Flashcards
Accounting 202 Exam 2 Practice
Cards in this deck (33)
- 1Manufacturing overhead would include:all manufacturing costs except direct materials and direct labor.
- 2Which of the following is most likely NOT to use process costing? A. DuPont Chemical B. Ashley Custom Furnishings C. Exxon-Mobile (gasoline) D. General Mills (cereal)Ashley Custom Furnishings
- 3What type of product costing system would a manufacturer of plywood use?Process costing
- 4The cost of indirect labor used in the factory is recorded as a:debit to MOH
- 5If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then:cost of goods sold should be decreased
- 6Manufacturing overhead is underallocated if the amount:allocated during the period is less than the actual amount incurred.
- 7The requisition of direct and indirect materials into production:reduces raw materials inventory.
- 8What is the flow of costs in a manufacturing firm?Raw materials inventory, work in process inventory, finished goods inventory
- 9A document that accumulates job costs is called a:Job Cost Record
- 10Recording depreciation on plant equipment in a manufacturing firm would result in adebit to Manufacturing Overhead and a credit to Accumulated Depreciation
- 11Cost distortion results in the:overcosting of some products and undercosting of other products
- 12Machine set-up would most likely be classified as a:batch level activity
- 13How is, in ABC, the activity allocation rate computed?The total estimated activity cost pool is divided by the total estimated activity allocation base.
- 14The benefits of using the ABC costing system are higher if the company:has high indirect costs and produces many different products that use differing amounts of resources.
- 15Indications that a product cost system needs revision include: A. managers lose bids they expected to win and win bids they expected to lose. B. employees do not believe the cost numbers are accurate. C. the company uses a single-allocation-base system developed long ago. D. all of the above.all of the above
- 16Non-value-added activities are: A. also called waste activities. B. activities that neither enhance the customer’s image of the product or service nor provide a competitive advantage. C. activities that could be reduced or removed from the process with no ill effect on the end product or service. D. all of the above.all of the above
- 17Four basic steps are used in an ABC system. List the proper order of these steps. a. Identify the primary activities and estimate a total cost pool for each. b. Allocate the costs to the cost object using the activity cost allocation rates. c. Select an allocation base for each activity. d. Calculate an activity cost allocation rate for each activity.a, c, d, b
- 18Which of the following statements is TRUE with respect to total variable costs? A. They will remain the same as production levels change within the relevant range. B. They will decrease as production increases within the relevant range. C. They will decrease as production decreases within the relevant range. D. They will increase as production decreases within the relevant range.c
- 19Which of the following equations represents total mixed cost?y=vx+f
- 20Using account analysis, what type of cost is the rental of a space at $2,000 per month?Fixed
- 21Traditional income statements organize costs by:function
- 22The contribution margin is equal to:sales minus variable expenses
- 23Which of the following statements are FALSE? A. The main criticism of the high-low method is that it uses only two data points. B. Of the methods discussed in the text and in class of determining the variable and fixed components of a mixed cost, regression analysis is the most accurate. C. The high-low method only utilizes the data at the highest and lowest cost levels. D. The scatter-plot method is useful in identifying outliers.c
- 24Which of the following would be considered a committed fixed cost?Depreciation
- 25The primary purpose of classifying costs as variable or fixed costs is _____.to allow management to better assess performance given a level of activity that differed from budget
- 26To compute the unit contribution margin, __________ should be subtracted from the sales price per unit.all variable costs
- 27Managers can quickly forecast the total contribution margin by multiplying the projected:sales revenue by the contribution margin ratio.
- 28Which of the following statements is TRUE if the fixed costs increase while the sales price per unit and variable costs per unit remain constant? A. The contribution margin increases and the breakeven point decreases. B. The contribution margin decreases and the breakeven point increases. C. The contribution margin stays the same and the breakeven point decreases. D. The contribution margin stays the same and the breakeven point increases.d
- 29Which of the following will decrease the breakeven point in units assuming no other changes in the cost-volume-profit relationship?An increase in the sale price per unit
- 30The higher the operating leverage factor, the:greater the impact of volume on operating income.
- 31After break-even on a CVP graph, the difference between sales dollars and total costs is the representation of:operating income
- 32Assuming an amount is not material and most of the product has been sold, the adjusting entry to close overallocated or underallocated overhead would include a _________________________.credit to COGS
- 33—
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- Flashcards on Accounting 202 Exam 2 Practice, created by Faizan Ahmed on 21/10/2016.
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- Faizan Ahmed · Oct 2016
- Updated
- Oct 22, 2016
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