1. If Alpha Inc. uses standard costing, the overhead allocated to work-in-process is recorded as a a) debit to Manufacturing Overhead Allocated and a credit to Work-in-Process. b) debit to Work-in-Process and credit to Manufacturing Overhead Control. c) debit to Manufacturing Overhead Allocated and a credit to Manufacturing Overhead Control. d) debit to Manufacturing Overhead Control and a credit to Manufacturing Overhead Allocated e) debit to Work-in-Process and a credits to Manufacturing Overhead Allocated 2. Budgets can be changed TRUE FALSE 3. Which of the following statements about the cost estimation methods is FALSE? a) With the conference method, the accuracy of the cost estimates largely depends on the accuracy and details of the inputs b) The methods require more historical data than most quantitative analysis c) The methods are not mutually exclusive. d) There are four methods generally used for cost estimation e Many organizations use a combination of the approaches. 4 Favourable rate variance for materials is always an indication of a good performance of a purchasing manager TRUE FALSE 5. The cost function y 900+3X a) has a slope coefficient of 900 b) is curvilinear because of the 3X c) is a straight line. d) represents a fixed cost e) is missing the slope coefficient. 6. Managers decide which level of detail to use in a costing system by a. Knowing the limitations of allocating indirect costs b. Evaluating expected costs versus benefits C. Understanding the components of indirect cost pool d. The level of support from the senior management e Knowing that all indurect costs must be assigned 10. Variable costing and absorption costing report different operating income TRUE FALSE 11. Variable costing and absorption costing differ in how they account for: a. Fixed manufacturing costs b. Fixed overhead costs c. Variable manufacturing costs d. Variable manufacturing costs e. Manufacturing overhead costs 12. ABC systems are primarily used for inventory valuation. TRUE FALSE