Which of the following is not a reason for adirect materials quantity variance?
purchasing of inferior raw materials
increased material cost per unit
spoilage of materials
malfunctioning equipment
A responsibility center in which the department manager hasresponsibility for and authority over costs and revenues is calleda(n)
profit center
volume center
cost center
investment center
Which of the following would be considered a sunk cost?
warehouse lease expense
net book value of equipment that has no market value
purchase price of new equipment
equipment rental for the production area
The process by which management plans, evaluates, and controlslong-term investment decisions involving fixed assets is called
cost-volume-profit analysis
absorption cost analysis
capital investment analysis
variable cost analysis
All of the following can be used as an allocation base forcalculating factory overhead rates except:
machine hours
direct labor hours
total units produced
direct labor dollars
Which of the following is not a reason for adirect materials quantity variance?
purchasing of inferior raw materials | |
increased material cost per unit | |
spoilage of materials | |
malfunctioning equipment |
A responsibility center in which the department manager hasresponsibility for and authority over costs and revenues is calleda(n)
profit center | |
volume center | |
cost center | |
investment center |
Which of the following would be considered a sunk cost?
warehouse lease expense | |
net book value of equipment that has no market value | |
purchase price of new equipment | |
equipment rental for the production area |
The process by which management plans, evaluates, and controlslong-term investment decisions involving fixed assets is called
cost-volume-profit analysis | |
absorption cost analysis | |
capital investment analysis | |
variable cost analysis |
All of the following can be used as an allocation base forcalculating factory overhead rates except:
machine hours | |
direct labor hours | |
total units produced | |
direct labor dollars |