Which of the following statements regarding the manufacturing overhead budget is incorrect?
A) Both fixed and variable manufacturing overhead costs are budgeted.
B) The manufacturing overhead budget calculates the budgeted overhead costs for the year and also the
predetermined overhead allocation rate for the year.
C) The cost accountant and the production manager work together to project variable and fixed
manufacturing costs.
D) Depreciation on manufacturing equipment is not included because the production manager has no
control over that cost allocation.
D) Depreciation on manufacturing equipment is not included because the production manager has no
control over that cost allocation.
You might also like to view...
A close examination of profitable high-share and profitable low-share niche businesses reveals only two areas of commonality: relative sales force expense and ________
A) relative price B) product breadth C) relative product quality D) relative advertising E) product depth
When customers calculate the perceived economic benefits of a continuously provided service in relationship to the economic costs, they are gauging the ________ equity
A) private B) brand C) payment D) customer-service E) product-service
Duncan Crafts manufactures specialty key chains for tourist attractions. On January 1, the firm had 300 souvenir attraction disks, costing $3 each, used in the production of key chains. During the year Duncan Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Compute the total cost of souvenir disk raw materials inventory at December 31.
What will be an ideal response?
Which of the following is a disadvantage of a just-in-time management system?
A) It results in a decrease in production space. B) It increases the inventory cost. C) The risk of the inventory becoming obsolete is very high. D) The users of this system sometimes lose sales because of little or no inventory buffers.