To compute the ____________________, it is necessary to subtract the ending work in process inventory from the sum of the beginning work in process inventory and the total manufacturing cost.

Multiple Choice

• manufacturing overhead

• cost of goods manufactured

• cost of goods sold

• gross profit

A fixed budget is a meaningful way to evaluate manufacturing performance if the activity level used for the budget is

Multiple Choice

• more than actual.

• less than actual.

• similar to actual.

• a reasonable/logical activity measure.

In a factory, the fixed costs per unit are $55 when 900 units are produced. If 1,000 units are produced, the fixed costs per unit would be

Multiple Choice

• $18.18.

• $55.00.

• $61.11.

• $49.50.

What is one difference between the current ratio and the acid-test ratio?

Multiple Choice

• Only the current ratio includes the balance of the Cash account within one of the required figures.

• The acid-test ratio is a more immediate measure of liquidity than the current ratio.

• Current liabilities represent the numerator for one ratio and the denominator for the other ratio.

• One is a liquidity ratio and one is a financial strength ratio.