Econ 139 - Final Review Material Answers

Econ 139 - Final Review Material Answers - I. Pre Mid-Term....

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I. Pre Mid-Term. (Theory) a. When will you use following cost systems: Job order costing Process costing Activity-based costing. b. Fixed Cost and Variable Cost. c. Managerial Accounting Vs. Financial Accounting. d. Job Cost Sheet. e. Activity level (Activity Based Costing). II. Post Mid- Term (Theory) a. Hi-Lo Method. b. Flexible Budget. c. Contribution approach income statements. d. Problems: 1. Management accounting primarily is concerned with providing: A) information to SEC concerning the financial conditions of the organization. B) information to stockholders, creditors, and others outside the organization. C) information to managers inside the organization. D) information to governmental regulatory agencies. 2. The manufacturing operation that would be most likely to use a job-order costing system is: A) toy manufacturing. B) candy manufacturing. C) crude oil refining. D) shipbuilding. 3. Which is not a fixed cost: a. Hamburger buns in an In N Out store; b. Insurance on corporate headquarters; c. Advertising;
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d. Depreciation on factory equipment. 4. An auto body repair shop will fix a variety of problems caused by car accidents, from simple dents to engine replacement to frame straightening. Basically, each job this auto body repair shop handles is a special order job. What type of costing method would this auto body repair shop most likely use? a. Job order costing b. Process costing c. Activity-based costing d. Hybrid costing 5. Salaries of the human resource staff responsible for hiring production personnel at Dell Computer would be an example of: a. Unit-level activity b. Facility-level activity c. Batch-level activity d. Product-level activity 6. All of the following are examples of batch-level activities except: A) Purchase order processing. B) Setting up equipment. C) The clerical activity associated with processing purchase orders to produce an order for a standard product. D) Worker recreational facilities. 7. All of the following are examples of product-level activities except: A) Human resource management. B) Advertising a product. C) Testing a prototype of a new product. D) Parts administration. 8. Which of the following statements is not true? A) A manufacturer of ink cartridges would ordinarily use process costing rather than job-order costing. B) The output of a processing department must be homogeneous in order to use process costing. C) A construction company would ordinarily use process costing rather than job-order costing. D) A sugar processing plant would ordinarily use process costing rather than job order costing.
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The basics of cost-volume-profit (CVP) analysis B. The contribution income statement is helpful to managers in judging the impact on profits of changes in selling price, cost, or volume i. The emphasis on cost behavior . Variable costs are separate from fixed costs. ii.
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Econ 139 - Final Review Material Answers - I. Pre Mid-Term....

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