1. Comparing budgets versus actuals is an example of which management responsibility? a. Planning b. Directing c. Controlling d. Decision making

2. Which of the following statements regarding financial accounting and managerial accounting is incorrect? a. Financial accounting must follow GAAP, whereas managerial accounting does not need to follow GAAP. b. Financial accounting is concerned with the past, whereas managerial accounting is concerned with the future. c. Financial accounting information must be objective and reliable, whereas managerial accounting information must be relevant. d.Financial accounting is focused on decision making, whereas managerial accounting information is concerned with reporting historical transactions accurately.

3. Which of the following professional standards applies to not engaging in any activity that would discredit the profession? a. Integrity b.Credibility c. Confidentiality d.Competence

4. Which of the following is not part of manufacturing overhead? a.Salaries for production supervisors b.Commissions paid on each unit sold c. Electricity to run the factory d.Health insurance for factory workers

5. Which of the following is a variable cost? a. Interest paid on the headquarters office building b. Electricity used to run factory machinery c.Advertising costs d.Rent for the factory

6.Which of the following is a conversion cost? a.The salary of the CEO b. Indirect materials cost c. Direct materials cost d. Depreciation on accounting office equipment 7.On December 31, 2015, ABC Inc. has a balance in the Finished Goods Inventory account of $20,000. On January 1, 2015, the balance in the Finished Goods Inventory account was $45,000. On December 31, 2015, the balance in the Work-in-Process inventory account is $5,000. On January 1, 2015, the balance in the Work-in-Process inventory account is $12,000. Cost of goods manufactured is $290,000. How much is cost of goods sold? a. $265,000 b.$315,000 c.$283,000 d.$297,000

8. Which of the companies below would be most likely to use job-order costing?a. A potato chip manufacturer b. A custom aircraft manufacturer c A pharmaceutical manufacturer d. A dairy farm

9. ABC Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead cost and direct labor for August follows.

Estimated Actual

Overhead cost $270,000 $300,000

Direct labor hours 20,000 30,000 Direct labor cost $90,000 $60,000 How much is the predetermined overhead rate?

10.During 2015, Thompson Company applied overhead using a job-order costing system at a rate of $15 per direct labor hour. Estimated direct labor hours for the year were 110,000, and estimated overhead for the year was $1,650,000. Actual direct labor hours for 2015 were 100,000, and actual overhead was $1,520,000. What is the amount of under- or over-applied overhead for the year? a.$130,000 under-applied b. $20,000 under-applied c.$130,000 over-applied d.$20,000 over-applied