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What Are Conversion Costs Include ________., Conversion Cost Includes Cost Of Converting Into

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Which of the following statements refers to management accounting information? A) There are no regulations governing the reports. B) The reports are generally delayed and historical. C) The audience tends to be stockholders, creditors, and tax authorities. D) It primarily measures and records business transactions.

You are watching: Conversion costs include ________.

Place the four business functions in the order they appear along the value chain:A = Customer service B = Design C = DistributionD = Production A) A B D C B) A C D B C) B D C A D) B A D C
Management accounting is considered successful when it: A) helps creditors evaluate the company”s performance B) helps managers improve their decisions C) is accurate D) is relevant and reported annually
All of the following are true EXCEPT that indirect costs: A) may be included in prime costs B) are not easily traced to products or services C) vary with the selection of the cost object D) may be included in manufacturing overhead
If each furnace requires a $20 hose and 2,000 furnaces are produced, the total cost for hoses is:A) considered to be a direct fixed cost B) considered to be a direct variable cost C) considered to be an indirect fixed cost D) considered to be an indirect variable cost
Within the relevant range, if there is a change in the level of the cost driver, then: A) fixed and variable costs per unit will change B) fixed and variable costs per unit will remain the same C) fixed costs per unit will remain the same and variable costs per unit will change D) fixed costs per unit will change and variable costs per unit will remain the same
For a manufacturing company, direct material costs may be included in: A) direct materials inventory only B) merchandise inventory only C) both work-in-process inventory and finished goods inventory D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts
For a manufacturing company, indirect manufacturing costs may be included in: A) direct materials inventory only B) merchandise inventory only C) both work-in-process inventory and finished goods inventory D) direct materials inventory, work-in-process inventory, and finished goods inventory accounts
The cost of inventory reported on the balance sheet may include all of the following EXCEPT: A) customer-service costs B) wages of the plant supervisor C) depreciation of the factory equipment D) the cost of parts used in the manufacturing process
Period costs: A) include only fixed costs B) seldom influence financial success or failure C) include the cost of selling, delivering, and after-sales support for customers D) should be treated as an indirect cost rather than as a direct manufacturing cost
Conversion costs include: A) direct materials and direct manufacturing labor costs B) direct manufacturing labor and manufacturing overhead costs C) direct materials and manufacturing overhead costs D) only direct materials
Which of the following items is NOT an assumption of CVP analysis? A) Total costs can be divided into a fixed component and a component that is variable with respect to the level of output. B) When graphed, total costs curve upward. C) The unit-selling price is known and constant. D) All revenues and costs can be added and compared without taking into account the time value of money.
Which of the following is true about the assumptions underlying basic CVP analysis? A) Only selling price is known and constant. B) Only selling price and variable cost per unit are known and constant. C) Only selling price, variable cost per unit, and total fixed costs are known and constant. D) Selling price, variable cost per unit, fixed cost per unit, and total fixed costs are known and constant.

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Job costing: A) can only be used in manufacturing B) records the flow of costs for each customer C) allocates an equal amount of cost to each unit made during a time period D) is commonly used when each unit of output is identical
When using a normal costing system, manufacturing overhead is allocated using the ________ manufacturing overhead rate and the ________ quantity of the allocation base. A) budgeted; actual B) budgeted; budgeted C) actual; budgeted D) actual; actual
The advantage of using normal costing instead of actual costing is: A) indirect costs are assigned at the end of the year when they are known B) the job cost is more accurate under normal costing C) indirect costs are assigned to a job on a timely basis D) normal costing provides a higher gross profit margin
One reason indirect costs may be overapplied is because: A) the actual allocation base quantity exceeds the budgeted quantity B) budgeted indirect costs exceed actual indirect costs C) requisitioned direct materials exceed budgeted material costs D) Both A and B are correct.
The ________ approach adjusts individual job-cost records to account for underallocated or overallocated overhead. A) adjusted allocation-rate B) proration C) write-off to cost of goods sold D) Both A and B are correct.

See more: What Is 2% Of 50000 Increased By 2% (2 Percent) Of Its Value

The simplest approach to dealing with underallocated or overallocated overhead is the ________ approach. A) adjusted allocation-rate B) proration C) write-off to cost of goods sold D) Both A and B are correct.
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Introduction to Managerial Accounting with Connect Plus5th EditionEric W. Noreen, Peter C. Brewer, Ray H Garrison
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