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:
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:
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:
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:
The salary paid to the supervisor of an assembly line would normally be classified as:
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):
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:
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.
An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:
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:
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?
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?
A cost that changes in total proportionately to changes in volume of activity is a(n):
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):
A company's normal operating range, which excludes extremely high and low volumes that are not likely to occur, is called the:
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:
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:
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:
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:
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 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:
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?