1. Using Normal Costing, the PDOR rate is calculated by
dividing:
| A. |
actual overhead costs by the actual quantity of the allocation |
|
| B. |
the actual overhead costs by the estimated quantity of the |
|
| C. |
the estimated overhead costs by the actual quantity of the |
|
| D. |
the estimated overhead costs by the estimated quantity of the |
2. Conversion costs include
| A. |
Direct Materials and Manufacturing Overhead |
|
| B. |
Direct Labor and Direct Materials |
|
| C. |
Direct Labor and Manufacturing Overhead |
|
| D. |
None of the above. |
3. Activity-based costing is most likely to yield benefits for
companies with all of the following characteristics EXCEPT:
| A. |
numerous products that consumer different amounts of |
|
| B. |
small mom & pop operations where similar products use the |
|
| C. |
a highly competitive environment, where cost control is |
|
| D. |
a large accounting department with resources to implement the |
4. The type of costing system commonly used by companies that
produce a large number of homogeneous units in a continuous
production process is called a
| A. |
unit costing system. |
|
| B. |
job-order system. |
|
| C. |
management cost system. |
|
| D. |
process costing system. |
5. The cost per equivalent unit calculation is
| A. |
the cost from beginning inventory and current production divided |
|
| B. |
based only on the costs incurred in this period. |
|
| C. |
biased if there are any units in the beginning Work in Process |
|
| D. |
simplified if a department has transferred-in costs. |
