ACT 222 Final Exam With Complete Solutions!!
Under activity-based costing, overhead can be overapplied or under applied. -
ANSWER>>True
The following journal entry would be made in a process costing system when units that
have been completed in the final processing department are transferred when units that
have been completed in the final processing department are transferred to the finished
goods warehouse
Finished Goods Inv. XXXX
Raw Materials XXXX - ANSWER>>False
In a processing costing system Overhead allocated to departments before being applied
to units of product - ANSWER>>True
In using process costing, the output of a processing department is homogeneous. -
ANSWER>>True
In process costing, the same equivalent unit's figure is used for both materials and
conversion costs. - ANSWER>>False
Cost accounted for portion of the reconciliation report includes the cost of ending work
in process inventory and the cost of the units transferred out. - ANSWER>>True
Fixed costs per unit will increase as volume increases - ANSWER>>False
Gross Margin dollars will increase as volume expands if variable cost per unit is greater
than selling price. - ANSWER>>False
, Volume, fixed and variable cost per unit and selling price are key factors in profit
planning per unit - ANSWER>>True
The variable expense per unit is $12 and the selling price per unit is $40. Then The
margin ratio id 30% - ANSWER>>False
Job-order costing is used in those situation where units of a product are homogeneous,
such as in the manufacture of sugar. - ANSWER>>False
Job order costing is not typically used in service organizations such as hospitals and
law firms - ANSWER>>false
The normal approach in budgeting is to prepare a projection of cash receipts and cash
disbursements - ANSWER>>false
One of the major advantages of budget is that it enables a firm to anticipate prospective
bottlenecks in time to avoid or modify them - ANSWER>>true
selling and administrative budget, the noncash charges (such as depreciation) are
subtracted from the total budgeted selling and administrative expenses to find the
expected cash disbursements for selling and administrative expenses -
ANSWER>>True
When reconciling variable costing and absorption costing net operating income, fixed
manufacturing overhead cost are delayed in inventory under absorption costing should
be added to variable costing net operating income to arrive at the absorption costing
net operating income. - ANSWER>>true
Absorption costing is more compatible with Cost Volume Profit (CVP) analysis than
variable costing. - ANSWER>>False
Under variable costing, fixed manufacturing overhead is treated as a product cost -
ANSWER>>false
Under activity-based costing, overhead can be overapplied or under applied. -
ANSWER>>True
The following journal entry would be made in a process costing system when units that
have been completed in the final processing department are transferred when units that
have been completed in the final processing department are transferred to the finished
goods warehouse
Finished Goods Inv. XXXX
Raw Materials XXXX - ANSWER>>False
In a processing costing system Overhead allocated to departments before being applied
to units of product - ANSWER>>True
In using process costing, the output of a processing department is homogeneous. -
ANSWER>>True
In process costing, the same equivalent unit's figure is used for both materials and
conversion costs. - ANSWER>>False
Cost accounted for portion of the reconciliation report includes the cost of ending work
in process inventory and the cost of the units transferred out. - ANSWER>>True
Fixed costs per unit will increase as volume increases - ANSWER>>False
Gross Margin dollars will increase as volume expands if variable cost per unit is greater
than selling price. - ANSWER>>False
, Volume, fixed and variable cost per unit and selling price are key factors in profit
planning per unit - ANSWER>>True
The variable expense per unit is $12 and the selling price per unit is $40. Then The
margin ratio id 30% - ANSWER>>False
Job-order costing is used in those situation where units of a product are homogeneous,
such as in the manufacture of sugar. - ANSWER>>False
Job order costing is not typically used in service organizations such as hospitals and
law firms - ANSWER>>false
The normal approach in budgeting is to prepare a projection of cash receipts and cash
disbursements - ANSWER>>false
One of the major advantages of budget is that it enables a firm to anticipate prospective
bottlenecks in time to avoid or modify them - ANSWER>>true
selling and administrative budget, the noncash charges (such as depreciation) are
subtracted from the total budgeted selling and administrative expenses to find the
expected cash disbursements for selling and administrative expenses -
ANSWER>>True
When reconciling variable costing and absorption costing net operating income, fixed
manufacturing overhead cost are delayed in inventory under absorption costing should
be added to variable costing net operating income to arrive at the absorption costing
net operating income. - ANSWER>>true
Absorption costing is more compatible with Cost Volume Profit (CVP) analysis than
variable costing. - ANSWER>>False
Under variable costing, fixed manufacturing overhead is treated as a product cost -
ANSWER>>false
