-
standard costing
-
actual costing
-
full costing
-
normal costing
Pregunta 16
Pregunta
Maintenance on factory building
Respuesta
-
(OH) Overhead
-
(DL) Direct Labor
-
(DM) Direct Materials
Pregunta 17
Pregunta
Cream
Respuesta
-
(DL) Direct Labor
-
(OH) Overhead
-
(DM) Direct Materials
Pregunta 18
Pregunta
In a process costing system, each product is assigned is the assigned the same amount of costs.
Respuesta
- True
- False
Pregunta 19
Pregunta
Companies that produce custom-made products usually use a process costing system.
Respuesta
- True
- False
Pregunta 20
Pregunta
The typical product costing system in a factory incorporates parts of both job order costing and process costing to create a hybrid system.
Respuesta
- True
- False
Pregunta 21
Pregunta
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.
Respuesta
- True
- False
Pregunta 22
Pregunta
A zero balance in Finished Goods Inventory at the start of the period means all previously completed products have shipped
Respuesta
- True
- False
Pregunta 23
Pregunta
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.
Respuesta
- True
- False
Pregunta 24
Pregunta
In a job order costing system, when supplies are issued from inventory to production, the Overhead account is increased.
Respuesta
- True
- False
Pregunta 25
Pregunta
In a job order costing system, indirect labor costs incurred are charged to the Work in Process Inventory account.
Respuesta
- True
- False
Pregunta 26
Pregunta
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.
Respuesta
- True
- False
Pregunta 27
Pregunta
If applied overhead exceeds actual overhead, cost of good sold must be reduced by the amount of the overcharge in a job costing system.
Respuesta
- True
- False
Pregunta 28
Pregunta
Job costing and process costing are systems of
Respuesta
-
inventory costing
-
cost flow assumptions
-
product costing
-
product pricing
Pregunta 29
Pregunta
Product costs appear on the income statement in the form of
Respuesta
-
cost of goods sold
-
material inventory
-
sales commissions
-
none of these
Pregunta 30
Pregunta
A company should use process costing rather than job order costing if
Respuesta
-
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
Pregunta 31
Pregunta
Which of the following characteristics applies to process costing, but does not apply to job order costing?
Respuesta
-
the need for averaging
-
the use of equivalent units
-
separate, identifiable jobs
-
the use of predetermined overhead rates
Pregunta 32
Pregunta
The basic document for keeping track of costs in a job order costing system is a
Respuesta
-
job order cost card
-
labor time card
-
process cost report
-
materials requisition form
Pregunta 33
Pregunta
Cost behavior is defined as the manner in which cost respond to changes in volume or activity.
Respuesta
- True
- False
Pregunta 34
Pregunta
Total variable and fixed costs will be the same regardless of how many units are produced.
Respuesta
- True
- False
Pregunta 35
Pregunta
Fixed costs always remain constant.
Respuesta
- True
- False
Pregunta 36
Pregunta
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.
Respuesta
- True
- False
Pregunta 37
Pregunta
Regression analysis can be performed using one or more activities to predict costs.
Respuesta
- True
- False
Pregunta 38
Pregunta
Cost-volume profit analysis assumes a constant sales mix.
Respuesta
- True
- False
Pregunta 39
Pregunta
The contribution margin equals total fixed costs at the breakeven point.
Respuesta
- True
- False
Pregunta 40
Pregunta
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%.
Respuesta
- True
- False
Pregunta 41
Pregunta
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.
Respuesta
- True
- False
Pregunta 42
Pregunta
For profit planning purposes, the following equation is used: Target Sales Units = (FC + P) divided by CM per Unit.
Respuesta
- True
- False
Pregunta 43
Pregunta
Which of the following statements most accurately explains the behavior of costs?
Respuesta
-
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
Pregunta 44
Pregunta
An insurance company pays its employees a commission of 6% on each sale. What is the proper classification of the cost of sales commissions?
Respuesta
-
constant cost
-
variable cost
-
mixed cost
-
fixed cost
Pregunta 45
Pregunta
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.
Respuesta
-
behave in a nonlinear fashion
-
increase
-
decrease
-
remain fixed
Pregunta 46
Pregunta
When fixed costs are $18,000 and the contribution margin per unit is $4, the breakeven point is
Respuesta
-
4,500 units
-
2,230 units
-
$22,300
-
$72,000
Pregunta 47
Pregunta
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.
Respuesta
-
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
Pregunta 48
Pregunta
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Direct Materials
Respuesta
-
FC
-
VC
-
MC
Pregunta 49
Pregunta
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Electricity
Respuesta
-
FC
-
VC
-
MC
Pregunta 50
Pregunta
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Factory building rent
Respuesta
-
FC
-
VC
-
MC
Pregunta 51
Pregunta
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Advertising Expense
Respuesta
-
FC
-
VC
-
MC
Pregunta 52
Pregunta
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Shipping Expense
Respuesta
-
FC
-
VC
-
MC
Pregunta 53
Pregunta
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Insurance on the factory building
Respuesta
-
FC
-
VC
-
MC
Pregunta 54
Pregunta
Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):
Costs of Good Sold
Respuesta
-
FC
-
VC
-
MC
Pregunta 55
Pregunta
A performance management and evaluation system is mainly utilized to account for and report on financial performance.
Respuesta
- True
- False
Pregunta 56
Pregunta
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.
Respuesta
- True
- False
Pregunta 57
Pregunta
A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a profit center.
Respuesta
- True
- False
Pregunta 58
Pregunta
A flexible budget is derived by multiplying actual unit output by the standard unit costs.
Respuesta
- True
- False
Pregunta 59
Pregunta
When calculating ROI, assets invested represent the average of the beginning and ending asset balances for a given period.
Respuesta
- True
- False
Pregunta 60
Pregunta
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.
Respuesta
- True
- False
Pregunta 61
Pregunta
Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers, managers, and the entire organization will be well coordinated.
Respuesta
- True
- False
Pregunta 62
Pregunta
Incentive awards are utilized mainly to encourage long-term performance.
Respuesta
- True
- False
Pregunta 63
Pregunta
A manager can improve the economic value of an investment center by decreasing assets.
Respuesta
- True
- False
Pregunta 64
Pregunta
Cost of capital is the maximum desired rate of return on a particular investment.
Respuesta
- True
- False
Pregunta 65
Pregunta
A performance management and evaluation system is a set of procedure that account for and report on
Respuesta
-
qualitative performance
-
quantitative performance
-
employee performance
-
qualitative and quantitative performance
Pregunta 66
Pregunta
Which of the following is an example of a performance measurement?
Respuesta
-
product quality
-
number of customer complaints
-
customer satisfaction
-
all of these choices
Pregunta 67
Pregunta
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.
Respuesta
-
cost center
-
discretionary cost center
-
profit center
-
revenue center
Pregunta 68
Pregunta
In developing performance measures, management must consider which of the following?
Respuesta
-
how should we measure?
-
how can managers monitor financial performance?
-
what should we measure?
-
all of these choices.
Pregunta 69
Pregunta
Budgeting is the process of identifying, gathering, summarizing, and communicating financial and nonfinancial information about an organization's future activities.
Respuesta
- True
- False
Pregunta 70
Pregunta
A budget can contain nonfinancial information.
Respuesta
- True
- False
Pregunta 71
Pregunta
Participating budgeting involves only personnel at top levels of the organization.
Respuesta
- True
- False
Pregunta 72
Pregunta
The short-term plan or budget involves every part of the enterprise and is much more detailed than the long-term plan.
Respuesta
- True
- False
Pregunta 73
Pregunta
Projected financial statements are the final product of the budgeting process.
Respuesta
- True
- False
Pregunta 74
Pregunta
Operating budgets are plans used in daily operations.
Respuesta
- True
- False
Pregunta 75
Pregunta
The direct materials purchases budget reflect both the quantity and cost of direct materials purchases.
Respuesta
- True
- False
Pregunta 76
Pregunta
The overhead budget must be separate into variable and fixed cost segments.
Respuesta
- True
- False
Pregunta 77
Pregunta
The direct labor budget is needed to prepare the production budget.
Respuesta
- True
- False
Pregunta 78
Pregunta
A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.
Respuesta
- True
- False
Pregunta 79
Pregunta
A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.
Respuesta
- True
- False
Pregunta 80
Pregunta
A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.
Respuesta
- True
- False
Pregunta 81
Pregunta
Budgets
Respuesta
-
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
Pregunta 82
Pregunta
Which type of budgeting utilizes employes at all levels of the company?
Respuesta
-
group budgeting
-
selective budgeting
-
target budgeting
-
participative budgeting
Pregunta 83
Pregunta
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?
Respuesta
-
sales forecast
-
production forecast
-
labor forecast
-
materials forecast
Pregunta 84
Pregunta
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?
Respuesta
-
sales forecast
-
production forecast
-
labor forecast
-
materials forecast
Pregunta 85
Pregunta
The first budget to be prepared when making a master budget is the
Respuesta
-
sales budget
-
production budget
-
cash budget
-
direct labor budget
Pregunta 86
Pregunta
Which of the following would most likely be considered a short-term goal?
Respuesta
-
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.
Pregunta 87
Pregunta
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.
Respuesta
- True
- False
Pregunta 88
Pregunta
Variance analysis involves computing the difference between standard and actual costs.
Respuesta
- True
- False
Pregunta 89
Pregunta
The final step in variance analysis is determining the cause of the variance.
Respuesta
- True
- False
Pregunta 90
Pregunta
The flexible budget formula is an equation that determines unexpected costs at any level of output.
Respuesta
- True
- False
Pregunta 91
Pregunta
The "flex" in the flexible budget formula occurs in the variable cost segment.
Respuesta
- True
- False
Pregunta 92
Pregunta
Another name for a flexible budget is a variable budget.
Respuesta
- True
- False
Pregunta 93
Pregunta
Comparing "what did happen" with "what should have happened" aids in the performance evaluation of a company.
Respuesta
- True
- False
Pregunta 94
Pregunta
A production manager usually is responsible for direct material used and direct labor hours used.
Respuesta
- True
- False
Pregunta 95
Pregunta
It is not necessary to provide an area on the performance report for a manager's reasons for variances.
Respuesta
- True
- False
Pregunta 96
Pregunta
Variance analysis includes all of the following except:
Respuesta
-
taking corrective action
-
investigating all variances
-
developing performance measures to track activities causing the variance
-
identification of the cause
Pregunta 97
Pregunta
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
Respuesta
-
continuous budget
-
flexible budget
-
master budget
-
period budget
Pregunta 98
Pregunta
The primary difference between a fixed (static) budget and a flexible budget is that a fixed budget
Respuesta
-
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
Pregunta 99
Pregunta
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.
Respuesta
-
$295,125
-
$338,920
-
$309,985
-
$226,575
Pregunta 100
Pregunta
A flexible budget is most useful
Respuesta
-
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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