1.The contribution approach to income determination is useful for all except:

Select one:

a. break-even and cost-volume-profit analysis

b. evaluating the performance of divisions and its managers

c. for inequitable cost performances

d. for short-term decision

e. for non-routine decisions

2.Basic records or source documents used for job costing include all except:

Select one:

a. job cost sheet

b. materials requisition form

c. work ticket

d. record of goods incomplete

e. factory overhead cost sheet

3.In the predetermined factory overhead rate the budgeted activity units used in the denominator or formula known as cost driver are measured in all the following except:

Select one:

a. direct labor hours

b. machine hours

c. direct labor costs

d. indirect labor costs

e. production units

4.Activity-based costs include the following steps except:

Select one:

a. identify activities that consume resources

b. identify the cost drivers associated with each activity or activity pool

c. calculate an applied rate for each activity

d. assign costs to products by multiplying the cost pool rate by the number of cost driver units

e. identify predetermined rates

5.Activity cost drivers for marketing expenses include:

Select one:

a. selling sales calls, orders, volume of sales

b. warehousing number of items stored, volume of items stored

c. credit and collection number of customer orders, dollar amounts

d. all the above

e. none of the above

6.The major areas of accounting are dependent, independent, and commercial accounting

Select one:

True

False

7.Business entities may be organized as sole proprietorships, partnerships, or corporations.

Select one:

True

False

8.The income statement portrays the financial position of a company at a particular point in time.

Select one:

True

False

9.The statement of cash flows shows the sources and uses of cash.

Select one:

True

False

Question 10

Double entry accounting is a system in which each business transaction affects and is recorded in two or more accounts with equal debits and credits.

Select one:

True

False

Question 11

A Chart of Accounts is a graphic display of expenses and income.

Select one:

True

False

Question 12

Financial statement analysis includes area and vector analysis.

Select one:

True

False

Question 13

Ratios provide a convenient and useful way of expressing a relationship between numbers.

Select one:

True

False

Question 14

Book value per share equals gross income available divided by par value per share.

Select one:

True

False

Question 15

Question text

Managerial accounting is concerned with providing historical aspects of external reporting.

Select one:

True

False

Question 16

Emphasis on increased quality and productivity is known as Total Quality management (TQM).

Select one:

True

False

Question 17

The contribution income statement is acceptable for income tax purpose.

Select one:

True

False

Question 18

A cost accumulation system is a product costing system.

Select one:

True

False

Question 19

Activity-based costing (ABC) is an alternative to job costing.

Select one:

True