4 Financial and managerial accouting questions for my review sheet! i rate well.

Question 56

Select the correct statement.

A. Four purposes often claimed for budgeting involve planning, coordination, performance measurement, and reporting.

B. In a participative budgeting system, budget information flows in one direction only, from bottom to top.

C. The three major categories of the master budget are operating budgets, capital budgets, and pro forma financial statements.

D. The accounting department normally coordinates the development of the sales forecast.

Question 57

Which of the following costs generally can be traced directly to units of product?

A. Indirect materials

B. Overhead costs

C. Assembly labor

D. Indirect materials and assembly labor

Question 59

Select the correct statement from the following.

A. The allocation base determines whether a cost is classified as direct or indirect.

B. The same cost cannot be classified as both direct and indirect.

C. Relevant costs can include direct and indirect costs.

D. Direct costs always display a variable behavior pattern.

Question 60

Select the incorrect statement concerning opportunity costs.

		A. Opportunity costs are relevant costs.
		B. Opportunity costs are cumulative.
		C. Opportunity costs are future oriented.
		D. Opportunity costs are not recorded in the books.