Quizzes - Managerial Accounting

The following data relate to direct materials costs for february: materials cost per yard: standard, $2.00; actual, $2.10 yards per unit: standard, 4.5 yards; actual, 4.75 yards units of production:9,500 the total direct materials cost variance is

$9,262.50 unfavorable

chapter 18 question 10 the factory overhead allocated per unit of Product B in the painting department if Blue Ridge marketing inc. uses the multiple production department factory overhead rate method is

$99.20

the revenue that is forgone from an alternative use of an asset, such as cash, is called

opportunity cost

Discontinuing a segment or product may not be the best choice when the segment is contributing to fixed expenses.

true

which of the following statements about performance metrics is false

performance mtrics are needed for 80% of strategic of the strategic objectives

chapter 18 question 9 using a single plantwide rate, the factory overhead allocated per unit of Product B is

$320

Which of the following must be true in order for materials to be classified as direct materials?

They must be an integral part of the finished product and be a significant portion of the total product cost.

The following data relate to direct materials costs for february: materials cost per yard: standard, $2.00; actual, $2.10 yards per unit: standard, 4.5 yards; actual, 4.75 yards units of production:9,500 the direct materials quantity variance is

$4,750 unfavorable

when several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable. If the alternative proposals involve different amounts of investmentm it is useful to prepare a relative ranking of the propsals by using a ______ index

present value

which of the following is not one of the four performance perspectives included in the balanced scorecard?

research and development

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

$12.40

T/F When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

False

Budgets need to be fair and attainable for employees to consider the budget important in their normal daily activities. which of the following situations will not lead to human behavior problems?

allowing employees the opportunity to be a part of hte budget process

Product costs

appear on both the income statement and balance sheet

Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs?

assembly labor's wages

Finished goods inventory is reported on the

balance sheet as a current asset

Which of the following will not be found on the balance sheet of a manufacturing company?

cost of goods sold

which of the following is not included in conversion costs? a. direct labor b. factory overhead c. indirect labor d. direct materials

d. direct materials

Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to department X from Department W during the period; and 1,800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs. In a process cost system, the cost of completed production in Department A is transferrer to department B by which of the following journal entries?

debit Work in Process—Department B and credit Work in Process—Department A

what best describes the behavior of the fixed cost per unit?

decreases with increasing production

when preparing the cash budget, all the following should be considered except

depreciation expense

Which of the following is part of factory overhead cost?

depreciation of factory equipment and machines

The cost of a manufactured product generally consists of which of the following costs?

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

which of the following is an example of a cost that varies in total as the number of units produced changes?

direct materials cost

Which of the following types of inventories does a manufacturing business report on the balance sheet?

direct materials inventory, work in process inventory, and finished goods inventory

a disadvantage of static budgets is that they

do not allow for possible changes in activity levels

the portion of whole units that were completed with respect to either materials or conversion costs within a given accounting period is the definition of

equivalent units

The three most common cost behavior classifications are

fixed costs product costs sunk costs

which of the following is not a factory overhead cost?

materials used directly in the manufacturing process of the product

Period costs include

operating costs that are shown on the income statement in the period in which they are incurred

support department costs are applied to products as a part of

overhead

Which of the following represents the factory overhead applied to a product?

predetermined factory overhead rate times actual activity base

Costs that are treated as assets until the product is sold are

product costs

which of the following is the most difficult but most accurate of the commonly used methods for allocating support department costs to production departments

reciprocal services method

The first budget customarily prepared as part of an entity's master budget is the ________ budget

sales

contribution margin is

the excess of sales revenue over variable cost

which of the following is the main feature of support department costs

they are indirect costs

T/F support departments are sometimes called service departments because they provide services to other departments

true

if the principal products of a manufacturing process are identical, a process cost system is more appropriate than a job order cost system

true

Piper technology's fixed costs are $1500000, the unit selling price is $250, and the unit variable costa are $130. The amount of sales requred to realize an operating income of $200,000 is

14167 units

thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is

$62 per machine hour

McBride's Dairy has 200 gallons of cream and 600 gallons of skimmed milk and has incurred $1000 of joint costs at the split-off point. It also incorporates a processing time weight factor of 1 for the cream and 3 for the skimmed milk. The amount of this cost that will be allocated to skimmed milk using the weighted average method is

