I need it by Saturday.

1.Reno Corporation uses a predetermined overhead application rate of $.30 per direct labor hour. During the year it incurre
overhead, but it planned to incur $360,000 of overhead. The company applied $363,000 of overhead during the year. How
the company plan to incur? (Points: 4)
1,150,000
1,190,000
1,200,000
1,210,000
Working

360,000 1,200,000.00
0.3

2. Aztec Company is relocating its facilities. The company estimates that it will take three trucks to move office contents. If
is $1,000 plus 25 cents per mile, what is the expected cost to move 800 miles? (Points: 4)
$1,000
$1,200
$2,400
$3,600
rentals
Miles

3000
600
3600

3. At its present level of operations, a small manufacturing firm has total variable costs equal to 75 percent of sales and to
percent of sales. Based on variable costing, if sales change by $1.00, income will change by _______. (Points: 4)
$0.25
$0.10
$0.75
can't be determined from the information given

4. Actual fixed overhead is $33,300 (12,000 machine hours) and fixed overhead was estimated at $34,000 when the prede
machine hour was set. If 11,500 standard hours were allowed for actual production, applied fixed overhead is _______. (P
$33,300
$34,000
$34,500
not determinable without knowing the actual number of units produced

5. One unit requires 2 direct labor hours to produce. Standard variable overhead per unit is $1.25 and standard fixed overh
330 units were produced this month, what total amount of overhead is applied to the units produced? (Points: 4)
$990

$1,980
$660
cannot be determined without knowing the actual hours worked

6. Western Company uses a standard cost accounting system. The following overhead costs and production data are availa
Standard fixed OH rate per DLH
$1
Standard variable OH rate per DLH
$4
Budgeted monthly DLHs
40,000
Actual DLHs worked
39,500
Standard DLHs allowed for actual production
39,000
Overall OH variance-favorable
$2,000

The total applied manufacturing overhead for August should be _______. (Points: 4)
$195,000
$197,000
$197,500
$199,500

7. Alpha, Beta, and Epsilon Companies

Below are income statements that apply to three companies: Alpha, Beta, and Epsilon:

Alpha Co.
Beta Co.
Epsilon Co.
Sales
$100
$100
$100
Variable costs
(10)
(20)
(30)

Contribution margin
$90
$80
$70
Fixed costs
(30)
(20)
(10)
Profit before taxes
$60
$60
$60

Refer to Alpha, Beta, and Epsilon Companies. At sales of $100, which firm has the highest margin of safety? (Points: 4)
Alpha Company
Beta Company
EpsilonCompany
They all have the same margin of safety.

8. Precious Jewels Corporation produces quality jewelry items for various retailers. For the coming year, it has estimated it
gold. Its carrying costs for a year are $2 per ounce. No safety stock is maintained. If the EOQ is 100 ounces, what is the co

$40
$20
$5
$25

9. A company has estimated its economic order quantity for Part A at 2,400 units for the coming year. If ordering costs are
are $.50 per unit per year, what is the estimated total annual usage? (Points: 4)
6,000 units
28,800 units
7,200units
2,400 units

10. A company annually consumes 10,000 units of Part C. The carrying cost of this part is $2 per year and the ordering cos
uses an order quantity of 500 units. By how much could the company reduce its total costs if it purchased the economic or
units? (Points: 4)
$500
$2,000
$2,500
$0

11. Modern management accounting can be characterized by its _______. (Points: 4)

flexibility
standardization
complexity
precision

12. Which of the following is not a valid method for determining product cost? (Points: 4)
arbitrary assignment
direct measurement
systematic allocation
cost-benefitmeasurement

13. Cost accounting is directed toward the needs of _______. (Points: 4)

regulatory agencies
external users
internalusers
stockholders

14. The process of ____ causes the need for cost accounting. (Points: 4)
conversion
sales
controlling
allocating

15. The Institute of Management Accountants issues _______. (Points: 4)

Statements on Accounting Research for Managers
Statements on Management Accounting
Statements on Managerial and Cost Accounting
CostAccountingStandards

16. Period costs _______. (Points: 4)

aregenerallyexpensedinthesameperiodinwhichtheyareincurred
are always variable costs
remain unchanged over a given period of time
are associated with the periodic inventory method

