5 Written questions
5 Matching questions
- Total contribution margin
- sales activity variance
- Differential costs
- Two Major categories of costs
- profit variance analysis
- a analysis of the causes of differences between budgeted profits and the actual profits earned.
- b difference between revenues and total variable costs
- c outlay costs and opportunity costs
- d difference between operating profit in the master budget and operating profit in the flexible budget that arises because the actual number of units sold is different from the budgeted number; also known as sales volume variance
- e with two or more alternatives, costs that differ among or between alternatives
5 Multiple choice questions
- cost of job determined by actual direct material and labor cost plus overhead applied using an actual overhead rate and an actual allocation base
- direct materials cost and direct labor costs:
- standardized method of making a product that is repeatedly performed.
- sum of direct materials and direct labor
- production costs. Variable costs are expected to change as activity changes.
5 True/False questions
Regression → statistical procedure to determine the relation between variables
Profit Variance Analysis as a Key Tool For → analysis of the causes of differences between budgeted profits and the actual profits earned.
Product life cycle → time from initial research and development to the time that support to the customer ends
Two elements of nonmanufacturing costs → product costs that can be feasibly identified with units of production.
Two-Stage Cost Allocation → method to estimate costs based on two cost observations, usually at the highest and lowest activity levels