Managerial Accounting - Test 1

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1.  Which is Fixed Cost?
A.
B.
2.  Which of the following is a selling cost?
A.
B.
C.
D.
3.  Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
Wings, breading, and sauce $4,900
Direct labor (Variable) 3,500
Rent 1,100
Depreciation 900
Other fixed costs 400
    Each wing sells for $0.80 each. What is the budgeted total fixed cost?
A.
B.
C.
D.
4.  Which are production of goods costs?
A.
B.
C.
D.
5.  Which is Variable Cost?
A.
B.
6.  Assume a company incurs $100,000 for total variable costs and $150,000 for total fixed costs to produce 10,000 units. What would the total cost be to produce 12,000 units?
A.
B.
C.
D.
7.  Which costs can be variable or fixed?
A.
B.
C.
D.
E.
8.  Assumptions in CVP Analysis: Which are true?
A.
B.
C.
D.
9.  What are mixed costs?
A.
B.
C.
D.
10.  The goal of managerial accounting is to provide the information that managers need for all of the following EXCEPT:
A.
B.
C.
D.
11.  Which of the following is not a period cost?
A.
B.
C.
D.
12.  Which of the following costs is expensed as incurred?
A.
B.
C.
D.
13.   Which of the following is a characteristic of managerial accounting?
A.
B.
C.
D.
14.  Wilson Company’s managers investigate departures from the budget that appear to be significant. What principle is being followed?
A.
B.
C.
D.
15.  "What If" Analysis examines what will happen if an action is foregone
A.
B.
16.  A factor that limits the level of production is called a:
A.
B.
C.
D.
17.  Applied overhead is debited to which account?
A.
B.
C.
D.
18.  Multiproduct Analysis: Contribution Margin Approach vs. Contribution Margin Ratio Approach Which are associated with Contribution Margin Approach?
A.
B.
C.
D.
E.
F.
G.
H.
19.  Incremental Analysis: -Differences in revenues and costs between alternatives are incremental. -Incremental revenue minus incremental cost equals incremental profit.
A.
B.
20.  What are the two ways  to calculate contribution margin ratio?
A.
B.
C.
21.  What is the cost-volume-profit equation?
A.
B.
C.
22.  Which of the following is NOT a goal of managerial accounting?
A.
B.
C.
D.
23.  Which are associated with Process Costing?
A.
B.
C.
D.
E.
24.  Budgets for Planning: Which is Profit Budget?
A.
B.
C.
25.  Which are practices in Just in Time production (JIT)?
A.
B.
C.
D.
E.
F.
26.  Which are modern manufacturing practices?
A.
B.
C.
D.
27.  Which is Product Costs?
A.
B.
C.
D.
28.  What type of cost is indirect materials?
A.
B.
C.
D.
29.  Which of the following is part of planning?
A.
B.
C.
D.
30.  Which costs are only variable?
A.
B.
C.
D.
E.
31.  What is the break even point?
A.
B.
32.  Which of the following is most likely to be a fixed cost?
A.
B.
C.
D.
33.  Cost of Goods Manufactured = Beginning Work In Progress + Current Manufacturing Cost - Ending Work In Progress
A.
B.
34.  What type of cost is utilities? 
A.
B.
C.
D.
35.  Which of the following is added directly to work in process?
A.
B.
C.
D.
36.  What type of cost is rent?
A.
B.
C.
D.
37.  The wages lost when you give up your job to attend school full-time is an example of a(n):
A.
B.
C.
D.
38.  Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
A.
B.
39.  Multiproduct Analysis Break-Even Sales in units: (Profit+Total Fixed Costs)/(Weighted average contribution margin per unit)
A.
B.
40.  An immaterial amount of underapplied overhead is debited to which of the following accounts?
A.
B.
C.
D.
41.  A form used to accumulate the cost of producing products is called a(n)
A.
B.
C.
D.