17. The indirect costs of converting raw material into finished goods are called ______. (Points: 4)
period costs
prime costs
overheadcosts
conversion costs

18. Conversion cost does not include _______. (Points: 4)

direct labor
directmaterial
factory depreciation
supervisors' salaries

19. The distinction between direct and indirect costs depends on whether a cost _______. (Points: 4)
is controllable or non-controllable
is variable or fixed
canbeconvenientlyandphysicallytracedtoacostobjectunderconsideration
will increase with changes in levels of activity

20. Applied overhead consists of which of the following? (Points: 4)

actual activity times predetermined overhead rate
estimatedactivitytimespredeterminedoverheadrate
actual activity times actual overhead rate
estimated activity times actual overhead rate

21. If a company used two overhead accounts (actual overhead and applied overhead), the one that would receive the mos
(Points: 4)
actualoverhead
applied overhead
both would receive an equal number of debits
impossible to determine without additional information

22. The measure of production that considers historical and estimated future production levels and cyclical fluctuations is re
theoretical capacity
practical capacity
normalcapacity
expected capacity

23. A short-run measure of activity that represents a firms anticipated activity level for an upcoming period based upon ex
to as _______. (Points: 4)
theoretical capacity
practical capacity
normal capacity
expectedcapacity

24. An item or event that has a cause-effect relationship with the incurrence of a variable cost is called a _______. (Points
mixed cost
predictor
direct cost
costdriver

25. Which of the following could not be used in job order costing? (Points: 4)
standards
an average cost per unit for all jobs
normalcosting
overhead allocation based on the job's direct labor hours

26. Which of the following would be least likely to be supported by subsidiary accounts or ledgers in a company that emplo
Work in Process Inventory
Raw Material Inventory
AccountsPayable
Supplies Inventory

27. The source document that records the amount of raw material that has been requested by production is the _______.
job order cost sheet
bill of lading
interoffice memo
materialrequisition

28. The cost sheets for incomplete jobs at the end of the period comprise the subsidiary ledger for _______. (Points: 4)
Finished Goods Inventory
Raw Material Inventory
WorkinProcessInventory
Supplies Inventory

29. The source document that records the amount of time an employee worked on a job and his/her pay rate is the _____
job order cost sheet
employee time sheet
interoffice memo
laborrequisitionform

30. The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to _
Finished Goods Inventory
WorkinProcessInventory
Cost of Goods Sold
Raw Material Inventory

31. The weighted average method is thought by some accountants to be inferior to the FIFO method because it _______. (
is more difficult to apply
only considers the last units worked on
ignores work performed in subsequent periods
comminglescostsoftwoperiods

32. When standard costs are used in process costing, _______. (Points: 4)
variancescanbemeasuredduringtheproductionperiod

total costs rather than current production and current costs are used
process costing calculations are made simpler
the weighted average method of calculating EUPs makes computing transferred-out costs easier

33. When the cost of lost units must be assigned, and those same units must be included in an equivalent unit schedule, th
normal and discrete
normal and continuous
abnormalanddiscrete
abnormal and continuous

34. A continuous loss _______. (Points: 4)

occurs unevenly throughout a process
never occurs during the production process
always occurs at the same place in a production process
occursevenlythroughouttheproductionprocess

35. Standard costs may be used for _______. (Points: 4)

productcosting
planning
controlling
all of the above

36. A purpose of standard costing is to ________. (Points: 4)

replace budgets and budgeting
simplify costing procedures
eliminatetheneedforactualcostingforexternalreportingpurposes
eliminate the need to account for year-end underapplied or overapplied manufacturing overhead

37. A bill of material does not include _______. (Points: 4)

quantity of component inputs
price of component inputs
quality of component inputs
typeofproductoutput

38. An operations flow document _______. (Points: 4)

tracks the cost and quantity of material through an operation
tracks the network of control points from receipt of a customer's order through the delivery of the finished product
not sure
specifiestaskstomakeaunitandthetimesallowedforeachtask
charts the shortest path by which to arrange machines for completing products

