D196 Practice Questions

D196 Practice Questions Leave the first rating Students also studied Terms in this set (207) Western Governors UniversityD 196 Save D196- Principles of Financial and Ma...206 terms shannon_turner16 Preview Test Prep - WGU - Principles of Man...105 terms C_BondePreview D196 - OA Prep - Practice questions...Teacher 87 terms andrewkin2Preview

D196 O

22 terms Cal Manufacturing Overhead BudgetWhich budget should include all production costs other than those for direct materials and direct labor?Accounts receivableWhich account is a common asset account?Balance SheetOn which financial statement would you see the valuation of a company's asset account?Preparing ReportsWhat is the final step in the accounting cycle?Preparing financial statementsWhich of the following is not an example of a transaction?Statement of Cash FlowsOn which financial statement would you see cash flows from financing activities?SECWhose job is it to make sure that investors are provided with full and fair information about publicly traded companies?It distinguishes between current and long-term assets. How does a classified balance sheet provide useful information to a decision maker?Uncontrollable costs should not be included in the performance evaluation measure of a profit center manager.In some companies, the performance measure for profit center managers is heavily influenced by cost allocations downwards from organizational units (such as company headquarters). Why is this a mistake?Raw materials to make a product.Which is an examples of a product cost?Manufacturing OverheadWhich label is given to the cost of wages for factory supervisors?

60%A company reports the following data:

Price/unit = $20 Variable costs/unit = $12 Fixed costs = $12,000 Given this data, what is the variable cost ratio?Actual costs exceed applied costs.If overhead is underapplied, which statement is true?Selling costsWhich of the following is NOT an example of a cost driver?Marketing expenseWhich item is a period cost?Process CostingWhich overhead allocation method should be used for a trash bag manufacturer?Variable CostsFor the relevant range, which costs are approximately linear within a certain range of production?Cost-Volume-Profit AnalysisWhich of the following focuses on how a company's activity levels impact profits?Job Order CostingWhich overhead allocation method should be used for an automobile repair shop?Factory supervisor wages, security guard wages, maintenance staff wages What are examples of indirect labor?The grease used on machines that manufacture products What is an example of an indirect material?Income taxesWhich of the following is NOT an operating expense

$175,000A company reports the following data:

Total sales rev = $275,000 Number of units sold = 25,000 units Variable costs = $100,00 If the company is operating at its break-even points, what is the company's total contribution margin?As an expenseHow are period costs reported on an income statement?Advertising costsWhich item in an example of a controllable cost?Assets increases; Liability increasesA company purchases equipment with a note payable.How does this transaction affect the paying company's accounting equation?Increase expenseWhat is the impact of paying employee wages on the accounting equation?Owner's equityWhich account is summarized on the balance sheet?

$75,000 COGS on income statementA retail company purchased inventory costing $100,000. By the end of the year, inventory costing $75,000 had been sold.How is the cost of inventory reported in the financial statements?Clothing StoreWhich of the following is an example of a merchandising company?Manufacturing costs other than direct labor and direct materials Actual manufacturing overhead includes which of the following?Large commercial and industrial construction, Healthcare organization, and Car manufacturing companies Activity-based costing could be used by which of the following companies?Manufacturing overheadHow are the wages of production supervisors classified in a manufacturing company?Administrative expenseWhich of the following is not an example of a cost driver?Cost of saws and hammers in constructing a house What is not an example of direct materials?Less has been spent than anticipated for the level of achieved production Which best describes overapplied overhead?An ABC (activity-based costing) system helps to provide more accurate product costing and better decision making Which statement is true with respect to activity-based (ABC) systems?SalesWhat is the first budget that is prepared in a manufacturing business?Costs, Revenue, AssetsWhat does a manager have control over in an investment center?The cost variance is favorableIf budgeted costs are higher than actual costs, which statement is true?Purchasing landFor purpose of cash flow classification in the statement of cash flows, which item is an investing activity?Balance Sheet Statement of Cash Flows Corporate Tax Returns Which items are used by creditors, investors and other external users?EquityWhich type of account is common stock?AssetWhich type of account is inventory?Selling and administrative expense budgetWhich budget would include salaries of sales managers and a company president?Direct LaborWhich label is given to the cost of wages for an assembly line worker?

Sunk costs are past costs that cannot be changed Which statement is true about sunk cost?Balance SheetLiabilities are summarized on which financial statement?Financial information is for internal users only Financial information should be relevant and reliable Which of the following statements is true about financial information?Noncontrollable costsManagers should be not evaluated based on which of the following?

Both cost systems have the same goal: determine the

cost of products Job costing and process costing have similarities. Which statement is true about both?Excessive inventory storage costsWhat is an example of financial cost that would result from poor direct materials budgeting and planning?Increase and decrease to assets (both cash and assets) A company decides to purchase a piece of equipment with cash. Which accounts are affected by this transaction?Valuing assets Setting sales prices Making good business decisions Accurate cost date is needed for which of the following?Owners' equityA transaction involving the payment of dividends to the owners reduces which part of the accounting equation?EDGARWhich section of the SEC's website contains Company Annual Report on Form 10- K filings?Accounts payableWhich item below is a liability?SalesWhich item below is a revenue item?Sales, production, direct laborWhat is the correct sequence of budgets in a manufacturing business?Only after production quantities are knownsWhen can management determine the number of direct materials, direct labor, and manufacturing overhead needed during the period?Selling and Administrative Expense BudgetIn which budget should the depreciation of administrative office buildings be included?Desired amount of ending inventory each month On September 30 of Year 1, Davis Company had finished goods inventory of 1,000 units. Davis Company has created a forecast of its sales for each month for the next four months.What additional information is needed in order to compute budgeted production for Davis Company for October?Compares planned and actual resultsWhich statement describes managerial accounting?