(A) Number of units produced
(B) Labor hours
(C) Prime cost
(D) Machine hours
Tag: Financial Accounting Mcqs
The FIFO inventory costing method (when using under perpetual inventory system) assumes that the cost of the earliest units purchased is allocated in which of the following ways?
(A) First to be allocated to the ending inventory
(B) Last to be allocated to the cost of goods sold
(C) Last to be allocated to the ending inventory
(D) First to be allocated to the cost of good sold
If computational and record-keeping costs are about the same under both FIFO and weighted average, which of the following method will generally be preferred?
(A) Weighted Average
(B) FIFO
(C) They offer the same degree of information
(D) Cannot be determined with so little information
Which of the following statements regarding graphs of fixed and variable costs is true?
(A) Variable costs can be represented by a straight line where costs are the same for each data point.
(B) Fixed costs can be represented by a straight line starting at the origin and continuing through each data point.
(C) Fixed costs are zero when production is equal to zero.
(D) Variable costs are zero when production is equal to zero.
As production increases within the relevant range:
(A) Variable costs will vary on a per unit basis.
(B) Variable costs will vary in total.
(C) Fixed costs will vary in total.
(D) Fixed and variable cost stay the same in total.
In comparison to the traditional manufacturing environment, overhead costs in a JIT environment all the following are true except:
(A) Are more easily tracked to products.
(B) Are frequently direct in nature.
(C) Include rent, insurance and utilities.
(D) Most of the costs are likely to be indirect in nature.
Manufacturing costs typically consist of?
(A) Direct materials, direct labor, and manufacturing overhead.
(B) Production and shipping costs.
(C) Production and marketing costs.
(D) Direct materials, direct labor, marketing and administrative costs.
Which phrase best describes the current role of the managerial accountant?
(A) Managerial accountants prepare the financial statements for an organization.
(B) Managerial accountants facilitate the decision-making process within an organization.
(C) Managerial accountants make the key decisions within an organization.
(D) Managerial accountants are primarily information collectors.