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- Multiple ChoicePlease save your changes before editing any questions.
Overhead costs have been increasing due to all of the following EXCEPT:
increased automation
more complexity in distribution processes
tracing more costs as direct costs with the help of technology
product proliferation
- Multiple ChoicePlease save your changes before editing any questions.
Variable overhead costs include
plant-leasing costs
the plant manager’s salary
depreciation on plant equipment
machine maintenance
- Multiple ChoicePlease save your changes before editing any questions.
Fixed overhead costs include:
the cost of sales commissions
property taxes paid on plant facilities
energy costs
indirect materials
- Multiple ChoicePlease save your changes before editing any questions.
Effective planning of variable overhead costs means that a company performs those variable overhead costs that primarily add value for:
the current shareholders
the customer using the products or services
plant employees
major suppliers of component parts
- Multiple ChoicePlease save your changes before editing any questions.
Effective planning of fixed overhead costs includes all of the following EXCEPT:
choosing the appropriate level of capacity
eliminating nonvalue-adding costs
redesigning products to use fewer resources
redesigning the plant layout for more efficient processing
- Multiple ChoicePlease save your changes before editing any questions.
In a standard costing system, a cost-allocation base would MOST likely be:
actual machine-hours
normal machine-hours
standard machine-hours
Any of these answers is correct.
- Multiple ChoicePlease save your changes before editing any questions.
The MAJOR challenge when planning fixed overhead is:
calculating total costs
calculating the cost-allocation rate
choosing the appropriate level of capacity
choosing the appropriate planning period
- Multiple ChoicePlease save your changes before editing any questions.
Choosing the appropriate level of capacity:
is a key strategic decision
may lead to loss of sales if overestimated
may lead to idle capacity if underestimated
All of these answers are correct.
- Multiple ChoicePlease save your changes before editing any questions.
For calculating the costs of products and services, a standard costing system:
only requires a simple recording system
uses standard costs to determine the cost of products
does not have to keep track of actual costs
All of these answers are correct.
- Multiple ChoicePlease save your changes before editing any questions.
The variable overhead flexible-budget variance measures the difference between:
actual variable overhead costs and the static budget for variable overhead costs
actual variable overhead costs and the flexible budget for variable overhead costs
the static budget for variable overhead costs and the flexible budget for variable overhead costs
None of these answers is correct.
- Multiple ChoicePlease save your changes before editing any questions.
A $5,000 unfavorable flexible-budget variance indicates that:
the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000
the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000
the flexible-budget amount exceeded standard variable manufacturing overhead by $5,000
the standard variable manufacturing overhead exceeded the flexible-budget amount by $5,000
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following is NOT a step in developing budgeted variable overhead rates?
identifying the variable overhead costs associated with each cost-allocation base
estimating the budgeted denominator level based on expected utilization of available capacity
selecting the cost-allocation bases to use
choosing the period to be used for the budget
- Multiple ChoicePlease save your changes before editing any questions.
In flexible budgets, costs that remain the same regardless of the output levels within the relevant range are:
allocated costs
budgeted costs
fixed costs
variable costs