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Financial Questions

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Question;1. (TCO;1) A difference between actual costs and planned costs (Points;4) should be investigated if the amount is exceptional.;indicates that the planned cost was poorly;estimated. indicates that the manager;is doing a poor job. should be;ignored unless it involves the cost of ingredients.;2. (TCO;1) A company has a cost that is \$2.00 per unit at a volume of 12,000 units and;\$2.00 per unit at a volume of 16,000 units. What type of cost is this? (Points;4);Fixed Variable;Sunk Incremental;3. (TCO;2) Ice Box Company manufactures refrigerators. Which of the following items is;most likely to be an indirect material cost for Ice Box Company? (Points;4) Factory supervisor?s;salary Lubricant for refrigerator door hinges;Glass shelves for the refrigerators;Refrigerator motors;4. (TCO;2) A form used to accumulate the cost of producing an item is called a(n);(Points: 4) job-cost sheet material;requisition balance;sheet invoice;5. (TCO;3) Why is it necessary to compute equivalent units separately for materials and;conversion costs? (Points: 4);Mistakes are made in the accounting for these;costs Materials and conversion enter the production process at different;rates Conversion costs are;more difficult to estimate None of;the above reasons are true;6. (TCO;3) In the assembly department, all the direct materials are added at the;beginning of the processing. Beginning Work in Process inventory consists of;2,000 units with a direct materials cost of \$31,860. During the period, 15,000;units are started and direct materials costing \$250,000 are charged to the;department. If there are 1,000 units in ending inventory, what is the cost per;equivalent unit? (Points: 4);\$15.93;\$15.63;\$14.83 \$16.58;7. (TCO;4) Regression analysis (Points: 4);uses all the available data points to estimate a cost;equation can be performed by many spreadsheet;programs provides an equation that;can be used to estimate total costs at different;levels all of the above;8. (TCO;4) Beaudreaux Motors is operating at its break-even point of 16,000 units.;Which of the following statements is not true? (Points;4) The amount of the company?s total;costs equals the amount of its;revenues. The company?s fixed costs equal its variable;costs. The company?s profit;equals zero. Assuming no other;changes, if the company sold more units, it would earn a;profit.;9. (TCO;5) Which of the following is treated as a product cost in full costing?;(Points: 4) Sales;commissions Administrative;salaries Factory supervisor;Security at corporate headquarters;10. (TCO;5) When the number of units sold is equal to the number of units produced, net;income using full costing will be (Points;4) greater than net income under;variable costing equal to net income using variable costing;less than income using variable;costing none of the;above;11. (TCO;6) A major problem with cost-plus contracts is that they (Points;4) are not acceptable under;GAAP. cause the supplier to take;significant financial risks. require;the supplier to use variable costing.;create an incentive to allocate as much;cost as possible to the goods produced under the cost-plus contract.;12. (TCO;6) Which of the following steps is not involved in the ABC approach? (Points;4) Identify activities which cause;costs to be incurred. Allocate costs;to products based on activity usage.;Group costs of activities into cost pools.;Improve processes based on;benchmarking;13. (TCO;7) Which of the following is not a term used to describe the additional costs;incurred as a result of selecting one decision over another? (Points;4) Differential;costs Sunk costs Relevant;costs Incremental;costs;1. (TCO;7) Common costs (Points: 4) are fixed;costs that are not directly traceable to an individual product;line. normally not;avoidable. Both A and B are true.;Neither A nor B is true.;2. (TCO;8) Activity based pricing seeks to(Points;4) charge customers with the costs they are;creating. make greater profits;by charging all customers more.;maintain all customers in the customer;base. all of the;above.;3. (TCO;8) Which of the following should be true in order for a company to accept a;special order? (Points: 4) Variable;costs are less than fixed costs;Incremental revenues exceed incremental costs;Opportunity costs are zero The order;is for a current customer;4. (TCO;9) Present value techniques (Points;4) ignore cash flows that will occur;more than ten years in the future. are a way of converting future dollars into;equivalent current dollars.

Paper#49292 | Written in 18-Jul-2015

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