Question 1

Increases in per unit variable costs and total fixed costs should be minimized through the process of ________________________________.

Accepted Answer

The answer of Increases in per unit variable costs and...

Question 2

Most discretionary costs relate to

Accepted Answer

A)  plant and equipment acquisitions. 
B)  long-term investments. 
C)  basic personnel costs. 
D)  service activities. 
A)  plant and equipment acquisitions. 
B)  long-term investments. 
C)  basic personnel costs. 
D)  service activities.

Question 3

For cost control purposes, fixed costs are classified as

Accepted Answer

A)  product or period costs. 
B)  discretionary or committed. 
C)  direct or common. 
D)  sunk or avoidable. 
A)  product or period costs. 
B)  discretionary or committed. 
C)  direct or common. 
D)  sunk or avoidable.

Question 4

The use of options and forward contracts to manage price risk is referred to as ___________________.

Accepted Answer

The answer of The use of options and forward contracts...

Question 5

All of the following are explanations of cost changes. Which of these influences can be substantially affected by cost containment measures?

Accepted Answer

A)  inflation/deflation 
B)  changes in quantities purchased 
C)  technological change 
D)  changes in supply chain costs 
A)  inflation/deflation 
B)  changes in quantities purchased 
C)  technological change 
D)  changes in supply chain costs

Question 6

If a firm is successful in meeting its output goal for a period, the firm has been

Accepted Answer

A)  efficient. 
B)  effective. 
C)  profitable. 
D)  exercising cost containment measures. 
A)  efficient. 
B)  effective. 
C)  profitable. 
D)  exercising cost containment measures.

Question 7

Usually, with respect to a variable cost, optimal control is exerted when the cost

Accepted Answer

A)  can be controlled prior to incurrence. 
B)  is compared to its budget amount. 
C)  increases steadily over time. 
D)  is closely monitored. 
A)  can be controlled prior to incurrence. 
B)  is compared to its budget amount. 
C)  increases steadily over time. 
D)  is closely monitored.

Question 8

Calvert Company has made the following information available for the month of March:
   Assume that Calvert Company hires part-time employees for production of these units.
Compute the price and efficiency variances.

Accepted Answer

The answer of Calvert Company has made the following information...

Question 9

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

Accepted Answer

coefficien

Question 10

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 11

A committed fixed cost can

Accepted Answer

A)  never be eliminated. 
B)  be eliminated in the short term and in the long term. 
C)  be eliminated in the long term but not in the short term. 
D)  be eliminated in the short term but not in the long term. 
A)  never be eliminated. 
B)  be eliminated in the short term and in the long term. 
C)  be eliminated in the long term but not in the short term. 
D)  be eliminated in the short term but not in the long term.

Question 12

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 13

A reasonable measure of efficiency relies on

Accepted Answer

A)  qualitative measures of inputs and outputs. 
B)  a match of inputs in one period with outputs in subsequent periods. 
C)  a causal relationship between inputs and outputs. 
D)  a ratio of planned output to actual output. 
A)  qualitative measures of inputs and outputs. 
B)  a match of inputs in one period with outputs in subsequent periods. 
C)  a causal relationship between inputs and outputs. 
D)  a ratio of planned output to actual output.

Question 14

Clarkson Company The following information is provided for Clarkson Company for the month of September:
  Refer to Clarkson Company. What is the price variance?

Accepted Answer

A)  $4,450 F 
B)  $4,450 U 
C)  $1,000 F 
D)  $1,000 U 
A)  $4,450 F 
B)  $4,450 U 
C)  $1,000 F 
D)  $1,000 U

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

As the economy becomes more and more depressed, a company's management decides to slash spending on research and development. What is the likely effect of this action on net income? Net income will be

Accepted Answer

A)  higher this period and lower in future periods. 
B)  higher this period and higher in future periods. 
C)  lower this period and higher in future periods. 
D)  lower this period and lower in future periods. 
A)  higher this period and lower in future periods. 
B)  higher this period and higher in future periods. 
C)  lower this period and higher in future periods. 
D)  lower this period and lower in future periods.

Question 18

Discretionary activities in an organization are determined based on

Accepted Answer

A)  organizational policies and managerial preferences. 
B)  the budgeted amount from the prior period. 
C)  the level of long-term investment. 
D)  an organization's internal control. 
A)  organizational policies and managerial preferences. 
B)  the budgeted amount from the prior period. 
C)  the level of long-term investment. 
D)  an organization's internal control.

Question 19

When the organizational output is difficult to define, management may rely on ____ for cost control.

Accepted Answer

A)  qualitative measures 
B)  program budgeting 
C)  surrogate measures of output 
D)  all of the above 
A)  qualitative measures 
B)  program budgeting 
C)  surrogate measures of output 
D)  all of the above

Question 20

A cost that is found to bear an observable and known relationship to a quantifiable activity base is a(n)

Accepted Answer

A)  discretionary cost. 
B)  product cost. 
C)  period cost. 
D)  engineered cost. 
A)  discretionary cost. 
B)  product cost. 
C)  period cost. 
D)  engineered cost.

Increases in per unit variable costs and total fixed costs should be minimized through the process of ________________________________.

Most discretionary costs relate to

For cost control purposes, fixed costs are classified as

The use of options and forward contracts to manage price risk is referred to as ___________________.

All of the following are explanations of cost changes. Which of these influences can be substantially affected by cost containment measures?

If a firm is successful in meeting its output goal for a period, the firm has been

Usually, with respect to a variable cost, optimal control is exerted when the cost

Calvert Company has made the following information available for the month of March: Assume that Calvert Company hires part-time employees for production of these units. Compute the price and efficiency variances.

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

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

A committed fixed cost can

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

A reasonable measure of efficiency relies on

Clarkson Company The following information is provided for Clarkson Company for the month of September: Refer to Clarkson Company. What is the price variance?

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

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.

As the economy becomes more and more depressed, a company's management decides to slash spending on research and development. What is the likely effect of this action on net income? Net income will be

Discretionary activities in an organization are determined based on

When the organizational output is difficult to define, management may rely on ____ for cost control.

A cost that is found to bear an observable and known relationship to a quantifiable activity base is a(n)

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

Increases in per unit variable costs and total fixed costs should be minimized through the process of ________________________________.

Most discretionary costs relate to

For cost control purposes, fixed costs are classified as

The use of options and forward contracts to manage price risk is referred to as ___________________.

All of the following are explanations of cost changes. Which of these influences can be substantially affected by cost containment measures?

If a firm is successful in meeting its output goal for a period, the firm has been

Usually, with respect to a variable cost, optimal control is exerted when the cost

Calvert Company has made the following information available for the month of March: Assume that Calvert Company hires part-time employees for production of these units. Compute the price and efficiency variances.

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

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

A committed fixed cost can

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

A reasonable measure of efficiency relies on

Clarkson Company The following information is provided for Clarkson Company for the month of September: Refer to Clarkson Company. What is the price variance?

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

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.

As the economy becomes more and more depressed, a company's management decides to slash spending on research and development. What is the likely effect of this action on net income? Net income will be

Discretionary activities in an organization are determined based on

When the organizational output is difficult to define, management may rely on ____ for cost control.

A cost that is found to bear an observable and known relationship to a quantifiable activity base is a(n)

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