Review2 - Review2 1. Byproducts and main products are...

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Review2 1. Byproducts and main products are differentiated by the: a. number of units per processing period b. weight or volume of outputs per period c. amount of sales value per unit d. None of these answers is correct. Answer : c Difficulty : 2 Objective : 2 Terms to Learn : byproducts, main products 2. Financial accounting: a. focuses on the future and includes activities such as preparing next year's operating budget b. must comply with GAAP (generally accepted accounting principles) c. reports include detailed information on the various operating segments of the business such as product lines or departments d. is prepared for the use of department heads and other employees Answer : b Difficulty : 2 Objective : 1 Terms to Learn: financial accounting 3. Management accounting: a. focuses on estimating future revenues, costs, and other measures to forecast activities and their results b. provides information about the company as a whole c. reports information that has occurred in the past that is verifiable and reliable d. provides information that is generally available only on a quarterly or annual basis Answer : a Difficulty : 2 Objective : 1 Terms to Learn: management accounting 4. Which of the following statements refers to management accounting information? a. There are no regulations governing the reports. b. The reports are generally delayed and historical. c. The audience tends to be stockholders, creditors, and tax authorities. d. It primarily measures and records business transactions. Answer : a Difficulty : 2 Objective : 1 Terms to Learn: management accounting 5. Which of the following descriptors refers to management accounting information? a. It is verifiable and reliable. b. It is driven by rules. c. It is prepared for shareholders.
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d. It provides reasonable and timely estimates. Answer : d Difficulty : 2 Objective : 1 Terms to Learn: management accounting 6. Cost objects include: a. products b. customers c. departments d. All of these answers are correct. Answer : d Difficulty : 2 Objective : 1 Terms to Learn : cost object 7. Actual costs are: a. the costs incurred b. budgeted costs c. estimated costs d. forecasted costs Answer : a Difficulty : 1 Objective : 1 Terms to Learn : actual cost 8. The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is: a. cost accumulation b. cost assignment c. cost tracing d. conversion costing Answer : b Difficulty : 1 Objective : 1 Terms to Learn : cost assignment 9. When 10,000 units are produced, fixed costs are $14 per unit. Therefore, when 20,000 units are produced fixed costs will: a. increase to $28 per unit b. remain at $14 per unit c. decrease to $7 per unit
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This note was uploaded on 05/20/2010 for the course BUSINESS 06032010 taught by Professor Alberthall during the Spring '10 term at University of the East, Manila.

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Review2 - Review2 1. Byproducts and main products are...

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