At the end of the year, Harding Company had a balance in Manufacturing Overhead of $18,000, and a balance in Manufacturing Overhead Applied of $21,400. When the Manufacturing Overhead account is closed, the Cost of Goods Sold account will:

Multiple Choice

• Increase by $3,400.

• Decrease by $3,400.

• not be affected.

• be closed to Manufacturing Overhead Applied.

The ____________________ cost per unit does not change as output changes.

Multiple Choice

• budgeted

• variable

• fixed

• flexible

Organizations that utilize the perpetual inventory method record additions and deletions of inventory items:

Multiple Choice

• yearly.

• quarterly.

• monthly.

• daily.

What is the subsidiary ledger that contains a record for each overhead item called?

Multiple Choice

• Manufacturing Overhead Control

• Manufacturing Overhead Ledger

• Manufacturing Overhead Records Book

• Manufacturing Overhead Card

Which of the following is not true of vertical analysis?

Multiple Choice

• Each item on the balance sheet is expressed as a percentage of total liabilities.

• The percentages can be added and subtracted from top to bottom.

• Each item in the income statement is expressed as a percentage of net sales.

• Each item on the balance sheet is expressed as a percentage of total assets.