Which of these accounts are part of the manufacturing cost?
a) Finished-goods Inventory, Jan 1st, Selling expenses, Interest expense.
b) Net Sales; Administrative expenses, Selling expenses, Interest expense.
c) Raw material; Direct Labor, Manufacturing Overhead
d) Finished-goods Inventory, Jan 1st., Overapplied overhead, Cost of goods available
for sale.
e) Indirect material; Indirect labor, Insurance on factory and equipment
2. Which of these accounts are components of the income statement?
a) Finished-goods Inventory, Jan 1st, Selling expenses, Interest expense.
b) Net Sales; Administrative expenses, Selling expenses, Interest expense.
c) Raw material; Direct Labor, Manufacturing Overhead
d) Finished-goods Inventory, Jan 1st., Overapplied overhead, Cost of goods available
for sale.
e) Indirect material; Indirect labor, Insurance on factory and equipment
3. This budget summarizes the costs of production other than material purchases and
direct labor:
a) Manufacturing overhead budget
b) Selling, general and administrative expenses budget
c) Production budget
d) Production costs budget
e) Cash disbursements budget
4. The expense measured by the cost of the finished goods sold during a period of time:
a) Cost
b) Cost of goods sold
c) Direct cost
d) Cost of good manufactured
e) Cost of goods available for sale
5. Raw material that is physically incorporated in the finished product:
a) Direct material
b) Indirect cost
c) Direct labor
d) Cost of goods sold
e) Indirect material
6. It shows the expected revenues and expenses for a company in a budget period,
assuming that the built-in expectations about the company´s operations are met:
a) The master budget
b) Sales budget
c) Selling and expenses budget
d) Budgeted statement of cash flow
e) Budgeted income statement
7. The cost of salaries, wages, and fringe benefits for personnel who work directly on the
production of goods or services:
a) Direct Material
b) Indirect cost
c) Indirect labor
d) Direct labor
e) Cost of goods sold
8. It shows the timing of the cash flowing out of the company:
a) Cash receipts budget
b) Budgeted statement of cash flow
c) Cash budget
d) Purchases budget
e) Cash disbursements budget
9. All manufacturing costs other than direct-material and direct-labor costs:
a) Manufacturing Overhead
b) Direct Labor
c) Raw material
d) Cost of good Manufactured
e) None of the above
10. Mention the accounts that are part of the Schedule of Cost of Goods Sold:
a) Finished-goods Inventory, Jan 1st, Selling expenses, Interest expense.
b) Net Sales; Administrative expenses, Selling expenses, Interest expense.
c) Raw material; Direct Labor, Manufacturing Overhead
d) Finished-goods Inventory, Jan 1st., Overapplied overhead, Cost of goods available
for sale.
e) Indirect material; Indirect labor, Insurance on factory and equipment
11. Which of these accounts are considered manufacturing overhead?
a) Finished-goods Inventory, Jan 1st, Selling expenses, Interest expense.
b) Net Sales; Administrative expenses, Selling expenses, Interest expense.
c) Raw material; Direct Labor, Manufacturing Overhead
d) Finished-goods Inventory, Jan 1st., Overapplied overhead, Cost of goods available
for sale.
e) Indirect material; Indirect labor, Insurance on factory and equipment
12. A detailed schedule showing the manufacturing costs incurred during an accounting
period and the change in work-in-process inventory:
a) Schedule of cost of goods sold
b) Schedule of cost of goods manufactured
c) Direct cost
d) Schedule of Work-in-Process Inventory
e) Schedule of Direct Costs
13. What is the first step in developing a master budget?
a) The creation of the production budget
b) The financial planning process
c) The creation of a sales budget
d) The purchase of raw material
e) Preparing the budgeted financial statements
14. Which of the following accounts are not part of the Schedule of Cost of Goods
Manufactured?
a) Finished-goods Inventory, Jan 1st, Selling expenses, Direct Labor.
b) Net Sales; Administrative expenses, Selling expenses, Raw material.
c) Raw material; Direct Labor, Manufacturing Overhead
d) Finished-goods Inventory, Jan 1st., Overapplied overhead, Cost of goods available
for sale.
e) Indirect material; Indirect labor, Selling Expenses.
15. This budget details the expected cash collection for a company during the budget
period:
a) Sales budget
b) Cash budget
c) Budgeted Income Statement
d) Cash receipts budget
e) Cash disbursements budget
Which are the 3 elements of a company that are considered in a Cost-Volume-Profit
Analysis?
2. Explain the sequence to arrive at the operating profit, according to the CVP model.
3. How is the contribution margin calculated in CVP?
4. How is CVP operating profit calculated?
5. What are the ways to represent the CVP?
1.- What is activity-based costing?
a) An accounting approach that allocates costs to outputs based on production volume.
b) An accounting approach that allocates costs to products based on the amount of raw
materials used.
c) An accounting approach that allocates costs to outputs based on the consumption of
resources in the activities undertaken to produce them.
d) None of the above.
2.- What is the primary purpose of activity-based costing?
a) Allocate indirect costs to outputs more precisely.
b) Reduce direct production costs.
c) Increase the selling prices of products.
d) None of the above.
3.- What is the role of activities in activity-based costing?
a) Activities are irrelevant in activity-based costing.
b) Activities are the basis for the allocation of costs to outputs.
c) Activities are only used to allocate fixed costs to outputs.
d) Activities are only used to allocate variable costs to outputs.
4.- What are the main benefits of activity-based costing?
a) Improves accuracy in the allocation of costs to products.
b) Helps identify activities that do not add value.
c) Facilitates pricing and efficiency improvement decisions.
d) All of the above.
5.- What is the main limitation of activity-based costing?
a) It requires a great deal of time and resources for its implementation.
b) It is difficult for most companies to understand and apply.
c) It does not take into account the fixed costs of the company.
d) It does not consider the budgeted cost of each activity.
