production of a custom home, ACC206 Week Questions (All Correct) help

Quiz 1

Question 1. 1. Production of a custom home is not an application that can be accounted for using job costing. (Points : 1)

  True

  False

Question
2. 2. A logical starting point for costing a job is to determine the
amount of direct labor that is attributable to a specific job. (Points :
1)

  True

  False

Question
3. 3. The main difference between job costing and process costing is
that process costing captures costs by process or department rather than
by specific job. (Points : 1)

  True

  False

Question 4. 4. A cost of production report is generally prepared for each period under job costing. (Points : 1)

  True

  False

Question 5. 5. ABC costing requires one to abandon attempts to distinguish product and period costs. (Points : 1)

  True

  False

Quiz 2

Question 1. 1. Job Costing captures cists for each process involved in product creation. (Points : 1)

  True

  False

Question
2. 2. Process Costing is applicable to homogenous goods that are
produced in batches or continuous processes. (Points : 1)

  True

  False

Question 3. 3. Manufacturing Overhead is only allocated under the process costing method of accounting. (Points : 1)

  True

  False

Question
4. 4. Under applied overhead results when the actual overhead incurred
is more than the amount assigned to production. (Points : 1)

  True

  False

Question 5. 5. The concept of equivalent units only applies to ABC costing. (Points : 1)

  True

  False

Quiz 3

Question 1. 1. In business, mixed costs are actually quite common. (Points : 1)

  True

  False

Question
2. 2. Under the high-low method of estimating fixed and variable costs
from a mixed cost the highest and lowest cost levels are identified and
the difference in activity is deemed to represent variable cost. (Points
: 1)

  True

  False

Question
3. 3. To calculate regression to find the fixed portion of mixed costs
one needs to know how to use a slide rule. (Points : 1)

  True

  False

Question
4. 4. The goal of CVP analysis is to provide a foundation for pricing
decisions, product offerings, and management of an organization’s cost
structure. (Points : 1)

  True

  False

Question
5. 5. Changes in per-unit revenue, without changes in total fixed costs
or per-unit variable costs can sometimes cause drastic impacts on firm
profits. (Points : 1)

  True

  False

Quiz 4

Question
1. 1. Utilizing the high-low method of estimating fixed and variable
components of cost, the variable portion is divided by the difference in
activity/consumption between the high and low cost levels to find the
variable cost per unit. (Points : 1)

  True

  False

Question
2. 2. When performing a CVP analysis the Margin of Safety is the amount
by which the sales exceed the break-even sales level. (Points : 1)

  True

  False

Question
3. 3. Under CVP & Absorption Cost one of the primary assumptions is
that the firm is not a nonprofit organization. (Points : 1)

  True

  False

Question 4. 4. Variable (direct) costing is approved for use by public corporations under GAAP. (Points : 1)

  True

  False

Question
5. 5. When comparing absorption costing to variable costing the only
difference is in the handling of fixed manufacturing overhead. (Points :
1)

  True

  False

Quiz 5

Question 1. 1.

Job costing entails _____________________. (Points : 1)

  tracking the costs of an employment search

  development of a tracking system to match costs to jobs

  estimating the price of raw materials that may be needed to complete a customer job

  none of the items listed here

Question 2. 2.

Job costing __________________________. (Points : 1)

  is only used when manufacturing a product

  cannot be used for a service business since no product is created

  can be utilized in a variety of business types

  cannot be utilized when manufacturing a product

Question 3. 3.

Which of the following would typically use a process costing system? (Points : 1)

  More than one of these listed.

  Paint

  Glass

  Custom built home

Question 4. 4.

The Equivalent units concept general applies to ___________________. (Points : 1)

  job order costing

  process costing

  ABC costing

  none of the items listed here

Question 5. 5.

ABC is a costing model that _______________________. (Points : 1)

  is simple and inexpensive to use

  is rarely used because it is not very accurate

  is not really a costing model

  is not accepted by GAAP

Question 6. 6.

Mixed costs ____________________________________. (Points : 1)

  are costs that are all mixed up

  have both a variable and a fixed component

  are not impacted by volume fluctuations

  are not defined in any of these responses

Question 7. 7.

A technique used to estimate the fixed and variable components of a mixed cost is ____________. (Points : 1)

  high-low method

  regression analysis

  is not represented here

  represented by more than one of the solutions listed here

Question 8. 8.

Cost-Volume-Profit Analysis ________________________. (Points : 1)

  gives management the same information as the income statement

  is helpful in assessing the relationships between costs, business volume, and profitability

  is an essential tool used by investors to make investment decisions

  can only be interpreted by a master accountant

Question 9. 9.

Contribution margin _____________________________________. (Points : 1)

  is equal to net income

  equals variable expenses minus fixed expense

  is the next available dollar of income after all fixed costs are covered

  equals revenues minus variable expenses

Question 10. 10.

Cost-Volume-Profit Analysis _____________________________. (Points : 1)

  can be utilized to find the firms breakeven point in units

  is only concerned with variable costs

  is only concerned with fixed costs

  is not represented by any of the answers listed here

15 mins ago