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Question
Student Name: ________________________________________
If you find it helpful, you may create an Excel file to show your work for numerical problems. You must show your work including calculations to receive full credit.
Additionally, your work must be presented in a logical, easy to follow manner for full credit. Partial credit will be given for incorrect answers if you show your work.
The point breakout of the questions is as follows:
Question 1
Of the following manufacturing operations, which is best suited to the utilization of a job order system?
a. Helicopter manufacturing.
b. Soft drink bottling operation.
c. Crude oil refining.
d. Plastic molding operation.
Question 2
Costs that do not change when the activity base fluctuates are known as:
a. Variable costs
b. Discretionary costs
c. Fixed costs
d. Mixed costs
Question 3
The basic difference between a static budget and a flexible budget is that:
a. A flexible budget considers only variable costs, but a static budget considers all costs.
b. Flexible budgets allow management latitude in meeting goals, whereas a static budget is based on a fixed standard.
c. A static budget is for an entire production facility, but a...
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