ACNT 2402

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 ...

1. The cash budget is usually prepared after the budgeted income statement. FALSE 2. The manufacturing overhead budget is typically prepared before the production budget. FALSE 3. Self-imposed budgets prepared by lower-level managers should be scrutinized by higher levels of management. TRUE 4. The basic idea underlying responsibility accounting is that each manager should be held responsible for the overall profit of the company to ensure that all managers are acting together. FALSE ...

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...

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...

99. Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to: A. 0.4 7 B. 0.9 0 C. 0.5 3 D. 0.3 2 Debt-to-equity ratio = Total liabilities ÷ Stockholders' equity = $90,000 ÷ $100,000* = 0.90 *Stockholders' equity = Total assets - Total liabilities = $190,000 - $90,000 = $100,000 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: ...