2024 – Quiz 1 Question 1 1 Production of a custom home is not an application that can

 

Quiz 1

Question 1. 1. Production of a custom home is not an application that can be accounted for using job costing. (Points : 1)

        True

        False

 

Question 2. 2. A logical starting point for costing a job is to determine the amount of direct labor that is attributable to a specific job. (Points : 1)

        True

        False

 

Question 3. 3. The main difference between job costing and process costing is that process costing captures costs by process or department rather than by specific job. (Points : 1)

        True

        False

 

Question 4. 4. A cost of production report is generally prepared for each period under job costing. (Points : 1)

        True

        False

 

Question 5. 5. ABC costing requires one to abandon attempts to distinguish product and period costs. (Points : 1)

        True

        False

 

 

 

Quiz 2

Question 1. 1. Job Costing captures cists for each process involved in product creation. (Points : 1)

        True

        False

 

Question 2. 2. Process Costing is applicable to homogenous goods that are produced in batches or continuous processes. (Points : 1)

        True

        False

 

Question 3. 3. Manufacturing Overhead is only allocated under the process costing method of accounting. (Points : 1)

        True

        False

 

Question 4. 4. Under applied overhead results when the actual overhead incurred is more than the amount assigned to production. (Points : 1)

        True

        False

 

Question 5. 5. The concept of equivalent units only applies to ABC costing. (Points : 1)

        True

        False

 

 

 

Quiz 3

 

Question 1. 1. In business, mixed costs are actually quite common. (Points : 1)

        True

        False

 

Question 2. 2. Under the high-low method of estimating fixed and variable costs from a mixed cost the highest and lowest cost levels are identified and the difference in activity is deemed to represent variable cost. (Points : 1)

        True

        False

 

Question 3. 3. To calculate regression to find the fixed portion of mixed costs one needs to know how to use a slide rule. (Points : 1)

        True

        False

 

Question 4. 4. The goal of CVP analysis is to provide a foundation for pricing decisions, product offerings, and management of an organization’s cost structure. (Points : 1)

        True

        False

 

Question 5. 5. Changes in per-unit revenue, without changes in total fixed costs or per-unit variable costs can sometimes cause drastic impacts on firm profits. (Points : 1)

        True

        False

 

Quiz 4

 

Question 1. 1. Utilizing the high-low method of estimating fixed and variable components of cost, the variable portion is divided by the difference in activity/consumption between the high and low cost levels to find the variable cost per unit. (Points : 1)

        True

        False

 

Question 2. 2. When performing a CVP analysis the Margin of Safety is the amount by which the sales exceed the break-even sales level. (Points : 1)

        True

        False

 

Question 3. 3. Under CVP & Absorption Cost one of the primary assumptions is that the firm is not a nonprofit organization. (Points : 1)

        True

        False

 

Question 4. 4. Variable (direct) costing is approved for use by public corporations under GAAP. (Points : 1)

        True

        False

 

Question 5. 5. When comparing absorption costing to variable costing the only difference is in the handling of fixed manufacturing overhead. (Points : 1)

        True

        False

 

 

Quiz 5

 

 

Question 1. 1.

 Job costing entails _____________________. (Points : 1)

        tracking the costs of an employment search

        development of a tracking system to match costs to jobs

        estimating the price of raw materials that may be needed to complete a customer job

        none of the items listed here

 

 

Question 2. 2.

 Job costing __________________________. (Points : 1)

        is only used when manufacturing a product

        cannot be used for a service business since no product is created

        can be utilized in a variety of business types

        cannot be utilized when manufacturing a product

 

 

Question 3. 3.

Which of the following would typically use a process costing system? (Points : 1)

        More than one of these listed.

        Paint

        Glass

        Custom built home

 

 

Question 4. 4.

The Equivalent units concept general applies to ___________________. (Points : 1)

        job order costing

        process costing

        ABC costing

        none of the items listed here

 

 

Question 5. 5.

ABC is a costing model that _______________________. (Points : 1)

        is simple and inexpensive to use

        is rarely used because it is not very accurate

        is not really a costing model

        is not accepted by GAAP

 

 

Question 6. 6.

Mixed costs ____________________________________. (Points : 1)

        are costs that are all mixed up

        have both a variable and a fixed component

        are not impacted by volume fluctuations

        are not defined in any of these responses

 

 

Question 7. 7.

A technique used to estimate the fixed and variable components of a mixed cost is ____________. (Points : 1)

        high-low method

        regression analysis

        is not represented here

        represented by more than one of the solutions listed here

 

 

Question 8. 8.

Cost-Volume-Profit Analysis ________________________. (Points : 1)

        gives management the same information as the income statement

        is helpful in assessing the relationships between costs, business volume, and profitability

        is an essential tool used by investors to make investment decisions

        can only be interpreted by a master accountant

 

 

Question 9. 9.

Contribution margin _____________________________________. (Points : 1)

        is equal to net income

        equals variable expenses minus fixed expense

        is the next available dollar of income after all fixed costs are covered

        equals revenues minus variable expenses

 

 

Question 10. 10.

Cost-Volume-Profit Analysis _____________________________. (Points : 1)

        can be utilized to find the firms breakeven point in units

        is only concerned with variable costs

        is only concerned with fixed costs

        is not represented by any of the answers listed here