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ACC 3303 FINAL
Questions from Exams 1-3
| Question | Answer |
|---|---|
| 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
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