*** ANSWER ALL QUESTIONS PLEASE ***

1. A logical structure of activities designed to analyze and evaluate management of expenditures is a cost

Select one:

a. control system

b. avoidance system

c. consciousness system

d. understanding system

2. If an actual discretionary cost is exactly equal to the budgeted level of that cost, which of the following statements is true?

Select one:

a. Funds were appropriately spent

b. The discretionary activity was efficient

c. The discretionary activity was effective

d. None of the above

3. An effective control system functions before, during, and after an event. However, little control is possible during the event for most

Select one:

a. committed fixed costs

b. variable manufacturing costs

c. discretionary fixed costs

d. variable period costs

4. Avoidable costs are usually

Select one:

a. joint

b. common

c. discretionary

d. committed

5. Which of the following is likely to be a discretionary cost in most organizations?

Select one:

a. managerial labor costs

b. factory rent

c. managerial training programs

d. factory utilities

6. Spending levels in prior years are often the basis of

Select one:

a. zero-base budgets

b. variance targets

c. engineered cost analyses

d. traditional budgets

7. Which of the following is an example of a committed fixed cost?

Select one:

a. investment in production facilities

b. preventive maintenance

c. employee training programs

d. advertising

8. All of the following are explanations of cost changes. Which of these influences can be substantially affected by cost containment measures?

Select one:

a. changes in supply chain costs

b. changes in quantities purchased

c. inflation/deflation

d. technological change

9. For cost control purposes, actual costs should be compared to

Select one:

a. a static budget

b. actual costs for the prior period

c. the original budget

d. a flexible budget

10. Most discretionary costs relate to Select one:

a. basic personnel costs

b. long-term investments

c. service activities

d. plant and equipment acquisitions

*** THANK YOU FOR ANSWERING ALL 10 QUESTIONS ***