ACCY 200: Exam 2
Which of the following equations describes the breakeven point? Total revenue = Contribution margin Contribution margin = Variable expenses Operating income = Total revenues Contribution margin = Fixed expenses Total revenue = Total expenses Operating income = Zero
Contribution margin = Fixed expenses Total revenue = Total expenses Operating income = Zero
Which of the following process steps occurs first for managers to observe costs for different organizational reference points? Identifying cost objects Cost assignment Cost pooling Cost accumulation
Cost accumulation
he planning and control cycle for production cost components (raw materials, direct labor, and manufacturing overhead) involves several sequential steps. Place the following planning and control steps in the correct sequential order. Determine the standard cost of each cost component. Accumulate actual product costs at the actual level of activity achieved. Prepare a budget for the planned level of activity.
Determine the standard cost of each cost component. Prepare a budget for the planned level of activity. Accumulate actual product costs at the actual level of activity achieved.
Which of the following elements are included in the contribution margin income statement format? Fixed expenses Operating income Cost of goods sold Variable expenses Operating expenses Gross profit Revenues Contribution margin
Fixed expenses Operating income Variable expenses Revenues Contribution margin
Which of the following are elements of a product's cost for a manufacturing firm? Human production effort Production machine support Accounting effort Distribution effort Ingredients Sales effort
Human production effort Production machine support Ingredients
Identify the true statements about cost accounting. It is a subset of both financial and managerial accounting. It only serves the needs of financial accounting. It does not play any role in the income measurement aspect of financial accounting. It reports the cost of goods manufactured and sold, as well as the cost of goods manufactured and not sold.
It is a subset of both financial and managerial accounting. It reports the cost of goods manufactured and sold, as well as the cost of goods manufactured and not sold.
From the following list of activities, identify those that could represent cost drivers in an activity-based costing system. Machine setup for production runs Payroll processing Raw material handling Sales order processing Quality inspection Production order preparation
Machine setup for production runs Raw material handling Quality inspection Production order preparation
Which of the following terms are used to describe the cost per unit of input variance for different product cost components (raw materials, direct labor, and manufacturing overhead)? Rate variance Spending variance Price variance Efficiency variance Usage variance
Rate variance Spending variance Price variance
Which of the following is NOT an account that over/under applied overhead is transferred to at the end of an accounting period? Multiple Choice Cost of Goods Sold. Work-in-Process. Raw Materials. Finished Goods.
Raw Materials.
List the following organizational functions in the right sequence, with the first function on the top. Customer Service Research and development Design Marketing Distribution Production
Research and development Design Production Marketing Distribution Customer Service
A technique for filtering cost information within performance reports to managers in the organization at an appropriate level of detail or summarization is known as ________________. Multiple Choice Responsibility reporting Managerial reporting Control reporting Segment reporting
Responsibility reporting
Arrange the following items on the contribution margin income statement in the correct order.
Revenue, Variable Expense, Contribution Margin, Fixed Expense, Operating Income
Identify the formulas that are used to calculate ROI. Sales / Operating assets Segment margin / Operating assets Margin x Turnover Segment margin / Sales
Segment margin / Operating assets Margin x Turnover
Which of the following items are relevant in a decision to continue or discontinue a segment of an organization? Segment variable expenses Segment sales Segment contribution margin Segment direct fixed expenses Corporate common fixed expenses allocated to the segment
Segment variable expenses Segment sales Segment contribution margin Segment direct fixed expenses
The term, "earned," in revenue recognition refers to which of the following? Multiple Choice The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash. The entity has received an irrevocable order for goods or services. Cash has been received with an irrevocable order for goods or services. The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits.
The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits.
True or false: Operating leverage should inform management's decisions about whether to incur variable costs or fixed costs in its cost structure. True False
True
The relevant range assumption relating to fixed costs refers to: a firm's range of rates of return a firm's range of profitability a firm's range of sales a firm's range of activity
a firm's range of activity
Most entities satisfy the accounting criteria for recognizing revenue when: Multiple Choice an order is received from a customer. cash is received from a customer. an unearned revenue account is credited. a product is delivered or a service is provided.
a product is delivered or a service is provided.
Most entities satisfy the accounting criteria for recognizing revenue when: Multiple Choice cash is received from a customer. an unearned revenue account is credited. an order is received from a customer. a product is delivered or a service is provided.
a product is delivered or a service is provided.
