MBA 620 ACC – MIDTERM QUESTIONS & ANSWERS
All of the following are good reasons why managers allocate overhead costs to products
EXCEPT: - Answers -Because managers would otherwise have difficulty estimating the
cost of direct materials & labor
Activity based costing is different from the other approaches because: - Answers -It
separates out overhead costs into the different processes or procedures that incur
overhead costs
Why is process costing needed in some companies or industries? - Answers -To
separate out the costs of partially completed items as they move across the production
process
Which of the following would be considered a nonmanufacturing (period) cost -
Answers -The cost of an advertising campaign to launch a new product
A predetermined overhead rate: - Answers -Is used to allocate manufacturing overhead
costs to jobs
QUIZ 2 - Answers -
A main difference between managerial and financial accounting is: - Answers -
Managerial accounting information is used only by people inside the organization for
decision making, planning
Which of the following would describe the planning function of managers? - Answers -
Communicating the goals of managers to the employees
Which of the following would definitely be an example of the VARIABLE cost for Bikes
Unlimited - Answers -The cost of pedals bought from a supplier
Why do companies use cost estimation tools? - Answers -To make cost projections
based on the expected level of sales.
Which cost estimation method will provide the most accurate (mathematically) cost
equation? - Answers -Regression Analysis Method
Quiz 3 - Answers -
The contribution margin income statement is different from the traditional income
statement because - Answers -It separates out fixed costs from variable costs
All of the following are good reasons why managers allocate overhead costs to products
EXCEPT: - Answers -Because managers would otherwise have difficulty estimating the
cost of direct materials & labor
Activity based costing is different from the other approaches because: - Answers -It
separates out overhead costs into the different processes or procedures that incur
overhead costs
Why is process costing needed in some companies or industries? - Answers -To
separate out the costs of partially completed items as they move across the production
process
Which of the following would be considered a nonmanufacturing (period) cost -
Answers -The cost of an advertising campaign to launch a new product
A predetermined overhead rate: - Answers -Is used to allocate manufacturing overhead
costs to jobs
QUIZ 2 - Answers -
A main difference between managerial and financial accounting is: - Answers -
Managerial accounting information is used only by people inside the organization for
decision making, planning
Which of the following would describe the planning function of managers? - Answers -
Communicating the goals of managers to the employees
Which of the following would definitely be an example of the VARIABLE cost for Bikes
Unlimited - Answers -The cost of pedals bought from a supplier
Why do companies use cost estimation tools? - Answers -To make cost projections
based on the expected level of sales.
Which cost estimation method will provide the most accurate (mathematically) cost
equation? - Answers -Regression Analysis Method
Quiz 3 - Answers -
The contribution margin income statement is different from the traditional income
statement because - Answers -It separates out fixed costs from variable costs
