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,

a. Full costing net income will be higher than variable costing net income when:

b. Production equals sales.

c. Production is greater than sales.

d.Production is less than sales.

4. What interest rate will produce a zero net present value?

a. Cost of capital

b. Required rate of return

c. Discount rate

d. Internal rate of return

5 Which of the following is not included in manufacturing overhead?

a.Indirect materials

b. Factory employee benefits

c.Depreciation of plant

d. Clerical supplies

6. 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

7. Which of the following companies would use a job-order costing system?

a. Construction

b. Metal producer

c. Chemical producer

D. Car producer

8. Which of the following will increase the net present value?

a. A decrease in the required rate of return

b. An increase in the initial investment

c. A decrease in cash inflows

d. An increase in cash outflows