Business Cpa Unit 1 Quiz

Unit 1 : Business 1 - Quiz

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Question 1.1. (TCO A) (CPA-05783) Which of the following costs would decrease if production levels were increased within the relevant range? (Points : 10) |

       Total fixed costs.

       Variable costs per unit.

       Total variable costs.

       Fixed costs per unit. 

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Question 2.2. (TCO A) (CPA-06992) Each of the following is a limitation of enterprise risk management (ERM), except: (Points : 10) |

       ERM deals with risk, which relates to the future and is inherently uncertain.

       ERM operates at different levels with respect to different objectives.

       ERM can provide absolute assurance with respect to objective categories.

       ERM is as effective as the people responsible for its functioning. 

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Question 3.3. (TCO A) (CPA-03642) Kimbeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May:

                                                                         Units

Beginning work-in-process inventory, May 1          16,000

Started in production during May                        100,000

Completed production during May                        92,000

Ending work-in-process inventory, May 31            24,000

The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs. The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs. 

Costs pertaining to the month of May are as follows: * Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240. * Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.

Using the FIFO method, the total cost of units in the ending work-in-process...