1. Companies can easily combine _________________ and _________________ to compute a single product cost amount.

Absorption Costing; Variable Costing

Actual Costing; Standard Costing

Process Costing; Activity-Based Costing

Normal Costing; Standard Costing

2. For external reporting purposes, your company uses Job-Order Costing with Normal Costing, Traditional Costing and Absorption Costing. For internal reporting purposes, your company uses Job-Order Costing with Standard Costing, Activity-Based Costing and Variable Costing. Which of the following statements is FALSE?

Direct Materials would be the same for external and internal reporting purposes.

Direct Labor would be the same for external and internal reporting purposes.

Manufacturing Overhead would be the same for external and internal reporting purposes.

All of the above

3. How is absorption costing DIFFERENT from variable costing?

It does not use the same direct materials costs.

It does not use the same direct labor costs.

It does not use the same variable overhead costs.

It does not use the same fixed overhead costs.

4. How is normal costing SIMILAR to standard costing?

It uses the same manufacturing overhead costs.

It uses the same prime costs.

It is used to compute direct materials variances.

It is used to compute direct labor variances.

5. Information from the Sales Budget would NOT be found in the

Production Budget

Cost of Goods Sold Budget

Selling, General, & Administrative Expense Budget

Capital Budget

6. Information from the Production Budget would NOT be found in the

Raw Materials Purchases Budget

Direct Labor Budget

Selling, General, & Administrative Expense Budget

Manufacturing Overhead Budget

7. The Budgeted Cash Receipts would be computed using information from the

Sales Budget

Raw Materials Purchases Budget

Selling, General, & Administrative Expense Budget

Manufacturing Overhead Budget

8. The Financing portion of the Cash Budget flows into the

Budgeted Balance Sheet

Budgeted Income Statement

Budgeted Statement of Cash Flows

All of the above

9. The choice to use Absorption Costing or Variable Costing would impact the

Budgeted Balance Sheet

Budgeted Income Statement

Budgeted Statement of Cash Flows

All of the above

10. The choice to use Traditional Costing or Activity-Based Costing would impact the

Raw Materials Purchases Budget

Direct Labor Budget

Selling, General, & Administrative Expense Budget

Manufacturing Overhead Budget