1) Which of the following is true of planning in decision making?

A) It helps an organization to select goals and strategies.

B) It improves the quality of products.

C) It helps in evaluating performance.

D) It helps in the analysis of actual performance.

2) A budget serves as much as a control tool as a planning tool because ________.

A) it aids in the coordination and communication among various business functions

B) it helps to evaluate customer needs and feedback

C) it is a benchmark against which actual performance can be compared

D) it helps to make predictions about the future

3) A budget serves as much as a control tool as a planning tool because ________.

A) it aids in the coordination and communication among various business functions

B) it helps to evaluate customer needs and feedback

C) it is a benchmark against which actual performance can be compared

D) it helps to make predictions about the future

4) Conversion costs include ________.

A) direct materials and direct manufacturing labor costs

B) direct manufacturing labor and manufacturing overhead costs

C) direct materials and manufacturing overhead costs

D) only direct materials

5) The American West Company manufactures several different products. Unit costs associated with Product ORD210 are as follows:

Direct materials $90

Direct manufacturing labor 24

Variable manufacturing overhead 20

Fixed manufacturing overhead 10

Sales commissions (2% of sales) 18

Administrative salaries 38

Total $200

What are the inventoriable costs per unit associated with Product ORD210?

A) $134

B) $124

C) $144

D) $114