Reference no: EM132803197

Questions -

Q1 - ABC produces ping-pong balls using a three-step process that includes molding, colouring and finishing. Which account is credited when the balls are totally completed?

A. WIP inventory-colouring

B. Manufacturing overhead

C. WIP inventory-finishing

D. Finished goods inventory

Q2 - David has the following information to evaluate his current salary of $62,000 versus total revenues of $110,000 and expenses of $67,000 from starting a new business. How much is the opportunity cost associated with staying at his current job?

A. $5,000

B. $62,000

C. $110,000

D. $43,000

Q3 - A four-part ABC cost hierarchy includes:

A. output unit-level costs.

B. manufacturing-level costs.

C. market-sustaining costs.

D. research and development costs.

Q5 - Mannock Company budgeted $400,000 for employee training, but actually spent only $300,000. Which of the following statements is the best course of action for management to take in this instance?

A. Because this $100,000 variance is favourable, management does not need to investigate further.

B. Management will investigate this $100,000 favourable variance to ensure that the cost savings do not reflect a reduction in programming.

C. Management will investigate this $100,000 favourable variance to try to identify and correct the problem with the budgeting system.

D. Management should hold a meeting with the budget department and the training department to ensure that next year's budget is more realisticc.

Q6 - Which of the following describes the cost-plus price?

A. Total cost plus desired profit

B. Revenue at market price plus desired profit

C. Target total cost plus desired profit

D. Variable cost plus desired profit