70.2K

Verified Solution

Link Copied!

4. In a period, opening stocks were 12,600 units and closing stocks 14,100 units. The profit based on marginal costing was $50,400 and profit using absorption costing was $60,150. The fixed overhead absorption rate per unit is

   1. (A) $4.77.

   2. (B) $6.50.

   3. (C) $6.77.

   4. (D) None of the above

3

7. 7 Under the FIFO process costing method, the two categories of completed units used to compute the total cost of units completed during a period are

   1. (A) beginning work-in-process units and units started

   2. (B) units started and completed and ending work-in-process units.

   3. (C) beginning work-in-process units and units started and completed during the current period.

   4. (D) None of the above.

8. 8 The following are the different methods used to assign overhead costs to cost objects:

   1. (i) plantwide rate

   2. (ii) departmental rate

   3. (iii) activity-based costing activity rate

   Rank these methods of assigning overhead costs from least accurate to most accurate:

   1. (A) (i), (ii), (iii)

   2. (B) (ii), (i), (iii)

   3. (C) (i), (iii), (ii)

   4. (D) (iii), (ii), (i)

9. 9 Which of the following costs are always irrelevant in decision making?

   1. (A) Avoidable costs

   2. (B) Sunk costs

   3. (C) Opportunity costs

   4. (D) Fixed costs

4

10 Research has shown that managers perform best when

1. (A) there is no budget to worry about.

2. (B) budgets contain a maximum of slack.

3. (C) there is a moderately difficult but achievable budget.

4. (D) the budget is obviously unachievable, but presents a tremendous challenge.

Answer & Explanation Solved by verified expert

See Answer