Ac 202 Study guide Ch 17, 18, 19 & 8

Ac 202 Study guide - MONTGOMERY COLLEGE Business Science Mathematics and Technology Division Germantown Campus STUDY GUIDE AC 202 Principles of

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MONTGOMERY COLLEGE Business, Science, Mathematics and Technology Division Germantown Campus STUDY GUIDE AC 202 Principles of Accounting II 1. Which of the following is not an important element of JIT (just in time) processing? A) A company must have dependable suppliers who are willing to deliver on short notice exact quantities of raw materials according to precise quality specifications. B) A company must have a multiskilled work force, so that one worker can have the responsibility to operate and maintain several different types of machines. C) A process cost accounting system must be in place. D) A total quality control system must be established throughout the manufacturing operations. 2. The number of purchase orders would be an appropriate cost driver for A) inspecting and testing cost. B) machining cost. C) ordering and receiving materials cost. D) supervising cost. 3. The primary benefit of activity-based costing is that it leads to A) more cost pools used to assign overhead costs to products. B) more accurate product costing. C) enhanced control over overhead costs. D) better management decisions. 4. The first step in activity-based costing is to A) assign overhead costs for each activity cost pool to products. B) compute the activity-based overhead rate. C) identify cost drivers that accurately measure each activity's contribution to the finished product. D) identify and classify the major activities involved in the manufacture of specific products. 5. A cost reconciliation schedule is prepared to assign total costs to units transferred out and in ending work in process. A) True B) False 6. Nonvalue-added activities are production-related activities that add cost to a product without increasing its market value. A) True B) False 7. Variable costs, as activity increases, will A) decrease per unit. B) increase per unit. C) remain constant per unit. D) decrease in total. 8. A cost that increases in total, but not proportionately with increases in the activity level, is a(n)
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A) mixed cost. B) variable cost. C) fixed cost. D) unusual fixed cost. 9. Given the following costs for Bently Company, classify each cost as either variable, fixed, or mixed. Total Cost at 2,000 Units 3,000 Units Cost A $12,900 $19,350 Cost B 12,300 16,650 Cost C 13,000 13,000 A) Cost A and Cost B are variable; Cost C is fixed. B) Cost A is variable; Cost B is mixed; Cost C is fixed. C) Cost A and Cost B are mixed; Cost C is fixed. D) Cost A is mixed; Cost B is variable; Cost C is fixed. 10. The assumptions that underlie basic CVP analysis include all of the following except A) when more than one product is sold, total sales will be in a constant sales mix. B)
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This note was uploaded on 11/08/2011 for the course AC 201 taught by Professor Peterson during the Fall '11 term at Montgomery College.

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Ac 202 Study guide - MONTGOMERY COLLEGE Business Science Mathematics and Technology Division Germantown Campus STUDY GUIDE AC 202 Principles of

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