1. All of the following are assumptions that are made when performing a CVP Analysis, except
A: All units produced are sellable
2. Which cost allocation base would most likely be used for allocating the cost of property taxes in a widget factory?
A: Square footage of the factory
3. Managers use managerial accounting information primarily to make decisions within the company.
A: True
4. Which of the following is not an example of mixed costs?
A: Straight-line depreciation expense for warehouse equipment
5. Manufacturing overhead costs cannot be traced easily and directly to products.
A: True
6. The three categories of manufacturing costs are direct materials, direct labor, and
A:
7. The document that shows the actual costs assigned to producing goods that have been completed during an accounting period is called a
A:
8. Which of the following represents the proper order of inventory flow?
A: Raw Materials, Work in Process, Finished Goods
9. Which of the following is useful in determining how much of the sales dollar must be available to apply towards paying fixed cost during the period:
A: Contribution margin
10. Mixed costs remain the same in terms of their total dollar amount, regardless of the number of units sold.
A: False
11. The costs incurred related to the marketing, distribution and sale of a product are referred to as
A:
12. What costing method assigns the actual costs of direct materials and labor to products?
A: Job Costing
13. Which of the following provides the ratio of sales that is available to pay fixed costs.
A: Contribution margin ratio
14. The three inventory accounts that appear on the balance sheet are:
A: Raw Materials, Work in Process, and Finished Goods
15. Which of the following is NOT a type of product cost?
A: administrative expenses