1. Performance reports often compare current period performance with
A- Performance in a prior period.
B- Planned (budgeted) performance.
C- Both A and B are correct.
D- Neither A nor B is correct.
2. Which of the following is not likely to be a fixed cost?
A- Direct materials
B- Rent
C- Depreciation
D- Salary of the human resources director
3. Which of the following is a manufacturing cost?
A- Direct material
B- Advertising expense
C- Depreciation of the office equipment used by the sales staff
D- Salary of the company president
4. A form used to accumulate the cost of producing an item is called a(n)
A- job-cost sheet
B- material requisition
C balance sheet
D- invoice
5. Why do we compute equivalent units differently for raw materials and conversion costs?
A- Raw materials are more difficult to count
B- Conversion costs are more difficult to count
C- They are introduced into the process at different times
D- None of the above