5 Written questions
5 Matching questions
- The key difference between operation costing and the two methods
- unfavorable variance
- Normal cost
- Marketing and Administrative costs are treated like
- Outlay costs
- a production costs. Variable costs are expected to change as activity changes.
- b variance that, taken alone, reduces the operating profit.
- c is that for each work order or batch passing through a particular operation, direct materials are different but conversion costs (direct labor and manufacturing overhead) are the same.
- d a past, present, or future cash flow.
- e cost of job determined by actual direct material and labor cost plus overhead applied using a predetermined rate and an actual allocation base
5 Multiple choice questions
- outlay costs and opportunity costs
- variance that, taken alone, results in an addition to operating profit
- cost that increases with volume in steps; also called semi fixed costs
- costs that are unchanged as volume changes within the relevant range of activity
- direct manufacturing costs and indirect manufacturing costs
5 True/False questions
Break-even point → practice of setting prices highest when the quantity demanded for the product approaches capacity
Theory of constraints (TOC) → activity, resource, or policy that limits or bounds the attainment of an objective
plantwide allocation method → allocation method that uses one cost pool for the entire plant by using one overhead allocation rate, or one set of rates, for all of a plant's departments
sales activity variance → 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
flexible budget → budget that indicates revenues, costs, and profits for different levels of activity, including the ex post actual activity level