$900

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

be prepared in accordance with generally accepted accounting principles

joint costs are inseparable

before the spllit-off point

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

budget

for a supervisor of a manufacturing department, which of the following costs is controllable

direct materials

Miller and Sons' static budget for 10,000 units of production includes $50,000 for direct materials, $44,000 for direct labor, variable utilities of $5,000, and supervisor salaries of $24,000. A flexible budget for 12,000 units of production would show

direct materials of $60,000, direct labor of $52,800, utilities of $6,000, and supervisor salaries of $24,000

Which of the following is the formula to compute the predetermined factory overhead rate?

estimated total factory overhead costs divided by estimated activity base

A product cost is

expensed in the period the product is sold

Conversion costs are

factory overhead and direct labor

T/F total fixed costs change as the level of activity changes

false

under variable costing, which of the following costs would not be included in finished good inventory

fixed factory overhead cost

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

hospital

if variable costs per unit increased because of an increase in hourly wage rates, the break-even point would

increase

when a single manufacturing process generates multiple outputs, it is called a

joint manufacturing process

which of the following methods allocates joing costs based on the potential market value at the point where the products will be separated to be processed further

market value at split-off method

management should focus its sales and production efforts on the product or products that will provide the

maximum contribution margin

a process cost system would be appropriate for a

natural gas refinery

which of the following budgets provides the starting point for the preparation of the direct labor cost budget?

production budget

which of the following is an example of a mixed cost?

rental costs of $10,000 per month plus $0.30 per machine hour of use

as producation increases, variable costs per unit

stay the same

which of the following statements is true about the direct method of allocating support department costs to production departments

the direct method allocates all support department costs directly to production departments thus ignoring the possibility that some support departments may also serve other support departments

which of the following statements is true about the sequential method of allocating support department costs to production departments?

the sequential method captures some but not all the inter-support-department services by allocating support departments to other support departments and production departments in a series of steps

Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to department X from Department W during the period; and 1,800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs. Which of the following is not a use of the cost of production report?

to project production

at the nd of the fiscal year, the balance in factory overhead is small. The balance will be

transferred to Cost of Goods Sold

T/Fin the short run, the selling price of a product should normally not be less than the variable costs and expenses of making and selling it

true

given the following data: beginning raw materials inventory - $30,000 materials purchased - $65,000 Ending raw materials inventory - $40,000 what is the amount of raw materials used?

$55,000

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

factory overhead

T/F if fixed costs are $650,000 and the unit contribution margin is $30, the sales necessary to earn an operating income of $30,000 are 14,000 units

fales

chapter 20, figure 1 Which of the graphs in figure 1 illustrates the behavior of a total vaiable cost?

graph 3

T/F The cash budget is affected by the sales budget, the various budgets for manufacturing costs and operating expenses, and the capital expenditures budget

true

T/F in determining cost of goods sold, two alternate costing concepts can be used: absorption costing and variable costing

true

T/F the revenues from by-products may be used to offset the costs of the joint production process or they may be reported as other revenue on the income statement (with no related cost of goods sold).

true

T/F while none of the four common methods for allocating joint costs will consistently allocate joint costs more accurately than another, one method may be more appropriate than another depending on the production process

true

TF if sales total $2,000,000, fixed costs total $800,000, and variable costs are 60% of sales, the contribution margin ratio is 40%

true

in the long run, for a business to remain in operation, the revenues from products sold should normally cover all costs and expenses and provide a reasonable income

true

chapter 26, question 6 the cash payback period for the equipment is

5 years

chapter 26, question 8 the cash payback period for this equipment is

5 years

Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are setups, inspections, and assembly. Which of the following would not be used as the activity base for any of these three activities?

number of units to be produced

a responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a _____ center

profit

performance targets

provide goals for employees

the excess of divisional operating income over a minimum acceptable amount of divisional operating income is

residual income

using multiple department factory overhead rates instead of a single plantwide factory overhead rate

results in more accurate product costs

AnaCarolina and Jaco, accountants for Duke Manufacturing, are tasked with determining appropriate performance metrics for the financial perspective of Duke's balanced scorecard. Which of the following is the best metric for this situation?

return on investment

Which of the following is not one of the elements of the balanced scorecard?

strategic plan

a cost that has been incurred in the past, cannot be recouped, and is not relevant to future decisions is termed a

sunk cost

the target costing method assumes that

the selling price is set by the marketplace

which of the following statements regarding the cash payback period is true?

the shorter the payback, the possibility of obsolescence will be less likely

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

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

when using the product cost method of applying the cost-plus approach to product pricing, which of the following is included in the markup?

