MBA 620 CERTIFICATION EVALUATION
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS
◉Why is process costing needed in some companies or industries?
a. Because in process costing companies, product costs are recorded
as expenses (on the income statement) as they are incurred.
b. To separate out the costs of partially completed items as they
move across the production process.
c. To separate out the selling, general and administrative costs from
the production process costs.
d. Because in process costing companies, a job cost sheet tracks each
of the product costs as they are incurred. Answer: 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?
a. The hourly wages of the workers who make the product.
b. The utilities cost for the factory where the product is made.
, c. The cost of an advertising campaign to launch a new product.
d. The cost of materials used to make the product. Answer: The cost
of an advertising campaign to launch a new product
◉A predetermined overhead rate:
a. Is the predicted growth rate of overhead costs.
b. Is used to assign period costs to different jobs.
c. Is used to allocate manufacturing overhead costs to jobs.
d. Is used to assign direct material and direct labor costs to jobs.
Answer: Is used to allocate manufacturing overhead costs to jobs
◉The contribution margin income statement is different from the
traditional income statement because
a. It clearly indicates the cost of goods sold.
b. It can be used for external financial reporting.
c. It separates out product costs from period costs.
d. It separates out fixed costs from variable costs. Answer: It
separates out fixed costs from variable costs
◉Outside the relevant range of activity
2026 COMPLETE QUESTIONS AND
CORRECT ANSWERS
◉Why is process costing needed in some companies or industries?
a. Because in process costing companies, product costs are recorded
as expenses (on the income statement) as they are incurred.
b. To separate out the costs of partially completed items as they
move across the production process.
c. To separate out the selling, general and administrative costs from
the production process costs.
d. Because in process costing companies, a job cost sheet tracks each
of the product costs as they are incurred. Answer: 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?
a. The hourly wages of the workers who make the product.
b. The utilities cost for the factory where the product is made.
, c. The cost of an advertising campaign to launch a new product.
d. The cost of materials used to make the product. Answer: The cost
of an advertising campaign to launch a new product
◉A predetermined overhead rate:
a. Is the predicted growth rate of overhead costs.
b. Is used to assign period costs to different jobs.
c. Is used to allocate manufacturing overhead costs to jobs.
d. Is used to assign direct material and direct labor costs to jobs.
Answer: Is used to allocate manufacturing overhead costs to jobs
◉The contribution margin income statement is different from the
traditional income statement because
a. It clearly indicates the cost of goods sold.
b. It can be used for external financial reporting.
c. It separates out product costs from period costs.
d. It separates out fixed costs from variable costs. Answer: It
separates out fixed costs from variable costs
◉Outside the relevant range of activity
