FAR — Financial Accounting & Reporting — Quiz 83

Questions in this quiz (10)

1. Which costing system is used when identical products are produced continuously?

   • Job order costing
   • Process costing
   • Standard costing
   • Activity-based costing

2. Which costing system tracks costs for individual customer orders?

   • Process costing
   • Job order costing
   • Variable costing
   • Standard costing

3. Which of the following best defines activity-based costing (ABC)?

   • Allocating costs evenly to all products
   • Assigning overhead based on cost-driving activities
   • Assigning costs only to direct labor
   • Assigning costs based on production volume only

4. Which of the following best describes standard costing?

   • Using actual costs only
   • Using predetermined costs for planning and control
   • Ignoring manufacturing overhead
   • Using only variable costs

5. Which managerial accounting tool analyzes differences between actual and expected performance?

   • Variance analysis
   • Break-even analysis
   • Ratio analysis
   • Vertical analysis

6. Which type of variance occurs when actual spending differs from budgeted spending?

   • Price variance
   • Cost variance
   • Revenue variance
   • Efficiency variance

7. Which managerial accounting method evaluates how changes in costs and sales affect profit?

   • Cost-volume-profit analysis
   • Financial reporting
   • Tax analysis
   • Payroll analysis

8. Which formula represents cost-volume-profit relationships?

   • Sales − Variable Costs − Fixed Costs = Net Income
   • Assets − Liabilities = Equity
   • Revenue − Expenses = Profit
   • Sales + Assets = Total value

9. Which of the following best describes margin of safety?

   • Difference between actual sales and break-even sales
   • Total revenue minus expenses
   • Net income divided by sales
   • Fixed costs divided by contribution margin

10. Which formula calculates margin of safety?

    • Actual Sales − Break-even Sales
    • Net Income ÷ Sales
    • Revenue − Expenses
    • Sales ÷ Assets