production of a custom home, ACC206 Week Questions (All Correct) help

Quiz 1Question 1. 1. Production of a custom home is not an application that can be accounted for using job costing. (Points : 1)   True  FalseQuestion2. 2. A logical starting point for costing a job is to determine theamount of direct labor that is attributable to a specific job. (Points :1)   True  FalseQuestion3. 3. The main difference between job costing and process costing isthat process costing captures costs by process or department rather thanby specific job. (Points : 1)   True  FalseQuestion 4. 4. A cost of production report is generally prepared for each period under job costing. (Points : 1)   True  FalseQuestion 5. 5. ABC costing requires one to abandon attempts to distinguish product and period costs. (Points : 1)   True  FalseQuiz 2Question 1. 1. Job Costing captures cists for each process involved in product creation. (Points : 1)   True  FalseQuestion2. 2. Process Costing is applicable to homogenous goods that areproduced in batches or continuous processes. (Points : 1)   True  FalseQuestion 3. 3. Manufacturing Overhead is only allocated under the process costing method of accounting. (Points : 1)   True  FalseQuestion4. 4. Under applied overhead results when the actual overhead incurredis more than the amount assigned to production. (Points : 1)   True  FalseQuestion 5. 5. The concept of equivalent units only applies to ABC costing. (Points : 1)   True  FalseQuiz 3Question 1. 1. In business, mixed costs are actually quite common. (Points : 1)   True  FalseQuestion2. 2. Under the high-low method of estimating fixed and variable costsfrom a mixed cost the highest and lowest cost levels are identified andthe difference in activity is deemed to represent variable cost. (Points: 1)   True  FalseQuestion3. 3. To calculate regression to find the fixed portion of mixed costsone needs to know how to use a slide rule. (Points : 1)   True  FalseQuestion4. 4. The goal of CVP analysis is to provide a foundation for pricingdecisions, product offerings, and management of an organization’s coststructure. (Points : 1)   True  FalseQuestion5. 5. Changes in per-unit revenue, without changes in total fixed costsor per-unit variable costs can sometimes cause drastic impacts on firmprofits. (Points : 1)   True  FalseQuiz 4Question1. 1. Utilizing the high-low method of estimating fixed and variablecomponents of cost, the variable portion is divided by the difference inactivity/consumption between the high and low cost levels to find thevariable cost per unit. (Points : 1)   True  FalseQuestion2. 2. When performing a CVP analysis the Margin of Safety is the amountby which the sales exceed the break-even sales level. (Points : 1)   True  FalseQuestion3. 3. Under CVP & Absorption Cost one of the primary assumptions isthat the firm is not a nonprofit organization. (Points : 1)   True  FalseQuestion 4. 4. Variable (direct) costing is approved for use by public corporations under GAAP. (Points : 1)   True  FalseQuestion5. 5. When comparing absorption costing to variable costing the onlydifference is in the handling of fixed manufacturing overhead. (Points :1)   True  FalseQuiz 5Question 1. 1.Job costing entails _____________________. (Points : 1)   tracking the costs of an employment search  development of a tracking system to match costs to jobs  estimating the price of raw materials that may be needed to complete a customer job  none of the items listed hereQuestion 2. 2.Job costing __________________________. (Points : 1)   is only used when manufacturing a product  cannot be used for a service business since no product is created  can be utilized in a variety of business types  cannot be utilized when manufacturing a productQuestion 3. 3. Which of the following would typically use a process costing system? (Points : 1)   More than one of these listed.  Paint  Glass  Custom built homeQuestion 4. 4. The Equivalent units concept general applies to ___________________. (Points : 1)   job order costing  process costing  ABC costing  none of the items listed hereQuestion 5. 5. ABC is a costing model that _______________________. (Points : 1)   is simple and inexpensive to use  is rarely used because it is not very accurate  is not really a costing model  is not accepted by GAAPQuestion 6. 6. Mixed costs ____________________________________. (Points : 1)   are costs that are all mixed up  have both a variable and a fixed component  are not impacted by volume fluctuations  are not defined in any of these responsesQuestion 7. 7. A technique used to estimate the fixed and variable components of a mixed cost is ____________. (Points : 1)   high-low method  regression analysis  is not represented here  represented by more than one of the solutions listed hereQuestion 8. 8. Cost-Volume-Profit Analysis ________________________. (Points : 1)   gives management the same information as the income statement  is helpful in assessing the relationships between costs, business volume, and profitability  is an essential tool used by investors to make investment decisions  can only be interpreted by a master accountantQuestion 9. 9. Contribution margin _____________________________________. (Points : 1)   is equal to net income  equals variable expenses minus fixed expense  is the next available dollar of income after all fixed costs are covered  equals revenues minus variable expensesQuestion 10. 10. Cost-Volume-Profit Analysis _____________________________. (Points : 1)   can be utilized to find the firms breakeven point in units  is only concerned with variable costs  is only concerned with fixed costs  is not represented by any of the answers listed here15 mins ago