ACCT 3100 FINAL EXAM(Completely solved)
When production exceeds sales and the company uses the LIFO inventory flow assumption, the
net operating income reported under absorption costing generally will be: correct answers greater
than net operating income reported under variable costing
For Planning, control, and decision making purposes: correct answers mixed costs should be
separated into variable and fixed components
Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships
them to customers using United Parcel Service (UPS). Which two terms below describe the cost
of shipping these wreaths? correct answers variable cost and period cost
When the activity level increases within the relevant range, what should happen with respect to
the following? correct answers total costs = increase
Fixed cost per unit = decrease
Variable cost per unit = stay the same
Disbursement Cash Budget correct answers income tax paid
also called cash payments, in accounting refer to payments made by a company during a
specified period,
Which of the following costs, if expressed on a per unit basis, would be expected to decrease as
the level of production and sales increase? correct answers Fixed Manufacturing Overhead
What journal entry is made in a job-order costing system when $8,000 of materials are
requisitioned for general factory use instead of for use in a particular job, and why? correct
answers Debit = Manufacturing Overhead
Credit = Raw Materials
Departmental overhead rates are generally preferred to plant-wide overhead rates when: correct
answers the activities of the various departments in the plant are not homogeneous.
Variable overhead is applied on the basis of standard direct labor-hours. If the direct labor
efficiency variance is unfavorable, the variable overhead efficiency variance will be correct
answers Unfavorable
1. Manufacturing companies that benefit the most form activity based costing are those where
overhead costs are a ____ % of total product cost and where there is _____ diversity among
various products that they produce correct answers High
Considerable
A national retail company has segmented its income statement by sales territories. If each sales
territory statement is further segmented by individual stores, which of the following will most
likely
occur? correct answers some traceable fixed expenses in the sales territory segmented statement
will become
When production exceeds sales and the company uses the LIFO inventory flow assumption, the
net operating income reported under absorption costing generally will be: correct answers greater
than net operating income reported under variable costing
For Planning, control, and decision making purposes: correct answers mixed costs should be
separated into variable and fixed components
Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships
them to customers using United Parcel Service (UPS). Which two terms below describe the cost
of shipping these wreaths? correct answers variable cost and period cost
When the activity level increases within the relevant range, what should happen with respect to
the following? correct answers total costs = increase
Fixed cost per unit = decrease
Variable cost per unit = stay the same
Disbursement Cash Budget correct answers income tax paid
also called cash payments, in accounting refer to payments made by a company during a
specified period,
Which of the following costs, if expressed on a per unit basis, would be expected to decrease as
the level of production and sales increase? correct answers Fixed Manufacturing Overhead
What journal entry is made in a job-order costing system when $8,000 of materials are
requisitioned for general factory use instead of for use in a particular job, and why? correct
answers Debit = Manufacturing Overhead
Credit = Raw Materials
Departmental overhead rates are generally preferred to plant-wide overhead rates when: correct
answers the activities of the various departments in the plant are not homogeneous.
Variable overhead is applied on the basis of standard direct labor-hours. If the direct labor
efficiency variance is unfavorable, the variable overhead efficiency variance will be correct
answers Unfavorable
1. Manufacturing companies that benefit the most form activity based costing are those where
overhead costs are a ____ % of total product cost and where there is _____ diversity among
various products that they produce correct answers High
Considerable
A national retail company has segmented its income statement by sales territories. If each sales
territory statement is further segmented by individual stores, which of the following will most
likely
occur? correct answers some traceable fixed expenses in the sales territory segmented statement
will become
