Exam 3: Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

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Denver Corporation The records of Denver Corporation revealed the following data for the current year. Refer to Denver Corporation. Assume that Denver has overapplied overhead of $25,000 and that this amount is material. What is the balance in Cost of Goods Sold after the overapplied overhead is closed?

(Multiple Choice)

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Question 41

Phantom profits result when absorption costing is used and production exceeds sales.

(True/False)

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Question 42

Normal capacity considers present and future production levels and cyclical fluctuations.

(True/False)

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Question 43

If sales exceed production, absorption costing net income exceeds variable costing net income.

(True/False)

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Question 44

In an actual cost system, factory overhead is assigned to an overhead control account and then allocated to products and services.

(True/False)

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Question 45

In the formula y = a + bX, y represents

(Multiple Choice)

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Question 46

Another name for absorption costing is

(Multiple Choice)

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Question 47

Why do managers frequently prefer variable costing to absorption costing for internal use?

(Essay)

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Question 48

Dynamic Trainers provides a personalized training program that is popular with many companies. The number of programs offered over the last five months, and the costs of offering these programs are as follows:

(Essay)

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Question 49

A functional classification of costs would classify "depreciation on office equipment" as a

(Multiple Choice)

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Question 50

Practical capacity does not adjust for routine downtime in a production process.

(True/False)

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Question 51

The facility manager of Price Corporation asked the systems analyst for information to help in forecasting handling costs. The following printout was generated using the least squares regression method.

(Essay)

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Question 52

Unabsorbed fixed overhead costs in an absorption costing system are

(Multiple Choice)

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Question 53

When a relationship between several independent variables and one dependent variable is analyzed, the regression is referred to as ____________________.

(Short Answer)

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Question 54

Consider the following three product costing alternatives: process costing, job order costing, and standard costing. Which of these can be used in conjunction with variable costing?

(Multiple Choice)

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Question 55

Discuss the application of the high-low method.

(Essay)

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Question 56

The slope of a regression line is determined by dividing the change in activity level by the change in total cost.

(True/False)

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Question 57

When using the high-low method, fixed costs are computed before the variable component is computed.

(True/False)

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Question 58

The measure of activity that allows for routine variations in manufacturing activity is:

(Multiple Choice)

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Question 59

Cost allocation is the assignment of ____ costs to one or more products using a reasonable basis.

(Multiple Choice)

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Question 60

Showing 41 - 60 of 200

Phantom profits result when absorption costing is used and production exceeds sales.

Normal capacity considers present and future production levels and cyclical fluctuations.

If sales exceed production, absorption costing net income exceeds variable costing net income.

In an actual cost system, factory overhead is assigned to an overhead control account and then allocated to products and services.

In the formula y = a + bX, y represents

Another name for absorption costing is

Why do managers frequently prefer variable costing to absorption costing for internal use?

Dynamic Trainers provides a personalized training program that is popular with many companies. The number of programs offered over the last five months, and the costs of offering these programs are as follows:

A functional classification of costs would classify "depreciation on office equipment" as a

Practical capacity does not adjust for routine downtime in a production process.

The facility manager of Price Corporation asked the systems analyst for information to help in forecasting handling costs. The following printout was generated using the least squares regression method.

Unabsorbed fixed overhead costs in an absorption costing system are

When a relationship between several independent variables and one dependent variable is analyzed, the regression is referred to as ____________________.

Consider the following three product costing alternatives: process costing, job order costing, and standard costing. Which of these can be used in conjunction with variable costing?

Discuss the application of the high-low method.

The slope of a regression line is determined by dividing the change in activity level by the change in total cost.

When using the high-low method, fixed costs are computed before the variable component is computed.

The measure of activity that allows for routine variations in manufacturing activity is:

Cost allocation is the assignment of ____ costs to one or more products using a reasonable basis.

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

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

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

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