Question

1. Which of the following statements about the direct/indirect cost classification is NOT true?

a. Indirect costs are always traced.

b. Indirect costs are always allocated.

c. The design of operations affects the direct/indirect classification.

d. The direct/indirect classification depends on the choice of cost object

15) Which is true on variable costs?

a. increase in total when the actual level of activity increases

b. are always indirect costs

c. include most personnel costs and depreciation on machinery

d. can always be traced directly to the cost object

2. One of the first steps to take when using CVP analysis to help make decisions is:

a. calculation of the degree of operating leverage for the company.

b. estimating how many products will have to be sold to make a decent profit.

c. identifying which costs are variable and which costs are fixed.

d. finding out where the total costs line intersects with the total revenues line on a graph

3. Depletion is defined as:

a. Is an unrealised expense reported in equity.

b. Is also called depreciation.

c. Is also called amortization.

d. Is the process of allocating the cost of natural resources to periods in which they are consumed.

4. Net income divided by net sales called

1. Profit margin
2. Gross margin
3. Revenue
4. Retained earnings

5. One of the first steps to take when using Cost Volume Profit (CVP) analysis to help make decisions is:

1. Determine fixed and variable cost of the company
2. Identify and forecast sales units to be sold
3. Finding out which total cost lines intersects with total revenue lines in graph
4. None of the above.

1. Accounting for sole proprietorship is the same as accounting for which business?

1. Private Limited Corporation
2. Partnership accounting except for withdrawal and capital is account separately for each partner
3. Cooperative societies
4. Public listed companies

2. Which of the following statements refers to management accounting information?

Select one:

a. It primarily measures and records business transactions.

b. The audience tends to be stockholders, creditors, and tax authorities.

c. The reports are generally delayed and historical.

d. There are no regulations governing the reports.

3. For next year, Rich S/B has budgeted sales of 40,000 units, target ending finished goods inventory of 1,500 units, and beginning finished goods inventory of 900 units. All other inventories are zero. How many units should be produced next year?

a. 30,000 units

b. 29,400 units

c. 32,400 units

d. 40,600 units

This accounting subject. Please help with multiple-choice questions. Thank you.

Answer 1

Correct Answers are Marked in Red Which of the following statements about the direct/indirect cost classification is NOT true?
a. Indirect costs are always traced.
b. Indirect costs are always allocated.
c. The design of operations affects the direct/indirect classification.
d. The direct/indirect classification depends on the choice of cost object
15) Which is true on variable costs?
a. increase in total when the actual level of activity increases
b. are always indirect costs
c. include most personnel costs and depreciation on machinery
d. can always be traced directly to the cost object
One of the first steps to take when using CVP analysis to help make decisions is:
a. calculation of the degree of operating leverage for the company.
b. estimating how many products will have to be sold to make a decent profit.
c. identifying which costs are variable and which costs are fixed.
d. finding out where the total costs line intersects with the total revenues line on a graph
Depletion is defined as:
a. Is an unrealised expense reported in equity.
b. Is also called depreciation.
c. Is also called amortization.
d. Is the process of allocating the cost of natural resources to periods in which they are consumed.
Net income divided by net sales called
a. Profit margin
b. Gross margin
c. Revenue
d. Retained earnings
One of the first steps to take when using Cost Volume Profit (CVP) analysis to help make decisions is:
a. Determine fixed and variable cost of the company
b. Identify and forecast sales units to be sold
c. Finding out which total cost lines intersects with total revenue lines in graph
d. None of the above.
Accounting for sole proprietorship is the same as accounting for which business?
a. Private Limited Corporation
b. Partnership accounting except for withdrawal and capital is account separately for each partner
c. Cooperative societies
d. Public listed companies
Which of the following statements refers to management accounting information?
Select one:
a. It primarily measures and records business transactions.
b. The audience tends to be stockholders, creditors, and tax authorities.
c. The reports are generally delayed and historical.
d. There are no regulations governing the reports.
For next year, Rich S/B has budgeted sales of 40,000 units, target ending finished goods inventory of 1,500 units, and beginning finished goods inventory of 900 units. All other inventories are zero. How many units should be produced next year?
a. 30,000 units
b. 29,400 units
c. 32,400 units
d. 40,600 units (Please See below The Calculation)
This accounting subject. Please help with multiple-choice questions. Thank you.
Budgeted sales	40,000	unit
Add: Ending Inventory to be maintained	1,500	Unit
Total	41,500	Unit
Less: Beginning Inventory	900	Unit
Inventory to be produced next year	40,600	Unit