ACCT 526 FINAL EXAM QUESTIONS WITH
CORRECT ANSWERS
Overhead costs are assigned to production using an overhead application rate,
| | | | | | | | | | |
whereas no such application rate is used to assign the costs of direct materials
| | | | | | | | | | | | | |
and direct labor to production. the reason for this difference in procedures is
| | | | | | | | | | | | |
that: - CORRECT ANSWER✔✔-overhead is an indirect cost which cannot be traced
| | | | | | | | | | |
easily and directly to specific units of a product
| | | | | | | | |
an advantage of using regression analysis over the high low and scattergraph
| | | | | | | | | | | |
methods is that - CORRECT ANSWER✔✔-regression analysis is a more precide
| | | | | | | | | | |
approach than the high-low or scattergraph methods
| | | | | |
an example of a discretionary fixed cost is: - CORRECT ANSWER✔✔-management
| | | | | | | | | | |
training
when comparing a traditional income statement to a contribution margin income
| | | | | | | | | | |
statement: - CORRECT ANSWER✔✔-net income will always be identical on both
| | | | | | | | | |
syndeer corportation, which produces and sells a single product, recently
| | | | | | | | | |
experienced an increase in fixed cost relating to depreciation on new equipment.
| | | | | | | | | | | |
if variable cost and sales prices remain unchanged, what will happen to
| | | | | | | | | | | |
contribution margin and the break even point? - CORRECT ANSWER✔✔-
| | | | | | | | |
contribution margin will be unchanged and the break even point will increase
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, a 45% contribution margin ratio means that: - CORRECT ANSWER✔✔-45% of the
| | | | | | | | | | | |
companys revenue is available to cover fixed costs and to contribute towards the
| | | | | | | | | | | | |
operating income |
in a decision to retain or replace equipment, the book value of the old equipment
| | | | | | | | | | | | | |
|is a: - CORRECT ANSWER✔✔-sunk cost
| | | | |
which of the following are risks of outsourcing the production of a part? -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-all of these are risks of outsourcing! (Unscheduled price
| | | | | | | | | |
increase, unreliable delivery, unpredictable quality.)
| | | |
if a plant is operating at full capacity and receives a one time opportunity to
| | | | | | | | | | | | | | |
accept an order at a special price below its usual price then: - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-the order will likely be rejected | | | | |
a job order cost system traces direct materials cost to a particular job by means
| | | | | | | | | | | | | | |
of: - CORRECT ANSWER✔✔-material requisitions
| | | |
in a manufacturing company, the cost of goods is equal to : - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-the beginning inventory of work increase of work in progress, plus | | | | | | | | | | |
total manufacturing costs, less the ending inventory of work in progress
| | | | | | | | | |
the flow of costs in job order costing: - CORRECT ANSWER✔✔-parallels the
| | | | | | | | | | | |
physical flow of materials as they are converted into finished goods
| | | | | | | | | |
CORRECT ANSWERS
Overhead costs are assigned to production using an overhead application rate,
| | | | | | | | | | |
whereas no such application rate is used to assign the costs of direct materials
| | | | | | | | | | | | | |
and direct labor to production. the reason for this difference in procedures is
| | | | | | | | | | | | |
that: - CORRECT ANSWER✔✔-overhead is an indirect cost which cannot be traced
| | | | | | | | | | |
easily and directly to specific units of a product
| | | | | | | | |
an advantage of using regression analysis over the high low and scattergraph
| | | | | | | | | | | |
methods is that - CORRECT ANSWER✔✔-regression analysis is a more precide
| | | | | | | | | | |
approach than the high-low or scattergraph methods
| | | | | |
an example of a discretionary fixed cost is: - CORRECT ANSWER✔✔-management
| | | | | | | | | | |
training
when comparing a traditional income statement to a contribution margin income
| | | | | | | | | | |
statement: - CORRECT ANSWER✔✔-net income will always be identical on both
| | | | | | | | | |
syndeer corportation, which produces and sells a single product, recently
| | | | | | | | | |
experienced an increase in fixed cost relating to depreciation on new equipment.
| | | | | | | | | | | |
if variable cost and sales prices remain unchanged, what will happen to
| | | | | | | | | | | |
contribution margin and the break even point? - CORRECT ANSWER✔✔-
| | | | | | | | |
contribution margin will be unchanged and the break even point will increase
| | | | | | | | | | |
, a 45% contribution margin ratio means that: - CORRECT ANSWER✔✔-45% of the
| | | | | | | | | | | |
companys revenue is available to cover fixed costs and to contribute towards the
| | | | | | | | | | | | |
operating income |
in a decision to retain or replace equipment, the book value of the old equipment
| | | | | | | | | | | | | |
|is a: - CORRECT ANSWER✔✔-sunk cost
| | | | |
which of the following are risks of outsourcing the production of a part? -
| | | | | | | | | | | | | |
CORRECT ANSWER✔✔-all of these are risks of outsourcing! (Unscheduled price
| | | | | | | | | |
increase, unreliable delivery, unpredictable quality.)
| | | |
if a plant is operating at full capacity and receives a one time opportunity to
| | | | | | | | | | | | | | |
accept an order at a special price below its usual price then: - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-the order will likely be rejected | | | | |
a job order cost system traces direct materials cost to a particular job by means
| | | | | | | | | | | | | | |
of: - CORRECT ANSWER✔✔-material requisitions
| | | |
in a manufacturing company, the cost of goods is equal to : - CORRECT
| | | | | | | | | | | | | |
ANSWER✔✔-the beginning inventory of work increase of work in progress, plus | | | | | | | | | | |
total manufacturing costs, less the ending inventory of work in progress
| | | | | | | | | |
the flow of costs in job order costing: - CORRECT ANSWER✔✔-parallels the
| | | | | | | | | | | |
physical flow of materials as they are converted into finished goods
| | | | | | | | | |