A fixed manufacturing overhead variance caused by the actual activity being different from the estimated activity used in calculating the predetermined overhead application rate is called: an efficiency variance a budget variance a spending variance a volume variance
a volume variance
When the number of units sold is _____. below the breakeven point, profit equals each unit sold below the breakeven point multiplied by the contribution margin per unit. above the breakeven point, profit equals units sold above the breakeven point multiplied by the contribution margin per unit. above the breakeven point, loss equals each unit sold below the breakeven point multiplied by the contribution margin per unit. below the breakeven point, loss equals each unit unsold below the breakeven point multiplied by the contribution margin per unit.
above the breakeven point, profit equals units sold above the breakeven point multiplied by the contribution margin per unit. below the breakeven point, loss equals each unit unsold below the breakeven point multiplied by the contribution margin per unit.
In the planning and control cycle, feedback is obtained by comparing planned activity (...) with results.
actual
The performance of an investment center is determined by comparing: actual and budgeted ROI based on segment margin and assets controlled by the segment. actual segment margin to budgeted segment margin. actual contribution margin to budgeted contribution margin. actual costs incurred to budgeted costs.
actual and budgeted ROI based on segment margin and assets
The principal (advantage/disadvantage) of the internal rate of return method for evaluating proposed capital investments is that it (considers/ignores) the time value of money.
advantage, considers
The principal (advantage/disadvantage) of the net present value method for evaluating proposed capital investments is that it (considers/ignores) the time value of money.
advantage, considers
Budget slack is: Multiple Choice sometimes called padding or cushion. the result of budget estimates submitted that are slightly higher than what the costs are really expected to be. an allowance for contingencies built into a budget. all of the answers are correct.
all of the answers are correct.
Cost accounting is concerned with: Multiple Choice accumulation and determination of product, process or service cost. income measurement and inventory valuation. generally accepted accounting principles. all of the answers are correct.
all of the answers are correct.
If the net standard costing variance of a business is significantly relevant to the total production cost, the net variance should be: allocated between WIP and FG inventories and cost of goods sold treated as an adjustment to manufacturing overhead assigned to cost of goods sold ignored
allocated between WIP and FG inventories and cost of goods sold
The purchasing agent of an organization acquired some raw materials at a bargain price, even though she knew that their quality was lower than that of the materials customarily used. This action resulted in a favorable raw materials purchase price variance that might very well have been more than offset by: Multiple Choice a favorable direct labor efficiency variance. an unfavorable direct labor rate variance. an unfavorable raw materials usage variance. an unfavorable variable overhead spending variance.
an unfavorable raw materials usage variance.
Costs may be allocated to a product or activity for many purposes, but care must be exercised when using allocated costs because: Multiple Choice direct costs identified with the product or activity may not be accurately assigned. arbitrarily allocated costs may not behave in the way assumed in the allocation method. all costs may not have been allocated to the product or activity. fixed costs will change in total if the volume of activity changes.
arbitrarily allocated costs may not behave in the way assumed in the allocation method.
Indirect costs describe costs that: have variable cost behavior are traceable to a cost object are not traceable to a cost object have fixed cost behavior
are not traceable to a cost object
A predetermined overhead rate is used to: keep track of actual overhead costs. assign indirect costs to units produced. assign direct costs to units produced. assign selling expenses to units produced.
assign indirect costs to units produced.
If the net standard costing variance of a business is considered immaterial to the total production cost, the net variance should be: allocated between WIP and FG inventories and cost of goods sold treated as an adjustment to manufacturing overhead ignored assigned to cost of goods sold
assigned to cost of goods sold
A high-level integrated approach to measuring and reporting organizational performance is accomplished by using a: segmented income statement balanced scorecard DuPont performance analysis return on investment analysis
balanced scorecard
A set of integrated financial and operating performance measures that communicate an organization's priorities associated with achieving strategic goals is known as a: Multiple Choice segment report. master budget. responsibility report. balanced scorecard.
balanced scorecard.
Cost of Goods Manufactured can be computed as: Multiple Choice beginning balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied - ending balance of work in process. ending balance of work in process + raw materials purchased + direct labor costs incurred + manufacturing overhead costs applied - beginning balance of work in process. ending balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied - beginning balance of work in process. beginning balance of work in process + raw materials purchased + direct labor costs incurred + manufacturing overhead costs applied - ending balance of work in process.
beginning balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied - ending balance of work in process.
