1. Managerial accounting techniques are:
A. based on a set of generally accepted accounting principles.
B. not molded by formal "rules and regulations."
C. always acceptable for compliance reporting
D. All of these.
E. None of these.
2. Which of the following statements is false?
A. Product costs are the inventoriable manufacturing costs.
B. Product costs are the sum of direct materials, direct labor, and factory overhead.
C. Product costs are charged against income in the period incurred.
D. Period costs are charged against income in the period incurred.
E. None of these.
3. The method of least squares is a statistical technique which is more precise but similar to:
A. a histogram.
B. the high-low method.
C. a scattergraph.
D. breakeven analysis.
E. None of these.
4. GAAP requires that under applied overhead relating to idle facilities, wasted material, the allocation of fixed production overhead, and so forth, be charged to:
A. Current period income.
B. Finished goods inventory.
C. Work in process.
D. All of the above.
E. None of these.
5. Jose Company uses a job order cost system. At the end of an accounting period, Jose has a debit balance in the Factory Overhead account. This would indicate:
A. a loss for the period.
B. under applied overhead.
C. over applied overhead.
D. a malfunction in the job order cost system.
E. None of these.
6. Ivy Company had sales of $3,000,000, variable costs of $1,800,000, and fixed costs of $1,500,000 for product X. What would be the amount of sales dollars at the breakeven point?
A. $3,000,000
B. $3,300,000
C. $3,600,000
D. $4,200,000
E. None of these.