4. An income statement
5. The most important information needed to determine if companies
can pay their current obligations is the
6. A liquidity ratio measures the
7. The convention of consistency refers to consistent use of
accounting principles
8. Horizontal analysis is also known as
9. Horizontal analysis is a technique for evaluating a series of
financial statement data over a period of time
10. Vertical analysis is a technique that expresses each item in a
financial statement
11. Process costing is used when
12. An important feature of a job order cost system is that each job
13. In a process cost system, product costs are summarized:
14. An activity that has a direct cause-effect relationship with the
resources consumed is a(n)
15. Activity-based costing
16. A cost which remains constant per unit at various levels of activity
is a
17. Fixed costs are $600,000 and the contribution margin per unit is
$150. What is the break-even point?
18. The break-even point is where
19. When a company assigns the costs of direct materials, direct
labor, and both variable and fixed manufacturing overhead to
products, that company is using
20. If a division manager’s compensation is based upon the division’s
net income, the manager may decide to meet the net income targets by
increasing production when using
21. An unrealistic budget is more likely to result when it
22. A major element in budgetary control is
23. The purpose of the sales budget report is to
24. The accumulation of accounting data on the basis of the individual
manager who has the authority to make day-to-day decisions about
activities in an area is called
25. Variance reports are
26. Internal reports that review the actual impact of decisions are
prepared by