Reference no: EM131059709

Quiz 1

Question 1. Production of a custom home is not an application that can be accounted for using job costing.

True
False

Question 2. A logical starting point for costing a job is to determine the amount of direct labor that is attributable to a specific job.

True
False

Question 3. The main difference between job costing and process costing is that process costing captures costs by process or department rather than by specific job.

True
False

Question 4. A cost of production report is generally prepared for each period under job costing.

True
False

Question 5. ABC costing requires one to abandon attempts to distinguish product and period costs.

True
False

Quiz 2

Question 1. Job Costing captures cists for each process involved in product creation.

True
False

Question 2. Process Costing is applicable to homogenous goods that are produced in batches or continuous processes.

True
False

Question 3. Manufacturing Overhead is only allocated under the process costing method of accounting.

True
False

Question 4. Under applied overhead results when the actual overhead incurred is more than the amount assigned to production.

True
False

Question 5. The concept of equivalent units only applies to ABC costing.

True
False

Quiz 3

Question 1. In business, mixed costs are actually quite common.

True
False

Question 2. Under the high-low method of estimating fixed and variable costs from a mixed cost the highest and lowest cost levels are identified and the difference in activity is deemed to represent variable cost.

True
False

Question 3. To calculate regression to find the fixed portion of mixed costs one needs to know how to use a slide rule.

True
False

Question 4. The goal of CVP analysis is to provide a foundation for pricing decisions, product offerings, and management of an organization's cost structure.

True
False

Question 5. Changes in per-unit revenue, without changes in total fixed costs or per-unit variable costs can sometimes cause drastic impacts on firm profits.

True
False

Quiz 4

Question 1. Utilizing the high-low method of estimating fixed and variable components of cost, the variable portion is divided by the difference in activity/consumption between the high and low cost levels to find the variable cost per unit.

True
False

Question 2. When performing a CVP analysis the Margin of Safety is the amount by which the sales exceed the break-even sales level.

True
False

Question 3. Under CVP & Absorption Cost one of the primary assumptions is that the firm is not a nonprofit organization.

True
False

Question 4. Variable (direct) costing is approved for use by public corporations under GAAP.

True
False

Question 5. 5. When comparing absorption costing to variable costing the only difference is in the handling of fixed manufacturing overhead.

True
False

Quiz 5

Question 1. Job costing entails _____________________.

tracking the costs of an employment search
development of a tracking system to match costs to jobs
estimating the price of raw materials that may be needed to complete a customer job
none of the items listed here

Question 2. Job costing __________________________.

is only used when manufacturing a product
cannot be used for a service business since no product is created
can be utilized in a variety of business types
cannot be utilized when manufacturing a product

Question 3. Which of the following would typically use a process costing system?

More than one of these listed.
Paint
Glass
Custom built home

Question 4. The Equivalent units concept general applies to ___________________.

job order costing
process costing
ABC costing
none of the items listed here

Question 5. ABC is a costing model that _______________________.

is simple and inexpensive to use
is rarely used because it is not very accurate
is not really a costing model
is not accepted by GAAP

Question 6. Mixed costs ____________________________________.

are costs that are all mixed up
have both a variable and a fixed component
are not impacted by volume fluctuations
are not defined in any of these responses

Question 7. A technique used to estimate the fixed and variable components of a mixed cost is ____________.

high-low method
regression analysis
is not represented here
represented by more than one of the solutions listed here

Question 8. Cost-Volume-Profit Analysis ________________________.

gives management the same information as the income statement
is helpful in assessing the relationships between costs, business volume, and profitability
is an essential tool used by investors to make investment decisions
can only be interpreted by a master accountant

Question 9. Contribution margin _____________________________________.

is equal to net income
equals variable expenses minus fixed expense
is the next available dollar of income after all fixed costs are covered
equals revenues minus variable expenses

Question 10. Cost-Volume-Profit Analysis _____________________________.

can be utilized to find the firms breakeven point in units
is only concerned with variable costs
is only concerned with fixed costs
is not represented by any of the answers listed here