Final Questions

Question 1

The salary paid to the marketing supervisor in the administrative office is an example of

Answer 1

no - product cost

no - manufactured overhead

Question 2

(true or false) indirect materials and factory supervisor salaries are not traced to specific jobs. These costs are applied to jobs through the overhead rate

Answer 2

true

Question 3

(true or false) country claim restaurant is open 24 hours a day and always has a fire going in the fireplace in the middle of its dining are.a the cost of the firewood for this fire is variable with respect to the number of meals served at the restaurant

Answer 3

false

Question 4

when the activity level declines within the relevant range what should happen with respect to the following?

Answer 4

fixed cost per unit - increase

variable cost per unit - no change

Question 5

overapplied manufacturring overhead means that:

Answer 5

the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost.

Question 6

(true or false) The cost of a completed in a job-order costing system typically consits of the actual direct materials cost of the job the estimated direct labor cost of the job, and the actual manufacturing overhead cost traced to the job

Answer 6

false

Question 7

What would be an example for indirect materials in the production of a wooden table?

Answer 7

cost of glue

Question 8

(true or false) Fixed cost per unit is expected to remain unchanged as activity changes within the relevant range.

Answer 8

False

Question 9

When jobs are sold, their cost move from ____ to ____.

Answer 9

the balance sheet to the income statement

Question 10

If overhead is overapplied then cost of goods sold would be too high prior to the adjustment for the overhead variance. Therefore, the adjustment is to increase cost of goods sold.

Answer 10

False

Question 11

Which are of accounting is most like finance?

Answer 11

Managerial accounting

Question 12

Compared to a contribution margin income statement, a GAAP income statement is more helpful to figure out the production cost per unit.

Answer 12

true

Question 13

A contribution margin income statement classifies costs as either fixed/variable while a GAAP income statment classifies costs as product/period.

Answer 13

true

Question 14

overhead is a product cost and is usually a mixed cost.

Answer 14

true

Question 15

if cost of good sold is greater than cost of good manufactured then finished goods inventory increased.

Answer 15

false

Question 16

cost of goods manufactured referes to the amount of work in process that was completed and transferred to finished goods.

Answer 16

true

Question 17

Budgetted production needs are determined by:

Answer 17

adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total

Question 18

On a CVP graph for a profitable company, the total expense line will be steeper than the line representing variable costs

Answer 18

false

Question 19

In the selling and administrative budget, depreciation on office equipment is added to the total budgeted selling and administrative expense to determine the expected cash disbursements for selling and administrative expenses.

Answer 19

false

Question 20

company manufactures and sells a single product with a positive cm. if the selling price and the variable experent per unit both increase 5% and frixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio?

Answer 20

contribution margin per unit - increase

contribution margin ratio - no change.

Question 21

as fixed costs ___. risk___ , break even point __ and your margin of safety ____

Answer 21

decrease, decreases, decreases, increases

Question 22

A variable cost is a cost whose cost per unit is fixed as the activity level rises and falls.

Answer 22

True

Question 23

(true or false)The weakness of participative budgeting is sandbagging.

Answer 23

True

Question 24

(true or false) The weakness of top down budgeting is employee motivation.

Answer 24

True

Question 25

30. Which of the following costs is often important in decision making, but is omitted from conventional accounting records?

Answer 25

Opportunity cost.

Question 26

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? Hint: Remember that the denominator in the POHR should be a cost driver for overhead.

Answer 26

Direct labor-hours

Question 27

As technology increases and machines replace direct labor in the production process, what general impacts would you expect on production costs? Hint: Technology and automation will generally only be introduced if costs are less than human labor.
fixed costs _________, overhead _____________, unit cost ______________

Answer 27

increase, increases, decreases

Question 28

To maximize our savings, it is best to ________ first and ________ what is left.

Answer 28

Save, spend

Question 29

A millionaire is someone who has assets greater than a million.

Answer 29

False

Question 30

7 virtues

Answer 30

1.Chasity - behave appropriately, trustworthy
2. temperance- focus on you
3. charity- you need other people help
4. diligence - work hard trustworthy, ethically
5. patience - single weakness most successful people
6. kindness
7. humility -
CTCDPH

Question 31

Manager should take the _____. Let other people take the _______.

Answer 31

blame, credit.

Question 32

2 things not taught in high school

Answer 32

personal finance, nutrition

Question 33

save ____ spend ____

Answer 33

first, later.

Question 34

flexible budget is based on ______ activity

Answer 34

actual

Question 35

what respsonsbility center is for roi

Answer 35

investment center