ARE. Cost/Managerial Accounting

Question 0

What are the three Costs of Manufacturing?

Answer 0

1. Direct materials
2. Direct labor
3. Applied manufacturing overhead

Question 1

What are inventoriable costs called?

Answer 1

Product cost

Question 2

What type of overhead increases when production increases?

Answer 2

Variable overhead

Question 3

How should abnormal spillage cost be charged?

Answer 3

As a period cost

Question 4

What overhead is inventoriable under absorption costing?

Answer 4

Both fixed and variable

Question 5

How is equivalent production calculated under the weighted – average method?

Answer 5

Units completed
+
(Ending inventory x % completed)

Question 6

What is the formula for price/rate variance?

Answer 6

Actual less standard unit price X actual units

Question 7

What is the formula for quantity/efficiency variance?

Answer 7

Actual units less standard quality allowed X standard unit price

Question 8

What is the most conducive environment for using just in time (JIT) production systems?

Answer 8

Increasing carrying cost + decreasing ordering cost

Question 9

What is the excess of budgeted sales over breakeven Sales called?

Answer 9

Margin of safety

Question 10

True or false?

A flexible budget can produce a budget at any level of activity within a relevant range.

Answer 10

True

Question 11

What method attempts to discount future payments so that it equals the present investment?

Answer 11

Internal rate of return