1)

Which of the following is least likely to be a variable cost?

Multiple Choice

Indirect materials

Direct labor

Sales commission

Supervisory salaries

2)

Which of the following will have no effect on the breakeven-point in units?

Multiple Choice

The variable cost per unit increases

The selling price increases

Total fixed costs increase

The number of units sold declines

3)

Why is factory overhead "applied" to products and jobs by manufacturing companies?

Multiple Choice

Managers prefer job costs to be exact in amount for budgeting purposes

It provides a more accurate cost of the job or products being processed

Actual overhead costs can never be accurately determined for jobs

It allows managers more timely determination of product costs during the manufacturing process

4)

Managerial Accounting

Multiple Choice

Must follow GAAP

is primarily directed at external users of accounting information

Focuses on future performance

is required by taxing authorities such as the IRS