Final Questions Flashcards Preview

ACC 202 > Final Questions > Flashcards

Flashcards in Final Questions Deck (35)
Loading flashcards...
1

The salary paid to the marketing supervisor in the administrative office is an example of

no - product cost
no - manufactured overhead

2

(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

3

(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

false

4

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

5

overapplied manufacturring overhead means that:

the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost.

6

(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

false

7

What would be an example for indirect materials in the production of a wooden table?

cost of glue

8

(true or false) Fixed cost per unit is expected to remain unchanged as activity changes within the relevant range.

False

9

When jobs are sold, their cost move from ____ to ____.

the balance sheet to the income statement

10

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.

False

11

Which are of accounting is most like finance?

Managerial accounting

12

Compared to a contribution margin income statement, a GAAP income statement is more helpful to figure out the production cost per unit.

true

13

A contribution margin income statement classifies costs as either fixed/variable while a GAAP income statment classifies costs as product/period.

true

14

overhead is a product cost and is usually a mixed cost.

true

15

if cost of good sold is greater than cost of good manufactured then finished goods inventory increased.

false

16

cost of goods manufactured referes to the amount of work in process that was completed and transferred to finished goods.

true

17

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

18

On a CVP graph for a profitable company, the total expense line will be steeper than the line representing variable costs

false

19

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.

false

20

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.

21

as fixed costs ___. risk___ , break even point __ and your margin of safety ____

decrease, decreases, decreases, increases

22

A variable cost is a cost whose cost per unit is fixed as the activity level rises and falls.

True

23

(true or false)The weakness of participative budgeting is sandbagging.

True

24

(true or false) The weakness of top down budgeting is employee motivation.

True

25

30. Which of the following costs is often important in decision making, but is omitted from conventional accounting records?

Opportunity cost.

26

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.

Direct labor-hours

27

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

28

To maximize our savings, it is best to ________ first and ________ what is left.

Save, spend

29

A millionaire is someone who has assets greater than a million.

False

30

7 virtues

1.Chasity - behave appropriately, trustworthy
2. temperance- focus on you
3. charity- you need other people help
4. diligence - work hard trustworthy, ethically
5. patience - single weakness most successful people
6. kindness
7. humility -
CTCDPH