ACC 213 Quiz 2

False

Activity-based costing is a costing method that is designed to provide managers with product cost information for external financial reports. True or False

True

Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume. True or False

True

Customer-level activities relate to specific customers and are not tied to any specific products. True or False

True

In activity-based costing, there are a number of activity cost pools, each of which is allocated to products and other costing objects using its own unique measure of activity. True or False

False

One difficulty with self-imposed budgets is that they are not subject to any type of review True or False

A. increase and the selling price remains unchanged

The break-even point in unit sales increases when var. expenses: A. increases and the selling price remains unchanged B. decreases and the selling price remains unchanged C. decreases and the selling price increases D. remain unchanged and the selling price increases

D. the cm per unit

The break-even point in unit sales is found by dividing total fixed expenses by: A. the cm ratio B. the var. expenses per unit C. the sales price per unit D. the cm per unit

D. (total sales - breakeven sales) / total sales

The margin of safety % is computed as: A. breakeven sales / total sales B. total sales - breakeven sales C. (total sales - breakeven sales) / breakeven sales D. (total sales - breakeven sales) / total sales

False

The production budget is typically prepared prior to the sales budget True or False

A. Setting up equipment

Which of the following activities would be classified as a batch-level activity? A. setting up equipment B. designing a new product C. training employees D. milling a part required for the final product