Final Exam-Managerial Accounting ManuelOtano.docx - Final...

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Final Exam-Managerial Accounting. MANUEL OTANO 1. In the early days of the industrial revolution, indirect manufacturing costs: A. were a significant cost of producing most products. B. were relatively large compared to the direct costs of producing a product. C. were highly correlated with the use of labor. XXXXXXXXX D. were largely fixed.
2. Traditionally, the most popular company-wide base for allocating overhead to products was:
3. What is the principal reason that direct labor hours is no longer an effective base for allocating indirect costs in many modern manufacturing companies?
4. Which of the following costs is likely to be driven by machine usage?
5. Which type of cost drivers is most appropriate for most automated processes? A. Volume-based drivers B. Activity-based drivers C. Direct labor-based drivers D. All of these answers are correct.
6. All of the following statements describe qualities of relevance except:
7. Select the correct statement regarding relevant costs and revenues.
8. Alex brought his lunch today but now a co-worker has asked him to go to the deli across the street. Select the correct statement from the following.

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