total selling and acministrative expenses plus desired profit

T/F the profit margin component of return on investment analysis focuses on profitability by indicating the rate of profit earned on each sales dollar

true

T/F the volume variance measures the use of fixed factory over head resources

true

T/F under absorption costing, the cost of finished goods includes direct materials, direct labor, and all factory overhead

true

after the sales budget is prepared, the production budget is normally prepared next

true

under absorption costing, which of the following costs would not be included in finished goods inventory

variable and fixed sellign and administrative expenses

Chelsa Manufacturing Co.'s static budget at 5,000 units of production includes $40,000 for direct labor and $5,000 for variable electric power. Total fixed costs are $23,000. At 8,000 units of production, a flexible budget would show

variable costs of $72,000 and $23,00 of fixed costs

The controlling account for the job cost sheets is

work in process

For a manufacturing business, products that are in the process of being manufactured are referred to as

work in process inventory

Goods that are partially completed by a manufacturer are

work in process inventory

the process of developing budget estimates by requiring managers to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as ________ budgeting

zero-based

using the direct method, Pone Hill company allocates Janitorial department costs based on square footage serviced. it allocates cafeteria department costs based on the number of employees served. it has the following information about its two service departments and two production departments, cutting and assembly: square feet number of employees janitorial department 100 20 Cafeteria department 10000 10 cutting department 2000 60 assembly department 8000 20 the percentage (proportional) usage of the Janitorial Department by the Cutting Department is

20%

Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period; 30,000 units of direct materials were added during the period; 32,000 units were completed during the period; and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process.. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was

29450

which of the following costs are not included in finished goods inventory?

chief financial officer's salary

A variant of fiscal-year budgeting whereby a 12-month projection into the future is maintained at all times is termed _____ budgeting.

continuous

the contribution margin ratio is computed as

contribution margin divided by sales

costs that can be influenced by management at a specific level of management are called

controllable costs

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?

$12,000

in the manufacture of 8,000 units of a product, direct materials cost incurred was $154,000, direct labor cost incurred was $84,000, and applied factory overhead was $45,000. The total conversion cost is

$129,000

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. The total conversion cost is

$158,000

McBride's Dairy has 200 gallons of cream and 600 gallons of skimmed milk and has incurred $1000 of joint costs at the split-off point. the amount of this cost that will be allocated to cream using the physical units method is

$250

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

$270,000

Bryce Co. sales are $914,000, variable costs are $498,130, and operating income is $196,000. What is the contribution margin ratio?

45.5%

if fixed costs are $250000, the unit selling price is $125, and the unit variable costs are $73, the break-even sales (units) is

4808 units

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

5

Motorcycle Manufacturers, Inc. projected sales of 78,000 machines for the year. The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production (in units) for the year?

77,500

If the expected sales volume for the current period is 8,000 units, the desired ending inventory is 1,400 units, and the beginning inventory is 1,200 units, the number of units set forth in the production budget, representing total production for the current period, is

8,200 units

a firm operated at 90% capacity for the past year, during which fixed costs were $420,000, variable costs were 40% of sales were $1,000,000. operating income was

$180000

Reynolds manufaturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If Job 117 incurs 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

$23,000

department M had 2,000 units 40% completed in process at the beginning of June, 12,000 units completed during June, and 1,200 units 25% completed at the end of June. The number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories is

11,500

T/F Factivity-based costing can only be used to allocate manufacturing factory overhead

false

T/F Once equivalent units are computed for materials, this number will also be used for direct labor and factory overhead

false

T/F average rate of return equals average investment divided by estimated average income

false

the entity that pays for the right or license to market another company's goods or services is called the

franchisee

by converting dollars to be received in the future into current dollars, the present value methods take into consideration that money

has a time value

bekah and rafael, supervisors in the human resources department at james manufacturing, are tasked with determining appropriate performance metrics for the learning and growth perspective of their company's balanced scorecard. Which of the following is the best metric for this situation

hoursof employee training offered each quarter

Which of the following is not a reason for a direct materials quantity variance?

increase material cost per unit

some organizations use internal support departments to provide like services to several divisions or departments within an organization. which of the following would probably not lend itself as a support department

inventory control department

the primary advantages of the average rate of return method are its ease of computation and the fact that

it emphasizes the amount of income earned over the life of the proposal

metrics that are early in the value chain are normally considered to be _____ indicators

leading

determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the

market price approach

which of the following would be considered a sunk cost?