A performance report for direct labor shows a variance between the budget and actual amounts. This difference is a: Multiple Choice budget variance. direct labor efficiency variance. direct labor rate variance. direct labor spending variance.
budget variance.
The relevant range assumption is about (...) and suggests that the level of fixed costs will remain constant only within certain ranges of activity.
capacity
In capital budgeting, the cash receipts and disbursements associated with a capital expenditure over its life is known as (...)(...).
cash flows
When analyzing capital expenditure decisions, the key factor used to equate the value of money over varying lengths of time is: cumulative net income annual profit margin international exchange rates compound interest
compound interest
The decision for solving production mix problems involving multiple products and scarce production resources should focus on: gross profit of each product. contribution margin per unit of scarce resource. sales price of each product. contribution margin of each product.
contribution margin per unit of scarce resource.
In managerial accounting, the term (...) means different things depending on the situation.
cost
When the high-low method of estimating a cost behavior pattern is used: Multiple Choice the highest and lowest sales price and volume amounts are used in the calculation. cost and volume data must be reviewed for outliers. the resulting cost formula will explain total cost accurately for every value between the high and low volumes. the direct result of the high-low calculations is the fixed expense amount.
cost and volume data must be reviewed for outliers.
A traditional income statement format is organized by function, whereas a contribution margin format income statement is organized by(...)(...)
cost behavior
The term to describe the concept that costs increase or decrease with changes in the volume of activity is known as: cost avoidance cost behavior cost classification cost incurrence
cost behavior
The contribution margin format income statement is organized by: Multiple Choice functional classifications. responsibility centers. sales territories. cost behavior classifications.
cost behavior classifications.
Underapplied overhead represents a (debit/credit) balance in the Manufacturing overhead account that results from actual overhead costs in excess of applied overhead.
debit
The management activity that occurs in each phase of the planning and control cycle is: controlling planning managing decision making
decision making
When management considers a capital budgeting expenditure, present value analysis most accurately informs the decision process; however: the accounting rate of return method could be more dependable the payback method may be even more perceptive a qualitative analysis could distort the outcome in close decisions decisions are significantly influenced by top management's values and experiences
decisions are significantly influenced by top management's values and experiences
When units in production are completed, the resulting flow of cost of goods manufactured is that the Work in process inventory is (increased/decreased) and the Finished goods inventory is (increased/decreased).
decreased, increased
When considering two decision alternatives, _____________ costs are those costs that would result from selecting one alternative instead of the other. differential sunk irrelevant allocated
differential
A cost that is clearly traceable to a product or activity such that the cost would not be incurred if the product or activity were discontinued is known as a(n) (...) cost.
direct
A segmented income statement in the preferred format uniquely emphasizes: variable and fixed costs direct and common fixed costs operating expenses and fixed costs variable costs and operating expenses
direct and common fixed costs
An example of a cost that is controllable in the short run is: interest on long-term debt direct labor depreciation on plant and equipment real estate taxes
direct labor
Three components of product costs are: Multiple Choice manufacturing overhead, indirect material, indirect labor. direct material, direct labor, manufacturing overhead. direct labor, manufacturing overhead, indirect material. direct material, supervisor salaries, selling expenses.
direct material, direct labor, manufacturing overhead.
If ABC Company outsources its product service division, (common/direct) fixed expenses would be eliminated but (common/direct) fixed expenses would continue to be incurred.
direct, common
When considering the decision to continue or discontinue a segment of the organization, (common/direct) fixed expenses will always be relevant to the decision and (common/direct) fixed expenses will never be relevant to the decision.
direct, common
The principal (advantage/disadvantage) of the accounting rate of return method for evaluating proposed capital investments is that it (considers/ignores) the time value of money.
disadvantage, ignores
In capital budgeting, the present value of future cash flows from an investment is determined by using the appropriate (...) rate.
discount
capital budgeting, the present value of future cash flows from an investment is determined by using the appropriate (...) rate.
discount
A variance is calculated to measure the difference between actual costs and: Multiple Choice activity-based costs. capacity costs. expected selling price. expected costs.
expected costs.
