D196 - OA Prep Exam A+ Pass New Update

D196 - OA Prep Exam A+ Pass New Update What is the formula for calculating activity rates? A. Overhead cost pool divided by cost driver B. Manufacturing costs divided by cost driver C. Budgeted overhead divided by activity D. Fixed costs divided by cost pool - Answers - A. Overhead cost pool divided by cost driver What budget includes corporate office expenses? A. Manufacturing Budget B. Selling and Administrative Expense Budget - Answers - B. Selling and Administrative Expense Budget Insurance policy on office building A. Product Cost B. Period Cost - Answers - B. Period Cost What budget is used for large corporate purchases? A. Sales Budget B. Capital Budget - Answers - B. Capital Budget What budget is usually the last budget prepared? A. Budgeted Income Statement B. Budgeting Balance Sheet - Answers - B. Budgeting Balance Sheet What budget is the first budget prepared? A. Sales Budget B. Production Budget - Answers - A. Sales Budget What budget includes information on the cost of materials? A. Finished Goods Budget B. Direct Materials Budget - Answers - B. Direct Materials Budget What budget includes information on the depreciation of factory equipment? A. Manufacturing Budget B. Selling and Administrative Budget - Answers - A. Manufacturing Budget What budget helps with inventory control? A. Production Budget B. Finished Goods Budget - Answers - B. Finished Goods Budget What budget shows revenues? A. Sales Budget B. Selling and Administrative Budget - Answers - A. Sales Budget What budget uses the rate of pay for assembly line workers? A. Direct Material Budget B. Direct Labor Budget - Answers - B. Direct Labor Budget What is an unfavorable cost variance? A. A difference between the actual cost and the budgeted cost where the actual cost is less than the budgeted amount. B. A difference between the actual cost and the budgeted cost where the actual cost is more than the budgeted amount. - Answers - B. A difference between the actual cost and the budgeted cost where the actual cost is more than the budgeted amount. What is a direct cost? A. Costs normally incurred for the benefit of several segments within the organization; sometimes called common costs or joint costs. B. Costs that are specifically traceable to a unit of business or segment being analyzed. - Answers - B. Costs that are specifically traceable to a unit of business or segment being analyzed. What is an indirect cost? A. Costs over which a manager has direct authority and can change. B. Costs normally incurred for the benefit of several segments within the organization; sometimes called common costs or joint costs. - Answers - B. Costs normally incurred for the benefit of several segments within the organization; sometimes called common costs or joint costs. What is a cost center? A. An organizational unit in which a manager has control over and is held accountable for cost performance. B. An organizational unit in which a manager has control over and is held accountable for both cost and revenue performance. - Answers - A. An organizational unit in which a manager has control over and is held accountable for cost performance. What is an uncontrollable cost? A. Costs that are specifically traceable to a unit of business or segment being analyzed. B. Costs over which a manager does not have direct authority and cannot change. - Answers - B. Costs over which a manager does not have direct authority and cannot change. What is a decentralized organization? A. An organizational unit in which a manager has control over and is held accountable for cost performance. B. An organization in which managers at all levels have the authority to make decisions concerning the operations for which they are responsible. This is often based on geographical location. - Answers - B. An organization in which managers at all levels have the authority to make decisions concerning the operations for which they are responsible. This is often based on geographical location. What is a segment? A. A subsection of an organization that is distinct from the whole organization based on its operational activities, customers, or geographic location. B. A system of evaluating performance in which managers are held accountable for the costs, revenues, assets, or other elements over which they have control. - Answers - A. A subsection of an organization that is distinct from the whole organization based on its operational activities, customers, or geographic location. What is a profit center? A. A system of evaluating performance in which managers are held accountable for the costs, revenues, assets, or other elements over which they have control. B. An organizational unit in which a manager has control over and is held accountable for both cost and revenue performance. - Answers - B. An organizational unit in which a manager has control over and is held accountable for both cost and revenue performance.