5 Written Questions
5 Matching Questions
- Variable costs
- Finished goods
- weighted-average process costing
- Inventoriable costs
- Fixed costs are treated as
- a inventory method that for product costing purposes combines costs and equivalent units of a period with the costs and the equivalent units in the beginning inventory.
- b period costs, should not be affected by activity levels within a relevant range. That is why fixed costs is always the same in the master and flexible budgets
- c product fully completed but not yet sold.
- d costs added to inventory accounts.
- e costs that change in direct proportion with a change in volume within the relevant range of activity
5 Multiple Choice Questions
- materials that can be identified directly with the product at reasonable cost
- comparison of actual input amounts and prices with standard input amounts and prices
- has less detailed recordkeeping, so it is cheaper than job costing. But still does not provide as much information as job costing does. Job costing records the cost of each unit produced. the choice of process versus job costing system involves a comparison of the costs and benefits of each system as well as the production process being utilized.
- labor that can be identified directly with the product at reasonable cost
- version of CVP analysis using a single profit line
5 True/False Questions
cost driver → factor that causes, or "drives" an activity's costs
Assigning Costs Using First-in, First-Out (FIFO) Process Costing → 1)identify the activities 2)identify the cost drivers associated with each activity 3)compute a cost rate per driver unit or transaction 4)assign costs to products by multiplying the cost driver rate by the volume of cost driver units consumed by the product.
Master budget → difference between planned result and actual outcome. Uses this difference to evaluate the performance of individuals and business units and identify possible sources of deviations between budgeted and actual performance.
Contribution margin per unit of scarce resource → periodically
sales price variance → difference between the actual revenue and actual units sold multiplied by budgeted selling price.