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ACC 102 Final Review

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ACC 102 Final Review

Pregunta 1 de 100

1

Product costs for a manufacturing company consists of direct materials, direct labor and overhead

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 2 de 100

1

Period cost and product cost are synonymous terms.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 3 de 100

1

For a manufactured product, all costs are incurred to get the product ready for sale are included in the inventory value of the product.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 4 de 100

1

Period costs are not considered when costing products for inventory.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 5 de 100

1

The two primary types of cost behavior are fixed and variable.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 6 de 100

1

Direct materials are the only materials in a product.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 7 de 100

1

Wages of machine operators and other workers involved in actually shaping the product are classified as direct labor costs.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 8 de 100

1

(Direct Materials + Direct Labor + Overhead) / Total Number of Units Produced = Product Unit Cost

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 9 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 10 de 100

1

Under activity-based costing (ABC), a product's unit cost may include assigned overhead from several cost pools

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 11 de 100

1

Which of the following is not included in the purchase cost of merchandise inventory?

Selecciona una de las siguientes respuestas posibles:

  • purchase discounts

  • overhead costs

  • freight-in costs

  • purchase returns and allowances

Explicación

Pregunta 12 de 100

1

An example of a period cost is

Selecciona una de las siguientes respuestas posibles:

  • advertising costs

  • indirect materials

  • product design costs

  • direct materials

Explicación

Pregunta 13 de 100

1

Which of the following is a typical example of a variable cost?

Selecciona una de las siguientes respuestas posibles:

  • sales commissions

  • rent

  • depreciation

  • salaries

Explicación

Pregunta 14 de 100

1

Materials and supplies that cannot be traced conveniently to specific products are called

Selecciona una de las siguientes respuestas posibles:

  • indirect materials

  • raw materials

  • minor materials

  • direct materials

Explicación

Pregunta 15 de 100

1

When a company calculates its product unit cost using estimated costs, it is using which cost measurement method?

Selecciona una de las siguientes respuestas posibles:

  • standard costing

  • actual costing

  • full costing

  • normal costing

Explicación

Pregunta 16 de 100

1

Maintenance on factory building

Selecciona una de las siguientes respuestas posibles:

  • (OH) Overhead

  • (DL) Direct Labor

  • (DM) Direct Materials

Explicación

Pregunta 17 de 100

1

Cream

Selecciona una de las siguientes respuestas posibles:

  • (DL) Direct Labor

  • (OH) Overhead

  • (DM) Direct Materials

Explicación

Pregunta 18 de 100

1

In a process costing system, each product is assigned is the assigned the same amount of costs.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 19 de 100

1

Companies that produce custom-made products usually use a process costing system.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 20 de 100

1

The typical product costing system in a factory incorporates parts of both job order costing and process costing to create a hybrid system.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 21 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 22 de 100

1

A zero balance in Finished Goods Inventory at the start of the period means all previously completed products have shipped

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 23 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 24 de 100

1

In a job order costing system, when supplies are issued from inventory to production, the Overhead account is increased.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 25 de 100

1

In a job order costing system, indirect labor costs incurred are charged to the Work in Process Inventory account.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 26 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 27 de 100

1

If applied overhead exceeds actual overhead, cost of good sold must be reduced by the amount of the overcharge in a job costing system.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 28 de 100

1

Job costing and process costing are systems of

Selecciona una de las siguientes respuestas posibles:

  • inventory costing

  • cost flow assumptions

  • product costing

  • product pricing

Explicación

Pregunta 29 de 100

1

Product costs appear on the income statement in the form of

Selecciona una de las siguientes respuestas posibles:

  • cost of goods sold

  • material inventory

  • sales commissions

  • none of these

Explicación

Pregunta 30 de 100

1

A company should use process costing rather than job order costing if

Selecciona una de las siguientes respuestas posibles:

  • 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

Explicación

Pregunta 31 de 100

1

Which of the following characteristics applies to process costing, but does not apply to job order costing?

