Reference no: EM132540707

Question 1: In a multiple-product firm, the product that has the highest contribution margin per unit will

A. have the lowest variable costs per unit.

B. generate the most profit for each unit sold.

C. have the highest contribution margin ratio.

D. generate more profit for each $1 of sales than the other products.

Question 2: Inventory policy is most critical in budgeting

A. Cost of goods sold

B.Expenses

C.Sales

D.Purchases

Question 3: The City of Cebu is about to replace an old disinfectant drone with a new unit in an effort to save maintenance and other operating costs. Which of the following items, all related to the transaction, would not be considered in the decision?

A. Proceeds from disposal of the old drone.

B. Purchase price of the old drone.

C. Savings in operating costs as a result of the new drone.

D. Purchase price of the new drone.

Question 4: To reduce breakeven point, the company may

A. Increase both the fixed cost and the contribution margin

B. Decrease both the fixed cost and the contribution margin

C. Increase the fixed cost and decrease contribution margin

D. Decrease the fixed cost and increase contribution margin

Question 5: Under throughput costing, which of the following is/are usually included as product cost,

A. Direct labor

B. Variable factory overhead

C. Direct materials

D. Prime Cost

Question 6: When monthly production volume is constant and sales volume is less than production, income determined with variable costing procedures will

A. Be equal to contribution margin per unit times units sold

B. Be equal to income determined using absorption costing

C. Always be greater than income determined using absorption costing

D. Always be less than income determined using absorption costing

Question 7: You were newly appointed as the controller of Atlas Corporation. Among the jobs your department would do include the following:

A. Financial accounting, managerial accounting, cost accounting, inventory accounting, payroll accounting, tax accounting and sales forecasting.

B. Cash receipts, cash disbursement, general accounting, taxation, financial accounting analysis, and internal auditing.

C. Tax accounting, internal accounting, internal auditing, general accounting.

D. Financial reporting, strategic planning, managerial accounting, taxation, financial statement analysis, and internal accounting.

Question 8: Costs other than direct material costs and direct labor costs incurred in the manufacturing process are classified as:

A. Other manufacturing cost

B. Product cost

C. Factory overhead

D. Miscellaneous expense

Question 9: Budgets are related to which of the following functions?

A. Planning

B. Control

C. Performance evaluation

D. All of the above

Question 10: Planning and control are

A. the basic functions of management.

B. different names for the same thing.

C. exemplified by, respectively, financial statements and budgeting.

D. described equally well by the terms "decision making" and "performance evaluation."