29 Jun Question 1) A well-designed activity-based costing system starts with __________.
Question
1) A well-designed activity-based costing system starts with __________.
A.
identifying the activity-cost pools
B.
assigning manufacturing overhead costs for each activity cost pool to products
C.
computing the activity-based overhead rate
D.
analyzing the activities performed to manufacture a product
2) In what situations will a static budget be most effective in evaluating a manager’s effectiveness?
A.
The company has substantial fixed costs.
B.
The planned activity levels match actual activity levels.
C.
The company has substantial variable costs.
D.
The company has no fixed costs.
3) The conceptual framework developed by the Financial Accounting Standards Board __________.
A.
was approved by a vote of all accountants
B.
is viewed as providing a constitution for setting accounting standards for financial reporting
C.
are rules that all accountants must follow
D.
is legally binding on all accountants
4) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company’s net income increase?
A.
$18,000
B.
$12,000
C.
$28,000
D.
$6,000
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