Ending inventory value with respect to absorption costing and variable costing:
A) is less using variable costing
B) is more using variable costing
C) is the same
D) none of the above

The professional designation for the accountant that prepares reports that are used by parties external to the corporation is:
A) C.P.A.
B) C.M.A.
C) C.F.A.
D) C.L.U.

Montson, Inc. produces a product requiring three square feet at $6 per square foot. If the desired ending inventory is $18,000 and the beginning inventory is $36,000, how many units must Montson produce to make direct materials purchases $54,000?
A) 3,000
B) 4,000
C) 1,000
D) cannot tell from data given

In order to determine the overhead volume variance you need the overhead flexible budget and the overhead applied to the units produced.
True
False

Anson produces a product that requires 10 standard sq. ft. of plywood at $4 per sq.ft. If Anson produces 300 units and uses 3,100 sq. ft., the material price variance is:
A) $12,400
B) $12,000
C) unable to tell from the data given
D) none of the above

Generally speaking, the hurdle rate impounds the risk of the firm.
True
False

Ending inventory value with respect to absorption costing and variable costing:
A) is more using absorption costing
B) is less using absorption costing
C) is the same
D) none of the above

The I.M.A. publishes generally accepted accounting principles.
True
False

Activity based costing assists in the development of appropriate overhead costs.
True
False

In order to determine the controllable overhead variance, you need the overhead application rate.
True
False

The internal rate of return (IRR) is calculated from the undiscounted cash flows.
True
False

How many equivalent units of conversion costs are in 20,000 physical units of product 10% complete?
A) 200
B) 2,000
C) 20,000
D) cannot be determined from data given

Direct Labor and…