net book value of equipment that has no market value

t-bone company is contemplating investing in a new piece of manufacturing machinery. the amount to be invested is $150,000. The present value of the future cash flows is $141,000. should the company invest in this project?

no, because net present value is %(9000)

activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision making. which of the following would be the best allocation base for help desk costs?

number of calls

ABC Corporation has three support departments with the following costs and cost drivers ABC has three operating division, micro, macro, and super. Their revenue, cost, and activity information are as follows (it is all in the chapter 24 quiz, question 3) the support department allocation rate for the personnel department is

$1,000

chick's corporation had $1,100,000 in invested assets, sales of $1,210,000, operating income amounting to $302,500, and a desired minimum return on investment of 15% the residual income for chicks corp is

$137,500

Keating Co. is considering disposing of equipment that cost $50,000 and has $40,000 of accumulated depreciation to date. Keating Co. can sell the equipment through a broker for $25,000 less a 5% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $48,750. Keating will incur repair, insurance, and property tax expenses estimated at $8,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential profit or loss from the sell alternative is a

$17,000 loss

chapter 18 question 8 given the following information, determine the activity rate for setups

$18.00

The following data relate to direct labor costs for march: Rate: standard, $12.00; actual, $12.25 hours: standard, 18,500; actual, 17,955 units of production: 9,450 The total direct labor variance is

$2,051.25 favorable

the following data relate to direct labor costs for the current period: standard costs: 9,000 hours at $5.50 actual costs 8,500 hours at $5.75 the direct labor rate variance is

$2,125 unfavorable

the following data relate to direct labor costs for the current period: standard costs: 36,000 at $22.00 actual costs 35,000 at $23.00 direct labor time variance is

$22,000 favorable

nelson company's radio division currently is purchasing transistors from Charlotte co. for $3.50 each. The total number of transistors needed is 8,000 per month. nelson company's electronics division can produce the transistors for a cost of $4.00 each, and it has plenty of capacity to manufacture the units. The $4.00 is made up of $3.25 in variable costs, and $0.75 in allocated fixed costs. The range of a possible transfer price should be

$3.25 to $3.50

peper corp. is operating at 70% of capacity and is currently purchasing a part used in its manufacturing operations for $24 per unit. The unit cost for the business to make the part is $36, including fixed costs, and $26, not including fixed costs. If 15,000 units of the part are normally purchased during the year but could be manufactured using unused capactiry, the amount of differentail cost increase or decrease from making the part rather than purchasing it would be a

$30,000 cost increase

the condensed income statement for a fletcher inc. for the past year is as follows: chapter 25 quiz, question 3 management is considering the discontinuance of the manufacture and sale of product G at the beginning of the current yar. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of products F and H. The amount of change in profit for the current year that will result from the discontinuance of product G is a

$30,000 decrease

The Botosan Factory has determined that its budgeted factory overhead budget for the year is $13,500,000 and budgeted direct labor hours are 10,000,000. If the actual direct labor hours of the month of may are 350,000, how much overhead would allocated for may is

$472,500

The following data relate to direct labor costs for march: Rate: standard, $12.00; actual, $12.25 hours: standard, 18,500; actual, 17,955 units of production: 9,450 the direct labor time variance is

$6,540.00 favorable

assume that divisional operating income amounts to $215,000 and top management has established 15% as the minimum return on divisional assets totaling $1,000,000. the residual income for the division is

$65,000

Pinnacle Corp. budgeted $700,000 of overhead cost for the current year. Actual overhead costs for the year were $650,000. Pinnacle's plantwide allocation base, machine hours, was budgeted at 100,000 hours. Actual machine hours were 80,000. A total of 100,000 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is

$7.00 per machine hour

Chapter 18 question 12 the cost of services for a haircut is

$7.50

chick's corporation had $1,100,000 in invested assets, sales of $1,210,000, operating income amounting to $302,500, and a desired minimum return on investment of 15% the investment turnover for chicks corporation is

1.1

Blaser Corporation had $275,000 in invested assets, sales of $330,000, income from operations amounting to $33,000 and a desired minimum rate of return of 7.5%. The rate of return on investment for Blaser Corporation is

12%

Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to department X from Department W during the period; and 1,800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs. The total number of units to be assigned cost on the cost of production report for Department W is

17,800 units

the expected average rate of return for a proposed investment of $650,000 in a fexed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and is expected total net income of $240,000 for the 4 years, is

18.5%

The expected average rate of return for a proposed investment of $800,000 in a fixed asset, with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $360,000

22.5%

chick's corporation had $1,100,000 in invested assets, sales of $1,210,000, operating income amounting to $302,500, and a desired minimum return on investment of 15% the profit margin for chicks corp is

25%

Marshall Corporation had $220,000 in invested assets, sales of $242,000, income from operations of $66,000, and a desired minimum rate of return of 3%. The return on investment for Marshall is

30%

Which of the following best describes a strategic performance measurement system?

