70. The following costs were incurred in April:
Conversion costs during the month totaled:
1. What is an opportunity cost?
a. A cost that may be saved by not adopting an alternative
2. Any item for which the manager wishes to measure cost is called a(n)
a. Cost Object
3. What is the term that describes costs that relate directly to a cos
1. In making capital budgeting decisions, the discounted cash flow method aids in
evaluating investments involving cash flows over time where there is a significant time
difference between cash payment and receipt. Analysts use which two discounted
1. Which of the following are benefits of financial models to users?
All of the answers are correct.
2. A financial model is only as good as
the assumptions it uses and the data it uses.
3. Sensitivity analysis is used to show how the financial model resp
1. Which of the following might cause a materials variance?
-all of the above
2. What is the term that describes the rate companies frequently use to apply fixed
overhead costs to units produced?
-predetermined overhead rate
3. Activity-based costi
1. Which of the following statements best describes the traditional view of quality?
a. The traditional view of quality holds that firms can reduce total costs by
tolerating some level of defective goods.
b. The traditional view of quality holds th
Reviewing the prologue of the book.
-"Segments" - Cadillac, ATS, CTS, Escalade
-JIT - Just in Time Inventory
-Pg. 11 story - cola products
Manufacturing Costs - "Product Costs"/"Inventoriable Costs"
Companies use three common approaches to assign overhead costs to products
Plantwide Overhead Rate
o Simple overhead rate used throughout the entire factory
o Came about in 1800's - all calculations had to
1. Which of the following is not one of the three major manufacturing cost categories?
a. Opportunity costs which are the manufacturing costs forgone by accepting
another production alternative
2. Little League Baseball Manufacturer The Little Leag
1. Because effective incentive compensation plans must induce individual behavior
compatible with increasing the firm's wealth, for long-term incentives firms give
- deferred compensation.
2. The theory which maintains that people act in ways to ob
13. This design would make managers not want to incur these types of costs in on one of their
KPIs is on financial information.
19. The importance of separation of duties to a system of interna
15. This is done to create consistency and account for any outliers.
16. If they put in more money than it costs to create a product they would not have broken even
fiscally, they would have onl
Q: 15, 19, 21, 30
15. I do not agree that nonprofits and federal governmental agencies dont need a managerial
accountant. While yes, these organizations do not have to earn a profit, they do still have
Ch 2: Q7, Q11, Q15, Q35, Q37
Ch 3: Q8, Q9, Q18, Q25, Q27
7. By assigning costs to the wrong jobs accountants are allocating funds from the company
budget that is not necessary when in reality, t
Ch 4: 9, 12, 18, 24, 38, 45
Ch 5: 7, 9, 10, 21, 29
9. In this example, stockholders would be benefiting from the focus on increase in growth while
consumers would get the risk of getting low qua
7. A standard is used when an organization is trying to project a specific amount of cost of each
unit of product they are discussing. A budget on the other hand is the companies projected
6. This statement is true for companies that highly value their company culture and image. If the
investment could jeopardize the image and values the company is trying to portray then it may
direct labor,direct materials
an administrative cost