If actual raw materials cost is less than the budgeted raw materials cost, then the variance is a(n) (favorable/unfavorable) variance.
favorable
Expressing fixed costs on a per unit basis of activity is misleading because: Multiple Choice fixed cost per unit decreases as activity increases. fixed cost per unit increases as activity increases. total fixed costs increase as activity increases. total fixed costs decrease as activity decreases.
fixed cost per unit decreases as activity increases.
The difference between absorption costing and direct (or variable) costing is in the accounting for: fixed manufacturing overhead direct materials direct labor variable manufacturing overhead
fixed manufacturing overhead
Absorption costing and direct costing differ in the treatment of: Multiple Choice selling expenses. variable manufacturing overhead. fixed manufacturing overhead. direct labor costs.
fixed manufacturing overhead.
Capital budgeting is different than operational budgeting because of the long-term time frame of the capital budget. Therefore, capital budgeting: focuses on long-term liabilities is prepared on a continuous budget time frame is a budgeting process that involves only the financial staff focuses on the present value of cash flows from investments
focuses on the present value of cash flows from investments
Relevant costs in short-run decisions are: future costs that represent differences between decision alternatives common costs arbitrarily assigned to products or activities costs that result from past decisions costs that do not influence the decision
future costs that represent differences between decision alternatives
Revenue may be recognized: Multiple Choice in 2019 from the sale of subscriptions of a magazine to be published in 2020. from the sale of a company's own common stock. if management believes the market value of land held for future development has increased during the year. if a company trades inventory at its usual selling price for newspaper advertising.
if a company trades inventory at its usual selling price for newspaper advertising.
The term noncontrollable cost: Multiple Choice is another term for discretionary cost. only applies to long-term costs. never applies to short-term costs. implies that there is really nothing the manager can do to influence the amount of cost.
implies that there is really nothing the manager can do to influence the amount of cost.
When the firm's activity requires it to operate at a level above the upper boundary of the relevant range, fixed expenses are likely to: Multiple Choice decrease. be eliminated. remain the same. increase.
increase.
A firm (can elect/is required) to use absorption costing for both financial reporting and income tax purposes.
is required
A cost is considered relevant if: Multiple Choice it is positive. it makes a difference. if it can't be changed. it is sunk.
it makes a difference.
A company's margin of safety calculation is an indication of how closely the company is operating relative to __________. its breakeven point its operating income its fixed expenses its sales performance
its breakeven point
The product cost accounting system used when discrete products are manufactured is known as a (job/process) costing system.
job
The higher a firm's contribution margin ratio, the greater its operating: income loss expenses leverage
leverage
Simplifying assumptions identified for the use of cost behavior pattern data include: Multiple Choice fixed range and variability. relevant range and liquidity. fixed activity and linearity. linearity and relevant range
linearity and relevant range
A capital budget provides the organization an overall blueprint to help the organization meet its: long-term growth and profitability objectives relevant costing objectives operating budget goals annual profit and strategic plans
long-term growth and profitability objectives
(...) accounting provides information to support an organization's planning, control and decision-making needs.
managerial
The finished goods inventory account is increased for the cost of goods (manufactured/sold) and is decreased for the cost of goods (manufactured/sold).
manufactured, sold
A relative measure of risk that describes a company's current sales performance in relation to its break-even sales is called the _____. breakeven point operating leverage margin of safety DuPont point
margin of safety
Another term for return on equity is: Multiple Choice return on investment. return on assets. return on retained earnings. none of these.
none of these.
An organization's (operating/capital) budget reflects its plans to achieve short-term profitability goals, while the organization's (operating/capital) budget reflects its plans to achieve long-term profitability goals.
operating, capital
The primary objective of (...) reporting is to highlight those activities for which actual and planned results differ, favorably or unfavorably, so that appropriate action can be taken.
performance
Costs not incurred for the manufacturing of a product and not included in inventory as a product cost are known as (...) costs.
period
Managerial accounting provides information for: planning, control, and decision-making generally accepted accounting principles preparing an organization's balance sheet publishing an organization's income statement
planning, control, and decision-making
Cost accounting _____. fails to play any role in the inventory valuation aspects of financial accounting focuses only on providing information to stockholders and creditors of an organization need not be flexible enough to provide answers to support the broad array of managerial questions for decision making purposes relates primarily to the accumulation and determination of product, process, or services costs Confidence Level
relates primarily to the accumulation and determination of product, process, or services costs
Future costs that represent differences between decision alternatives and are the key to effective decision making are called (...) costs.