Selecciona una de las siguientes respuestas posibles:

  • the need for averaging

  • the use of equivalent units

  • separate, identifiable jobs

  • the use of predetermined overhead rates

Explicación

Pregunta 32 de 100

1

The basic document for keeping track of costs in a job order costing system is a

Selecciona una de las siguientes respuestas posibles:

  • job order cost card

  • labor time card

  • process cost report

  • materials requisition form

Explicación

Pregunta 33 de 100

1

Cost behavior is defined as the manner in which cost respond to changes in volume or activity.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 34 de 100

1

Total variable and fixed costs will be the same regardless of how many units are produced.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 35 de 100

1

Fixed costs always remain constant.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 36 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 37 de 100

1

Regression analysis can be performed using one or more activities to predict costs.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 38 de 100

1

Cost-volume profit analysis assumes a constant sales mix.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 39 de 100

1

The contribution margin equals total fixed costs at the breakeven point.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 40 de 100

1

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%.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 41 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 42 de 100

1

For profit planning purposes, the following equation is used: Target Sales Units = (FC + P) divided by CM per Unit.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 43 de 100

1

Which of the following statements most accurately explains the behavior of costs?

Selecciona una de las siguientes respuestas posibles:

  • 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

Explicación

Pregunta 44 de 100

1

An insurance company pays its employees a commission of 6% on each sale. What is the proper classification of the cost of sales commissions?

Selecciona una de las siguientes respuestas posibles:

  • constant cost

  • variable cost

  • mixed cost

  • fixed cost

Explicación

Pregunta 45 de 100

1

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.

Selecciona una de las siguientes respuestas posibles:

  • behave in a nonlinear fashion

  • increase

  • decrease

  • remain fixed

Explicación

Pregunta 46 de 100

1

When fixed costs are $18,000 and the contribution margin per unit is $4, the breakeven point is

Selecciona una de las siguientes respuestas posibles:

  • 4,500 units

  • 2,230 units

  • $22,300

  • $72,000

Explicación

Pregunta 47 de 100

1

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.

Selecciona una de las siguientes respuestas posibles:

  • 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

Explicación

Pregunta 48 de 100

1

Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):

Direct Materials

Selecciona una de las siguientes respuestas posibles:

  • FC

  • VC

  • MC

Explicación

Pregunta 49 de 100

1

Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):

Electricity

Selecciona una de las siguientes respuestas posibles:

  • FC

  • VC

  • MC

Explicación

Pregunta 50 de 100

1

Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):

Factory building rent

Selecciona una de las siguientes respuestas posibles:

  • FC

  • VC

  • MC

Explicación

Pregunta 51 de 100

1

Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):

Advertising Expense

Selecciona una de las siguientes respuestas posibles:

  • FC

  • VC

  • MC

Explicación

Pregunta 52 de 100

1

Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):

Shipping Expense

Selecciona una de las siguientes respuestas posibles:

  • FC

  • VC

  • MC

Explicación

Pregunta 53 de 100

1

Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):

Insurance on the factory building

Selecciona una de las siguientes respuestas posibles:

  • FC

  • VC

  • MC

Explicación

Pregunta 54 de 100

1

Identify the following as fixed costs (FC), variable costs (VC), or mixed costs (MC):

Costs of Good Sold

Selecciona una de las siguientes respuestas posibles:

  • FC

  • VC

  • MC

Explicación

Pregunta 55 de 100

1

A performance management and evaluation system is mainly utilized to account for and report on financial performance.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 56 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 57 de 100

1

A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a profit center.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 58 de 100

1

A flexible budget is derived by multiplying actual unit output by the standard unit costs.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 59 de 100

1

When calculating ROI, assets invested represent the average of the beginning and ending asset balances for a given period.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 60 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 61 de 100

1

Tying compensation incentives to performance targets decreases the likelihood that the goals of responsibility centers, managers, and the entire organization will be well coordinated.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 62 de 100

1

Incentive awards are utilized mainly to encourage long-term performance.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 63 de 100

1

A manager can improve the economic value of an investment center by decreasing assets.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 64 de 100

1

Cost of capital is the maximum desired rate of return on a particular investment.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 65 de 100

1

A performance management and evaluation system is a set of procedure that account for and report on

Selecciona una de las siguientes respuestas posibles:

  • qualitative performance

  • quantitative performance

  • employee performance

  • qualitative and quantitative performance

Explicación

Pregunta 66 de 100

1

Which of the following is an example of a performance measurement?

Selecciona una de las siguientes respuestas posibles:

  • product quality

  • number of customer complaints

  • customer satisfaction

  • all of these choices

Explicación

Pregunta 67 de 100

1

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.

