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Continuous improvement.

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Traceable to a cost object

A direct cost is a cost that is:

An opportunity cost is:

A cost of potential benefit lost.

Direct labor.

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are:

Factory overhead.

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:

Indirect materials.

Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product are called:

Indirect labor.

The salary paid to the supervisor of an assembly line would normally be classified as:

Identifying fixed cost and variable cost.

Outgoing delivery charges

. Which of the following is never included in direct materials costs?

A mixed cost:

Contains a combination of fixed costs and variable costs.

Custom machinery.

A job order cost accounting system would best fit the needs of a company that makes:

Job cost sheet.

A document in a job order cost accounting system that is used to record the costs of producing a job is a(n):

A job cost sheet includes:

Direct material, direct labor, overhead.

Direct or indirect.

. Labor costs in manufacturing can be:

Goods in Process Inventory

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

Predetermined overhead allocation rate.

The rate established prior to the beginning of a period that relates estimated overhead to an allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is the:

Oil paintings

Which of the following five types of products is least likely to be produced in a process manufacturing system?

Equivalent units of production.

An expression of the activity of a process as the number of units that would have been processed during a period if all effort had been applied to units that were started and finished during the period, is called:

determine over or underapplied overhead.

Which of the following is not one of the four steps in accounting for production activity in a period?

Process cost accounting system.

A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:

Which of the following characteristics applies to process cost accounting and not to job order cost accounting?

Equivalent units of production.

Homogeneous product and high production volume.

A company that applies process costing is most frequently characterized by:production volume.

Production department.

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

Direct material costs are recorded:

Directly to a Goods in Process account.

Debit to Raw Materials Inventory and a credit to Accounts Payable

.T he purchase of raw materials on account in a process costing system is recorded with a

Plantwide overhead rate method.

A method of assigning overhead costs to a product using a single overhead rate is:

Overhead costs:

Cannot be traced to units of product in the same way that direct labor can.

The unit of product.

The cost object of the plantwide overhead rate method is:

The production departments in the first stage and the unit of product in the second stage.

The cost object of the departmental overhead rate method is:

It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments

. Which of the following statements is true with regard to the departmental overhead rate method?

Activities

From an ABC perspective, what causes costs to be incurred?

The premise of ABC is that activities are what cause costs to be incurred

. Which of the following statements is true with regard to activity-based costing rates?

Determining a pool rate for all costs incurred by the same activity reduces the number of cost assignments required.

What is the reason for pooling costs?

Traditional volume-based methods are easier to use and less costly to implement and maintain.

What are the main advantages of traditional volume-based allocation methods compared to activity-based costing?

Fixed cost.

A cost that remains the same in total even when volume of activity varies is a:

Variable cost.

A cost that changes in total proportionately to changes in volume of activity is a(n):

Step-wise cost.

A cost that remains constant over a limited range of volume, but increases by a lump sum when volume increases beyond a maximum amount, is a(n):

Relevant range.

A company's normal operating range, which excludes extremely high and low volumes that are not likely to occur, is called the:

Income planned for a future period

. A target income refers to:

Scatter diagram.

A graph used to analyze past cost behaviors by displaying costs and volume levels for each period as points on the diagram is called a:

A statistical method to identify cost behavior.

The least-squares regression method is:

Advertising costs

. Which of the following is not a product cost?

Variable costing treats fixed overhead as a period cost

. Which of the following statements is true?

It assigns all manufacturing costs to products

. Which of the following statements is true regarding absorption costing?

Only accept the order if the incremental revenue exceeds total variable product costs

. When evaluating a special order, management should

From the "bottom-up" following a participatory process.

The most useful budget figures are developed:

Sales budget.

A plan showing the units of goods to be sold and the revenue to be derived from sales, that is the usual starting point in the budgeting process, is called the:

An annual period separated into quarterly and monthly budgets

The usual budget period is:

Capital expenditures budget.

A plan that lists dollar amounts to be received from disposing of plant assets and dollar amounts to be spent on purchasing additional plant assets is called a:

Production budget.

A plan that states the number of units to be manufactured during each future period covered by the budget, based on the budgeted sales for the period and the levels of inventory needed to support future sales, is the:

The sales budget.

In preparing a budgeted balance sheet, the amount for Accounts Receivable is primarily determined from:

Budgeted income statement.

A managerial accounting report that presents predicted amounts of the company's revenues and expenses for the budget period is called a:

Estimated depreciation expense for October.

Which of the following would not be used in preparing a cash budget for October?

Budgeted balance sheet.

A managerial accounting report that presents predicted amounts of the company's assets, liabilities, and equity as of the end of the budget period is called a(n):

Determination of budgets by top levels of management

. Effective budgeting requires all of the following except:

Budgeting assures the achievement of all goals

. Which of the following is not a benefit derived from budgeting?

The cash budget and capital expenditures budget

. Long-term liability data for the budgeted balance sheet is derived from:

The budgeted balance sheet is usually prepared last

. In preparing financial budgets:

Budgeting

The process of planning future business actions and expressing them as a formal plan is called:

The difference between the actual overhead incurred during a period and the standard overhead applied

.Overhead cost variance is:

Cost variance.

The difference between the actual cost incurred and the standard cost is called the:

At any time in the planning period

. A flexible budget is prepared:

Preset costs for delivering a product or service under normal conditions.

Standard costs are:

Fixed overhead efficiency variance

Which of the following variances is not used in a standard cost system?

Cost variance analysis.

A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called:

The purchasing department.

Which department is often responsible for the direct materials price variance?

An opportunity cost:

Is the lost benefit of choosing an alternative course of action.

Direct materials, direct labor, and manufacturing overhead

. Which of the following should be classified as production costs?

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