ACCOUNTING FINAL!!!

changes as the related activity changes

Cost behavior refers to the manner in which a cost

variable costs of $52,800 and $24,000 of fixed costs

Jase Manufacturing Co.'s static budget for 10,000 units of production includes $40,000 for direct labor and $4,000 for variable electric power. Total fixed costs are $24,000. At 12,000 units of production, a flexible budget would show

costs only

Most manufacturing plants are considered cost centers because they have control over

centralization

Which of the following would be most effective in a small owner-manager operated business?

swimming pool installer

Which of the following would most likely use a job order cost system?

are more summarized than for lower levels of management

For higher levels of management, responsibility accounting reports

shampoo manufacturer

For which of the following businesses would a process cost system be appropriate?

canned soup processor

For which of the following businesses would the job order cost system be appropriate?

5

If a company uses a process cost system to account for the costs in its five production departments, how many work in process accounts will it use?

costs

In a cost center, the manager has responsibility and authority for making decisions that affect

processing departments

In process cost accounting, the costs of direct materials and direct labor are charged directly to

$158,000

In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000. What is the total conversion cost?

factory overhead

The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and Group of answer choices

fixed costs, variable costs, and mixed costs

The three most common cost behavior classifications are

direct materials cost variance, direct labor cost variance, and factory overhead cost variance

The total manufacturing cost variance consists of

goal conflict

When a manager seeks to achieve personal departmental objectives that may work to the detriment of the rest of the company, the organization is experiencing

number of patients who stay in the hospital

Which of the following activity bases would be the most appropriate for food costs of a hospital?

total miles driven

Which of the following activity bases would be the most appropriate for gasoline costs of a delivery service?

job order cost and process cost systems

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Actual costs differed from standard costs for the preceding week.

Which of the following conditions normally would not indicate that standard costs should be revised?

salary of a factory supervisor

Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

top management freed from everyday tasks to do strategic planning

Which of the following is not a disadvantage of a decentralized operation?

to determine department costs within the firm

Which of the following is not a reason a firm would use a job order cost system?

Each unit is responsible for its own operations and decision making.

Which of the following is the best example of a decentralized operation?

raw materials, work in process, finished goods, cost of goods sold

Which of the following is the correct flow of manufacturing costs?

graduation invitation

Which of the following products would be manufactured using a job order cost system?

job order cost system

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Graph 1(fixed costs are non changing; Constant straight line)

Which of the graphs in Figure 21-1 illustrates the behavior of a total fixed cost?

Graph 3 Total Units produced (low constant line)

Which of the graphs in Figure 21-1 illustrates the behavior of a total variable cost?

sunk cost

A cost that will not be affected by later decisions is termed a

standard costs are more than actual costs

A favorable cost variance occurs when

budget

A formal written statement of management's plans for the future, expressed in financial terms, is a

cost center

A manager is responsible for costs but not revenues in a(n)

each decentralized operation purchases its own assets and pays for operating costs

All of the following are advantages of decentralization except

the system accumulates costs per job

All of the following are characteristics of a process cost system except

decentralized

Businesses that are separated into two or more manageable units in which managers have authority and responsibility for operations are said to be

time tickets

On which of the following would the labor costs for an individual job be recorded?

budgets performance reports

Periodic comparisons between planned objectives and actual performance are reported in

both use job cost sheets

Process and job order cost systems are similar in all of the following ways except

used to indicate where changes in technology and machinery need to be made

Standard costs are used in companies for a variety of reasons. Which of the following is not one of the benefits of using standard costs?

normal standards

Standards that represent levels of operation that can be attained with reasonable effort are called

differential cost

The amount of increase or decrease in cost that is expected from a particular course of action as compared with an alternative is

$9,300 favorable

Jaxson Corporation has the following data related to direct labor costs for September: actual costs are 10,200 hours at $15.75 per hour and standard costs are 10,800 hours at $15.50 per hour.

differential revenue

The amount of increase or decrease in revenue that is expected from a particular course of action as compared with an alternative is

opportunity cost

The amount of revenue that is foregone from an alternative use of cash is called

dismissing all managers who fail to achieve operational goals specified in the budget

The budget process involves doing all of the following except

responsibility center

The budgetary unit of an organization that is led by a manager who has both the authority over and responsibility for the unit's performance is known as a

increase in sales by increasing marketing efforts

The budgeting process does not involve which of the following activities?

standard costs and actual costs

The principle of exceptions allows managers to focus on correcting variances between

price standard and quantity standard

The standards for direct materials are made up of which of the following components?