Managerial accounting information: A. is used mainly by external users. B. involves gathering information about costs for planning and control decisions. C. is generally the only accounting information available to managers. D. can be used for control purposes but not for planning purposes. Factory overhead costs normally include all of the following except: A. Indirect labor costs. B. Factory rent. C. Selling costs. D. Machinery oil. A hybrid costing system would be most appropriate when: A. A manufacturer is able to standardize processes while at the same time attempting to cater to individual customer needs. B. Large quantities of identical products are being produced. C. The volume of production is low and costs are high. D. All of these would necessitate a hybrid costing system. When factory payroll costs for direct labor are recorded in a job cost accounting system: A. Factory Payroll is debited and Goods in Process is credited. B. Goods in Process Inventory and Factory Overhead are debited and Factory Payroll is credited. C. Direct Labor and Indirect Labor are debited and Factory Payroll is credited. D. Goods in Process is debited and factory payroll is credited. Which of the following is NOT true of a JIT system? A. JIT reduces inventory costs. B. Companies must create an efficient production floor layout to create a true JIT system. C. JIT only works in a large production environment D. Vendor relationships are key to a JIT system. Equivalent units of production are equal to: A. The number of units that could have been completed if all effort had been applied to units that were started and completed that period. B. The number of finished units actually produced that period. C. The number of units introduced into the process that period. D. The number of units still in process that period. For a company with high operating leverage A. a large proportion of the company's sales are variable costs B. small errors in forecasting sales have a greater impact on the company's overall profit C. it is easier to earn a profit at low sales levels D. its fixed costs are lower than its variable costs Which statement about relevant range is true? A. Relevant range does not affect cost behavior B. If the relevant range changes, the initial cost information is still valid. C. Purchasing a new building will change the relevant range. D. Production exceeding maximum capacity will not change the relevant range