Acc 240 – mcq | Accounting homework help

1  of 35The focus of management accounting is on[removed] tax preparation.[removed] external reporting.[removed] internal reporting.[removed] auditing.Question2  of 35________ is designed to meet the needs of internal decision makers.[removed] Tax accounting[removed] Managerial accounting[removed] Financial accounting[removed] Audit accountingQuestion3  of 35The primary goal of managerial accounting is to provide information to[removed] internal decision makers.[removed] shareholders.[removed] creditors.[removed] both shareholders and creditors.Question4  of 35The primary goal of financial accounting is to provide information for[removed] governmental regulators.[removed] creditors.[removed] potential investors.[removed] all of the above.Question5  of 35Which of the following are the internal decision makers of a company?[removed] Vendors[removed] Managers[removed] Shareholders[removed] CustomersQuestion6  of 35Inventoriable product costs for a manufactured product include[removed] the costs of direct materials, direct labor, and manufacturing overhead.[removed] marketing and research and development costs.[removed] the costs of direct materials and direct labor only.[removed] none of the above.Question7  of 35When do inventoriable costs become expenses?[removed] When direct materials are purchased[removed] When the manufacturing process begins[removed] When the manufacturing process is completed[removed] None of the aboveQuestion8  of 35Manufacturers consider selling and administrative costs to be[removed] period costs.[removed] conversion costs.[removed] inventoriable costs.[removed] prime costs.Question9  of 35Which of the following is an example of a period cost when manufacturing products?[removed] Depreciation expense on factory equipment[removed] Advertising expense[removed] Indirect materials used in the factory[removed] Property taxes on the plantQuestion10  of 35Which of the following is an example of an inventoriable cost when manufacturing products?[removed] Depreciation on office equipment[removed] Depreciation on store building[removed] Sales salaries expenses[removed] Depreciation on factory equipmentQuestion11  of 35A ________ is used to accumulate the costs of a job.[removed] labor time record[removed] materials inventory requisition form[removed] bill of materials[removed] job cost recordQuestion12  of 35Which of these documents informs the storeroom to send specific materials to the factory floor?[removed] Receiving report[removed] Bill of materials[removed] Purchase order[removed] Materials requisitionQuestion13  of 35In the flow of costs, which of the following comes first?[removed] Cost of goods sold[removed] Finished goods inventory[removed] Work in process inventory[removed] Raw materials inventoryQuestion14  of 35In the flow of costs, which of the following comes last?[removed] Finished goods inventory[removed] Cost of goods sold[removed] Raw materials inventory[removed] Work in process inventoryQuestion15  of 35When used, raw materials[removed] would be classified as direct materials.[removed] would be classified as direct labor.[removed] would be classified as indirect materials.[removed] The answer cannot be determined with the information provided.Question16  of 35The first step in the five-step process for costing procedure is[removed] compute output in terms of equivalent units.[removed] summarize total costs to account for.[removed] compute the cost per equivalent unit.[removed] summarize the flow of physical units.Question17  of 35In Step 1 of the process costing procedure, the “total units accounted for” is the sum of[removed] the units completed and transferred out plus the units in ending WIP.[removed] the units in ending WIP plus the units started in production during the month.[removed] the units in beginning WIP plus the units in ending WIP.[removed] the units in beginning WIP plus the units completed and transferred out.Question18  of 35How is the cost per equivalent unit computed?[removed] Total equivalent units divided by total costs to account for[removed] Total costs to account for divided by total equivalent units[removed] Costs in beginning WIP inventory divided by equivalent units in beginning WIP[removed] Costs added to production during the month divided by equivalent units in ending WIPQuestion19  of 35Which item would appear last on a production cost report?[removed] Cost of goods finished for the month[removed] Total costs accounted for[removed] Beginning WIP inventory, if any[removed] Ending WIP inventory, if anyQuestion20  of 35For which of the following do you prepare calculations for equivalent units?[removed] Both direct labor and manufacturing overhead[removed] Both direct materials and conversion costs[removed] Both direct labor and direct materials[removed] Neither direct materials nor conversion costsQuestion21  of 35When calculating a departmental overhead rate, what should the numerator be?