D196 Practice Questions ACTUAL UPDATED QUESTIONS AND CORRECT ANSWERS
Manufacturing Overhead Budget Which budget should include all production costs other than those for direct
materials and direct labor?
Accounts receivable Which account is a common asset account?
Balance Sheet On which financial statement would you see the valuation of a company's asset
account?
Preparing Reports What is the final step in the accounting cycle?
Preparing financial statements Which of the following is not an example of a transaction?
Statement of Cash Flows On which financial statement would you see cash flows from financing activities?
SEC Whose job is it to make sure that investors are provided with full and fair
information about publicly traded companies?
, It distinguishes between current and long-term assets. How does a classified balance sheet provide useful information to a decision
maker?
Uncontrollable costs should not be included in the In some companies, the performance measure for profit center managers is
performance evaluation measure of a profit center heavily influenced by cost allocations downwards from organizational units (such
manager. as company headquarters). Why is this a mistake?
Raw materials to make a product. Which is an examples of a product cost?
Manufacturing Overhead Which label is given to the cost of wages for factory supervisors?
60% A company reports the following data:
Price/unit = $20
Variable costs/unit = $12
Fixed costs = $12,000
Given this data, what is the variable cost ratio?
Actual costs exceed applied costs. If overhead is underapplied, which statement is true?
Selling costs Which of the following is NOT an example of a cost driver?
Marketing expense Which item is a period cost?
Process Costing Which overhead allocation method should be used for a trash bag manufacturer?
Variable Costs For the relevant range, which costs are approximately linear within a certain range
of production?
Cost-Volume-Profit Analysis Which of the following focuses on how a company's activity levels impact profits?
Job Order Costing Which overhead allocation method should be used for an automobile repair
shop?
Factory supervisor wages, security guard wages, What are examples of indirect labor?
maintenance staff wages
The grease used on machines that manufacture products What is an example of an indirect material?
Manufacturing Overhead Budget Which budget should include all production costs other than those for direct
materials and direct labor?
Accounts receivable Which account is a common asset account?
Balance Sheet On which financial statement would you see the valuation of a company's asset
account?
Preparing Reports What is the final step in the accounting cycle?
Preparing financial statements Which of the following is not an example of a transaction?
Statement of Cash Flows On which financial statement would you see cash flows from financing activities?
SEC Whose job is it to make sure that investors are provided with full and fair
information about publicly traded companies?
, It distinguishes between current and long-term assets. How does a classified balance sheet provide useful information to a decision
maker?
Uncontrollable costs should not be included in the In some companies, the performance measure for profit center managers is
performance evaluation measure of a profit center heavily influenced by cost allocations downwards from organizational units (such
manager. as company headquarters). Why is this a mistake?
Raw materials to make a product. Which is an examples of a product cost?
Manufacturing Overhead Which label is given to the cost of wages for factory supervisors?
60% A company reports the following data:
Price/unit = $20
Variable costs/unit = $12
Fixed costs = $12,000
Given this data, what is the variable cost ratio?
Actual costs exceed applied costs. If overhead is underapplied, which statement is true?
Selling costs Which of the following is NOT an example of a cost driver?
Marketing expense Which item is a period cost?
Process Costing Which overhead allocation method should be used for a trash bag manufacturer?
Variable Costs For the relevant range, which costs are approximately linear within a certain range
of production?
Cost-Volume-Profit Analysis Which of the following focuses on how a company's activity levels impact profits?
Job Order Costing Which overhead allocation method should be used for an automobile repair
shop?
Factory supervisor wages, security guard wages, What are examples of indirect labor?
maintenance staff wages
The grease used on machines that manufacture products What is an example of an indirect material?
