Question 1. Job costing entails _____________________.
tracking the costs of an employment search
development of a tracking system to match costs to jobs
estimating the price of raw materials that may be needed to complete a customer job
none of the items listed here
Question 2. Job costing __________________________.
is only used when manufacturing a product
cannot be used for a service business since no product is created
can be utilized in a variety of business types
cannot be utilized when manufacturing a product
Question 3. Which of the following would typically use a process costing system?
More than one of these listed.
Paint
Glass
Custom built home
Question 4. The Equivalent units concept general applies to ___________________.
job order costing
process costing
ABC costing
none of the items listed here
Question 5. ABC is a costing model that _______________________.
is simple and inexpensive to use
is rarely used because it is not very accurate
is not really a costing model
is not accepted by GAAP
Question 6. Mixed costs ____________________________________.
are costs that are all mixed up
have both a variable and a fixed component
are not impacted by volume fluctuations
are not defined in any of these responses
Question 7. A technique used to estimate the fixed and variable components of a mixed cost is ____________.
high-low method
regression analysis
is not represented here
represented by more than one of the solutions listed here
Question 8. Cost-Volume-Profit Analysis ________________________.
gives management the same information as the income statement
is helpful in assessing the relationships between costs, business volume, and profitability
is an essential tool used by investors to make investment decisions
can only be interpreted by a master accountant
Question 9. Contribution margin _____________________________________.
is equal to net income
equals variable expenses minus fixed expense
is the next available dollar of income after all fixed costs are covered
equals revenues minus variable expenses
Question 10. Cost-Volume-Profit Analysis _____________________________.
can be utilized to find the firms breakeven point in units
is only concerned with variable costs
is only concerned with fixed costs
is not represented by any of the answers listed here