[removed] Total estimated amount of the departmental allocation base[removed] Total estimated departmental overhead cost pool[removed] Total estimated amount of manufacturing overhead for the factory[removed] Actual quantity of the departmental allocation base used by the jobQuestion22  of 35Which of the following condition(s) favors using departmental overhead rates in place of a plantwide overhead rate?[removed] A. Different departments incur different amounts and types of manufacturing overhead.[removed] B. Different jobs or products use the departments to a different extent.[removed] C. Both A and B.[removed] D. Neither A or B.Question23  of 35What will the use of departmental overhead rates generally result in?[removed] The use of a separate cost allocation base for each department in the factory[removed] The use of a single cost allocation base[removed] The use of a single overhead cost pool for the factory[removed] The use of separate cost allocation base for each activity in the factoryQuestion24  of 35Using factory utilities would most likely be classified as a ________ cost.[removed] unit-level[removed] batch-level[removed] facility-level[removed] product-levelQuestion25  of 35In ABC, how is the activity allocation rate computed?[removed] The total estimated activity allocation base is divided by the total estimated activity cost pool.[removed] The total estimated activity cost pool is divided by the total estimated activity allocation base.[removed] The total estimated activity allocation base is multiplied by the total estimated activity cost pool.[removed] You take the total estimated activity allocation base and subtract the total estimated total activity. cost pool.Question26  of 35A(n) ________ cost is a cost whose total amount changes in direct proportion to a change in volume.[removed] variable[removed] fixed[removed] mixed[removed] irrelevantQuestion27  of 35Which of the following costs is an example of a fixed cost?[removed] Sales commissions[removed] Salary of the plant manager[removed] Direct materials[removed] Delivery costsQuestion28  of 35With respect to total variable costs, which of the following statements is true?[removed] They will remain the same as production levels change within the relevant range.[removed] They will decrease as production decreases within the relevant range.[removed] They will decrease as production increases within the relevant range.[removed] They will increase as production decreases within the relevant range.Question29  of 35Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is[removed] $5.92/unit.[removed] $2.08/unit.[removed] $4.00/unit.[removed] $1.92/unit.Question30  of 35Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The variable cost per unit is[removed] $6.67/unit.[removed] $5.03/unit.[removed] $11.69/unit.[removed] $1.64/unit.Question31  of 35Total contribution margin less total fixed expenses equals[removed] contribution margin ratio.[removed] operating income.[removed] gross profit.[removed] sales revenue.Question32  of 35The unit contribution margin is computed by[removed] subtracting the variable cost per unit from the sales price per unit.[removed] dividing the sales revenue by variable cost per unit.[removed] dividing the variable cost per unit by the sales revenue.[removed] subtracting the sales price per unit from the variable cost per unit.Question33  of 35Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $3 per cone. Fixed costs are $2,500 per month. What is Dairy Days’ contribution margin per ice cream cone?[removed] $1.00[removed] $3.00[removed] $0.25[removed] $4.00Question34  of 35Mom and Pop’s Ice Cream Shoppe sells ice cream cones for $5per customer. Variable costs are $2.25 per cone. Fixed costs are $3,000 per month. What is the company’s contribution margin per ice cream cone?[removed] $2.25[removed] $2.75[removed] $0.55[removed] $1.82Question35  of 35Electric Jet Skis operates a Jet Ski rental business. Assume the jet skis rent for $55 for 6 hours. The variable costs are $33 per six-hour rental, and its fixed costs are $80,000 each month. What is the contribution margin per six-hour jet ski rental?[removed] $33.00[removed] $0.40[removed] $22.00[removed] $2.50 1  of 35Which of the following employees is most likely to only use financial accounting information?[removed] Vice president of plant operations[removed] Product manager[removed] Plant manager[removed] Bank loan officer 2  of 35Which of the following people or groups would be least likely to receive detailed managerial accounting reports?[removed] CEO[removed] Plant managers[removed] Current shareholders[removed] Sales territory managers 5  of 35Which of following statements is true?[removed] Managerial accounting focuses on historical transactions.[removed] Financial accounting focuses on future data.[removed] Management accounting focuses on relevant data.[removed] Managerial accounting uses the cash basis for recording transactions. 6  of 35Where would period costs be found on the financial statements?[removed] Under current assets on the balance sheet[removed] Under current liabilities on the balance sheet[removed] As operating expenses on the income statement in the period incurred[removed] As operating expenses on the income statement for a previous period 7  of 35Which of the following costs include all costs associated with production of a product?