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Worksheetsmanagement accounting - Hansen Mowen
Total questions: 20
Worksheet time: 12mins
Which of the following is an example of a service?
motorcycle
eye exam
stereo
television
Which of the following is an example of a tangible product?
lawn care
accounting services
customer service
computer
Costs are subdivided into what two major functional categories?
opportunity and allocation
fixed and variable
product and non-production
direct and indirect
Which of the following would not be a period cost?
research and development
direct materials
advertising costs
office supplies
Which of the following would be an example of a direct materials cost?
engine on an airplane
lubricant used to manufacture a lighting fixture
glue used to build cabinets
nails used to manufacture a table
Period costs
are selling costs and administrative costs.
are used to compute product cost.
can be included in overhead costs.
are carried in inventory until the goods are sold.
The break-even point is when
the company is operating at a loss.
total revenue equals total cost.
the company is earning a small profit.
total sales equals operating income.
Total contribution margin divided by total sales is the
indifference point.
margin of safety.
target income.
contribution margin ratio.
At the break-even point,
total revenue equals variable cost.
total fixed cost equals variable cost.
total contribution margin equals total fixed cost.
total margin of safety equals variable cost.
Contribution margin ratio can be calculated in all of the following ways except
fixed costs / Contribution margin per unit.
1 − Variable cost ratio.
contribution margin per unit / price.
total contribution margin / Total sales.
Which of the following equations is true?
Contribution margin = Sales revenue × Variable cost ratio
Contribution margin ratio = Contribution margin / Variable costs
Contribution margin = Fixed costs
Contribution margin ratio = 1 − Variable cost ratio
A list of activities accompanied by information that describes each activity is an activity ____.
manifesto
diary
journal
dictionary
To calculate an activity rate, the ____ of each activity must be determined.
practical capacity
expenditure level
processing ratio
value
The process of decreasing the time and resources required by an activity is known as
activity reduction.
activity output measure.
activity attributes.
activity analysis.
____ is concerned with identifying the root causes of activity costs.
Direct analysis
Activity analysis
Driver analysis
Causal analysis
Which of the following types of costs is a product cost for absorption costing but a period cost for variable costing?
direct materials
direct labor
fixed factory overhead per unit sold
variable selling expense
Which of the following is never included in product cost?
overhead
direct materials
variable selling expense
fixed factory overhead
Generally Accepted Accounting Principles (GAAP) require the use of which accounting method for external
reporting?
absorption costing.
variable costing.
transfer price costing.
responsibility costing.
Variable costing is
a good way to value inventories for the balance sheet.
used for external reporting purposes.
not useful for companies with multiple segments.
a useful tool for management decision making.
Inventory values calculated using variable costing as opposed to absorption costing will generally be
equal.
less.
greater.
twice as much.
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