NEED 15 multiple choice managerial accounting questions due ASAP

1.Assuming that the number of units produced is less than the number of units sold, which of the following statements is true when comparing net operating income using absorption and variable costing?

a. Absorption costing will yield a higher net operating income.

b. Variable costing will yield a higher net operating income.

c. Net operating income will be the same under both methods.

d. The sales price per unit will be less using absorption costing.

2. As companies experience a shift from labor-intensive operations to automated operations, which of the following costs becomes more difficult to trace to products?

a. Administrative costs

b. Direct labor costs

c. Direct material costs

d. Overhead costs

3. Herndon Brothers Inc. produces a variety of "all natural" household cleaning supplies that it manufactures and distributes to various grocery stores along the west coast. Which of the following types of costs would most likely be a batch-level cost?

a. A package product design cost for a new product line

b. A machine setup cost

c. Depreciation on the factory building

d. Energy costs for factory machinery

4. Which of the following line descriptions would not be found on an income statement prepared using absorption costing?

a. Sales

b. Contribution margin

c. Cost of goods sold

d. Net operating income

5. Tyson Manufacturing has the following information available for 2012:

Direct materials

$6.00 per unit

Direct labor

$2.00 per unit

Variable manufacturing overhead

$1.50 per unit

Variable selling and administrative costs

$3.00 per unit

Fixed manufacturing overhead

$40,000

Fixed selling and administrative costs

$50,000

During 2012, Tyson produced 10,000 units out of which 9,100 units were sold for $50 each.

Refer to the information provided for Tyson Manufacturing. What is the net operating income under absorption costing?

a. $251,250

b. $254,850

c. $285,000

d. $299,850

6. Which of the following statements is true regarding the identification of activities in an ABC system?

a. All manufacturing companies have identical types of activities.

b. All merchandising companies have identical types of activities.

c. As a business becomes more complex, fewer activities need to be identified.

d. Two different businesses which have the same type of activities can still choose different cost drivers.

7. In activity-based costing (ABC), wages paid to an assembly-line worker would most likely be classified as:

a. overhead.

b. a product-level cost.

c. direct labor.

d. a facility-level cost.

8. Which of the following statements is true regarding variable costing?

a. Variable costing is also known as full costing.

b. Per unit contribution margin is affected by production levels in variable costing.

c. In a variable costing income statement, fixed costs are separated from variable costs.

d. Variable costing focuses attention on all product costs and not only relevant product costs.

9. Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred each time a machine is set up is called a(n):

a. product-level cost.

b. batch-level cost.

c. unit-level cost.

d. facility-level cost.

10. Which of the following statements is false regarding variable costing?

a. Variable overhead is treated as a product cost.

b. Variable costing is required for external financial statements prepared in accordance with generally accepted accounting principles (GAAP).

c. Fixed manufacturing overhead is treated as a period cost.

d. Period costs are expensed as they are incurred.

11. Activity-based costing is a method of cost allocation that is useful for assigning ____ costs to products or services.

a. direct materials

b. direct labor

c. overhead

d. direct materials and direct labor

12. Which of the following statements regarding cost drivers is false?

a. Different businesses can have different sets of cost drivers.

b. Cost drivers should generally be chosen based on a cause-and-effect relationship between the driver and the specific cost being considered.

c. Cost drivers are groups of overhead costs that are similar.

d. An activity could have more than one potential cost driver.

13. Compton Corporation

The following overhead cost information is available for Compton Corporation for 2011:

Activity Allocation Base

Overhead Cost

Purchasing Number of purchase orders

$100,000

Receiving Number of shipments received

60,000

Machine setups Number of setups

150,000

Quality control Number of inspections

50,000

During the year, 5,000 purchase orders were issued; 20,000 shipments were received; 3,000 machine setups were performed; and 4,000 inspections were conducted.

Refer to the Compton Corporation information above. What is the overhead rate for the receiving activity?

a. $1.88 per shipment received

b. $6.00 per shipment received

c. $3.00 per shipment received

d. $0.33 per shipment received

14. Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred every time an individual rug is produced is called a(n):

a. product-level cost.

b. batch-level cost.

c. unit-level cost.

d. facility-level cost.

15. Troxler Inc. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred to sustain the overall manufacturing process is called a(n):

a. product-level cost.

b. batch-level cost.

c. unit-level cost.

d. facility-level cost.