ACCY 200 CQ week 5-8
Terms in this set (40)
The principal objective of a performance report is to:
highlight activities than need management attention.
For performance reports to be most effective for management by exception, they should:
be issued as soon after the activity or period covered as possible
A budget adjusted to reflect a budget allowance based on actual activity achieved rather than the planned level of activity in the original budget is a:
If the actual level of activity is different from the budgeted level, a _________ budget is prepared for the actual level of activity:
A performance report for direct labor shows a variance between the budget and actual amounts. This difference is a:
Which of the following variances is not determined during an overhead variance analysis?
If the net variance of a business using standard costing is significant relevant to total production cost, the net variance should be:
allocated between WIP and FG inventories and cost of goods sold.
the net of all variances is immaterial relative to the total production costs incurred during the period, the net variance is
treated as an adjustment to cost of goods sold.
How is performance evaluated for a cost center?
Actual costs incurred compared to budgeted costs
The term transfer price refers to:
The price at which a product or service is sold by one segment to another related segment
Which of the following costs would be classified as a period cost:
advertising expense for the product.
in the T-account cost flow diagram of balance sheet inventory accounts and the income statement cost of goods sold account
cost of goods manufactured is debited to finished goods inventory
Costs may be allocated to a product or activity for many purposes, but care must be exercised when using allocated costs because
arbitrarily allocated costs may not behave in the way assumed in the allocation method
An organization's value chain refers to:
the sequence of functions and related activities that add value for the customer.
Common costs pertain to costs that:
are not directly traceable to a cost object
A predetermined overhead rate is used to
establish prices for manufactured products.
Which of the following items would not be reported on the statement of cost of goods manufactured
The primary difference between absorption costing and direct costing is the treatment of
fixed manufacturing overhead.
In order to achieve higher quality cost information from the assignment of overhead costs to products manufactured, the use of a predetermined overhead rate is being replaced by
Standards are likely to be most useful when expressed in:
terms easily related to by the individual whose performance is being evaluated
Performance analysis in the planning and control cycle relates to the act of:
Cost behavior refers to:
costs that are variable or fixed.
As the level of activity increases
fixed cost per unit decrease
An example of a cost likely to have a fixed behavior pattern is
An example of a cost likely to have a mixed behavior pattern is
raw material cost
The term "relevant range" refers to
the range of activity where cost relationships are valid.
To which function of management is CVP analysis most applicable?
The scattergram allows cost-volume relationships to be visually scanned for outlier observations that should be
ignored in the calculation of the cost formula of a mixed cost.
In considering whether to accept a special order at a price less than the normal selling price of the product and where the additional sales will make use of present idle capacity, which of the following costs will not be relevant?
Fixed manufacturing overhead that cannot be avoided.
In a make or buy decision, which of the following costs would be considered relevant?
Gains differ from revenues because gains:
are not a result of the entity's ongoing, central operations.
Which of the following accounts/captions are not ever included in the calculation for Gross Profit?
General and Selling Expenses.
When the periodic inventory system is used:
cost of goods sold can be calculated by subtracting the ending inventory amount from the sum of beginning inventory and net purchases.
Recognition of revenue in accrual accounting requires:
that the revenue be realized or realizable, and earned.
In the statement of cash flows, an increase in the accounts receivable balance from the beginning of the period to the end of the period would:
be subtracted from net income because this means that revenues were more than cash collected.
Financial statement ratios support informed judgments and decision making most effectively:
when the trend of entity data is compared to the trend of industry data.
Management's use of resources can best be evaluated by focusing on measures of:
Asset turnover calculations
should be evaluated by observing the turnover trend over a period of time.
The dividend payout ratio describes
the proportion of earnings paid as dividends.
Book value per share of common stock of a manufacturing company:
is not a very useful measure most of the time.