A major accounting contribution to the managerial decision-making process in evaluating
possible courses of action is to
a. assign responsibility for the decision.
b. provide relevant revenue and cost data about each course of action.
What is budgetary control?
a. Another name for a flexible budget
b. The degree to which the CFO controls the budget
c. The use of budgets in controlling operations
d. The process of providing information on budget differences to lower level
Why are budgets useful in the planning process?
a. They provide management with information about the company's past performance.
b. They help communicate goals and provide a basis for evaluation.
c. They guarantee the company will be profita
Highlight the correct answer.
A process cost accounting system is most appropriate when
a. a variety of different products are produced, each one requiring different types of
materials, labor, and overhead.
b. the focus of attention is on a p
Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual
inventory records. Prepare journal entries to record the following transactions during the month
Purchased raw materials for $20,000
Factors that can affect pricing decisions include all of the following except
a. cost considerations.
c. pricing objectives.
d. All of these are factors.
In most cases, prices are set by the
b. competitive mar
Cost-volume-profit analysis is the study of the effects of
a. changes in costs and volume on a companys profit.
b. cost, volume, and profit on the cash budget.
c. cost, volume, and profit on various ratios.
d. changes in costs and volume on a
In traditional costing systems, overhead is generally applied based on
a. direct labor.
b. machine hours.
c. direct material dollars.
d. units of production.
Which best describes the flow of overhead costs in an activity-based costing syst
Kennedy Company reports the following costs and expenses in May.
Depreciation on factory
Depreciation on delivery trucks
Indirect factory labor
Direct materials us