ACTIVITY-BASED COSTING AND MANAGEMENT
1. Activity-based costing
a. requires the identification of cost drivers.
b. is used only in JIT operations.
c. applies only to discretionary fixed costs.
d. does not help to identify acti
SHORT-TERM DECISIONS AND ACCOUNTING INFORMATION
1. The salary or wage that you could be earning while you are taking this
a. an opportunity cost.
b. a sunk cost.
c. an incremental cost.
d. a joint cost.
2. The kind o
1. The principal advantage of the scatter-diagram method over the high-low
method of cost estimation is that the scatter-diagram method
a. includes costs outside the relevant range.
b. considers more than two poi
1. Which formula gives unit sales required to earn a target profit? (P =
selling price, V = variable cost per unit, F = total fixed costs, T =
a. F/(P - V)
b. (F + T)/P
c. (F + T)/(P - V)
d. (F +
1. The controller of a company or other organization is
a. a staff manager.
b. an operating manager.
c. an accountant, not a manager.
d. a natural manager.
2. Which item is NOT an IMA Standard for Ethical Conduc