39. A total variance is best defined as the difference between total _______. (Points: 4)
actual cost and total cost applied for the standard output of the period
standard cost and total cost applied to production
actual cost and total standard cost of the actual input of the period

actualcostandtotalcostappliedfortheactualoutputoftheperiod

40. If actual direct labor hours (DLHs) are less than standard direct labor hours allowed and overhead is applied on a DLH
favorable variable overhead spending variance exists
favorable variable overhead efficiency variance exists
favorablevolumevarianceexists
unfavorable volume variance exists

41. If a company obtains two salable products from the refining of one ore, the refining process should be accounted for as
mixed cost process
jointprocess
extractive process
reduction process

42. Joint cost allocation is useful for ______. (Points: 4)

decision making
productcosting
control
evaluating managers' performance

43. The definition of a sunk cost is _______. (Points: 4)

acostthatcannotberecoveredregardlessofwhathappens
a cost that relates to money poured into the ground
considered the original cost of an item
also known as an opportunity cost

44. The method of pricing by-products/scrap where no value is assigned to these items until they are sold is known as the
netrealizablevalueatsplit-offpointmethod
sales value at split-off method
realized value approach
approximated net realizable value at split-off method

45. CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent with these assu
fixed costs decrease
variable costs remain constant
costsdecrease
costs remain constant

46. In CVP analysis, linear functions are assumed for _______. (Points: 4)
contributionmarginperunit
fixed cost per unit
total costs per unit
all of the above

47. If a firm's net income does not change as its volume changes, the firm('s) _______. (Points: 4)
must be in the service industry
must have no fixed costs
sales price must equal $0
salespricemustequalitsvariablecosts

48. Break-even analysis assumes over the relevant range that _______. (Points: 4)
totalvariablecostsarelinear
fixed costs per unit are constant
total variable costs are nonlinear
total revenue is nonlinear

49. Which of the following qualitative factors favors the buy choice in a make or buy decision for a part? (Points: 4)
maintainingalong-termrelationshipwithsuppliers
quality control is critical
utilization of idle capacity
part is critical to product

50. An ad hoc sales discount is _______. (Points: 4)

an allowance for an inferior quality of marketed goods
a discount that an ad hoc committee must decide on
broughtaboutbycompetitivepressures
none of the above

51. Measuring the firm's performance against established objectives is part of which of the following functions? (Points: 4)
Planning
Controlling
Organizing
Staffing

52. Ineffective budgets and/or control systems are characterized by the use of _______. (Points: 4)
budgetsasaplanningtoolonlyanddisregardingthemforcontrolpurposes
budgets for motivation
budgets for coordination
the budget for communication

53. Which of the following is usually perceived as being the master budget's greatest advantage to management? (Points:
performanceanalysis
increased communication
increased coordination
required planning

54. If the chief accountant of a firm has to prepare an operating budget for the coming year, the first budget to be prepare

salesbudget
cash budget
purchases budget
capital budget

55. The material purchases budget tells a manager all of the following except the _______. (Points: 4)
quantity of material to be purchased each period
quantity of material to be consumed each period
cost of material to be purchased each period
cashpaymentformaterialeachperiod

56. A purchases budget is _______. (Points: 4)

notaffectedbythefirm'spolicyofgrantingcredittocustomers
the same thing as a production budget
needed only if a firm does not pay for its merchandise in the same period as it is purchased
affected by a firm's inventory policy only if the firm purchases on credit

57. If a company has a policy of maintaining an inventory of finished goods at a specified percentage of the next month's b
production for January will exceed budgeted sales for January when budgeted _______. (Points: 4)
FebruarysalesexceedbudgetedJanuarysales
January sales exceed budgeted December sales
January sales exceed budgeted February sales
December sales exceed budgeted January sales

58. The selling, general, and administrative expense budget is based on the ____ budget. (Points: 4)
production
sales
cash
purchases

59. Which of the following is not an ordering cost? (Points: 4)

cost of receiving inventory
cost of preparing the order
cost of the merchandise ordered
costofstoringtheinventory

60. A ____ system of production control is paced by product demand. (Points: 4)

EOQ
ABC
push
pull

61. Striving for flexibility in the number of products that can be produced in a short period of time is characteristic of ____
EOQ systems
push systems in general
JIT
pull systems in general

