1) Internal resources, such as the legal department, training department, information technology, tend to be under-utilized, leading to a death spiral, when: A. managers may choose whether to purchase the service internally or externally B. the internal pricing system seeks to recover sunk costs C. the internal pricing system utilizes full costs D. all of the choices are correct

2) Of the following statements, which is true? A. Joint costs are incurred only in disassembly B. The costs of harvesting a pineapple plantation are additional processing costs C. Common costs are incurred only in disassembly D. Joint cost allocations are helpful in assessing a product's profitability

3) Which of the following would most likely use a job order costing system? A. a paper-mill B. a swimming pool installer C. a company that manufactures chlorine for swimming pools D. an oil refinery

4) A summary of the materials being issued to production during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for A. Work in Process and Cost of Goods Sold B. Work in Process and Factory Overhead C. Finished Goods and Cost of Goods Sold D. Work in Process and Finished Goods increases

5) Which of the following is not a method to mitigate the incentive to overproduce in an absorption costing system? A. Charge managers inventory holding costs B. Evaluate managers on residual income C. Require senior management approval for all inventory purchases D. Institute a Just-in-time (JIT) production system

6) Which of the following statements about variable costing systems is true? A. Variable overhead costs are treated as period costs B. Fixed overhead costs are treated as product costs C. Only direct materials and direct labor are included in total cost D. Fixed overhead costs are treated as period costs

7) Which of the following is not a category of cost driver in an Activity-Based Costing system? A. Unit level B. Departmental level C. Batch level D. Product level

8) Which of the following is not an advantage of an Activity-Based Costing system? A. Improved understanding of how products consume activities B. Easy to implement and explain C. Focuses cost control on the activity level D. Improved understanding of the direct and indirect costs of activity centers

9) Standard costs embody targets. The targets should: A. be very easy to achieve so everyone gets rewarded B. reflect ideal performance so the company can measure efficiency losses C. be used to evaluate performance and assign blame D. reflect a particular management team's goals

10) What is the typical treatment of small year-end balances in the variance accounts? A. Recalculate all standard costs, and adjust to the actual basis for external financial reporting purposes B. Close to cost of goods of sold C. Prorate the direct material and labor variances across cost of goods sold, work in process and finished goods inventories D. Prorate the variances across the raw materials, work in process, and finished goods inventories

11) Which of these is true? A. Budgeted fixed factory overhead = Budgeted overhead per unit actual volume B. Budgeted fixed factory overhead = Budgeted overhead per unit standard volume C. Budgeted factory overhead = (Budgeted fixed overhead per unit budgeted volume) + actual variable overhead D. Budgeted factory overhead = Budgeted fixed overhead + (budgeted variable overhead x budgeted volume)

12) Which of the following is not a type of overhead variance? A. Overhead spending variance B. Overhead wage variance C. Overhead efficiency variance D. Overhead volume variance