Multiple Choice Question 39

Advances in computerized systems, technological innovation, global competition, and automation have changed the manufacturing environment drastically by

increasing direct labor costs and decreasing overhead costs.

increasing direct labor costs and increasing overhead costs.

decreasing direct labor costs and decreasing overhead costs.

decreasing direct labor costs and increasing overhead costs.

Multiple Choice Question 99

Which is the true statement?

The CVP income statement shows contribution margin instead of gross profit.

In a traditional income statement, costs and expenses are classified as either variable or fixed.

In a CVP income statement, costs and expenses are classified only by function.

The CVP income statement is prepared for both internal and external use.

Multiple Choice Question 39

A variable cost is a cost that

occurs at various times during the year.

varies in total in proportion to changes in the level of activity.

may or may not be incurred, depending on management's discretion.

varies per unit at every level of activity.

Multiple Choice Question 155

Required sales in dollars to meet a target net income is computed by dividing

total costs plus target net income by contribution margin ratio.

fixed costs plus target net income by contribution margin per unit.

variable costs plus target net income by contribution margin per unit.

fixed costs plus target net income by contribution margin ratio.

Multiple Choice Question 71 The culmination of preparing operating budgets is the

cash budget.

budgeted income statement.

production budget.

budgeted balance sheet.

Multiple Choice Question 65

Within the relevant range of activity, the behavior of total costs is assumed to be

linear to a point and then level off.

linear and downward sloping.

linear and upward sloping.

curvilinear and upward sloping.

Multiple Choice Question 82

If actual direct materials costs are greater than standard direct materials costs, it means that

the actual unit price of direct materials was greater than the standard unit price of direct materials.

the actual unit price of raw materials or the actual quantities of raw materials used was greater than the standard unit price or standard quantities of raw materials expected.

actual costs were calculated incorrectly.

the purchasing agent or the production foreman is inefficient.

Multiple Choice Question 136

The total overhead variance is the difference between the

actual overhead costs and overhead costs applied based on standard hours allowed.

actual overhead costs and overhead costs applied based on actual hours.

overhead costs applied based on actual hours and overhead costs applied based on standard hours allowed.

the actual overhead costs and the standard direct labor costs.