Question 1

When does an unfavourable production-volume variance occur?

Accepted Answer

A) production exceeds the denominator level 
B) production exceeds unit sales 
C) the denominator level exceeds production 
D) unit sales exceed production 
A) production exceeds the denominator level 
B) production exceeds unit sales 
C) the denominator level exceeds production 
D) unit sales exceed production

Question 2

The following information has been taken from Blue Mountains accounting records:
$$\begin{array} { l r } 
\text { Beginning work-in-process inventory } & \$ 50,000 \
\text { Ending work-in-process inventory } & 48,000 \
\text { Beginning finished goods inventory } & 180,000 \
\text { Ending finished goods inventory } & 195,000 \
\text { Cost of goods manufactured } & 1,220,000
\end{array}$$
What is cost of goods sold?

Accepted Answer

A) $1 222 000 
B) $1 205 000 
C) $1 218 000 
D) $1 235 000 
A) $1 222 000 
B) $1 205 000 
C) $1 218 000 
D) $1 235 000

Question 3

Which of the following statements is FALSE?

Accepted Answer

A) Product costs and inventoriable costs are interchangeable terms. 
B) Inventoriable costs are a special case of product costs. 
C) Inventoriable costs are important for GAAP. 
D) 'Product costs' refers to the particular costs of a product for the purpose at hand. 
A) Product costs and inventoriable costs are interchangeable terms. 
B) Inventoriable costs are a special case of product costs. 
C) Inventoriable costs are important for GAAP. 
D) 'Product costs' refers to the particular costs of a product for the purpose at hand.

Question 4

The difference in operating profit under absorption costing and variable costing is due solely to the timing difference of expensing fixed manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 5

Unlike variable costs,fixed costs of resources (such as for line supervision)cannot be quickly and easily changed to match the resources needed or used.

Accepted Answer

A) True 
 B)False

When does an unfavourable production-volume variance occur?

Which of the following statements is FALSE?

The difference in operating profit under absorption costing and variable costing is due solely to the timing difference of expensing fixed manufacturing costs.

Unlike variable costs,fixed costs of resources (such as for line supervision)cannot be quickly and easily changed to match the resources needed or used.

Management Accounting in Context

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 2: Different Costs for Different Purposes

When does an unfavourable production-volume variance occur?

Which of the following statements is FALSE?

The difference in operating profit under absorption costing and variable costing is due solely to the timing difference of expensing fixed manufacturing costs.

Unlike variable costs,fixed costs of resources (such as for line supervision)cannot be quickly and easily changed to match the resources needed or used.

Management Accounting in Context

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters