1. Preparing purchase orders is a(n)
unit-level
batch-levelfacility-level
product-level
2. When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following?
Fixed costs per unit decrease and variable costs in total decrease Fixed costs in total increase and variable costs in total increase Fixed costs in total remain the same and variable costs in total increaseFixed costs per unit increase and variable costs per unit do not change
3. For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system?
Potato chip manufacturer
Computer consulting firm
Oil refinery
A factory that processes sugar and other ingredients into candy
4. Which of the following is a period cost?
Depreciation of the headquarters office building
Indirect labor
Indirect materials
Depreciation of the factory
5. Which of the following IMA Statement of Ethical Professional Practice standards is violated if a managerial accountant does not know the difference between a fixed and variable cost?
Integrity
Competence
Credibility
Confidentiality