Account Quiz
An accountant is an important person as he the power to control how funds are use and identify discrepancies. As an accounts student It is important to ensure you are 100% when it comes to concepts. Take up this first to help with your revision for the upcoming tests. All the best as you tackle them.
- 1.Life-cycle budgeting
- A.
Is most useful to companies that manufacture small items such as household plastics
- B.
Gives companies more insight into total costs
- C.
Helps companies estimate revenues over a multiyear horizon
- D.
Has little in common with target pricing
- 2.All of the following are true regarding target costing EXCEPT
- A.
Input is requested from suppliers and distributors
- B.
Customers input is essential to the target costing process
- C.
A key goal is to minimize costs over the product's useful life
- D.
Improvements are implemented in small incremental amounts
- 3.Special cost-allocation problems arise when:
- A.
Support departments costs exceed budgetary estimates
- B.
Practical capacity is used as the allocation base
- C.
Support departments provide reciprocal services to other support departments
- D.
There is more than one operating department
- 4.A negative consequence of recording byproducts in the accounting records when the sale occurs is that
- A.
The revenue from the byproducts is usually fairly large, and the accounting records will be distorted
- B.
Managers can time earnings by their decision when to sell byproducts
- C.
Managers have an incentive to stockpile byproducts
- D.
Both B and C are correct
- 5.Which statement is NOT true regarding the sales method of accounting for byproducts
- A.
The method makes no journal entries until the byproduct is sold
- B.
Revenues of the byproduct can be recorded as a reduction of cost of goods sold in the income statement
- C.
This method is the preferred method because of the matching principle
- D.
Revenues of the byproduct can be recorded in the income statement as revenue
- 6.In joint costing:
- A.
Costs are assigned to individual products as assembly of the product occurs
- B.
Costs are assigned to individual products as disassembly of the product occurs
- C.
A single production process yields two or more products
- D.
Both B and C are correct
- 7.Effective planning of fixed overhead costs includes all of the following EXCEPT:
- A.
Planning to be efficient
- B.
Choosing the appropriate level of capacity
- C.
Planning day-to-day operational decisions
- D.
Eliminating nonvalue-added costs
- 8.Effective planning of variable overhead costs includes all of the following EXCEPT:
- A.
Redesigning the plant layouts for more efficient processing
- B.
Redesigning products to use fewer resources
- C.
Eliminating nonvalue-adding costs
- D.
Choosing the apporiate level of capacity
- 9.Which of the following is NOT a characteristic of a management control system?
- A.
It motivates individuals throughout the organization to act in concert
- B.
It coordinates forecasting sales and cost-driver activities, budgeting, and measuring and evaluating performance
- C.
It aids and coordinates the process of making decisions
- D.
It encourages short-term profitability
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