Multiple Choice Questions
1. A static budget:
is based totally on prior year's costs.
is based on one anticipated activity level.
is based on a range of activity.
is preferred over a flexible budget in the evaluation of performance.
A cost center manager does not have the ability to produce revenue.
Performance reports help managers use management by exception and effectively control operations.
An allocation base for a cost pool should
This set of 40 questions, in two parts, some taken from prior examinations, covers
topics in Chapters 10, 11, 12, 13, and 14.
The purpose of sample multiple choice questions is to acquaint you with the style
and substance of typical exam
Chapter 1: Flexible Budgeting and the Management of Overhead and Support
Activity Costs Answer Key
True / False Questions
1. Flexible budgets reflect a company's anticipated costs based on variations in activity levels.
2. A flexible budget for 15,00
Product costing in a manufacturing rm is the process of:
a. accumulating the company's period costs.
b. allocating costs among the rm's departments.
c. placing a value on the company's xed assets.
d. assigning costs to the rm's inventory.
The accounting records of Bronco Company revealed the following information:
Bronco's cost of goods manufactured is:
e. some other amount.
The correct answer is: $519,000.
Which of the following would take place if a company were able to reduce its variable cost per unit?
a. Choice A.
b. Choice B.
c. Choice C.
d. Choice D.
e. Choice E.
The correct answer is: Choice B.
Mark 5.00 out of