Question 31 (2 points)

Which of the following is not true of absorption costing?

Question 31 options:

It allows companies to possibly hide fixed costs in ending inventory

Direct fixed manufacturing overhead costs is part of COGS.

It prevents managers from increasing production only to inflate profits.

It is required by GAAP.

Question 32 (2 points)

Companies use the least square regression models

Question 32 options:

to lower costs.

because other methods are too difficult and time consuming.

to calculate manufacturing costs.

because it is the most specific.

Question 33 (2 points)

What is the first course of action in resolving an ethical conflict, according to the IMA?

Question 33 options:

talk to a family member or friend you trust

call the appropriate authorities

follow the corporation policies & procedures handbook

meet with the board of directors

Question 34 (2 points)

In which order does indirect labor flow through the cost system?

Question 34 options:

Labor - WIP - Finished goods

Labor - Manufacturing overhead - WIP - Finished goods

Labor - Manufacturing overhead - WIP - Finished goods -COGS

Labor - WIP - Finished goods- COGS

Question 35 (2 points)

Which of the following do not adhere to the IMA's principles and standards?

Question 35 options:

changing company's inventory valuation method

reporting company information you believe is ethically questionable to local news station

offering discounts to customers to encourage purchases before the end of the accounting period

believing corporate manager reported information incorrectly and not immediately reporting suspicions to the SEC