busi

in order to obtain more accurate product costs, many companies now allocate overhead using multiple cost drivers in

ABC

If finished goods inventory has decreased, which of the following is always true?

CGS is more than CGM

in WIP has not changed, which Is always true?

TMC=CGM

A normal cost system uses a predetermined factory overhead rate based on expected labor hours and expected costs. At the end of the year, undersupplied overhead might be explained by which of the following situations?

actual labor hours - less than expected actual costs - greater than expected

which of the following is a performance-measuremeht technique the attempts to consider and evaluate all aspects of performance using financial and non financial measures in an integrated fashion?

balanced scorecard

many companies now manufacture products that are untouched by human hands. What do they use to achieve this?

computer-integrated manufacturing

a company incurred more MO than the amount it applied to its jobs during the year. What entry must be made at the end of the year to allocate the remaining overhead if not material in amount?

debit DGS and credit MO (this is over applied overhead)

a company incurred less MO than the amount it applied to its jobs during the year. What entry must be made at the end of the year to allocate the remaining overhead if not material in amount?

debit MO and credit CGS

the most accurate year-end treatment of over applied factory overhead is to:

decrease CGS and appropriate inventory accounts

the primary difference between variable costing and absorption costing is the treatment of:

fixed manufacturing overhead

a normal cost system uses a predetermined factory overhead rate based on expected costs. At the end of the year, underapplied would be explained by which of the following situations in regards to actual costs and actual labor hours?

greater than expected actual costs and less than expected actual labor hours

Would over applied overhead by explained by greater than or less than expected in regards to actual labor hours and actual costs?

greater than expected actual labor hours and less than expected actual costs

the most accurate year-end treatment of underapplied factory overhead is to

increase CGS and appropriate inventory accounts

the transfer price approach that is often considered the best approach because it generally provides the proper economic incentives is the

market-based approach

cost of goods sold is equal to cost of goods manufactured...

minus the increase in finished goods inventory

cost of goods sold is equal to cost of goods manufactured: (plus or minus) the (decrease or increase) in WIP or finished goods inventory)?

plus the decrease in finished goods inventory

CGM is equal to total manufacturing costs...

plus the increase in WIP inventory

if the selling price per unit increases and total fixed expenses decrease which the variable per unit decrease what happens to the break-even point?

to break-even point decreases

what two types of costs behave in a like fashion and look similarly when plotted on a graph?

total fixed and unit variable

If WIP inventory has decreased, which of the following is always true?

total manufacturing costs are less than cost of goods manufactured.

management may be tempted to overproduce

when using absorption costing, in order to increase net income