ACCT 210 EXAM 3 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. A manager of a cost center is evaluated mainly on:
Answer:
his or her ability to control costs.
Question:
2. An unfavorable materials quantity variance would occur
if:
Answer:
actual pounds of materials used were greater than the standard pounds allowed.
Question:
3. Which of the following is a disadvantage of the cash
payback technique?
Answer:
It ignores the expected profitability of a project
Question:
4. Which of the following is not a true statement?
a. All costs are controllable at some level within a
company.
b. Responsibility accounting applies to both profit and
not-for-profit entities.
c. Fewer costs are controllable as one moves up to each
higher level of managerial responsibility.
d. The term segment is sometimes used to identify areas
of responsibility in decentralized operations.
Answer:
C. Fewer costs are controllable as one moves up to each higher level of
managerial responsibility.
Question:
5. Which of the following expenses would not appear on a
selling and administrative expense budget?
Answer:
Indirect labor
, Question:
6. Which one of the following would not be classified as
manufacturing overhead?
Answer:
Direct materials
Question:
7. Activity-based costing:
Answer:
allocates overhead to activity cost pools, and it then assigns the activity cost
pools to products and services by means of cost drivers
Question:
8. Target cost equation
Answer:
Price - Desired Profit per unit
Question:
9. Which of the following statements about budget
acceptance in an organization is true?
Answer:
Budgets have a greater chance of acceptance if all levels of management have
provided input into the budgeting process.
Question:
10. Which of the following is not an operating budget?
Answer:
Cash budget
Question:
11. What is the primary difference between a static budget
and a flexible budget?
Answer:
The static budget is prepared for a single level of activity, while a flexible budget
is adjusted for different activity levels.
Question:
12. Another name for the static budget is:
Answer:
master budget.
AND CORRECT ANSWERS
Question:
1. A manager of a cost center is evaluated mainly on:
Answer:
his or her ability to control costs.
Question:
2. An unfavorable materials quantity variance would occur
if:
Answer:
actual pounds of materials used were greater than the standard pounds allowed.
Question:
3. Which of the following is a disadvantage of the cash
payback technique?
Answer:
It ignores the expected profitability of a project
Question:
4. Which of the following is not a true statement?
a. All costs are controllable at some level within a
company.
b. Responsibility accounting applies to both profit and
not-for-profit entities.
c. Fewer costs are controllable as one moves up to each
higher level of managerial responsibility.
d. The term segment is sometimes used to identify areas
of responsibility in decentralized operations.
Answer:
C. Fewer costs are controllable as one moves up to each higher level of
managerial responsibility.
Question:
5. Which of the following expenses would not appear on a
selling and administrative expense budget?
Answer:
Indirect labor
, Question:
6. Which one of the following would not be classified as
manufacturing overhead?
Answer:
Direct materials
Question:
7. Activity-based costing:
Answer:
allocates overhead to activity cost pools, and it then assigns the activity cost
pools to products and services by means of cost drivers
Question:
8. Target cost equation
Answer:
Price - Desired Profit per unit
Question:
9. Which of the following statements about budget
acceptance in an organization is true?
Answer:
Budgets have a greater chance of acceptance if all levels of management have
provided input into the budgeting process.
Question:
10. Which of the following is not an operating budget?
Answer:
Cash budget
Question:
11. What is the primary difference between a static budget
and a flexible budget?
Answer:
The static budget is prepared for a single level of activity, while a flexible budget
is adjusted for different activity levels.
Question:
12. Another name for the static budget is:
Answer:
master budget.
