Acnt 2402 - Study guides, Class notes & Summaries

Chapter 06 -- Variable Costing and Segment Reporting: Tools for Management – Study Guide 1. Under variable costing, variable production costs are not treated as product costs. FALSE 2. Under variable costing, fixed manufacturing overhead cost is not treated as a product cost. TRUE 3. Under variable costing, product costs consist of direct materials, direct labor, and variable manufacturing overhead. TRUE 4. The costs assigned to units in inventory are typically lower under variable c...

Chapter 04 -- Process Costing – Study Guide 1. When materials are purchased in a process costing system, a materials account is debited with the cost of the materials. TRUE 2. Costs are accumulated by department in a process costing system. TRUE 3. The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y: ...

Chapter 05 -- Cost-Volume-Profit Relationships – Study Guide 1. Incremental analysis is generally the most complicated and least direct approach to decision making. TRUE 2. One assumption in CVP analysis is that the number of units produced and sold does not change. FALSE 3. Reynold Enterprises sells a single product for $25. The variable expense per unit is $15 and the fixed expense per unit is $5 at the current level of sales. The company's net operating income will increase by $10...

Page 1 of 11 Chapter 01 Managerial Accounting and Cost Concepts 1. Selling costs can be either direct or indirect costs. TRUE 2. A direct cost is a cost that cannot be easily traced to the particular cost object under consideration. FALSE 3. Property taxes and insurance premiums paid on a factory building are examples of period costs. FALSE 4. Conversion cost equals product cost less direct labor cost. FALSE 5. Thread that is used in the production of mattresses is an indirect mater...

Chapter 09 -- Performance Measurement in Decentralized Organizations – Study Guide 1. Land held for possible plant expansion would not be included as an operating asset when computing return on investment (ROI). TRUE 2. When used in return on investment (ROI) calculations, operating assets do not include investments in land held for future use and investments in other companies. TRUE 3. A disadvantage of using ROI to evaluate performance is that it encourages the manager to reduce the...

1. When materials are purchased in a process costing system, a materials account is debited with the cost of the materials. TRUE 2. Costs are accumulated by department in a process costing system. TRUE 3. The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y: Work in Process, Department Z XX X Work in ...

Chapter 01 Managerial Accounting and Cost Concepts 1. Selling costs can be either direct or indirect costs. TRUE 2. A direct cost is a cost that cannot be easily traced to the particular cost object under consideration. FALSE 3. Property taxes and insurance premiums paid on a factory building are examples of period costs. FALSE 4. Conversion cost equals product cost less direct labor cost. FALSE 5. Thread that is used in the production of mattresses is an indirect material that is t...

1. Incremental analysis is generally the most complicated and least direct approach to decision making. TRUE 2. One assumption in CVP analysis is that the number of units produced and sold does not change. FALSE 3. Reynold Enterprises sells a single product for $25. The variable expense per unit is $15 and the fixed expense per unit is $5 at the current level of sales. The company's net operating income will increase by $10 if one more unit is sold. TRUE 4. One way to compute the tota...

1. Batch-level activities are performed each time a batch of goods is processed. The cost of a batch-level activity is proportional to the number of units in the batch. FALSE 2. Activity-based costing involves a two-stage allocation process in which overhead costs are first assigned to departments and then allocated to products using activity measures. FALSE 3. In the second-stage allocation in activity-based costing, overhead costs are allocated from activity cost pools to products. TRU...

Chapter 12 -- Statement of Cash Flows – Study Guide 1. Collecting the principal on a loan to another company would be reported on the investing activities section of the statement of cash flows. TRUE 2. Money received from issuing bonds payable would be included as part of a company's financing activities on the statement of cash flows. TRUE 3. The collection of a loan made to a supplier would be treated as an investing activity on a statement of cash flows. TRUE 4. Paying taxes to ...