Multiple Choice Indicate the answer choice that best are me answer choice that best completes the statement or answers the question. - 19. A plant manager's salary is a(n) a. direct cost and an indirect cost b. direct cost indirect cost d. period cost 20. Period costs include a. current assets on the balance sheet b. current liabilities on the balance sheet c. operating costs that are shown on the income statement when products are sold d. operating costs that are shown on the income statement in the period in which they are incur 21. Goods that are partially completed by a manufacturer are a. merchandise inventory b. work in process inventory c. finished goods inventory d. materials inventory 22. A product cost is a. expensed in the period in which it is manufactured b. shown with current liabilities on the balance sheet c. shown with operating expenses on the income statement d. expensed in the period the product is sold 23. In a job order cost accounting system, the entry to record the flow of direct materials into pu a. debit Work in Process, credit Materials b. debit Materials, credit Work in Process c. debit Factory Overhead, credit Materials d. debit Work in Process, credit Supplies 24. The entry to record the flow of direct labor costs into production in a job order cost accou 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 noong BE we Cwork is WALL laas Invested assets. mend turnover SALE 239 SSSSSS Name Class: Date Einal Exam BOB - B31 BBBB - 10. The flexible budget is, in effect a series of state budget for different levels of activity. True b. False 11. The difference between the standard cost of a product and its actual cost is called a variance. True b. False 12. Standards are set for only direct labor and direct materials. a. True (b) False 13. A centralized business organization is one in which all maior planning and operating decisions are made by top management. a. True b. False - 14. The return on investment may be computed by multiplying investment tumover by the profit margin. a. True b. False 15. Differential analysis can aid management in making decisions on a variety of alternatives, including whether to discontinue an unprofitable segment and whether to replace usable plant assets. a. True b. False 16. In deciding whether to accept business at a special price, the short-run price should be set high enough to cover all variable costs and expenses. a. True b. False 17. The computations involved in the net present value method of analyzing capital investment proposals are less involved than those for the average rate of retum method. a. True b. False 18. If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected. a. True b. False Page 2 Multiple Choice Indicate the answer choice that best are me answer choice that best completes the statement or answers the question. - 19. A plant manager's salary is a(n) a. direct cost and an indirect cost b. direct cost indirect cost d. period cost 20. Period costs include a. current assets on the balance sheet b. current liabilities on the balance sheet c. operating costs that are shown on the income statement when products are sold d. operating costs that are shown on the income statement in the period in which they are incur 21. Goods that are partially completed by a manufacturer are a. merchandise inventory b. work in process inventory c. finished goods inventory d. materials inventory 22. A product cost is a. expensed in the period in which it is manufactured b. shown with current liabilities on the balance sheet c. shown with operating expenses on the income statement d. expensed in the period the product is sold 23. In a job order cost accounting system, the entry to record the flow of direct materials into pu a. debit Work in Process, credit Materials b. debit Materials, credit Work in Process c. debit Factory Overhead, credit Materials d. debit Work in Process, credit Supplies 24. The entry to record the flow of direct labor costs into production in a job order cost accou 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 noong BE we Cwork is WALL laas Invested assets. mend turnover SALE 239 SSSSSS Name Class: Date Einal Exam BOB - B31 BBBB - 10. The flexible budget is, in effect a series of state budget for different levels of activity. True b. False 11. The difference between the standard cost of a product and its actual cost is called a variance. True b. False 12. Standards are set for only direct labor and direct materials. a. True (b) False 13. A centralized business organization is one in which all maior planning and operating decisions are made by top management. a. True b. False - 14. The return on investment may be computed by multiplying investment tumover by the profit margin. a. True b. False 15. Differential analysis can aid management in making decisions on a variety of alternatives, including whether to discontinue an unprofitable segment and whether to replace usable plant assets. a. True b. False 16. In deciding whether to accept business at a special price, the short-run price should be set high enough to cover all variable costs and expenses. a. True b. False 17. The computations involved in the net present value method of analyzing capital investment proposals are less involved than those for the average rate of retum method. a. True b. False 18. If in evaluating a proposal by use of the net present value method there is a deficiency of the present value of future cash inflows over the amount to be invested, the proposal should be rejected. a. True b. False Page 2