Question 1

Setting organizational goals and objectives and preparing a budget are aspects of control

Accepted Answer

A) during an event. 
B) before an event. 
C) after an event. 
D) before,during,and after an event. 
A) during an event. 
B) before an event. 
C) after an event. 
D) before,during,and after an event.

Question 2

Depreciation of fixed assets is considered to be a discretionary cost.

Accepted Answer

A) True 
 B)False

Question 3

The level of discretionary costs

Accepted Answer

A) are set by management for one period at a time. 
B) cannot be changed in the short run. 
C) are determined when capital investment is undertaken. 
D) always varies with sales. 
A) are set by management for one period at a time. 
B) cannot be changed in the short run. 
C) are determined when capital investment is undertaken. 
D) always varies with sales.

Question 4

The difference between actual sales and budgeted sales is

Accepted Answer

A) a flexible budget variance. 
B) an efficiency measure. 
C) required in program budgeting. 
D) an effectiveness measure. 
A) a flexible budget variance. 
B) an efficiency measure. 
C) required in program budgeting. 
D) an effectiveness measure.

Question 5

The term "discretionary costs" refers to

Accepted Answer

A) costs that management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers. 
B) costs that are likely to respond to the amount of attention devoted to them by a specified manager. 
C) costs that are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity. 
D) amortization of costs that were capitalized in previous periods. 
A) costs that management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers. 
B) costs that are likely to respond to the amount of attention devoted to them by a specified manager. 
C) costs that are governed mainly by past decisions that established the present levels of operating and organizational capacity and that only change slowly in response to small changes in capacity. 
D) amortization of costs that were capitalized in previous periods.

Question 6

When a CPA firm uses taped lectures rather than live presentations for continuing education,it is engaging in a cost reduction strategy.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following does not create a specific price level change?

Accepted Answer

A) change in production technology 
B) change in the rate of inflation 
C) changes due to supply and demand 
D) changes in the number of competing suppliers 
A) change in production technology 
B) change in the rate of inflation 
C) changes due to supply and demand 
D) changes in the number of competing suppliers

Question 8

If economic activity slows down,total costs could easily decline in which of the following categories?

Accepted Answer

A) variable costs and committed fixed costs 
B) variable costs and discretionary fixed costs 
C) variable costs only 
D) committed fixed costs only 
A) variable costs and committed fixed costs 
B) variable costs and discretionary fixed costs 
C) variable costs only 
D) committed fixed costs only

Question 9

Costs that have been found to bear observable and known relationships to a quantifiable activity base are referred to as __________________________________.

Accepted Answer

The answer of Costs that have been found to bear...

Question 10

A major difference between committed and discretionary fixed costs is that

Accepted Answer

A) incurring committed fixed costs is less risky than using discretionary costs. 
B) managers are usually responsible for committed fixed costs but not for discretionary fixed costs. 
C) incurring discretionary fixed costs rather than committed fixed costs gives a company more flexibility in controlling costs. 
D) companies are using more discretionary fixed costs because labor is easier to "remove" than technology. 
A) incurring committed fixed costs is less risky than using discretionary costs. 
B) managers are usually responsible for committed fixed costs but not for discretionary fixed costs. 
C) incurring discretionary fixed costs rather than committed fixed costs gives a company more flexibility in controlling costs. 
D) companies are using more discretionary fixed costs because labor is easier to "remove" than technology.

Question 11

The greatest degree of control for committed fixed costs is exerted

Accepted Answer

A) in the post-investment audit. 
B) during the life of the investment. 
C) prior to acquisition. 
D) by equipment operators. 
A) in the post-investment audit. 
B) during the life of the investment. 
C) prior to acquisition. 
D) by equipment operators.

Question 12

A small manufacturing company recently stated its sales goal for a period was $100,000.At this level of activity,its budgeted expenses were $80,000.Its actual sales were $100,000,but its actual expenses were $85,000.This company operated

Accepted Answer

A) effectively and efficiently. 
B) neither effectively nor efficiently. 
C) effectively but not efficiently. 
D) efficiently but not effectively. 
A) effectively and efficiently. 
B) neither effectively nor efficiently. 
C) effectively but not efficiently. 
D) efficiently but not effectively.

Question 13

The value of discretionary costs is often measured using non-monetary measures.

Accepted Answer

A) True 
 B)False

Question 14

Lopez and Associates provided the following information relative to the times and costs to prepare a simple income tax return:
   Compute the price and efficiency variances.

