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by Chief OxMay 25, 2020

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1. (TCO 1) Performance reports often compare current period performance with (Points : 4)
      Performance in a prior period.
      Planned (budgeted) performance.
      Both A and B are correct.
      Neither A nor B is correct. 2. (TCO 1) Which of the following is not likely to be a fixed cost? (Points : 4)
      Direct materials
      Salary of the human resources director 3. (TCO 2) Which of the following is not a manufacturing cost? (Points : 4)
      Manufacturing overhead
      Direct materials
      Direct labor
      Administrative expenses 4. (TCO 2) A form used to accumulate the cost of producing an item is called a(n) (Points : 4)
      job-cost sheet
      material requisition
      balance sheet
      invoice 5. (TCO 3) Equivalent units are calculated by (Points : 4)
      taking the units needed to complete the beginning inventory, adding units started and taking the equivalent units in ending inventory
      taking the units completed plus the equivalent units in ending inventory.
      taking the total units to account for and subtracting equivalent units in ending inventory
      taking units started plus units transferred out. 6. (TCO 3) The Freedom Corporation’s painting department had a beginning inventory of 580 units, which had direct material costs of $22,715. During June, 9,290 units were started and costs of $1,268,085 were incurred for direct material. Ending inventory consists of 1,000 units, which are 35% complete with respect to direct material. What is the cost per equivalent unit for direct material? (Points : 4)
      $159.00 7. (TCO 4) Which of the following is not an assumption of C-V-P analysis?(Points : 4)
      Costs can be accurately separated into fixed and variable components.
      Fixed costs remain constant within the relevant range.
      Total variable costs are proportioned to the level of activity.
      Selling price per unit declines after the break-even point is reached.

8. (TCO 4) The contribution margin per unit is the difference between (Points : 4)
      total revenue and total fixed costs
      selling price and variable costs per unit
      anticipated level of sales and break-even sales
      budgeted fixed costs and actual fixed costs

9. (TCO 5) Which of the following is treated as a product cost in full costing?(Points : 4)
      Sales commissions
      Administrative salaries
      Factory supervisor
      Security at corporate headquarters

10. (TCO 5) Which of the following is not true when units sold exceed units produced? (Points : 4)
      Full costing and variable costing will yield the same net income.
      Full costing will assign some fixed manufacturing costs to the units in ending inventory.
      Net income will be higher under variable costing than under full costing.
      Inventory levels will decrease. 11. (TCO 6) Cost-plus contracts are common in which of the following industries? (Points : 4)
      Manufactured home builders
      Soft drink bottlers
      Defense contractors
      Newspaper publishers 12. (TCO 6) Which of the following steps is not involved in the ABC approach?(Points : 4)
      Identify activities which cause costs to be incurred.
      Allocate costs to products based on activity usage.
      Group costs of activities into cost pools.
      Improve processes based on benchmarking

13. (TCO 7) Fixed costs that will be eliminated if a particular course of action is undertaken are called (Points : 4)
      optional costs
      opportunity costs
      direct costs
      avoidable costs
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Chief Ox

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