Question

Cost per equivalent unit is kept separate for direct materials and conversion costs because

A. the ending inventories were different for the two categories.

B.the equivalent units were different for the two categories.

C. the total manufacturing costs were different for the two categories.

D. the physical units were different for the two categories.

The current manufacturing costs include (     ) direct labor, (        ) direct materials, and (      ) manufacturing overhead.

-estimated; estimated; applied

-actual; actual; actual

-estimated; actual; applied

-actual; actual; applied

Which of the following is not a benefit of budgeting?

-it severs an important role in motivating and rewarding employees.

-it plays an important role in communication within the organization

-it forces managers to look to the future.

-it builds organization slack

Which of the following statements is correct about the net present value method?

-it is a non-discounted method based on net income

-it is a discounted cash flow method based on cash flow

-it is a discounted cash flow method based on net income

-it is a non-discounted method based on cash flow.

How is the cost of a batch-level activity similar to the cost of a unit-level activity.

-both are incurred for a group of units all at once

-both decrease as production volume increase

-both increase as production volume increase

-both are incurred for each individual unit

Which of the following statements is true?

-fixed costs are constant on a per unit basis

-fixed costs are constant in total dollar

-variable costs per unit decrease as activity volume increase

-variable costs are constant in total dollars

Which of the following capital budgeting methods does not use discounted cash flows?

-profitability index

-payback period

-internal rate of return

-net present value

An activity cost driver is:

-a measure of the volume of units produced or customers sold

-a measure of the underlying activity that occurs in each activity cost pool

-a number of activities combined into one cost pool

-the cost assigned to an activity

Which of the following statements is correct about the break-even point?

-the break-even point is the point where all variable costs are covered (but fixed costs are not)

-the break-even point is the point where a company achieves its target profit.

-the break-even point is the point where all fixed costs are covered (but variable costs are not)

-the break-even point quantifies the number of units that must be sold to cover total costs with zero profit

Answer 1

Question	Cost per equivalent unit is kept separate for direct materials and conversion costs because
Answer	the equivalent units were different for the two categories
Question	The current manufacturing costs include (     ) direct labor, (        ) direct materials, and (      ) manufacturing overhead.
Answer	actual; actual; applied
Question	Which of the following is not a benefit of budgeting?
Answer	it builds organization slack
Question	Which of the following statements is correct about the net present value method?
Answer	it is a discounted cash flow method based on cash flow
Question	How is the cost of a batch-level activity similar to the cost of a unit-level activity.
Answer	both increase as production volume increase
Question	Which of the following statements is true?
Answer	fixed costs are constant in total dollar
Question	Which of the following capital budgeting methods does not use discounted cash flows?
Answer	payback period
Question	An activity cost driver is:
Answer	the cost assigned to an activity
Question	Which of the following statements is correct about the break-even point?
Answer	the break-even point quantifies the number of units that must be sold to cover total costs with zero profit