ACCT2301-002-Chap9-Additional-sp2009

ACCT2301-002-Chap9-Additional-sp2009 - 1 ACCT 2301 Spring...

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1 ACCT 2301 Spring Semester 2009 March 21, 2009 Practice Problems – Flexible Budgets and Overhead Analysis 1. Overhead costs have been increasing due to all of the following EXCEPT A. increased automation. B. more complexity in distribution processes. C. tracing more costs as direct costs with the help of technology. D. product proliferation. 2. Effective planning for variable overhead costs means that a company performs those variable overhead activities that primarily add value A. for the current shareholders. B. for the customer using the products or services. C. for plant employees. D. for major suppliers of component parts. 3. Variable overhead costs include A. the costs associated with leasing the plant and equipment. B. the plant manager's salary. C. straight-line depreciation on plant equipment. D. machine maintenance. 4. Fixed overhead costs include A. the cost of sales commissions. B. property taxes paid on plant facilities. C. energy costs. D. indirect materials. 5. Which of the following statements is FALSE regarding fixed costs in flexible budgeting and overhead analysis. A.
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ACCT2301-002-Chap9-Additional-sp2009 - 1 ACCT 2301 Spring...

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