Chapter 7 Joint Product and By-Product Costing

Chapter 7 Joint Product and By-Product Costing - Managerial...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Managerial Accounting – Exam 2 Fall 2007 (Form A) Name: _____________________________ On my honor I have neither given nor received help on this exam. I understand that any violation of the University Honor Policy will result in an automatic zero on this exam, and that I will be subject to all sanctions available under the University's Honor Policy. __________________________ Signature Record the proper test form (FORM A) and your name on the scantron form. Part I – Problems (75 points) 1. Which of the following statements is true? I. When there is a great deal of product diversity, activity-based costing will generally yield more accurate product costs than traditional overhead application rates based on direct labor or machine hours. II. The activity rates in activity-based costing are computed by dividing the overhead in each production department by its direct labor-hours. A) Statement I B) Statement II C) Neither statement is true. D) Both statements are true. 2. Which of the following statements is true? I. When a company shifts from a traditional cost system in which manufacturing overhead is applied based on direct labor-hours to an activity-based costing system in which there are batch-level and product-level costs, the unit product costs of high volume products typically decrease whereas the unit product costs of low volume products typically increase. II. In an activity-based costing system there is no overhead overapplied or underapplied because the costing system is much more accurate. A) Statement I B) Statement II C) Neither statement is true. D) Both statements are true.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. Which of the following statements is true? I. When materials are purchased in a process costing system, a work in process account is debited with the cost of the materials. II. Costs are accumulated by department in a process costing system. A) Statement I B) Statement II C) Neither statement is true. D) Both statements are true. 4. Which of the following statements is true? I. The sales budget is usually prepared before the production budget. II. The cash budget is the starting point in preparing the master budget. A) Statement I B) Statement II C) Neither statement is true. D) Both statements are true. 5. Which of the following statements is true? I. One of the weaknesses of budgets is that they are of little value in uncovering potential bottlenecks in an organization II. One of the advantages of a self-imposed budget is that the person directly involved in an activity is more likely to be in a position to make good budget estimates. A) Statement I B) Statement II C) Neither statement is true. D) Both statements are true. 6. Which of the following statements is true? I.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/01/2011 for the course ACCOUNTING 5337 taught by Professor Newman during the Spring '05 term at University of Houston.

Page1 / 11

Chapter 7 Joint Product and By-Product Costing - Managerial...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online