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ACC 3303 FINAL

Questions from Exams 1-3

QuestionAnswer
What is the cost of materials used in production? $42,000
Products might consume overhead in different proportions due to differences in all of these
Fixed cost per unit is $9 when 20,000 units are produced and $6 when 30,000 units are produced. What is the total fixed cost when nothing is produced? $180,000
Which of the following is a staff position? vice president of finance
Mixed costs, by definition, contain both fixed and variable costs
For a labor-intensive manufacturing operation, which of the following would be the most appropriate activity driver? direct labor hours
A person in a staff position provides support for the line function
Material amounts of underaplied or overapplied overhead should be allocated to work in process, finished goods, and COGS.
The overall objective of accounting information systems is to provide information to users
Which of the following is a service organization? CPA firm
The ending work-in-process inventory is deducted on the statement of cost of goods manufactured
An activity-based costing system uses which of the following procedures? Overhead costs are traced to activities, then costs are traced to products.
Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer? value-chain analysis
Common measures of production activity include all of these
A cost used up in the production of revenues is a(n) expense
ALF Systems undertakes its own machine maintenance... Develop a cost equation for the total machine maintenance cost. Y = $20,000 + $2 MHR
See Figure 3-1. What is the total maintenance cost per unit produced? $5.70
Total costs may be computed as follows: Fixed costs + (Variable costs per unit x Unit volume)
In a traditional cost management system, cost behavior is assumed to be driven only by unit based cost drivers.
Unit-level cost drivers create distortions when different products consume resources differently.
The direct material cost is $10,000 when 2,000 units are produced. What is the direct material cost for 2,500 units produced? $12,500
Which of the following approached have led to advancements in the manufacturing environment? all of these
The operational control system is concerned with what activities should be performed and assessing how well they are performed.
The Hampshire Company... Refer to Figure 4-5. What is the predetermined overhead rate? $0.70
Refer to Figure 4-5. How much overhead is applied to each 9 volt batteries and AAA batteries respectively? $87,500; $280,000
Which of the following positions would most likely be a line manager? president
Refer to Figure 4-3. The company uses a predetermined overhead rate to apply overhead. Manufacturing overhead applied is $750,000
Refer to Figure 4-3. The amount of overapplied or underapplied overhead is $50,000 overapplied
Cost management reports are prepared to meet the needs of decision makers within the firm.
The cost management information system is concerned with providing cost information that is used in planning, control, and decision-making.
Cost accounting all of these
Which of the following is an example of a loss? the write-off of an obsolete product
In an accounting information system, the inputs are usually economic events
Cost behavior analysis focuses on how costs react to changes in activity level
Unit-based product costing uses which of the following procedures? Overhead costs are traced to departments, then costs are traced to products.
Product costs are converted from cost to expense when units are sold.
Direct costs are those costs than can be easily and accurately traced to a cost object.
Refer to Figure 3-4. Using the high-low method, estimated variable cost per unit of production is $1.65
Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management? cost accounting information systems
Competitive advantage is established by providing greater customer value for less cost than competitors.
Refer to Figure 4-7. If Manufacturing overhead was $12,000 underapplied and considered material, what is the journal entry? Work in Process -- $4,800 Finished Goods ---- 1,200 COGS -------------- 6,000 Manufaturing Overhead -- $12,000
The net income for the month of December is $36,000
More accurate product costing information is produced by assigning costs using activity-based pool rates.
Which of the following would be an example of a unit-based cost driver? direct labor hours
Automation of the manufacturing environment is associated with increases in productive capacity
Which of the following is an example of an expense? the costs of a product delivered to a customer
A department that is capital-intensive most likely would use a predetermined departmental overhead rate based on which of the following activity bases? machine hours
Which of the following costs is a variable cost? materials used in production
A predetermine overhead rate is calculated using which of the following formulas? Budgeted annual overhead / budgeted annual driver level
Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object? driver tracing
The cost of spoilage is added to a job when it is considered to be abnormal
Walter Company... Refer to Figure 5-4. What is the total amount debited to Finished Goods Inventory in 2011? $450,000
Bill Berry, CPA, prepares tax returns. What is the unit cost per tax return? $15.00
Refer to Figure 6-3. What is the cost of services sold? $3,000
Unit costs are critical for all of these
In the Mains Company... Refer to Figure 5-6. What is the ending work-in-process inventory for the month? $4,250
Speakeasy Co. Refer to Figure 6-2. The journal entry to assign costs to the Assembly process would be Work in Process - Assembly -- $29,000 Raw Materials -- $10,000 Payroll -------- 14,000 Overhead Control 5,000
Which of the following is a manufactured product? automobile
Process costing would be most applicable for an electronics producer
The King Corporation. Refer to Figure 5-1. One-half of Job X4A was sold for $10,000. What is the total per unit for Job X4A? $31.50
When products and their costs are moved from one process to the next process, these costs are referred to as transferred-in costs.
