Devry Accounting Final

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Question 1.1. (TCO 4) Assumptions underlying cost-volume-profit analysis include all of the following, except: (Points : 5)

all costs can be divided into fixed and variable elements.

total variable costs are directly proportional to volume over the relevant range.

selling prices are to be unchanged.

price is the only relevant factor affecting cost.

Question 2.2. (TCO 6) Which of the following is true about activity-based costing? (Points : 5)

It should not be used with process or job costing.

It can be used only with process costing.

It can be used only with job costing.

It can be used with either process or job costing.

Question 3.3. (TCO 2) In a traditional job order cost system, the issue of direct materials to a production department increases: (Points : 5)

stores.

work in process.

factory overhead.

finished goods.

Question 4.4. (TCO 5) A cost driver is defined as: (Points : 5)

the largest cost in a manufacturing process.

the significant factor in the development of a new product.

an indirect cost that cannot be traced to a particular cost objective but is essential to the business.

a causal factor that increases the total cost of a cost objective.

Question 5.5. (TCO 8) Wood Co. has considerable excess manufacturing capacity. A special job order's cost sheet includes the following applied manufacturing overhead costs:

Fixed costs: 25,000

Variable costs: 36,000

The fixed costs include a normal $4,500 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $9,250. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job? (Points : 5)

$40,500

$45,250

$61,000

$65,750

Question 6. 6. (TCO 1) How does managerial and financial accounting...