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