Equivalent units expresses all activity of the period in terms of fully completed units.
Baynor Inc. Refer to Figure 6-5. What are the equivalent units? 170
Manufacturing overhead consists of all manufacturing costs other than direct materials and direct labor.
When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is the weighted average method.
Manufacturers producing unique or customized products would employ a(n) job-costing system
The appropriate cost accounting system to use when inventory items are produced on an assembly line is process costing.
The Kraig Corporation. Refer to Figure 5-2. What's the total cost assigned to Job XY5? $4,950
Which of the following statement is correct regarding a continuous budget? As a month/period expires in the budget, an additional month/period in the future is added so the company always has a 12-month budget on hand.
Which of the following is the most common starting point in the information gathering process for budgeting? the sales forecast
________ is the process of setting standards, receiving feedback on actual performance, and taking corrective action whenever actual performance deviates significantly from planned performance? control
_______ are concerned with the income-generating activities of a firm. Operating budgets
Which of the following is an operating budget? Budgeted income statement
Amy Company... How many bikes would be produced in March 2011? 15,300 bikes
Oriental Lamp Company. Refer to Figure 8-2. What is the expected sales revenue for December? $325,000
The following forecasted sales pertain to Norah Company. How many units are expected to be produced in April? 21,000 units
After preparing a finished goods inventory budget for August, what is the total ending inventory cost? $36,540 units
In a merchandising organization, the merchandise purchases budget replaces what budget from a manufacturing firm? the production budget
Which of the following is a financial budget? capital expenditures budget
Michael Corporation. What is the cash balance at the end of January, assuming that cash is received only from customers and that $48,000 is paid out during January? $23,400
A budget that is developed around one particular level of activity is a static budget.
Armati, Inc. Refer to Figure 8-8. The total budgeted costs for 2011 were $14,340
Refer to Figure 8-8. The static budget variance for rent is $0
Refer to Figure 8-8. The static budget variance for supervision is $50 U
The most appropriate for control purposes is the flexible budget
Variances indicate that actual performance is not going according to plan.
The unit standard cost is the product of the standard price times the standard quantity for each unit.
_______ demand maximum efficiency and can be achieved only if everything operates perfectly. Ideal standards
Price standards are the responsibility of all of these
Quantity price standrds specify how much should be paid for the quantity of input to be used.
Which of the following equations measures the total budget variance? (AQ x AP) - (SQ x SP)
During June, 12,000 pounds of materials were purchased at a cost of $8 per pound. If there was an unfavorable direct materials price variance of $6,000 for June, the standard cost per pound must be $7.50
Which of the following equations measures a price variance? AQ x (AP - SP)
Bender Corporation. Refer to Figure 9-1. What is the material usage variance for Bender Corporation? $60 (U)
Refer to Figure 9-1. What is the material price variance for Bender Corporation? $33 (F)
Which of the following equations measures the direct labor rate variance? (AR x AH) - (SR x AH)
If the actual labor rate exceeds the standard labor rate and the actual labor hours exceed the number of hours allowed, the labor rate variance and labor efficiency variance will be Unfavorable Unfavorable
Which of the following factors would cause an unfavorable material quantity variance? using poorly maintained machinery
Using more highly skilled direct laborers might affect which of the following variances? all of these
The standard overhead cost assigned to each unit of product manufactured is called the applied overhead cost
Which of the following people is most likely responsible for an unfavorable variable overhead efficiency variance? production supervisor
Total fixed overhead budget variance is always equal to fixed overhead volume variance plus fixed overhead spending variance
The steps in the tactical decision making process are: What is the proper sequence of steps? V, II, III, I, IV
Sound tactical decision making consists of supporting the strategic objectives of the firm.
An important qualitative factor to consider regarding a special order is the effect the sale of special-order units will have on the sale of regularly priced units.
Future costs that differ across alternatives describe relevant costs
Sunk costs are always irrelevant
The Titanic hit an iceberg and sank. In deciding whether or not to salvage the ship, its book value is a(n) sunk cost
Which of the following costs is relevant to a make-or-buy decision? the amount that would be received if the production equipment were sold
Salda Industries employs 500 workers in the factory...How is that possible? The plant had some unused activity capacity.
In the activity resource model, flexible resources are resources acquired as used and needed.
A decision to make a component internally versus through a supplier is a make-or-buy decision
A decision to make or eliminate an unprofitable product is an keep-or-drop a product-line decision
The operations of Smits Corporation...Operating income for Smits Corporation as a whole if the Jackson Division were dropped would be $22,500
Firms may be asked to accept a special order of their product for a reduced price if excess capacity exists
If there is excess capacity, the minimum acceptable price for a special order must cover variable and incremental fixed costs associated with the special order.
Created by: kserrano005