ACCT 2102 Exam 4 Questions With Complete Solution
actual quantity of input at actual price Correct Answers AQ *
AP
actual quantity of input at standard price Correct Answers AQ
* SP
advantage of standard costs relating to book keeping Correct
Answers instead of recording actual costs for each job, the
standard costs for direct materials, labor, and overhead can be
charged to jobs directly
advantage of standard costs relating to employees Correct
Answers standards can be used as benchmarks from which
employees can judge their performance and then improve it
advantage of standard costs relating to managers Correct
Answers if costs have standards that they have to fit, then
managers can focus on other things. when costs deviate from the
standards, managers will be alerted of that. this helps managers
focus on more important issues
advantage of standard costs relating to responsibility accounting
Correct Answers standards tell us what costs should be, who
should be responsible for them, and if costs are under controlled
avoidable costs definition Correct Answers costs that can be
eliminated in whole or in part by choosing one alternative over
another - they are RELEVANT
, avoidable/unavoidable: advertising expense Correct Answers
avoidable - relevant
avoidable/unavoidable: depreciation expense Correct Answers
unavoidable - irrelevant
avoidable/unavoidable: general administrative expense Correct
Answers unavoidable - irrelevant
avoidable/unavoidable: insurance expense Correct Answers
avoidable - relevant
avoidable/unavoidable: rent expense Correct Answers
unavoidable - irrelevant
avoidable/unavoidable: salaries expense Correct Answers
avoidable - relevant
avoidable/unavoidable: utilities expense Correct Answers
unavoidable - irrelevant
explain the comparative income statement approach when
deciding whether to drop or retain part of a company Correct
Answers look at each item of the income statement and decide
if that cost would be incurred or not if the product was dropped
or kept, and then look at the final NOI for both and whichever is
less for dropping or keeping, that's the action you will take.
all variable expenses will stay the same, but for fixed expenses
you have to decide which costs are relevant or not
actual quantity of input at actual price Correct Answers AQ *
AP
actual quantity of input at standard price Correct Answers AQ
* SP
advantage of standard costs relating to book keeping Correct
Answers instead of recording actual costs for each job, the
standard costs for direct materials, labor, and overhead can be
charged to jobs directly
advantage of standard costs relating to employees Correct
Answers standards can be used as benchmarks from which
employees can judge their performance and then improve it
advantage of standard costs relating to managers Correct
Answers if costs have standards that they have to fit, then
managers can focus on other things. when costs deviate from the
standards, managers will be alerted of that. this helps managers
focus on more important issues
advantage of standard costs relating to responsibility accounting
Correct Answers standards tell us what costs should be, who
should be responsible for them, and if costs are under controlled
avoidable costs definition Correct Answers costs that can be
eliminated in whole or in part by choosing one alternative over
another - they are RELEVANT
, avoidable/unavoidable: advertising expense Correct Answers
avoidable - relevant
avoidable/unavoidable: depreciation expense Correct Answers
unavoidable - irrelevant
avoidable/unavoidable: general administrative expense Correct
Answers unavoidable - irrelevant
avoidable/unavoidable: insurance expense Correct Answers
avoidable - relevant
avoidable/unavoidable: rent expense Correct Answers
unavoidable - irrelevant
avoidable/unavoidable: salaries expense Correct Answers
avoidable - relevant
avoidable/unavoidable: utilities expense Correct Answers
unavoidable - irrelevant
explain the comparative income statement approach when
deciding whether to drop or retain part of a company Correct
Answers look at each item of the income statement and decide
if that cost would be incurred or not if the product was dropped
or kept, and then look at the final NOI for both and whichever is
less for dropping or keeping, that's the action you will take.
all variable expenses will stay the same, but for fixed expenses
you have to decide which costs are relevant or not
