1. Which of the following is NOT one of the three primary responsibilities of management?

1. Controlling
2. Costing
3. Directing
4. Planning

2. For Toyota, which is a direct materials cost with respect to a building a Toyota Camry?

1. Depreciation on plant equipment
2. Cost of the vehicles engine
3. Salary of the engineer that rearranges the plant layout
4. Cost of the customer hotline

3. ABC Manufacturing allocates overhead based on direct labor hours. You are given the following information for 2020: [CJ1]

Budget: Budgeted overhead $2,000, budgeted direct labor hours: 1,000

Actual: Actual overhead was $3,000, actual direct labor hours worked: 1,200

Overhead for 2020 was:

1. Overapplied by $600
2. Underapplied by $600
3. Overapplied by $1,000
4. Underapplied by $1,000

4. All of the following is true regarding activity-based-costing except for:

1. ABC Costing should be used when companies face little competition.
2. Different jobs or products incur overhead charges differently
3. Different departments use different amounts of overhead
4. Companies that use ABC Costing can better understand how their costs are derive

5. Which of the following is NOT a product cost for a shoe manufacturer?
   1. Leather for the shoe
   2. Thread for stitching
   3. Sales commissions
   4. Rent on manufacturing facility [CJ2]

6. Which of the following is the starting point for the master budget?
   1. Combined cash budget
   2. The direct materials budget
   3. Budgeted income statement
   4. The sales budget

7. For which type of responsibility center would it be appropriate to measure performance using Return on Investment (ROI)?
   1. Cost Center
   2. Revenue Center
   3. Investment Center
   4. Profit Center

8. Warranty repairs, recalls, and scrap would be typical key performance indicators for which balanced scorecard perspective?
   1. Internal Business
   2. Customer
   3. Learning and Growth
   4. Financial

9. Costs of rework of defective parts or costs of machine downtime for Toyota would be a typical measure of which aspect of the balanced scorecard?
   1. Employee learning and growth
   2. Financial
   3. Operational efficiency
   4. Customer satisfaction

10. Which of the following accurately describes the cost behavior of a variable cost?
    1. Variable costs per unit increase as units of output[CJ3] increase.
    2. Variable costs per unit are constant as units of output increase.
    3. Total variable costs decrease as units of output increase.
    4. Total variable costs are constant as units of output increase.

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