Long Test 1

Question 1

would likely be considered an internal user of accounting information rather than an external user

Answer 1

C. Middle-managers

Question 2

Costs that will change an increase in activity within the relevant range

Answer 2

C. unit fixed cost and total variable cost

Question 3

With respect to a fixed cost, an increase in the activity level within the relevant range results in

Answer 3

D. a decrease in fixed cost per unit

Question 4

in the standard cost formula Y = a + bx, what does the “Y” represent

Answer 4

A. total cost

Question 5

what does “b” represent? in Y = a + bx

Answer 5

D. variable cost per unit

Question 5

what does “a” represent? in Y = a + bx

Answer 5

B. total fixed cost

Question 6

Characteristic that is inherent to management accounting

Answer 6

C. contribution approach income statement

Question 7

The quantitative method that will separate a semi-variable cost into its fixed and variable components with the highest degree precision is

Answer 7

B. least-square method/regression analysis

Question 8

the salaries you could be earning by working rather than attending college is an example of

Answer 8

B. opportunity cost

Question 9

Cost of goods manufactured is calculated as

Answer 9

C. beginning WIP + direct materials used + direct labor + manufacturing overhead - ending WiP

Question 10

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred in the current year is the

Answer 10

D. Total manufacturing cost