Question 1.1. (TCO A) The Standards of Ethical Conduct for management accountants includes concepts related to _____. (Points : 5)

experience skill confidentiality All of the above

Question 2.2. (TCO B) Sales total $360,000 when variable costs total $270,000 and fixed costs total $80,000. The break-even point in sales dollars is _____. (Points : 5)

$280,000 $230,000 $320,000 $358,400

Question 3.3. (TCO C) In a job-costing system, allocation of manufacturing overhead to jobs is a debit to _____. (Points : 5)

materials control manufacturing overhead allocated cash work-in-process control

Question 4.4. (TCO D) An ABC system will provide benefits when _____. (Points : 5)

management does not want to estimate costs of activity pools there are no disagreements between the operations staff products make diverse demands on resources due to volume differences None of the above

Question 5.5. (TCO E) An operating budget requires _____. (Points : 5)

information predictions decisions All of the above

Question 6.6. (TCO E) A cash budget _____. (Points : 5)

helps to avoid overdraft fees is not necessary for the effective management of a business predicts the effects of operations on the company's cash balance All of the above

Question 7.7. (TCO F) A flexible budget variance of $20,000 and a static budget variance of $35,000 results in _____. (Points : 5)

unfavorable static budget variance favorable sales volume variance unfavorable sales volume variance unfavorable flexible budget variance

Question 8.8. (TCO F) The difference between actual variable overhead cost per unit of the cost allocation base, and the budged variable overhead cost per unit of the cost allocation base, is the _____. (Points : 5)

variable overhead efficiency variance variable overhead static budget variance variable overhead flexible budget variance variable overhead spending variance

Question 9.9. (TCO G) A cause and effect relationship arises when _____. (Points : 5)

there is a physical relationship between activity level and costs there is a contractual relationship there is knowledge of operations All of the above

Question 10.10. (TCO G) The most important issue in estimating a cost function is _____. (Points : 5)

determining the cause and effect relationship establishing a correlation determining the cost driver None of the above

Question 11.11. (TCO H) _____ is (are) long-run pricing approach(es). (Points : 5)

Cost-plus approach Relevant-cost approach Market-based approach Both A and C

Question 12.12. (TCO H) Determining what a customer will pay for a product to determine the product price is a _____. (Points : 5)

market-based approach cost-plus approach relevant-cost approach activity-based approach

Question 13.13. (TCO I) The second step in capital budgeting is _____. (Points : 5)

to identify potential projects to gather information to forecast potential cash flows to revise plans as necessary

Question 14.14. (TCO I) The capital budgeting method that calculates the discount rate where the present value of the cash inflows equals the present value of cash outflows is _____. (Points : 5)

the discounted cash flow method the net present value method sensitivity analysis the internal rate-of-return method