Managerial Accounting - Test 1

110 Questions  I  By Rmerklen3 on January 28, 2013

  
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1.  Sunks Costs are costs to be incurred in near future that are impossible to avoid.
A.
B.
2.  Which of the following is an example of a fixed cost?
A.
B.
C.
D.
3.  What is the margin of safety?
A.
B.
C.
4.  Which of the following are associated with Control?
A.
B.
C.
D.
5.  Which are production of goods costs?
A.
B.
C.
D.
6.  Which of the following companies would use a job-order costing system?
A.
B.
C.
D.
7.  Budgets for Planning: Which is Production Budget?
A.
B.
C.
8.  "What If" Analysis examines what will happen if an action is foregone
A.
B.
9.  Which is General and Administrative Costs?
A.
B.
C.
D.
10.  Which of the following is most likely to be a fixed cost?
A.
B.
C.
D.
11.  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.
12.  What is the break even point?
A.
B.
13.  Which is Fixed Cost?
A.
B.
14.  Which of the following is part of planning?
A.
B.
C.
D.
15.  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.
16.  A cost which is directly traceable to a product, activity, or department is a(n)
A.
B.
C.
D.
17.  Cost of Goods Available for Sale = Beginning Finished Goods + Cost of Goods Manufactured
A.
B.
18.  Which of the following will decrease the break-even point?
A.
B.
C.
D.
19.  Which are nonmanufacturing costs?
A.
B.
C.
D.
20.  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.
21.  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.
22.  Which is Variable Cost?
A.
B.
23.  What is the relevant range?
A.
B.
C.
24.  The cost of a machine purchased last year is an example of a(n):
A.
B.
C.
D.
25.  The wages lost when you give up your job to attend school full-time is an example of a(n):
A.
B.
C.
D.
26.  What is the cost-volume-profit equation?
A.
B.
C.
27.  Which of the following is not part of the planning and control process?
A.
B.
C.
D.
28.  Wilson Company’s managers investigate departures from the budget that appear to be significant. What principle is being followed?
A.
B.
C.
D.
29.  What are the two ways  to calculate contribution margin ratio?
A.
B.
C.
30.  What type of cost is utilities? 
A.
B.
C.
D.
31.  Which are modern manufacturing practices?
A.
B.
C.
D.
32.  Incremental Analysis: -Differences in revenues and costs between alternatives are incremental. -Incremental revenue minus incremental cost equals incremental profit.
A.
B.
33.  What type of cost is rent?
A.
B.
C.
D.
34.  How is underapplied overhead eliminated?
A.
B.
C.
D.
35.  Work in Process Inventory includes the cost of
A.
B.
C.
D.
36.  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.
37.  Match
A. account analysis
A.
B. scattergraph
B.
C. high-low method
C.
D. regression analysis
D.
38.  What type of cost is indirect materials?
A.
B.
C.
D.
39.  Which of the following are associated with Planning?
A.
B.
C.
D.
40.  Which of the following is most likely to be a variable cost?
A.
B.
C.
D.
41.  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.
42.  Assumptions in CVP Analysis: Which are true?
A.
B.
C.
D.
43.  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.
44.  When a job is completed, the transaction is recorded with a
A.
B.
C.
D.
45.  What is the contribution margin?
A.
B.
C.
46.  Which is Period Costs?
A.
B.
C.
D.
47.  Which of the following is a selling cost?
A.
B.
C.
D.
48.  Which of the following statements about the relevant range is true?
A.
B.
C.
D.
49.  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.
50.  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.
51.  The cost of goods manufactured is credited to which of the following accounts?
A.
B.
C.
D.
52.  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.
53.  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.
54.   Management by exception is an example of:
A.
B.
C.
D.
55.  A form used to accumulate the cost of producing products is called a(n)
A.
B.
C.
D.
56.  Which costs can be variable or fixed?
A.
B.
C.
D.
E.
57.  Which is Product Costs?
A.
B.
C.
D.
58.  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.
59.  What is the order of the Value Chain?
A. 1
A.
B. 2
B.
C. 3
C.
D. 4
D.
E. 5
E.
60.  Budgets for Planning: Which is Cash Flow Budget?
A.
B.
C.
61.  Which costs are only variable?
A.
B.
C.
D.
E.
62.  Which are associated with Job Order Costing?
A.
B.
C.
D.
E.
63.  Which of the following documents would serve as a subsidiary ledger to the work in process account?
A.
B.
C.
D.
64.  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.
65.  What are discretionary fixed costs? committed fixed costs?
A.
B.
C.
66.  What are step costs?
A.
B.
C.
67.  Which of the following is not a period cost?
A.
B.
C.
D.
68.  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.
69.  Which is Selling Costs?
A.
B.
C.
D.
70.  A job-order costing system is most likely to be used by a
A.
B.
C.
D.
71.  Which costs are only fixed?
A.
B.
C.
D.
E.
72.  Managerial accounting is designed for use by:
A.
B.
C.
D.
73.  Manufacturing overhead is the cost of manufacturing activities other than direct materials and direct labor (all indirect costs).
A.
B.
74.  Cost of Goods Manufactured = Beginning Work In Progress + Current Manufacturing Cost - Ending Work In Progress
A.
B.
75.  Which are true about Managerial Accounting?
A.
B.
C.
D.
E.
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.  How do you calculate overhead allocation rate?
A.
B.
C.
D.
78.  A factor that limits the level of production is called a:
A.
B.
C.
D.
79.   Which of the following is a characteristic of managerial accounting?
A.
B.
C.
D.
80.  Which are associated with Process Costing?
A.
B.
C.
D.
E.
81.  Opportunity Costs are the values of benefits foregone when selecting one alternative over another.
A.
B.
82.  Direct costs are directly traceable to a product, activity, or department, while indirect costs are not.
A.
B.
83.  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.
84.  A material amount of overapplied overhead is debited to which of the following accounts?
A.
B.
C.
D.
85.  What is overapplied overhead and how is it eliminated?
A.
B.
C.
D.
86.  If variable costs are 60% of sales and fixed costs are $612,000, the break-even point in dollars is:
A.
B.
C.
D.
2 comments
87.  Which of the following accounts does not appear on the balance sheet?
A.
B.
C.
D.
88.  What are mixed costs?
A.
B.
C.
D.
89.  Which of the following is a manufacturing cost?
A.
B.
C.
D.
90.  Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods
A.
B.
91.  Multiproduct Analysis Break-Even Sales in units: (Profit+Total Fixed Costs)/(Weighted average contribution margin per unit)
A.
B.
92.  Which of the following costs is expensed as incurred?
A.
B.
C.
D.
93.  Which are practices in Just in Time production (JIT)?
A.
B.
C.
D.
E.
F.
94.  Costs incurred in the past are:
A.
B.
C.
D.
95.  Which of the following is added directly to work in process?
A.
B.
C.
D.
96.  Applied overhead is debited to which account?
A.
B.
C.
D.
97.  An immaterial amount of underapplied overhead is debited to which of the following accounts?
A.
B.
C.
D.
98.  Westerhouse manufactures refrigerators. Which of the following items is most likely considered an indirect material cost for Westerhouse?
A.
B.
C.
D.