1.
Ending inventory value with respect to absorption costing and
variable costing:

A)
is less using variable costing

B)
is more using variable costing

C)
is the same

D)
none of the above <--- This is my choice 2. The professional designation for the accountant that prepares reports that are used by parties external to the corporation is: A) C.P.A. <---- My Choice B) C.M.A. C) C.F.A. D) C.L.U. 3. Montson, Inc. produces a product requiring three square feet at $6 per square foot. If the desired ending inventory is $18,000 and the beginning inventory is $36,000, how many units must Montson produce to make direct materials purchases $54,000? A) 3,000 B) 4,000 C) 1,000 D) cannot tell from data given <--- My choice 4. In order to determine the overhead volume variance you need the overhead flexible budget and the overhead applied to the units produced. True False <--- My choice 5. Crinson produces a product that requires 10 standard sq. ft. of plywood at $4 per sq.ft. If Anson produces 300 units and uses 3,100 sq. ft., the material price variance is: A) $12,400 B) $12,000 C) unable to tell from the data given <--- My choice D) none of the above 6. Generally speaking, the hurdle rate impounds the risk of the firm. True ? My choice False 7. Ending inventory value with respect to absorption costing and variable costing: A) is more using absorption costing <--- My choice B) is less using absorption costing C) is the same D) none of the above 8. The I.M.A. publishes generally accepted accounting principles. True False <--- My choice 9. Activity based costing assists in the development of appropriate overhead costs. True ? My choice False 10. In order to determine the controllable overhead variance, you need the overhead application rate. True ? My choice False 11. The internal rate of return (IRR) is calculated from the undiscounted cash flows. True False ? My choice 12. How many equivalent units of conversion costs are in 20,000 physical units of product 10% complete? A) 200 B) 2,000 <--- My choice C) 20,000 D) cannot be determined from data given 13. Direct Labor and Overhead are conversion costs. True<--- My choice False 14. If production is less than sales, the net income with respect to absorption costing and variable costing: A) is the same B) variable costing yields higher net income<--- My choice C) variable costing yields lower net income D) none of the above 15. If Ezra collects 80% of its credit sales in the month of the sale and 20% in the month after the sale, how much will Ezra collect in March on a $220,000 credit sale in January? A) $176,000 B) $44,000 C) $88,000 D) none of the above (0% should be left to collect) <--- My choice 16. Tex's applies an overhead rate of $10/unit based on 200 units. If Tex's produces 210 units and has a flexible overhead budget of $1,900, the overhead volume variance is: ************* A) 200 favorable B) 200 unfavorable C) 100 favorable <--- My choice D) 100 unfavorable 17. In order to determine the overhead volume variance you need actual overhead costs. True False ? My choice 18. A discount factor A) is the reverse of compounding future cash flows. B) performs the reverse function of discounting interest rate. C) All of the above D) None of the above <--- My choice 19. If production levels are greater than anticipated, overhead will be under or over absorbed. A) Over ? My choice B) Under 20. Colly, Inc. pays 20% of the cost of purchases in the month purchased and 60% in the month after and 20% in the month after that, how much cash will be disbursed in the month after a $108,000 purchase. A) $64,800 B) $21,600 ? My choice C) $43,200 D) none of the above 21. As production levels decrease the fixed cost per unit: A) decreases B) increases C) stays the same <--- My choice D) none of the above 22. Even though there is a slight change in the sales mix, the breakeven point is the same. True False ? My choice 23. The human resources department would likely have a flexible budget. True<-- My choice False 24. Variable costing is not GAAP. True ? My choice False 25. Direct Materials and Direct Labor are prime costs. True ? My choice False 26. An example of a period cost is: A) direct labor B) direct materials C) salesperson's commission < My choice but I was also thinking D D) none of the above 27. As the sales mix changes, so does the breakeven point. True ? My choice False 28. Hooks produces a product that requires 10 standard sq. ft./unit at a standard price of $6 per sq. ft. The actual cost per unit is: A) $60 B) $50 C) unable to tell from the data ? My choice D) none of the above 29. If production exceeds sales, the net income with respect to absorption costing and variable costing. A) is the same B) lower under absorption C) higher under absorption ? My choice D) higher under variable 30. A merchandising firm's balance sheet reflects inventory of: A) raw materials B) work in process C) finished goods D) none of the above ? My choice 31. For capital budgeting purposes, an asset's depreciable life is A) always equal to the time horizon of an evaluation. B) equal to the asset's useful life. C) equal to the asset's economic life. D) none of the above ? My choice 32. As production levels increase the variable cost per unit: A) increases B) decreases C) stays the same ? My choice D) none of the above 33. There is a fixed cost element in ending inventory using the variable costing approach. True ? My choice False 34. If there are no units in finished goods ending inventory and cost of goods manufactured is less than cost of goods sold, then there must be units in: A) finished goods beginning inventory ? My choice B) work in process ending inventory C) work in process beginning inventory D) none of the above 35. Lines, Inc. applies overhead at the standard rate of $20/units, based on anticipated production of 2,000 units. If Line's actual overhead is $41,000, the overhead volume variance is: A) 1,000 favorable B) 1,000 unfavorable ? My choice C) cannot tell from data given D) none of the above 36. A budget is an integral part of the planning process. True ? My choice False 37. Overhead costs, in general, are: A) variable B) fixed ? My choice C) semi variable D) none of the above 38. The present value of cash flow allows an individual to assess A) the value of a present cash flow. B) the value of a stream of cash flows in terms of the best alternative. ? My choice C) Both A and B ("B" is absolutely correct, but "A" might not be) D) Neither A nor B 39. Overhead costs are inventoriable costs. True ? My choice False 40. If the sales price is $10/unit and, what are the variable costs per unit to give a contribution margin of $6. A) $4 ? My choice B) $6 C) $10 D) none of the above 41. In the variable cost format, the income statement shows the fixed manufacturing overhead as: A) A fixed cost? My choice B) A product cost C) an inventoriable cost D) None of the above 42. If production is less than sales, the net income with respect to absorption costing and variable costing: A) Is the same B) Variable costing yields higher net income? My choice C) Variable costing yields lower net income D) None of the above 43. Direct Material costs are classified as A) Direct labor B) Variable overhead C) Fixed overhead D) None of the above? My choice 44. A merchandising firms balance sheet reflects inventory of A) Raw materials B) Work in process C) Finished goods? My choice D) None of the above 45. As the interest rate used to discount future cash flows is decreased, present value of the future cash inflows A) Increase? My choice B) Decrease C) Stays the same D) None of the above 46. The capital expenditures budget is ties closely to the A) Sales Budget B) Purchase budget? My choice C) Cash receipts budget D) Cash expenditures budget 47. Management is responsible for A) Planning B) Controlling C) Decision making D) All of the above? My choice 48. A budget that accounts for the different revenue levels and the corresponding expenses associated with those levels is a A) Static Budget B) Flexible Budget? My choice C) Balance sheet budget D) None of the above 49. When calculating the materials quantity variance which of the following is used A) The actual materials used B) The standard materials used C) The standard price D) All of the above? My choice 50. When calculating the materials quantity variance A) The actual price of materials B) The standard price for? My choice C) Both A and B D) None of the above 51. Which of the following methods does not require a hurdle rate A) PVI B) NPV C) IRR? My choice D) None of the above 52. Salvage Value A) in theory, is equal to the present value of the future cash flows of the asset. B) should not be used to justify marginal investments. C) is the best prediction of what an asset could be sold for at the end of the time horizon? My choice D) All of the above E) None of the above 53. In calculating the labor rate variance which of the following is used A) The actual labor rate B) The standard labor rate C) Both A and B? My choice D) None of the above 54. Jeremiah pays for 50% of its purchases in the month of purchase, 30% in the month after and 20% in the month after that. For a $100,000 purchase in January, what is the accounts payable with respect to this purchase at the end of February? A) $50,000 B) $30,000 C) $20,000? My choice D) None of the above 55. Which of the following is not a part of the selling and administrative budget A) Selling salaries B) Administrative salaries C) Factory supervisor salaries? My choice D) None of the above 56. Which of the following items are part of the cost of goods manufactured A) Direct materials beginning inventory B) Direct materials used during the production period C) Direct labor used during the production period D) All of the above? My choice 57. Breakeven analysis requires which of the following items? A) Sales B) Variable costsC) Fixed costsD) All of the above? My choice 58. AColly, Inc. pays 20% of the cost of purchases in the month purchased and 60% in the month after and 40% in the month after that, how much cash will be disbursed in the month after a $108,000 purchase. A) 64,800 B) 21,600 C) 43,200? My choiceD) None of the above 59. Indirect material costs are classified as A) Direct labor B) Direct materialsC) fixed overheadD) none of the above? My choice 60. In the variable cost format, the income statement shows the fixed manufacturing overhead as: A) A fixed cost B) a product costC) an inventoriable costD) none of the above? My choice 61. If production equals sales and there are no beginning or ending inventories A) Variable costing gives a higher net income than absorption costing B) variable costing gives a lower net income than absorption costing C) net income is the same under each assumption ? My choiceD) None of the above 62. The manufacturing overhead budget consists of overhead A) Variable costs B) Fixed costs C) Both A and B? My choiceD) None of the above 63. If production exceeds sales, the net income with respect to absorption costing and variable costing. A) Is the same B) Lower under absorption C) Higher under absorption? My choiceD) Higher under variable 64. Which of the following would be included among the investment numbers of a capital budget A) Purchase price of asset B) Trade in value of asset being replacedC) Investment tax credit from asset acquisitionD) All of the above? My choice 65. Which of the following would be included among the investment numbers of a capital budget? A) Purchase price of asset B) Trade-in value of asset being replacedC) Investment tax credit from asset acquisitionD) All of the above? My choice 66. If the breakeven point is 1,000 units and the fixed costs are $240,000, what is the contribution margin per unit A) 240? My choice B) 24 C) 20D) cannot tell from data given 67. When calculating the materials quantity variance, which of the following is used? A) The actual price of materials B) The standard price for materials? My choice C) Both A and BD) Neither A nor B 1. Ending inventory value with respect to absorption costing and variable costing: A) is less using variable costing B) is more using variable costing C) is the same D) none of the above <--- This is my choice 2. The professional designation for the accountant that prepares reports that are used by parties external to the corporation is: A) C.P.A. <---- My Choice B) C.M.A. C) C.F.A. D) C.L.U. 3. Montson, Inc. produces a product requiring three square feet at $6 per square foot. If the desired ending inventory is $18,000 and the beginning inventory is $36,000, how many units must Montson produce to make direct materials purchases $54,000? A) 3,000 B) 4,000 C) 1,000 D) cannot tell from data given <--- My choice 4. In order to determine the overhead volume variance you need the overhead flexible budget and the overhead applied to the units produced. True False <--- My choice 5. Crinson produces a product that requires 10 standard sq. ft. of plywood at $4 per sq.ft. If Anson produces 300 units and uses 3,100 sq. ft., the material price variance is: A) $12,400 B) $12,000 C) unable to tell from the data given <--- My choice D) none of the above 6. Generally speaking, the hurdle rate impounds the risk of the firm. True ? My choice False 7. Ending inventory value with respect to absorption costing and variable costing: A) is more using absorption costing <--- My choice B) is less using absorption costing C) is the same D) none of the above 8. The I.M.A. publishes generally accepted accounting principles. True False <--- My choice 9. Activity based costing assists in the development of appropriate overhead costs. True ? My choice False 10. In order to determine the controllable overhead variance, you need the overhead application rate. True ? My choice False 11. The internal rate of return (IRR) is calculated from the undiscounted cash flows. True False ? My choice 12. How many equivalent units of conversion costs are in 20,000 physical units of product 10% complete? A) 200 B) 2,000 <--- My choice C) 20,000 D) cannot be determined from data given 13. Direct Labor and Overhead are conversion costs. True<--- My choice False 14. If production is less than sales, the net income with respect to absorption costing and variable costing: A) is the same B) variable costing yields higher net income<--- My choice C) variable costing yields lower net income D) none of the above 15. If Ezra collects 80% of its credit sales in the month of the sale and 20% in the month after the sale, how much will Ezra collect in March on a $220,000 credit sale in January? A) $176,000 B) $44,000 C) $88,000 D) none of the above (0% should be left to collect) <--- My choice 16. Tex's applies an overhead rate of $10/unit based on 200 units. If Tex's produces 210 units and has a flexible overhead budget of $1,900, the overhead volume variance is: ************* A) 200 favorable B) 200 unfavorable C) 100 favorable <--- My choice D) 100 unfavorable 17. In order to determine the overhead volume variance you need actual overhead costs. True False ? My choice 18. A discount factor A) is the reverse of compounding future cash flows. B) performs the reverse function of discounting interest rate. C) All of the above D) None of the above <--- My choice 19. If production levels are greater than anticipated, overhead will be under or over absorbed. A) Over ? My choice B) Under 20. Colly, Inc. pays 20% of the cost of purchases in the month purchased and 60% in the month after and 20% in the month after that, how much cash will be disbursed in the month after a $108,000 purchase. A) $64,800 B) $21,600 ? My choice C) $43,200 D) none of the above 21. As production levels decrease the fixed cost per unit: A) decreases B) increases C) stays the same <--- My choice D) none of the above 22. Even though there is a slight change in the sales mix, the breakeven point is the same. True False ? My choice 23. The human resources department would likely have a flexible budget. True<-- My choice False 24. Variable costing is not GAAP. True ? My choice False 25. Direct Materials and Direct Labor are prime costs. True ? My choice False 26. An example of a period cost is: A) direct labor B) direct materials C) salesperson's commission < My choice but I was also thinking D D) none of the above 27. As the sales mix changes, so does the breakeven point. True ? My choice False 28. Hooks produces a product that requires 10 standard sq. ft./unit at a standard price of $6 per sq. ft. The actual cost per unit is: A) $60 B) $50 C) unable to tell from the data ? My choice D) none of the above 29. If production exceeds sales, the net income with respect to absorption costing and variable costing. A) is the same B) lower under absorption C) higher under absorption ? My choice D) higher under variable 30. A merchandising firm's balance sheet reflects inventory of: A) raw materials B) work in process C) finished goods D) none of the above ? My choice 31. For capital budgeting purposes, an asset's depreciable life is A) always equal to the time horizon of an evaluation. B) equal to the asset's useful life. C) equal to the asset's economic life. D) none of the above ? My choice 32. As production levels increase the variable cost per unit: A) increases B) decreases C) stays the same ? My choice D) none of the above 33. There is a fixed cost element in ending inventory using the variable costing approach. True ? My choice False 34. If there are no units in finished goods ending inventory and cost of goods manufactured is less than cost of goods sold, then there must be units in: A) finished goods beginning inventory ? My choice B) work in process ending inventory C) work in process beginning inventory D) none of the above 35. Lines, Inc. applies overhead at the standard rate of $20/units, based on anticipated production of 2,000 units. If Line's actual overhead is $41,000, the overhead volume variance is: A) 1,000 favorable B) 1,000 unfavorable ? My choice C) cannot tell from data given D) none of the above 36. A budget is an integral part of the planning process. True ? My choice False 37. Overhead costs, in general, are: A) variable B) fixed ? My choice C) semi variable D) none of the above 38. The present value of cash flow allows an individual to assess A) the value of a present cash flow. B) the value of a stream of cash flows in terms of the best alternative. ? My choice C) Both A and B ("B" is absolutely correct, but "A" might not be) D) Neither A nor B 39. Overhead costs are inventoriable costs. True ? My choice False 40. If the sales price is $10/unit and, what are the variable costs per unit to give a contribution margin of $6. A) $4 ? My choice B) $6 C) $10 D) none of the above 41. In the variable cost format, the income statement shows the fixed manufacturing overhead as: A) A fixed cost? My choice B) A product costC) an inventoriable costD) None of the above 42. If production is less than sales, the net income with respect to absorption costing and variable costing: A) Is the sameB) Variable costing yields higher net income? My choice C) Variable costing yields lower net incomeD) None of the above43. Direct Material costs are classified as A) Direct laborB) Variable overheadC) Fixed overheadD) None of the above? My choice 44. A merchandising firms balance sheet reflects inventory of A) Raw materials B) Work in process C) Finished goods? My choice D) None of the above 45. As the interest rate used to discount future cash flows is decreased, present value of the future cash inflows A) Increase? My choice B) Decrease C) Stays the same D) None of the above 46. The capital expenditures budget is ties closely to the A) Sales Budget B) Purchase budget? My choice C) Cash receipts budget D) Cash expenditures budget 47. Management is responsible for A) Planning B) Controlling C) Decision making D) All of the above? My choice 48. A budget that accounts for the different revenue levels and the corresponding expenses associated with those levels is a A) Static Budget B) Flexible Budget? My choice C) Balance sheet budget D) None of the above 49. When calculating the materials quantity variance which of the following is used A) The actual materials used B) The standard materials used C) The standard price D) All of the above? My choice 50. When calculating the materials quantity variance A) The actual price of materials B) The standard price for? My choice C) Both A and B D) None of the above 51. Which of the following methods does not require a hurdle rate A) PVI B) NPV C) IRR? My choice D) None of the above 52. Salvage Value A) in theory, is equal to the present value of the future cash flows of the asset. B) should not be used to justify marginal investments. C) is the best prediction of what an asset could be sold for at the end of the time horizon? My choice D) All of the above E) None of the above 53. In calculating the labor rate variance which of the following is used A) The actual labor rate B) The standard labor rate C) Both A and B? My choice D) None of the above 54. Jeremiah pays for 50% of its purchases in the month of purchase, 30% in the month after and 20% in the month after that. For a $100,000 purchase in January, what is the accounts payable with respect to this purchase at the end of February? A) $50,000 B) $30,000 C) $20,000? My choice D) None of the above 55. Which of the following is not a part of the selling and administrative budget A) Selling salaries B) Administrative salaries C) Factory supervisor salaries? My choice D) None of the above 56. Which of the following items are part of the cost of goods manufactured A) Direct materials beginning inventory B) Direct materials used during the production period C) Direct labor used during the production period D) All of the above? My choice 57. Breakeven analysis requires which of the following items? A) Sales B) Variable costsC) Fixed costsD) All of the above? My choice 58. AColly, Inc. pays 20% of the cost of purchases in the month purchased and 60% in the month after and 40% in the month after that, how much cash will be disbursed in the month after a $108,000 purchase. A) 64,800 B) 21,600 C) 43,200? My choiceD) None of the above 59. Indirect material costs are classified as A) Direct labor B) Direct materialsC) fixed overheadD) none of the above? My choice 60. In the variable cost format, the income statement shows the fixed manufacturing overhead as: A) A fixed cost B) a product costC) an inventoriable costD) none of the above? My choice 61. If production equals sales and there are no beginning or ending inventories A) Variable costing gives a higher net income than absorption costing B) variable costing gives a lower net income than absorption costing C) net income is the same under each assumption ? My choiceD) None of the above 62. The manufacturing overhead budget consists of overhead A) Variable costs B) Fixed costs C) Both A and B? My choiceD) None of the above 63. If production exceeds sales, the net income with respect to absorption costing and variable costing. A) Is the same B) Lower under absorption C) Higher under absorption? My choiceD) Higher under variable 64. Which of the following would be included among the investment numbers of a capital budget A) Purchase price of asset B) Trade in value of asset being replacedC) Investment tax credit from asset acquisitionD) All of the above? My choice 65. Which of the following would be included among the investment numbers of a capital budget? A) Purchase price of asset B) Trade-in value of asset being replacedC) Investment tax credit from asset acquisitionD) All of the above? My choice 66. If the breakeven point is 1,000 units and the fixed costs are $240,000, what is the contribution margin per unit A) 240? My choice B) 24 C) 20D) cannot tell from data given 67. When calculating the materials quantity variance, which of the following is used? A) The actual price of materials B) The standard price for materials? My choice C) Both A and BD) Neither A nor B