1. If a product is made to customers orders or specifications or if products are made in separately identifiable lots or batches, the appropriate cost accounting system is:

(A) job order

(B) process

(C) perpetual

(D) periodic

2. Equivalent units of production

(A) will always be greater than or equal to the physical units

(B) are a measure of the number of complete units that could have been manufactured from start to finish using the costs incurred during the period

(C) are calculated for materials but not for conversion costs

(D) are units of a new product that are essentially the same as the units of an existing product

3. The ________ is the cornerstone of the master budget.

(A) cash budget

(B) sales budget

(C) budgeted balance sheet

(D) operating expenses budget

4. The margin of safety:

(A) equals break-even unit sales less actual unit sales

(B) shows how far sales can fall below the planned level of activity before losses occur

(C) is the sales price minus all the variable expenses

(D) is the same as the break-even point