[removed] Inventoriable[removed] Direct[removed] Mixed[removed] Overhead 8  of 35Manufacturing overhead costs for a product include[removed] direct material.[removed] operating expenses.[removed] indirect manufacturing costs.[removed] prime costs. 10  of 35Certain materials used in a manufacturing plant cannot be traced to a specific unit. What are these materials called?[removed] General materials[removed] Direct materials[removed] Indirect materials[removed] Finished materials 12  of 35When direct materials are requisitioned, they flow directly into[removed] cost of goods sold.[removed] finished goods inventory.[removed] work in process inventory.[removed] manufacturing overhead. 14  of 35In the flow of costs, which of the following comes third?[removed] Finished goods inventory[removed] Cost of goods sold[removed] Raw materials inventory[removed] Work in process inventory 17  of 35The five steps of the process costing procedure are scrambled below. Which of the following places the steps in the correct order?1.      Assign total costs to units completed and to units in ending WIP inventory.2.    Summarize total costs to account for.3.    Compute the cost per equivalent unit.4.    Summarize the flow of physical units.5.    Compute output in terms of equivalent units.The correct order for these steps is:[removed] 3, 1, 4, 2, 5.[removed] 5, 3, 1, 4, 2.[removed] 2, 4, 5, 1, 3.[removed] 4, 5, 2, 3, 1. 19  of 35On a production cost report, which of the following cost(s) appear?[removed] A. Beginning work in process[removed] B. Costs added during the period[removed] C. Total operating costs during the period[removed] D. Both A and B are included on a production cost report. 22  of 35When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ________ and then ________ together the allocated amounts from each department.[removed] the actual amount of the departmental allocation based used by the job; multiply[removed] the actual amount of the plantwide allocation based used by the job; add[removed] the actual amount of the departmental allocation based used by the job; add[removed] the actual amount of the plantwide allocation based used by the job; multiply 23  of 35In using an ABC system, all of the following steps are performed before the company’s year begins except:[removed] identify the primary activities and estimate a total cost pool for each.[removed] select an allocation base for each activity.[removed] allocate the costs to the cost object using the activity cost allocation rates.[removed] calculate an activity cost allocation rate for each activity. 24  of 35Four basic steps are used in an ABC system. Select the correct order of these steps below:a.       Identify the primary activities and estimate a total cost pool for each.b.    Allocate the costs to the cost object using the activity cost allocation rates.c.     Select an allocation base for each activity.d.    Calculate an activity cost allocation rate for each activity.[removed] c, a, b, d[removed] a, c, d, b[removed] b, a, c, d[removed] a, d, c, b 25  of 35The use of which of the following costing systems is most likely to reduce cost distortion to a minimum?[removed] Plantwide overhead rate[removed] Departmental overhead allocation rates[removed] Traditional costing system[removed] Activity-based costing 27  of 35Which of the following is a fixed cost?[removed] Direct materials cost[removed] Direct labor cost[removed] Straight-line depreciation expense[removed] Sales commissions expense 28  of 35Renting a scooter and paying $30 per day plus $.20 per mile driven is an example of what type of cost?[removed] Mixed cost[removed] Fixed cost[removed] Conversion cost[removed] Variable cost 29  of 35Total fixed costs for Diamond Enterprises are $800,000. Total costs, including both fixed and variable, are $890,000 if 120,000 units are produced. The fixed cost per unit at 200,000 units would be[removed] $4.00/unit.[removed] $7.42/unit.[removed] $4.45/unit.[removed] $0.45/unit. 30  of 35Total fixed costs for Toys and Trinkets Incorporated are $88,000. Total costs, including both fixed and variable, are $155,000 if 268,000 units are produced. The total variable costs at a level of 275,000 units would be[removed] $68,750.[removed] $159,049.[removed] $90,299.[removed] $151,055. 32  of 35CVP analysis assumes all of the following except[removed] the mix of products will not change.[removed] revenues are linear throughout the relevant range.[removed] inventory levels will increase.[removed] a change in volume is the only factor that affects costs. 33  of 35Contribution margin ratio is computed by[removed] dividing contribution margin by operating income.[removed] dividing contribution margin by sales revenue.[removed] dividing sales revenue by contribution margin.[removed] dividing operating income by contribution margin. 35  of 35Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 per 6 hours. The variable costs are $33 per six-hour rental, and its fixed costs are $80,000 each month. What is the contribution margin ratio?[removed] 40%[removed] 60%[removed] 250%[removed] 22%  

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *