Podcast
Questions and Answers
If selling and administrative expenses are allocated to different products, they should be reported as a
If selling and administrative expenses are allocated to different products, they should be reported as a
Activity rates are determined by:
Activity rates are determined by:
Which of the following does not rely on managerial decisions involving accurate product costing?
Which of the following does not rely on managerial decisions involving accurate product costing?
Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision-making. Which of the following would be the best allocation base for help desk costs?
Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision-making. Which of the following would be the best allocation base for help desk costs?
Signup and view all the answers
Cost behavior refers to the manner in which a cost:
Cost behavior refers to the manner in which a cost:
Signup and view all the answers
Contribution margin is:
Contribution margin is:
Signup and view all the answers
Which of the following statements is true regarding fixed and variable costs?
Which of the following statements is true regarding fixed and variable costs?
Signup and view all the answers
Which of the following conditions would cause the break-even point to increase?
Which of the following conditions would cause the break-even point to increase?
Signup and view all the answers
If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would:
If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would:
Signup and view all the answers
Which of the following would be most likely to use process costing?
Which of the following would be most likely to use process costing?
Signup and view all the answers
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process, are referred to as:
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process, are referred to as:
Signup and view all the answers
Which of the following is not a characteristic of a job order costing system?
Which of the following is not a characteristic of a job order costing system?
Signup and view all the answers
Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?
Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?
Signup and view all the answers
Which of the following represents the factory overhead applied to a product?
Which of the following represents the factory overhead applied to a product?
Signup and view all the answers
Which of the following methods of applying the cost-plus approach to product pricing includes selling expenses, administrative expenses, and desired profit in the markup?
Which of the following methods of applying the cost-plus approach to product pricing includes selling expenses, administrative expenses, and desired profit in the markup?
Signup and view all the answers
Which of the following is not a commonly used approach to setting transfer prices?
Which of the following is not a commonly used approach to setting transfer prices?
Signup and view all the answers
The target cost is determined by taking:
The target cost is determined by taking:
Signup and view all the answers
When using the variable cost method of applying the cost-plus approach to product pricing, which of the following is included in the markup?
When using the variable cost method of applying the cost-plus approach to product pricing, which of the following is included in the markup?
Signup and view all the answers
Which of the following is not a method commonly used in applying the cost-plus approach to product pricing?
Which of the following is not a method commonly used in applying the cost-plus approach to product pricing?
Signup and view all the answers
The inventory costing method that reports the most current prices in ending inventory is:
The inventory costing method that reports the most current prices in ending inventory is:
Signup and view all the answers
Inventory turnover is expressed in terms of:
Inventory turnover is expressed in terms of:
Signup and view all the answers
Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?
Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?
Signup and view all the answers
Days inventory on hand equals 365 divided by:
Days inventory on hand equals 365 divided by:
Signup and view all the answers
An overstatement of ending inventory in one period results in:
An overstatement of ending inventory in one period results in:
Signup and view all the answers
Managerial accounting reports are:
Managerial accounting reports are:
Signup and view all the answers
The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured:
The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured:
Signup and view all the answers
Cost of goods manufactured is equal to:
Cost of goods manufactured is equal to:
Signup and view all the answers
The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured:
The amount of income under absorption costing will be less than the amount of income under variable costing when units manufactured:
Signup and view all the answers
Which of the following is the primary criterion for the preparation of managerial accounting reports?
Which of the following is the primary criterion for the preparation of managerial accounting reports?
Signup and view all the answers
Study Notes
Activity Based Costing
- If selling and administrative expenses are allocated to different products, they are reported as a period cost.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of Activity Based Costing with this quiz. Explore how selling and administrative expenses are treated as period costs when allocated to different products. Perfect for students studying cost accounting principles.
