The break-even point is the volume of activity where:
A. total revenue equals total cost.
B. variable cost equals fixed cost.
C. total contribution margin equals the sum of variable cost plus fixed cost.
D. sales revenue equals to
A. rarely become involved in an organization's decision-making activities.
B. make decisions that focus solely on an organization's accounting matters.
C. collect data and provide information so that decisi
Which of the following statements is true?
A. The word "cost" has the same meaning in all situations in which it is used.
B. Cost data, once classified and recorded for a specific application, are appropriate for use in any
The relationship between cost and activity is termed as:
A. cost estimation.
B. cost prediction.
C. cost behaviour.
D. cost analysis.
E. cost approximation.
Which of the following costs changes in total in direct proportion to
Process costing is used to account for:
A. large numbers of identical products that are produced in a continuous manufacturing environment.
B. small number of products that are produced in batches.
C. raw materials that are conver
A standard cost:
A. is the "true" cost of a unit of production.
B. is a budget for the production of one unit of a product or service.
C. can be useful in calculating equivalent units.
D. is normally the average cost within an ind
Many traditional product costing systems:
A. trace manufacturing overhead to individual activities and require the development of numerous
B. write off manufacturing overhead as an expense of the current pe
Product costing in a manufacturing firm is the process of:
A. accumulating the company's period costs.
B. allocating costs among the firm's departments.
C. placing a value on the company's fixed assets.
D. assigning costs to the f
Which of the following business models considers financial, customer satisfaction, internal operations,
and learning and growth in the evaluation of performance?
A. Deterministic simulation.
B. Balanced scorecard.
C. Payoff matrix
When the managers of subunits throughout an organization strive to achieve the goals set by top
management, the result is:
A. goal congruence.
B. planning and control.
C. responsibility accounting.
D. delegation of decision-making
Generally speaking, budgets are not used to:
A. identify a company's most profitable products.
B. evaluate performance.
C. create a plan of action.
D. assist in the control of profit and operations.
E. facilitate communication and