62. Just-in-time (JIT) inventory systems _______. (Points: 4)

result in a greater number of suppliers for each production process
focus on a "push" type of production system
can only be used with automated production processes
resultininventoriesbeingeithergreatlyreducedoreliminated

63. Accounting for product costs in a JIT environment _______. (Points: 4)

usesajobordercostingsystem
classifies processing costs as raw (or direct) material, direct labor, and overhead
is more complex than in other types of manufacturing environments
followsprocesscostingprocedureswherebycostsareaccumulatedbytheprocess(cell)andattachedto

64. In a production cell, _______. (Points: 4)

an individual worker may be expected to operate several different machines, do setups, and perform preventive main
each worker becomes an expert in the operation of a single piece of equipment
machinesarearrangedsothatsimilarmachinesaregroupedtogether
clear separation is maintained between those workers who operate the machinery and those workers who set up and

65. Using a single performance evaluation criterion for an investment center ______. (Points: 4)
is most effective because a manager can concentrate on a single goal
canresultinmanipulationoftheperformancemeasure
allows multinational investment centers' performances to be equitably compared
is only appropriate if the criterion is non-monetary

66. In evaluating the performance of a profit center manager, the manager ______. (Points: 4)
and the sub-unit should be evaluated on the basis of the same costs and revenues
should only be evaluated on the basis of variable costs and revenues of the sub-unit
should be evaluated on all costs and revenues that are controllable by the manager
shouldbeevaluatedonallcostsandrevenuesthatcanbedirectlytracedtothesub-unit

67. Residual income is an example of a ____ performance measurement. (Points: 4)

long-term
short-term
qualitative
profit center

68. In a balanced scorecard, measurements should be directly linked to _______. (Points: 4)

organizationalstrategyandvalues
the cost management system
current organizational profitability
activity-based management concepts

69. On a balanced scorecard, which of the following would be most appropriate to measure customer service? (Points: 4)
Rapid time-to-market of new products
Corporate financial profits
On-timedelivery
Decrease in reworked products

70. On a balanced scorecard, which of the following would be most appropriate to measure innovation? (Points: 4)
Rapidtime-to-marketofnewproducts
Corporate financial profits
On-time delivery
Manufacturing cycle efficiency

ur. During the year it incurred $345,000 dollars of actual

rhead during the year. How many direct labor hours did

s to move office contents. If the per truck rental charge

o 75 percent of sales and total fixed costs equal to 15

_____. (Points: 4)

at $34,000 when the predetermined rate of $3.00 per

ed overhead is _______. (Points: 4)

25 and standard fixed overhead per unit is $1.75. If

duced? (Points: 4)

d production data are available for August:

gin of safety? (Points: 4)

ing year, it has estimated it will consume 500 ounces of

s 100 ounces, what is the cost per order? (Points: 4)

g year. If ordering costs are $200 and carrying costs

er year and the ordering costs are $100. The company

purchased the economic order quantity instead of 500

e that would receive the most debits would be _______.

and cyclical fluctuations is referred to as _______. (Points: 4)

oming period based upon expected demand is referred

is called a _______. (Points: 4)

ers in a company that employs a job order costing system? (Points: 4)

production is the _______. (Points: 4)

for _______. (Points: 4)

s/her pay rate is the ______. (Points: 4)

ead control and a debit to _______. (Points: 4)

ethod because it _______. (Points: 4)

equivalent unit schedule, these units are considered ______. (Points: 4)

ry of the finished product

erhead is applied on a DLH basis, a(n) _______. (Points: 4)

s should be accounted for as a(n) _______. (Points: 4)

ey are sold is known as the _______. (Points: 4)

. Consistent with these assumptions, as volume decreases total ______. (Points: 4)

r a part? (Points: 4)

owing functions? (Points: 4)

e to management? (Points: 4)

e first budget to be prepared is the _______. (Points: 4)

entage of the next month's budgeted sales, budgeted

s: 4)

me is characteristic of _______. (Points: 4)

ss(cell)andattachedtounitsprocessedfortheperiod

nd perform preventive maintenance on the equipment

ose workers who set up and maintain the machinery

tomer service? (Points: 4)

ovation? (Points: 4)