A strategic performance measurement system defines and links strategic objectives to the performance metrics of a company.

Which of the following statements about performance targets is true?

Performance targets are levels of improvement that management wants to achieve for performance metrics.

Carolina, the accountant for Duke Manufacturing, tells Jacob, who works in customer service for Duke, that that their company's customer satisfaction rating predicts sales revenue in dollars. Carolina's comment indicates that sales revenue is

a lagging indicator

assume in analyzing alternative proposals that proposal F has a useful life of 6 years and proposal J has a useful life of 9 years. what is one widely used method to make the net present values of the proposals comparable?

adjust the life of proposal J to a time period that is equal to that of proposal F by estimating a residual value at the end of year 6

a series of equal cash flows at fixed intervals is termed a

annuity

investment centers differ from profit centers in that they

are able to invest in assets

Which of the following is the best-known strategic performance measurement system?

balanced scorecard

the process by which management plans, evaluates, and controls investments in fixed assets is called ________ analysis

capital investment

in capital rationing, alternative proposals are initially screened for minimum standards using which of the following two evaluation methods

cash payback method and average rate of return method

Starling Co. is considering disposing of a machine with a book value of $12,500 and estimated remaining life of five years. The old machine can be sold for $1,500. A new high-speed machine can be purchased at a cost of $25,000. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $26,000 to $23,500 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)

decrease of $11,000

AnaCarolina and Jaco work at Duke Manufacturing, and they are tasked with determining appropriate performance metrics for the internal processes perspective of Duke's balanced scorecard. Which of the following is the best metric for this situation

defective units produced

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

differential revenue

the standard price and quantity of direct materials are separated because

direct materials prices are controlled by the purchasing department and quantity used is controlled by the

activity rates are dermined by

dividing the cost budgeted for each activity pool by the estimated activity base for that pool

which of the following is not a factory overhead allocation method

factory costing

T/F A favorable cost variance occus when the actual cost is less than the standard cost

true

T/F Cost-plus methods determine the normal selling price by estimating a cost amount per unit and adding a markup

true

T/F care must be taken when making capital investment decisions, since a long-term commitment of funds is involved and operations could be affected for many years

true

T/F in deciding whether to accept business at a special price, the short-run price should be set high enough to cover all variable costs and expenses

true

T/F multiple production department factory overhead rates are more accurate than are plantwide factory overhead rates

true

T/F one of the objectives of the four balanced scorecard performance perspectives is to help management focus on looking beyond typical financial measures of performance

true

T/F the difference between the standard cost of a product and its actual cost is called a cost variance

true

the selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost

true

chapter 18 question 11 the total factory overhead to be allocated to each unit of Hooks is

$33

The following data relate to direct labor costs for march: Rate: standard, $12.00; actual, $12.25 hours: standard, 18,500; actual, 17,955 units of production: 9,450 The direct labor rate variance is

$4,488.75 unfavorable

The following data relate to direct materials costs for february: materials cost per yard: standard, $2.00; actual, $2.10 yards per unit: standard, 4.5 yards; actual, 4.75 yards units of production:9,500 the direct materials price variance is

$4,512.50

the two categories of cost comprising conversion costs are

direct labor and factory overhead

T/F on the absorption costing income statement, deduction of the cost of goods sold from sales yields contribution margin

false

T/F support departments are sometimes called production departments because the two terms mean the same thing

false

T/F the budgeted income statement and balance sheet are the most important components of a company's strategy map

false

T/F the contribution margin and the manufacturing margin are usually equal

false

T/F when a segment of a company is showing a net loss, it is always best to discontinue the segment in order not to continue with losses

false

performance measurement systems are used to assess how well a company is performing relative to the goals FASB sets for the company

false

the budget procedure that requires managers to estimate sales, production, and other operating data as though operations were being started for the first time is called continuous budgeting

false

assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the

fixed factory overhead volume variance