Accepted Answer

The answer of Lopez and Associates provided the following information...

Question 15

A flexible budget compares actual costs to budgeted costs at several activity levels.

Accepted Answer

A) True 
 B)False

Question 16

An organization plans to produce and sell 50,000 units.It actually produces and sells 45,000 units.Total costs would be expected to be below the planned level due to cost

Accepted Answer

A) consciousness. 
B) control. 
C) reductions. 
D) behavior. 
A) consciousness. 
B) control. 
C) reductions. 
D) behavior.

Question 17

The higher an organization's capital costs,the greater the opportunity cost of holding idle cash.

Accepted Answer

A) True 
 B)False

Question 18

The distinction between avoidable and unavoidable costs is similar to the distinction between

Accepted Answer

A) variable costs and fixed costs. 
B) variable costs and mixed costs. 
C) step-variable costs and fixed costs. 
D) discretionary costs and committed costs. 
A) variable costs and fixed costs. 
B) variable costs and mixed costs. 
C) step-variable costs and fixed costs. 
D) discretionary costs and committed costs.

Question 19

Which of the following is an example of a committed fixed cost?

Accepted Answer

A) investment in production facilities 
B) advertising 
C) preventive maintenance 
D) employee training programs 
A) investment in production facilities 
B) advertising 
C) preventive maintenance 
D) employee training programs

Question 20

The portion of variance in a dependent variable explained by an independent variable is referred to as the _________________________________________.

Accepted Answer

coefficien

Setting organizational goals and objectives and preparing a budget are aspects of control

Depreciation of fixed assets is considered to be a discretionary cost.

The level of discretionary costs

The difference between actual sales and budgeted sales is

The term "discretionary costs" refers to

When a CPA firm uses taped lectures rather than live presentations for continuing education,it is engaging in a cost reduction strategy.

Which of the following does not create a specific price level change?

If economic activity slows down,total costs could easily decline in which of the following categories?

Costs that have been found to bear observable and known relationships to a quantifiable activity base are referred to as __________________________________.

A major difference between committed and discretionary fixed costs is that

The greatest degree of control for committed fixed costs is exerted

A small manufacturing company recently stated its sales goal for a period was $100,000.At this level of activity,its budgeted expenses were $80,000.Its actual sales were $100,000,but its actual expenses were $85,000.This company operated

The value of discretionary costs is often measured using non-monetary measures.

Lopez and Associates provided the following information relative to the times and costs to prepare a simple income tax return: Compute the price and efficiency variances.

A flexible budget compares actual costs to budgeted costs at several activity levels.

An organization plans to produce and sell 50,000 units.It actually produces and sells 45,000 units.Total costs would be expected to be below the planned level due to cost

The higher an organization's capital costs,the greater the opportunity cost of holding idle cash.

The distinction between avoidable and unavoidable costs is similar to the distinction between

Which of the following is an example of a committed fixed cost?

The portion of variance in a dependent variable explained by an independent variable is referred to as the _________________________________________.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 16: Managing Costs and Uncertainty

Setting organizational goals and objectives and preparing a budget are aspects of control

Depreciation of fixed assets is considered to be a discretionary cost.

The level of discretionary costs

The difference between actual sales and budgeted sales is

The term "discretionary costs" refers to

When a CPA firm uses taped lectures rather than live presentations for continuing education,it is engaging in a cost reduction strategy.

Which of the following does not create a specific price level change?

If economic activity slows down,total costs could easily decline in which of the following categories?

Costs that have been found to bear observable and known relationships to a quantifiable activity base are referred to as __________________________________.

A major difference between committed and discretionary fixed costs is that

The greatest degree of control for committed fixed costs is exerted

A small manufacturing company recently stated its sales goal for a period was $100,000.At this level of activity,its budgeted expenses were $80,000.Its actual sales were $100,000,but its actual expenses were $85,000.This company operated

The value of discretionary costs is often measured using non-monetary measures.

Lopez and Associates provided the following information relative to the times and costs to prepare a simple income tax return: Compute the price and efficiency variances.

A flexible budget compares actual costs to budgeted costs at several activity levels.

An organization plans to produce and sell 50,000 units.It actually produces and sells 45,000 units.Total costs would be expected to be below the planned level due to cost

The higher an organization's capital costs,the greater the opportunity cost of holding idle cash.

The distinction between avoidable and unavoidable costs is similar to the distinction between

Which of the following is an example of a committed fixed cost?

The portion of variance in a dependent variable explained by an independent variable is referred to as the _________________________________________.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters