____ 63. Which of the following is not a commonly used approach to setting transfer prices?

a.	Market price approach
b.	Revenue price approach
c.	Negotiated price approach
d.	Cost price approach

____ 64. The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is:

a.	Process
b.	Departmental
c.	first-in, first-out
d.	job order

____ 65. A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:

Domestic unit sales price	$21
Unit manufacturing costs:
Variable	$12
Fixed	$5

What is the amount of the gain or loss from acceptance of the offer?

a.	$35,000 loss
b.	$40,000 gain
c.	$60,000 gain
d.	$50,000 gain

____ 68. The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents:

a.	the maximum possible operating loss
b.	the maximum possible operating income
c.	the total fixed costs
d.	the break-even point

____ 69. The entry to record direct labor costs into production in a job order cost accounting system is:

a.	debit Factory Overhead, credit Work in Process
b.	debit Finished Goods, credit Wages Payable
c.	debit Work in Process, credit Wages Payable
d.	debit Factory Overhead, credit Wages Payable

____ 70. Alden Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs from Department 1 into Department 2 during the period is:

a.	Work in Process--Department 2 390,000 Work in Process--Department 1 390,000
b.	Work in Process--Department 2 330,000 Work in Process--Department 1 330,000
c.	Work in Process--Department 2 255,000 Work in Process--Department 1 255,000
d.	Work in Process--Department 2 375,000 Work in Process--Department 1 375,000