ACCT 526 Certification Exam Questions
and Answers Verified Solutions Latest
Update 2026/2027
Question:
over applied OH.
Answer:
___ occurs when actual overhead costs are lower than overhead applied to jobs; MFO has a credit
balance at this time. This happens because more costs were applied to jobs than were actually
incurred. Often transferred to COGS to correct as a credit.
Question:
job costing.
Answer:
___ records revenues and costs for each job/unique product I.e., custom home, custom furniture,
etc.
Question:
Process costing.
Answer:
___ records revenues and costs for batches of identical units of products, I.e., soft drinks, milk,
lumber, paper, etc.
Question:
variable.
Answer:
___ costs which change in total with direct proportion to changes in volume and per unit cost
remains constant.
,Question:
relevant range.
Answer:
The range of activity index over which the company expects to operate during the year is the ___.
Question:
Investing Activity; Source of Cash.
Answer:
Sold a warehouse for $750,000
Question:
Operating Activity; Source of Cash.
Answer:
Reported a profit of $100,000.
Question:
Financing Activity; Use of Cash.
Answer:
Retired long-term bonds
Question:
Financing Activity; Use of Cash.
Answer:
Paid cash dividends of $350,000
Question:
Financing Activity, Source of Cash.
, Answer:
Obtained a mortgage for a new building from a local bank
Question:
Investing Activity; Use of Cash.
Answer:
Purchased a new robotic system
Question:
Financing Activity; Source of Cash.
Answer:
Issued a long-term note payable
Question:
Investing Activity; Use of Cash.
Answer:
Purchased a 40% interest in a company
Question:
Operating Activity; Use of Cash.
Answer:
Reported a loss for the year
Question:
Financing Activity; Source of Cash.
Answer:
Negotiated a long-term loan
and Answers Verified Solutions Latest
Update 2026/2027
Question:
over applied OH.
Answer:
___ occurs when actual overhead costs are lower than overhead applied to jobs; MFO has a credit
balance at this time. This happens because more costs were applied to jobs than were actually
incurred. Often transferred to COGS to correct as a credit.
Question:
job costing.
Answer:
___ records revenues and costs for each job/unique product I.e., custom home, custom furniture,
etc.
Question:
Process costing.
Answer:
___ records revenues and costs for batches of identical units of products, I.e., soft drinks, milk,
lumber, paper, etc.
Question:
variable.
Answer:
___ costs which change in total with direct proportion to changes in volume and per unit cost
remains constant.
,Question:
relevant range.
Answer:
The range of activity index over which the company expects to operate during the year is the ___.
Question:
Investing Activity; Source of Cash.
Answer:
Sold a warehouse for $750,000
Question:
Operating Activity; Source of Cash.
Answer:
Reported a profit of $100,000.
Question:
Financing Activity; Use of Cash.
Answer:
Retired long-term bonds
Question:
Financing Activity; Use of Cash.
Answer:
Paid cash dividends of $350,000
Question:
Financing Activity, Source of Cash.
, Answer:
Obtained a mortgage for a new building from a local bank
Question:
Investing Activity; Use of Cash.
Answer:
Purchased a new robotic system
Question:
Financing Activity; Source of Cash.
Answer:
Issued a long-term note payable
Question:
Investing Activity; Use of Cash.
Answer:
Purchased a 40% interest in a company
Question:
Operating Activity; Use of Cash.
Answer:
Reported a loss for the year
Question:
Financing Activity; Source of Cash.
Answer:
Negotiated a long-term loan
