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29) The difference between a budget and a standard is that

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28) If a company is concerned with the potential negative effects of establishing standards, they should

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27) Variable costing

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26) Which cost is NOT charged to the product under variable costing?

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25) Which cost is charged to the product under variable costing?

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24) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a

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23) Hartley, Inc. has one product with a selling price per unit of $200, the unit variable cost is $75, and the total monthly fixed costs are $300,000.

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22) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of

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21) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to

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20) Walton, Inc. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $16, while the cost of assembling each unit is estimated at $17. Unassembled units can

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19) Rosen, Inc. has 10,000 obsolete calculators, which are carried in inventory at a cost of $20,000. If the calculators are scrapped, they can be sold for $1.10 each (for parts). If they are repackaged, at a cost of

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18) Which of the following factors would suggest a switch to activity-based costing?

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17) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000;

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16) Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000;

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15) Which of the following is a nonvalue-added activity?

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14) Which of the following is a value-added activity?

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13) All of the following statements are correct EXCEPT that

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12) In traditional costing systems, overhead is generally applied based on

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11) An activity that has a direct cause-effect relationship with the resources consumed is a(n)

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10) A well-designed activity-based costing system starts with

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