Day 52 Flashcards
What standard costing variance is least controllable by the production supervisor?
Overhead Volume
Is a function of budgeted amount of overhead based on standard hours allowed compared with overhead applied, at a predetermined rate, to WIP
MCQ-03848
List Prevention Costs:
- Employee training
- Inspection costs (raw materials coming in)
- Preventive maintenance
- Redesign of product
- Redesign of process
- Search for higher quality suppliers
MCQ-03883
What is an example of Carrying Costs
Obsolescence
MCQ-04187
What cost is not included in Inventoriable costs under a variable (or direct) costing system?
Fixed overhead
Variable/Direct costing capitalize only Variable Costs
On exam, Direct Material and Direct Labor = Variable unless stated otherwise
MCQ-03925
What term is used to describe a unique attribute that identifies a specific record in a table?
A Primary Key
MCQ-12439
Equation: Effective Interest Rate
Interest Paid = Principle × Interest Rate
Net Proceeds = Principal × (1 - Compensating Bal. %)
Effective Interest Rate = Interest Paid / Net Proceeds
MCQ-07006
Purchasing insurance is known as risk ______
Sharing
MCQ-06754
According to COSO, which component of IC integrated framework addresses the Entity’s financial reporting objectives?
Risk Assessment
MCQ-04391
The working Capital financing policy that subjects a firm to the greatest risk of being unable to meet the firms marketing applications is the policy that finances:
Permanent Current Assets with Short Term Debt
MCQ-03994
What is true about the demand for a product is price unit elastic?
An increase in price will have no effect on total revenue
MCQ-03520
Which costs are inversely related to each another?
Preventative Maintenance Costs (aka: Confirming Costs) and Rework Costs (Nonconforming Costs)
MCQ-06785
In a traditional job order cost system, the issue of indirect materials to a production department increases:
Factory Overhead Control
Indirect materials are included in factory overhead costs as they are used in the production process.
Therefore, the issue of indirect materials would decrease Stores Control and increase Factory Overhead Control
MCQ-03659
During a peak phase, a firm may face higher ____?
Costs sure to capacity constraints and input shortages
MCQ-07856
The budgeted per unit contribution margin will impact all of the following sales variances:
- Market share variance
- Market size variance
- Sales quantity variance
Note: Sales Price Variance - takes into account the difference between the actual sales price per unit and the budgeted sales price per unit. The differential is then multiplied by the actual sold units.
MCQ-07724
Equation: EVA
EVA = NOPAT - Required Return
Required Return = Investment × WACC
MCQ-07771
