Homework: Activity Based Costing
Using multiple department factory overhead rates instead of a single plant-wide factory overhead
a. results in more accurate product costs
b. results in distorted product costs
c. is simpler and less costly
What is the journal entry to record the purchase of materials on account?
A. Raw Materials Inventory
B. Accounts Payable
Raw Materials Inventory
C. Accounts Receivable
An analysis of the accounts of Y Manufacturing revels the following manufacturing cost data for
the month ended June 30, 2011:
Work in Process
A company considers a project that will generate cash sales of $50,000 per year. Fixed costs (other than depreciation) will
be $10,000 per year, variable costs will be 40% of sales, and depreciation of the equipment in
COST ACCOUNTING (Cost Volume Profit Analysis)
At breakeven point, the contribution margin equals total
A. Variable costs
B. Sales revenues
C. Selling and administrative costs
D. Fixed costs
Cost-volume-profit analysis is a key factor in many decisio
Standard Costing and Variances
The difference between a budget and a standard is that
a. a budget expresses what costs were, while a standard expresses what costs should be.
b. a budget expresses management's plans, while a standard reflects what actua
CHAPTER 12 - Homework
A computer system installed last year is an example of
a sunk cost.
a relevant cost.
a differential cost.
an avoidable cost.
In evaluating different alternatives, it is useful to concentrate on
MASTER BUDGETOPERATING BUDGETS
In which order are the following developed? First to last:
A = Production budget
B = Direct
materials costs budget
C = Budgeted income statement D =
A, B, D, C
D, A, B, C
D, C, A, B
C, A, B, D
At the breakeven point of 200 units, variable costs total $400 and fixed costs total $600. The 201st unit
sold will contribute _ to profits.
Sales total $200,000 when variable costs total $150,000
In cost terminology, conversion costs consist of
A. Direct and indirect labor
B. Direct labor and direct materials
C. Direct labor and factory overhead
D. Indirect labor and variable factory overhead
A. Include only t
ABSORPTION/VARIABLE COSTlN G
1. Which one of the following statements is correct regarding absorption costing and variable costing?
A. Overhead costs are treated in the same manner under both costing methods.
Q If nished goods inventory increases, absorp