Management Accounting

TF Qu. 5 In process costing, costs are accumulated in...

In process costing, costs are accumulated in processing departments, rather than by job.

| True |

| False |

| |

TF Qu. 8 In the cost reconciliation report, the costs...

In the cost reconciliation report, the costs to be accounted for equals the cost of beginning work in process inventory plus the costs added during the period.

| True |

| False |

TF Qu. 1 Unit-level activities are performed each ...

Unit-level activities are performed each time a unit is produced.

| True |

| False |

TF Qu. 12 At the break-even point: Sales - Variable...

At the break-even point: Sales − Variable expenses = Fixed expenses.

| True |

| False |

TF Qu. 7 Advertising costs are considered product ...

Advertising costs are considered product costs for external financial reports because they are incurred in order to promote specific products.

| True |

| False |

TF Qu. 19 A shift in the sales mix from products with...

A shift in the sales mix from products with a low contribution margin ratio toward products with a high contribution margin ratio will lower the break-even point in the company as a whole.12

| True |

| False |

TF Qu. 24 In a contribution format income statement ...

In a contribution format income statement for a merchandising company, cost of goods sold is a variable cost that gets included in the "Variable expenses" portion of the income statement.

| True |

| False |

TF Qu. 7 Transaction drivers usually take more effort...

Transaction drivers usually take more effort to record than duration drivers.

| True |

| False |

TF Qu. 11 The break-even point in units can be...

The break-even point in units can be obtained by dividing total fixed expenses by the contribution margin ratio.

| True |

| False |

TF Qu. 3 Manufacturing overhead combined with direct ...

Manufacturing overhead combined with direct materials is known as conversion...