11. According to the Theory of constraints, a company should focus its attention on:

A. The companys net income

B. The companys constraint

C. The companys net income

D. The companys balance sheet

12. All of the following costs would be found in a companys accounting records except:

A. sunk cost

B. Opportunity cost

C. Indirect cost

D. Direct cost

13. Which of the following is considered a mixed cost for a bakery that makes banana nut bread?

A. Bananas

B. Building rent of $2,500 per month plus $8.00 per square foot used

C. Flour

D. Cleaning team, $600 per month

14. Management accounting primarily is concerned with providing:

A. Information to mangers inside the organization as well as information to stockholders & creditors

B. Information to governmental regulate agencies

C. Information to managers inside the organization

D. Information only to those outside the organization

15. Which of the following statements best describes variable costs?

A. costs that vary in total in direct proportion to activity

B. Costs that remain the same in total

C. Costs that vary on a per unit basis and remains the same in total

D. Costs that are always the same, on a per unit basis and in total

16. Which of the following would most likely be included as part of manufacturing overhead in the production of a wood table?

A. the amount paid to the individual who stains the table

B. The commission paid to the salesperson who sold the table

C. The cost of glue used in the table

D. The cost of the wood used in the table

17. The margin of safety is:

A. The excess of budgeted or actual sales over budgeted or actual variable expenses

B. The excess of budgeted or actual sales over budgeted or actual fixed expenses

C. The excess of budgeted or actual sales over the break-even volume in sales

D. The excess of budgeted or actual sales over budgeted fixed expenses

18. Those costs that are used up in the revenue generating process during the current period and that are not involved in the manufacturing process are termed__________________.

A. Conversion costs

B. Period costs

C. Mixed costs

D. None of the above

19. The concept that considers the cost of products manufactured to be composed of direct materials, direct labor and factory overhead is ______________________.

A. control costing

B. absorption costing

C. Management costing

D. Variable Costing

20. An example of direct labor cost is wages paid to:

A. a CEO

B. An assembly line worker

C. a utility bill

D. none of the above