Multiple choice pick the correct answer. 1. Which of the following statements about budgets is false? a. Budgets may be expressed in dollars, quantities, or both b. Budgets may reflect projected revenues, projected expenses, projected cash flows, or projected quantities of inputs or outputs c. Budgets should not be prepared in accordance with GAAP d. Budgets are useful both for planning and control 2. Which of the following is most likely to be a fixed cost? a. The cost of material used in production b. Rent c. Assembly labor cost d. Commissions 3. A common manufacturing overhead cost can be: a. Overtime b. Power, heat, and light in the factory c. Health insurance for factor workers d. All of the above 4. A goal of just-in-time inventory is to: a. Minimize inventories of raw materials and work-in-progress b. Maximize inventories of raw materials and work-in-progress c. Minimize inventories of raw materials and maximize work-in-progress d. Maximize inventories of raw inventories and minimize work-in-progress 5. At ABC Company, labor and overhead enter evenly throughout the production process. At the end of the year, 200 units in work in process are 80 percent complete. As it applies to conversion costs, how many equivalent units are in work in process? a. 360 b. 280 c. 200 d. 160 6. If you manufacture a product and your costs change in proportion to changes in volume or activity, this is known as: a. Fixed cost b. Mixed cost c. Variable cost d. Step Costs 7. The number of units that must be sold for a company to neither earn a profit or incur a loss is known as: a. Contribution margin b. Break-even point c. Margin of safety d. Contribution margin ratio 8. Your company makes two products. Product 1 has a contribution margin of $500 and requires two hours of machine time. The second product's contribution margin (Product 2) is $1,000 and requires five hours of machine time. How much of each product should be produced, give there are 100 hours of available machine time? a. 50 units of Product 1 and 25 units of Product B b. 30 units of Product 2 c. 50 units of Product 1 d. None of the above 9.The purpose of cost allocation is: a. Provide information needed to make appropriate decisions b. Reduce frivolous use of common resources c. Calculate the full costs of products for financial reporting purposes d. All of the above 10. When a manager wants to know the costs of activities, this is known as: a. Activity-based management b. Cost accounting c. Direct cost budgeting d. Allocation based accounting