Question 1

Indirect costs:

Accepted Answer

A) often comprise a large percentage of overall costs assigned to a cost object 
B) specifically exclude marketing costs 
C) cannot be used for external reporting 
D) are treated as period costs and not as product costs 
A) often comprise a large percentage of overall costs assigned to a cost object 
B) specifically exclude marketing costs 
C) cannot be used for external reporting 
D) are treated as period costs and not as product costs

Question 2

A favorable sales-quantity variance would most likely be caused by:

Accepted Answer

A) a new competitor providing better service in the high-margin product sector 
B) a competitor having distribution problems with high-margin products 
C) the company offering low-margin products at a higher price 
D) the company experiencing quality-control problems that get negative media coverage of low-margin products 
A) a new competitor providing better service in the high-margin product sector 
B) a competitor having distribution problems with high-margin products 
C) the company offering low-margin products at a higher price 
D) the company experiencing quality-control problems that get negative media coverage of low-margin products

Question 3

A composite unit is a hypothetical unit with weights based on the mix of individual units.

Accepted Answer

A) True 
 B)False

Question 4

The sales mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix.

Accepted Answer

A) True 
 B)False

Question 5

More insight into the efficiency variance for direct materials can be gained by subdividing it into the direct materials:

Accepted Answer

A) mix and volume variances 
B) market-share and market-size variances 
C) mix and yield variances. 
D) price and efficiency variances 
A) mix and volume variances 
B) market-share and market-size variances 
C) mix and yield variances. 
D) price and efficiency variances

Question 6

Answer the following questions using the information below:
Michelle's Flowering Plants provides the following information for the month of May:
  
-What is the budgeted contribution margin per composite unit for the budgeted mix?

Accepted Answer

A) $13.80 
B) $14.00 
C) $14.36 
D) $14.80 
A) $13.80 
B) $14.00 
C) $14.36 
D) $14.80

Question 7

Corporate-sustaining costs should be allocated to:

Accepted Answer

A) motivate changes in customer behavior 
B) evaluate distribution-channel managers 
C) determine the selling price that will cover all costs 
D) identify the most profitable customers 
A) motivate changes in customer behavior 
B) evaluate distribution-channel managers 
C) determine the selling price that will cover all costs 
D) identify the most profitable customers

Question 8

The Omega Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 20X5 are as follows:
     Required:
a. Calculate the contribution margin for the flexible budget.
b. Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

Accepted Answer

Budgeted contribution margin p

Question 9

Answer the following questions using the information below:
Woodruff Flowering Plants provides the following information for the month of May:
  
-For May, Woodruff will report a(n):

Accepted Answer

A) favorable sales-mix variance 
B) unfavorable sales-mix variance 
C) favorable sales-volume variance 
D) unfavorable sales-volume variance 
A) favorable sales-mix variance 
B) unfavorable sales-mix variance 
C) favorable sales-volume variance 
D) unfavorable sales-volume variance

Question 10

A common finding in many studies is that a high percentage of operating income is:

Accepted Answer

A) contributed by a small number of customers 
B) contributed to evenly by most customers 
C) the result of high discounting 
D) the result of cooperative efforts by many low-volume customers 
A) contributed by a small number of customers 
B) contributed to evenly by most customers 
C) the result of high discounting 
D) the result of cooperative efforts by many low-volume customers

Indirect costs:

A favorable sales-quantity variance would most likely be caused by:

A composite unit is a hypothetical unit with weights based on the mix of individual units.

The sales mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix.

More insight into the efficiency variance for direct materials can be gained by subdividing it into the direct materials:

Answer the following questions using the information below: Michelle's Flowering Plants provides the following information for the month of May: -What is the budgeted contribution margin per composite unit for the budgeted mix?

Corporate-sustaining costs should be allocated to:

Answer the following questions using the information below: Woodruff Flowering Plants provides the following information for the month of May: -For May, Woodruff will report a(n):

A common finding in many studies is that a high percentage of operating income is:

The Accountants Role in the Organization

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters

Exam 14: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Indirect costs:

A favorable sales-quantity variance would most likely be caused by:

A composite unit is a hypothetical unit with weights based on the mix of individual units.

The sales mix variance is the difference between budgeted contribution margin for the actual sales mix and the budgeted contribution margin for the budgeted sales mix.

More insight into the efficiency variance for direct materials can be gained by subdividing it into the direct materials:

Answer the following questions using the information below: Michelle's Flowering Plants provides the following information for the month of May: -What is the budgeted contribution margin per composite unit for the budgeted mix?

Corporate-sustaining costs should be allocated to:

Answer the following questions using the information below: Woodruff Flowering Plants provides the following information for the month of May: -For May, Woodruff will report a(n):

A common finding in many studies is that a high percentage of operating income is:

The Accountants Role in the Organization

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters