Reference no: EM132561194

Question 1) Cost objects include:

A) customers B) departments

C) products D) All of these answers are correct.

Question 2) The breakeven point in CVP analysis is defined as:

A) fixed costs divided by the contribution margin per unit

B) when fixed costs equal total revenues

C) when the contribution margin percentage equals total revenues divided by variable costs

D) revenues less variable costs equal operating income

Question 3) When a job is complete:

A) Finished Goods is credited

B) the cost of the job is transferred to Manufacturing Overhead Control

C) Work-in-Process is debited

D) actual direct materials, actual direct manufacturing labor, and allocated manufacturing overhead will comprise the total cost of the job

Question 4) Uniformly assigning the costs of resources to cost objects when those resources are actually used in a nonuniform way is called:

A) peanut-butter costing B) department costing

C) undercosting D) overcosting

Question 5) Variable costing:

A) expenses administrative costs as cost of goods sold

B) is required for external reporting to shareholders

C) includes fixed manufacturing overhead as an inventoriable cost

D) treats direct manufacturing costs as a product cost

Question 6) Sunk costs:

A) have future implications B) are differential

C) are relevant D) are ignored when evaluating alternatives

Question 7) The cost of producing a product:

A) in highly competitive markets controls pricing

B) for pricing decisions includes manufacturing costs, but not product design costs

C) is an important influence on pricing

D) affects the willingness of a company to supply a product

Question 8) In a competitive market with differentiated products like cameras, the key factor(s) affecting pricing decisions is/are the:

A) cost of producing and delivering the product

B) customer's willingness to pay

C) price charged for alternative products

D) All of these answers are correct.

Question 9) Under the weighted-average method, the stage of completion of beginning work in process

A) must be combined with the work done during the current period to determine the equivalent units

B) is irrelevant in determining the equivalent-unit calculation

C) is relevant in determining the equivalent units

D) can almost always be determined with a high degree of precision