Mizzou ACCTCY 2037 - Accounting 2037 Exam 1 with Answers (8 pages)

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Accounting 2037 Exam 1 with Answers



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Accounting 2037 Exam 1 with Answers

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Pages:
8
School:
University of Missouri
Course:
Acctcy 2037 - Accounting II

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Accounting 2037 Exam 1 with Answers Fall 2012 Completion 2 pts each Complete each sentence or statement with one of the phrases below Possible answers Available costs Cost drivers Internal failure costs Labor efficiency standard Make or buy Prevention costs Quantity standard Budget overhead rate Expense ISO 9000 Labor efficiency variance Manufacturing cells Price standard Special order Contribution margin Incremental costs Kaizen Labor price standard Net income Product mix TQM 1 In determining allocation of advertising dollars the company s profit increases if the contribution margin resulting from the increased sales is more than the increase in advertising costs 2 Manufacturing costs become a n expense only when the company sells finished goods inventory 3 The labor efficiency variance is the difference between the cost of the direct labor hours that should have been used at the standard price that the company did use 4 The activities on which a company bases cost pools for factory overhead are often called cost drivers 5 Incremental costs are cost increases resulting from the performance of an additional activity True False 2 pts each Indicate whether the sentence or statement is true or false 6 In the make versus buy decision concerns about control of quality and reliability could well override choosing the lowest cost supplier provided part T 7 Process costing systems are appropriate in any manufacturing situation that involves a processing of unique products in small quantities F 8 A manager practicing the principle of management by exception in variance analysis would examine each and every variance each time one occurred F 9 Activity based costing is less expensive to use F 10 The key to evaluating the profit effects of a company s decision to drop a product is to determine the avoidable costs and the revenue that it would not earn if it discontinued production and sale of the product T Multiple Choice 2 pts each Identify the letter of the choice that best



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