relevant
If the selling price and variable expense per unit were to drop $2 and fixed expenses remain the same, the breakeven point would __________. increase remain the same decrease
remain the same The contribution margin remains the same and hence no change in breakeven point.
hen considering the product mix decision and the allocation of scarce production capacity resources, the objective is to maximize contribution margin in terms of the (...)(...).
scarce resources
The high-low method of analyzing the cost behavior of a mixed cost uses a(n) (...) to illustrate cost and volume data relationships.
scattergram
The term describing the contribution of a segment of an organization to the common fixed expenses and operating income of the organization is __________ margin. sales operating segment contribution
segment
The principal categories of other operating expenses frequently reported on the income statement include: selling expenses general and administrative expenses research and development expenses interest and income tax expenses depreciation and amortization expenses
selling expenses general and administrative expenses research and development expenses
Knowing the behavior pattern of a cost is important to determine the effect on net income of a change in sales volume because as sales volume increases or decreases: Multiple Choice net income will change proportionately. variable costs will not change. the effect on net income will depend on the behavior pattern of various costs. fixed costs will rise proportionately.
the effect on net income will depend on the behavior pattern of various costs.
A firm calculates the average contribution margin ratio when _____. the firm's average revenue is more than the total current liabilities the firm incurs more expenses than revenues the firm's going concern becomes an issue the firm sells more than one product
the firm sells more than one product
Product costs are inventoried and treated as assets until: Multiple Choice the next accounting period. related liabilities no longer exist. the period in which the products they relate to are sold. none of the answers are correct.
the period in which the products they relate to are sold.
The management process is illustrated through a series of management key activities referred to as: the bookkeeping process the planning and control cycle financial statement preparation transaction analysis
the planning and control cycle
The term transfer price refers to: Multiple Choice the price at which a product or service is sold to a government entity. the price at which a product or service is sold by one segment to another related segment. the price at which a product or service is sold by a segment to an outside party. none of the answers are correct.
the price at which a product or service is sold by one segment to another related segment.
ABU Co. has several products, each with a different contribution margin ratio. If the same number of units were sold in July as in June, but the sales mix changed: Multiple Choice operating income would be the same in June and July. fixed expenses in July would be in a different relevant range than in June. total contribution margin in July would be different from that in June. the company's overall contribution margin ratio would be the same in June and July.
total contribution margin in July would be different from that in June.
On the statement of cost of goods manufactured, the sum of raw materials used + direct labor incurred + manufacturing overhead applied is known as: total manufacturing costs contribution margin cost of goods manufactured cost of goods sold
total manufacturing costs
An organization's (...) (...) is the sequence of functions and related activities that adds value for the customer over the life of a product or service.
value chain
As the volume of activity changes, a(n) (...) cost changes in total.
variable
As the volume of activity changes, a(n) (...) cost remains constant when expressed on a per unit basis.
variable
The portion of the budget variance for variable overhead due to the difference between actual hours required and standard hours allowed for the work done is called the: Multiple Choice variable overhead price variance. variable overhead volume variance. variable overhead spending variance. variable overhead efficiency variance.
variable overhead efficiency variance.
The difference between the actual and budgeted amounts shown in a performance report is a (...)
variance
The fixed manufacturing overhead variance caused by actual activity being different from the estimated activity used in calculating the predetermined overhead application rate is called the: Multiple Choice volume variance. spending variance. efficiency variance. budget variance.
volume variance.
Some of the key interpretations to be made from the statement of cash flows include the determination of: whether the company's cash balance increased or decreased during the year. how much cash was generated by the depreciation process during the year. what the two or three largest sources and uses of cash were during the year for both investing and financing activities. whether net cash flows provided by operations exceed the company's cash used for investing activities.
whether the company's cash balance increased or decreased during the year. what the two or three largest sources and uses of cash were during the year for both investing and financing activities. whether net cash flows provided by operations exceed the company's cash used for investing activities.
predetermined overhead application rate is established to apply manufacturing overhead to __________. work in process raw materials cost of goods sold finished goods
work in process
At the breakeven point, operating income is equal to (...)
zero
Cost behavior implies that people accountable for costs would react negatively to increases in the cost. True False
False
From the following cost examples, identify those that are variable costs. Manager salaries Hourly wages Building rent Production supplies Real estate taxes Sales commissions
Hourly wages Production supplies Sales commissions
Which of the following variances is not determined during an overhead variance analysis? Multiple Choice Price variance. Budget variance. Spending variance. Volume variance.
