1. A section of the annual report that can provide explanations of the financial results not obvious by reading the financial statements is: A. news articles. B. credit reports. C. MD&A. D. auditors opinion. 2. The dollar value assigned to the units that come into a department from a preceding department are: A. prime costs. B. conversion costs. C. Transferred-in costs. D. period costs.

3, Full costing net income will be higher than variable costing net income when: Production equals sales. Production is greater than sales. Production is less than sales. 4.. Which of the following equations is used to determine the target cost? A. Price + profit = target cost B. Price profit = target cost C. Variable cost + fixed cost = target cost D. Variable cost fixed cost = target cost

5. Which of the following will decrease the break-even point? A. Increasing fixed costs B. Decreasing unit variable costs C. Decreasing unit sales price D. Decreasing unit contribution margin 6 Which of the following is not included in manufacturing overhead? A. Indirect materials B. Factory employee benefits C. Depreciation of plant D. Clerical supplies

7. The overhead allocation rate is calculated by dividing: A. actual overhead costs by the actual quantity of the allocation base B. the actual overhead costs by the estimated quantity of the allocation base C. the estimated overhead costs by the actual quantity of the allocation base D. the estimated overhead costs by the estimated quantity of the allocation base 8. The gross margin percentage is an example of this type of analysis. A. Diagonal B. Horizontal C. Circular D. Vertical 9. A unit cost that varies inversely to changes in activity is a(n): A. variable cost. B. marginal cost. C. fixed cost. d. opportunity cost 10. Which of the following is the first component of the master budget? A. Selling and administrative expenses budget B. Sales budget C. Capital acquisitions budget D. Budgeted income statement