42.  If variable costs are 60% of sales and fixed costs are $612,000, the break-even point in dollars is:
A.
B.
C.
D.
43.  Which are nonmanufacturing costs?
A.
B.
C.
D.
44.  National Production Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows:                                      Estimated                       Actual Overhead cost            $174,000                      $171,100 Direct labor hours           5,800                           5,900 Direct labor cost          $87,000                        $89,975               How much is the predetermined overhead rate? 
A.
B.
C.
D.
45.  Which are true about Managerial Accounting?
A.
B.
C.
D.
E.
46.  The cost of a machine purchased last year is an example of a(n):
A.
B.
C.
D.
47.  Multiproduct Analysis: Contribution Margin Approach vs. Contribution Margin Ratio Approach Which are associated with Contribution Margin Ratio Approach?
A.
B.
C.
D.
E.
F.
G.
H.
48.  The cost of goods manufactured is credited to which of the following accounts?
A.
B.
C.
D.
49.  Which of the following documents would serve as a subsidiary ledger to the work in process account?
A.
B.
C.
D.
50.  Which of the following are associated with Control?
A.
B.
C.
D.
51.  The schedule of cost of goods manufactured is an analysis of which account?
A.
B.
C.
D.
52.  Which of the following is a manufacturing cost?
A.
B.
C.
D.
53.  Which of the following will decrease the break-even point?
A.
B.
C.
D.
54.  Cost of Goods Manufactured is $200,000, beginning Finished Goods is $50,000, ending Finished Goods is $100,000, and ending Work In Process is $10,000.  What is the Cost of Goods Sold?
A.
B.
C.
D.
55.  A material amount of overapplied overhead is debited to which of the following accounts?
A.
B.
C.
D.
56.  Match
A. Account analysis
A.
B. Scattergraph
B.
C. High-low method
C.
D. Regression analysis
D.
57.  Variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a period when 4,000 units are produced. If production is actually 5,100 units, what is the expected total cost of the units produced?
A.
B.
C.
D.
58.  What is the order of the Value Chain?
A. 1
A.
B. 2
B.
C. 3
C.
D. 4
D.
E. 5
E.
59.  Which of the following is an example of a variable cost?
A.
B.
C.
D.
60.  Costs incurred in the past are:
A.
B.
C.
D.
61.  What is the contribution margin?
A.
B.
C.
62.  Which of the following is not a product cost?
A.
B.
C.
D.
63.  Constraints §Due to shortages of space, equipment or labor there can be constraints on how many items can be produced §Utilize contribution margin per unit to analyze situations §Calculate contribution margin per unit of constraint §Produce product with highest contribution margin per unit of constraint §Linear programming can solve multiple constraints
A.
B.
64.  GAAP requires that inventories and cost of goods sold be reported at full cost. Which of the following is defined as full cost?
A.
B.
C.
D.
65.  Budgets for Planning: Which is Cash Flow Budget?
A.
B.
C.
66.  Opportunity Costs are the values of benefits foregone when selecting one alternative over another.
A.
B.
67.  Manufacturing overhead is the cost of manufacturing activities other than direct materials and direct labor (all indirect costs).
A.
B.
68.  Westerhouse manufactures refrigerators. Which of the following items is most likely considered an indirect material cost for Westerhouse?
A.
B.
C.
D.
69.  Budgets for Planning: Which is Production Budget?
A.
B.
C.
70.  Which of the following are associated with Planning?
A.
B.
C.
D.
71.  How is underapplied overhead eliminated?
A.
B.
C.
D.
72.  Which of the following is a direct cost in relation to the cost of teaching the managerial accounting course in a college?
A.
B.
C.
D.
73.  How do you calculate overhead allocation rate?
A.
B.
C.
D.
74.  What is underapplied overhead?
A.
B.
C.
D.
75.  Which of the following is not part of the planning and control process?
A.
B.
C.
D.