Price variance.
Which of the following capital budgeting techniques use present value analysis? The payback method The net present value method The internal rate of return method The accounting rate of return method
The net present value method The internal rate of return method
All costs are (controllable/noncontrollable) by someone at some time, but in the short run, some costs may be classified as (controllable/noncontrollable) because there is really nothing a manager can do to influence the amount of cost in the short run.
controllable, noncontrollable
When considering the decision for solving product mix problems involving multiple products and scarce production resources, the decision should focus on: contribution margin per unit of scarce resource contribution margin of each product variable and fixed cost of each product operating income of each product
contribution margin per unit of scarce resource
A management activity in the planning and control cycle that compares actual performance with planned activity is known as: decision making managing controlling planning
controlling
In an activity-based costing system, a cost (...) is an activity that causes the incurrence of a manufacturing cost.
driver
An example of a cost likely to have an indirect relationship with products being manufactured is: Multiple Choice production labor costs. raw material costs. electricity costs for packaging equipment. none of the answers are correct.
electricity costs for packaging equipment.
As the volume of activity changes, a(n) (...) cost changes when expressed on a per unit basis.
fixed
The logical sequence of activities performed in the management planning and control cycle is:
planning, managing, and controlling
Capital budgeting procedures should involve the use of (...) (...) analysis because an investment is made today in expectation of returns far into the future
present value
For a manufacturing firm, (...)costs are inventoried and treated as assets until inventory is sold while (...) costs are recorded as expense in the accounting period incurred.
product, period
An example of a cost that is noncontrollable in the short run is: sales commissions direct labor raw materials property taxes
property taxes
After the results of a present value analysis has been obtained for a capital investment opportunity, overriding (...) factors should also be considered before a final decision is made.
qualitative
Sometimes when management decisions are reached, the investment project with the highest NPV or IRR is not selected because (qualitative/quantitative) factors override (qualitative/quantitative) analysis.
quantitative, qualitative
Which of the following activities is not included in the organization's value chain? Production Customer service Accounting Research and development
Accounting
Which of the following is an accurate statement regarding a statement of cash flows? Multiple Choice Immaterial financing activities that affect cash do not need to be included. Only cash items that affect the income statement are included. Only material cash items that affect the income statement are included. All material operating, investing, and financing activities are included.
All material operating, investing, and financing activities are included.
Identify the correct sequence of steps in the cost accumulation and assignment process, which allows managers to observe costs for different organizational cost objects.
1. Accumulate costs 2. Identify cost objects 3. Pool Costs 2. Assign Costs
Identify the correct cost flow sequence as product costs move through the manufacturing process.
1. Raw materials inventory 2. Work in Progress 3 Finished Goods 4. Cost of goods sold
Identify a subtotal that is reported in a multiple-step income statement. Cost of products sold Other income, net Income before taxes Provision for income taxes
Income before taxes
The DuPont model is an expansion of the return on investment calculation to the formula: X .
Margin X Turnover
Which of the following is another term for mixed costs? Semifixed costs. Semivariable costs Component costs. None of the answers are correct.
Semivariable costs
Capital expenditure analysis attempts to measure the impact of a proposed capital investments on the organization's overall (ROI/NPV) objectives.
ROI
Managerial accounting provides information for use within an organization. T or F
True
True or false: Determining a product's cost is necessary to value the units, purchased or manufactured, of that product either as cost of goods sold or as ending inventory for any units unsold. True False
True
A fixed manufacturing overhead variance caused by the difference between the actual fixed overhead expenditures and the fixed overhead that was budgeted for the period is called: a volume variance a budget variance an efficiency variance a spending variance
a budget variance
When analyzing capital expenditures, the time value of money concept implies: a dollar received today is worth more than a dollar received five years from today a dollar received today is worth the same as dollar received five years from today the value of money is timeless a dollar received today is worth less than a dollar received five years from today
a dollar received today is worth more than a dollar received five years from today
A cost behavior pattern describes the relationship of total cost to volume of (...)
activity
The use of activity-based costing information to support the decision-making process is known as: Multiple Choice value chain analysis. cost distortion analysis. cost-based management. activity-based management.
activity-based management.
Multiple-step income statements commonly report subtotals for: net income income from operations cost of goods sold gross profit
income from operations gross profit