ACCT$240$I

$6.$ Which of the following distinguishes activity$-$based costing from traditional costing?

A$.$ In activity$-$based costing multiple cost drivers are utilized within a department.

B$.$ In activity based costing each department is a different activity

C$.$ In activity$-$based costing yearly estimates are used

D$.$ In traditional costing systems overheads application rates can be based on direct labour.

$7.$ Which of the following refers to the costing system that is used when the business produces based on customers' orders?

A$.$ Batch costing

B$.$ Marginal costing

C$.$ Job costing

D$.$ Activity Based Costing

$8.$ A firm incurs production cost of $$2,000,000$ for Job #$321.$ Administration and distribution cost are $15\%$ of production cost. The firm expects a mark$-$up of $20\%$ What is the quoted price of Job#$321?$

A$.$ $$$460,000$

B$.$ $$2,300,000$

C$.$ $$2,460,000$

D$.$ $$2,760,000$

$9.$ Nine Thousand pounds $(9,000lbs)$ of material was inputted to a process. Expected output was $85\%.$ What was the normal loss in the process if actual output was $7,800lbs?$

A$.900lbs$

B$.1,200lbs$

C$.1,350lbs$

D$.7,650lbs$

$10.$ An abnormal gain in a process occurs in which of the following situations? When:

A$.$ Actual losses are greater than the normal loss level

B$.$ Costs are reduced through increased machine speed

C$.$ Actual losses are less than the normal loss level

D$.$ The process output is greater than planned

$11.$ Contribution margin is the difference between

A$.$ Sales and total variable cost

B$.$ Sales and total fixed cost

C$.$ Sales and absorption cost

D$.$ Sales and all costs