Selecciona una de las siguientes respuestas posibles:

  • cost center

  • discretionary cost center

  • profit center

  • revenue center

Explicación

Pregunta 68 de 100

1

In developing performance measures, management must consider which of the following?

Selecciona una de las siguientes respuestas posibles:

  • how should we measure?

  • how can managers monitor financial performance?

  • what should we measure?

  • all of these choices.

Explicación

Pregunta 69 de 100

1

Budgeting is the process of identifying, gathering, summarizing, and communicating financial and nonfinancial information about an organization's future activities.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 70 de 100

1

A budget can contain nonfinancial information.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 71 de 100

1

Participating budgeting involves only personnel at top levels of the organization.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 72 de 100

1

The short-term plan or budget involves every part of the enterprise and is much more detailed than the long-term plan.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 73 de 100

1

Projected financial statements are the final product of the budgeting process.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 74 de 100

1

Operating budgets are plans used in daily operations.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 75 de 100

1

The direct materials purchases budget reflect both the quantity and cost of direct materials purchases.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 76 de 100

1

The overhead budget must be separate into variable and fixed cost segments.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 77 de 100

1

The direct labor budget is needed to prepare the production budget.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 78 de 100

1

A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 79 de 100

1

A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 80 de 100

1

A company seeks to have as much cash as possible on hand. Cash budgeting helps to accomplish this.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 81 de 100

1

Budgets

Selecciona una de las siguientes respuestas posibles:

  • 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

Explicación

Pregunta 82 de 100

1

Which type of budgeting utilizes employes at all levels of the company?

Selecciona una de las siguientes respuestas posibles:

  • group budgeting

  • selective budgeting

  • target budgeting

  • participative budgeting

Explicación

Pregunta 83 de 100

1

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?

Selecciona una de las siguientes respuestas posibles:

  • sales forecast

  • production forecast

  • labor forecast

  • materials forecast

Explicación

Pregunta 84 de 100

1

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?

Selecciona una de las siguientes respuestas posibles:

  • sales forecast

  • production forecast

  • labor forecast

  • materials forecast

Explicación

Pregunta 85 de 100

1

The first budget to be prepared when making a master budget is the

Selecciona una de las siguientes respuestas posibles:

  • sales budget

  • production budget

  • cash budget

  • direct labor budget

Explicación

Pregunta 86 de 100

1

Which of the following would most likely be considered a short-term goal?

Selecciona una de las siguientes respuestas posibles:

  • 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.

Explicación

Pregunta 87 de 100

1

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.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 88 de 100

1

Variance analysis involves computing the difference between standard and actual costs.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 89 de 100

1

The final step in variance analysis is determining the cause of the variance.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 90 de 100

1

The flexible budget formula is an equation that determines unexpected costs at any level of output.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 91 de 100

1

The "flex" in the flexible budget formula occurs in the variable cost segment.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 92 de 100

1

Another name for a flexible budget is a variable budget.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 93 de 100

1

Comparing "what did happen" with "what should have happened" aids in the performance evaluation of a company.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 94 de 100

1

A production manager usually is responsible for direct material used and direct labor hours used.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 95 de 100

1

It is not necessary to provide an area on the performance report for a manager's reasons for variances.

Selecciona uno de los siguientes:

  • VERDADERO
  • FALSO

Explicación

Pregunta 96 de 100

1

Variance analysis includes all of the following except:

Selecciona una de las siguientes respuestas posibles:

  • taking corrective action

  • investigating all variances

  • developing performance measures to track activities causing the variance

  • identification of the cause

Explicación

Pregunta 97 de 100

1

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

Selecciona una de las siguientes respuestas posibles:

  • continuous budget

  • flexible budget

  • master budget

  • period budget

Explicación

Pregunta 98 de 100

1

The primary difference between a fixed (static) budget and a flexible budget is that a fixed budget

Selecciona una de las siguientes respuestas posibles:

  • 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

Explicación

Pregunta 99 de 100

1

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.

Selecciona una de las siguientes respuestas posibles:

  • $295,125

  • $338,920

  • $309,985

  • $226,575

Explicación

Pregunta 100 de 100

1

A flexible budget is most useful

Selecciona una de las siguientes respuestas posibles:

  • 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

Explicación