ACCOUNTING EXAM MBA 600
What is decision making? - ANSWERS-Inherent in each of the
preceding management processes
What is included in manufacturing costs? - ANSWERS-1. Direct
materials cost
2. Direct labor cost
3. Factory overhead cost
What is factory overhead cost? - ANSWERS-Costs other than direct
materials cost and direct labor that are incurred in the manufacturing
process are combined
What is a utilization rate? - ANSWERS-Measures the use of a fixed
asset in serving customers relative to the asset's capacity
What is a variable cost? - ANSWERS-Costs that vary in proportion to
changes in the activity base
What is a fixed cost? - ANSWERS-Costs that remain the same in total
dollar amount as the activity base changes
What is a mixed cost? - ANSWERS-an expense that has both a fixed
part and a variable part
, How to total variable costs behave? - ANSWERS-Increase up
diagonally
How do variable costs per unit behave? - ANSWERS-Stay in one
straight line
How do total fixed costs behave? - ANSWERS-Stay in one straight
line
How do fixed costs per unit behave? - ANSWERS-Slope downwards
the more units produced
What is the accounting equation - ANSWERS-Assets = Liabilities +
Stockholders' Equity
In a ledger what are the liabilities? - ANSWERS-Accounts payable
Unearned Rent
In a ledger what are the assets? - ANSWERS-Accounts receivable
Supplies
Prepaid insurance
Land
Cash
What is decision making? - ANSWERS-Inherent in each of the
preceding management processes
What is included in manufacturing costs? - ANSWERS-1. Direct
materials cost
2. Direct labor cost
3. Factory overhead cost
What is factory overhead cost? - ANSWERS-Costs other than direct
materials cost and direct labor that are incurred in the manufacturing
process are combined
What is a utilization rate? - ANSWERS-Measures the use of a fixed
asset in serving customers relative to the asset's capacity
What is a variable cost? - ANSWERS-Costs that vary in proportion to
changes in the activity base
What is a fixed cost? - ANSWERS-Costs that remain the same in total
dollar amount as the activity base changes
What is a mixed cost? - ANSWERS-an expense that has both a fixed
part and a variable part
, How to total variable costs behave? - ANSWERS-Increase up
diagonally
How do variable costs per unit behave? - ANSWERS-Stay in one
straight line
How do total fixed costs behave? - ANSWERS-Stay in one straight
line
How do fixed costs per unit behave? - ANSWERS-Slope downwards
the more units produced
What is the accounting equation - ANSWERS-Assets = Liabilities +
Stockholders' Equity
In a ledger what are the liabilities? - ANSWERS-Accounts payable
Unearned Rent
In a ledger what are the assets? - ANSWERS-Accounts receivable
Supplies
Prepaid insurance
Land
Cash