76.  Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
Wings, breading, and sauce $4,900
Direct labor (Variable) 3,500
Rent 1,100
Depreciation 900
Other fixed costs 400
                          Each wing sells for $0.80 each. What is the budgeted fixed cost per unit?
A.
B.
C.
D.
77.  Which are associated with Job Order Costing?
A.
B.
C.
D.
E.
78.  Decision making relies on incremental analysis - an analysis of the revenues that increase (decrease) and the costs that increase (decrease) if a decision alternative is selected.
A.
B.
79.  Which of the following statements about the relevant range is true?
A.
B.
C.
D.
80.  Which of the following is an example of a fixed cost?
A.
B.
C.
D.
81.  What are step costs?
A.
B.
C.
82.  What is the relevant range?
A.
B.
C.
83.  Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold.
Wings, breading, and sauce $4,900
Direct labor (Variable) 3,500
Rent 1,100
Depreciation 900
Other fixed costs 400
    Each wing sells for $0.80 each. How much is the budgeted variable cost per unit?
A.
B.
C.
D.
84.  Which is Period Costs?
A.
B.
C.
D.
85.  When a job is completed, the transaction is recorded with a
A.
B.
C.
D.
86.  What are discretionary fixed costs? committed fixed costs?
A.
B.
C.
87.  Which is General and Administrative Costs?
A.
B.
C.
D.
88.  Kevin’s Candies produced and sold 600 boxes of chocolate covered popcorn last month and had total variable costs of $2,100 that reflected the costs of chocolate and popcorn (ingredients). Each box of popcorn sells for $12.00. If production and sales are expected to increase by 15% next month, which of the following statements is true?
A.
B.
C.
D.
89.   Management by exception is an example of:
A.
B.
C.
D.
90.  Which of the following is most likely to be a variable cost?
A.
B.
C.
D.
91.  Work in Process Inventory includes the cost of
A.
B.
C.
D.
92.  A cost which is directly traceable to a product, activity, or department is a(n)
A.
B.
C.
D.
93.  What is the margin of safety ratio?
A.
B.
C.
94.  A company purchases machinery costing $60,000 in October of 2014. Five years later, management discovers better, more efficient machine that could be purchased for $80,000 to replace the existing machine. Management has determined that they are able to sell the original machine for $15,000. In making the decision about buying the new machine, how much are total sunk costs?
A.
B.
C.
D.
95.  Sunks Costs are costs to be incurred in near future that are impossible to avoid.
A.
B.
96.  A job-order costing system is most likely to be used by a
A.
B.
C.
D.
97.  Comparing actual results to expected results is an example of:
A.
B.
C.
D.
98.  Cost of Goods Available for Sale = Beginning Finished Goods + Cost of Goods Manufactured
A.
B.
99.  Which of the following is the method that visually fits a line through the sample data to develop a cost equation for a mixed cost?
A.
B.
100.  Operating Leverage: §Level of fixed versus variable costs in a company § A company with a high level of fixed costs has a high operating leverage § Companies with high operating leverage have large fluctuations in profit when sales increase or decrease §These companies are seen as more risky §High operating leverage is better when sales are expected to increase
A.
B.
101.  What is the margin of safety?
A.
B.
C.
102.  Which of the following companies would use a job-order costing system?
A.
B.
C.
D.
103.  Direct costs are directly traceable to a product, activity, or department, while indirect costs are not.
A.
B.
104.  What is overapplied overhead and how is it eliminated?
A.
B.
C.
D.
105.  Which of the following accounts does not appear on the balance sheet?
A.
B.
C.
D.
106.  Which of the following is not a reason that current period performance results may differ from the company’s budget for that period?
A.
B.
C.
D.
107.  Managerial accounting is designed for use by:
A.
B.
C.
D.
108.  Which costs are only fixed?
A.
B.
C.
D.
E.
109.  Which is Selling Costs?
A.
B.
C.
D.
110.  Product costs
A.
B.
C.
D.
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