Flashcards in Final Questions Deck (35)
The salary paid to the marketing supervisor in the administrative office is an example of
no - product cost
no - manufactured overhead
(true or false) indirect materials and factory supervisor salaries are not traced to specific jobs. These costs are applied to jobs through the overhead rate
(true or false) country claim restaurant is open 24 hours a day and always has a fire going in the fireplace in the middle of its dining are.a the cost of the firewood for this fire is variable with respect to the number of meals served at the restaurant
when the activity level declines within the relevant range what should happen with respect to the following?
fixed cost per unit - increase
variable cost per unit - no change
overapplied manufacturring overhead means that:
the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost.
(true or false) The cost of a completed in a job-order costing system typically consits of the actual direct materials cost of the job the estimated direct labor cost of the job, and the actual manufacturing overhead cost traced to the job
What would be an example for indirect materials in the production of a wooden table?
cost of glue
(true or false) Fixed cost per unit is expected to remain unchanged as activity changes within the relevant range.
When jobs are sold, their cost move from ____ to ____.
the balance sheet to the income statement
If overhead is overapplied then cost of goods sold would be too high prior to the adjustment for the overhead variance. Therefore, the adjustment is to increase cost of goods sold.
Which are of accounting is most like finance?
Compared to a contribution margin income statement, a GAAP income statement is more helpful to figure out the production cost per unit.
A contribution margin income statement classifies costs as either fixed/variable while a GAAP income statment classifies costs as product/period.
overhead is a product cost and is usually a mixed cost.
if cost of good sold is greater than cost of good manufactured then finished goods inventory increased.
cost of goods manufactured referes to the amount of work in process that was completed and transferred to finished goods.
Budgetted production needs are determined by:
adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total
On a CVP graph for a profitable company, the total expense line will be steeper than the line representing variable costs
In the selling and administrative budget, depreciation on office equipment is added to the total budgeted selling and administrative expense to determine the expected cash disbursements for selling and administrative expenses.
company manufactures and sells a single product with a positive cm. if the selling price and the variable experent per unit both increase 5% and frixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio?
contribution margin per unit - increase
contribution margin ratio - no change.
as fixed costs ___. risk___ , break even point __ and your margin of safety ____
decrease, decreases, decreases, increases
A variable cost is a cost whose cost per unit is fixed as the activity level rises and falls.
(true or false)The weakness of participative budgeting is sandbagging.
(true or false) The weakness of top down budgeting is employee motivation.
30. Which of the following costs is often important in decision making, but is omitted from conventional accounting records?
Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? Hint: Remember that the denominator in the POHR should be a cost driver for overhead.
As technology increases and machines replace direct labor in the production process, what general impacts would you expect on production costs? Hint: Technology and automation will generally only be introduced if costs are less than human labor.
fixed costs _________, overhead _____________, unit cost ______________
increase, increases, decreases
To maximize our savings, it is best to ________ first and ________ what is left.
A millionaire is someone who has assets greater than a million.