D196 - OA Prep – Practice UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What budget includes corporate office expenses?
A. Manufacturing Budget
B. Selling and Administrative Expense Budget - CORRECT ANSWER B. Selling and
Administrative Expense Budget
Insurance policy on office building
A. Product Cost
B. Period Cost - CORRECT ANSWER B. Period Cost
What budget is used for large corporate purchases?
A. Sales Budget
B. Capital Budget - CORRECT ANSWER B. Capital Budget
What budget is usually the last budget prepared?
A. Budgeted Income Statement
B. Budgeting Balance Sheet - CORRECT ANSWER B. Budgeting Balance Sheet
What budget is the first budget prepared?
A. Sales Budget
,B. Production Budget - CORRECT ANSWER A. Sales Budget
What budget includes information on the cost of materials?
A. Finished Goods Budget
B. Direct Materials Budget - CORRECT ANSWER B. Direct Materials Budget
What budget includes information on the depreciation of factory equipment?
A. Manufacturing Budget
B. Selling and Administrative Budget - CORRECT ANSWER A. Manufacturing Budget
What budget helps with inventory control?
A. Production Budget
B. Finished Goods Budget - CORRECT ANSWER B. Finished Goods Budget
What budget shows revenues?
A. Sales Budget
B. Selling and Administrative Budget - CORRECT ANSWER A. Sales Budget
What budget uses the rate of pay for assembly line workers?
A. Direct Material Budget
B. Direct Labor Budget - CORRECT ANSWER 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. - CORRECT ANSWER 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. -
CORRECT ANSWER B. Costs that are specifically traceable to a unit of business or segment
being analyzed.
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. - CORRECT ANSWER 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. - CORRECT
ANSWER B. Costs over which a manager does not have direct authority and cannot change.
What is a decentralized organization?
ACTUAL Exam Questions and CORRECT
Answers
What budget includes corporate office expenses?
A. Manufacturing Budget
B. Selling and Administrative Expense Budget - CORRECT ANSWER B. Selling and
Administrative Expense Budget
Insurance policy on office building
A. Product Cost
B. Period Cost - CORRECT ANSWER B. Period Cost
What budget is used for large corporate purchases?
A. Sales Budget
B. Capital Budget - CORRECT ANSWER B. Capital Budget
What budget is usually the last budget prepared?
A. Budgeted Income Statement
B. Budgeting Balance Sheet - CORRECT ANSWER B. Budgeting Balance Sheet
What budget is the first budget prepared?
A. Sales Budget
,B. Production Budget - CORRECT ANSWER A. Sales Budget
What budget includes information on the cost of materials?
A. Finished Goods Budget
B. Direct Materials Budget - CORRECT ANSWER B. Direct Materials Budget
What budget includes information on the depreciation of factory equipment?
A. Manufacturing Budget
B. Selling and Administrative Budget - CORRECT ANSWER A. Manufacturing Budget
What budget helps with inventory control?
A. Production Budget
B. Finished Goods Budget - CORRECT ANSWER B. Finished Goods Budget
What budget shows revenues?
A. Sales Budget
B. Selling and Administrative Budget - CORRECT ANSWER A. Sales Budget
What budget uses the rate of pay for assembly line workers?
A. Direct Material Budget
B. Direct Labor Budget - CORRECT ANSWER 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. - CORRECT ANSWER 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. -
CORRECT ANSWER B. Costs that are specifically traceable to a unit of business or segment
being analyzed.
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. - CORRECT ANSWER 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. - CORRECT
ANSWER B. Costs over which a manager does not have direct authority and cannot change.
What is a decentralized organization?
