Account Quiz
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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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