641. When production is equal to sales, which of the following is TRUE?
A) No change occurs to inventories for either use absorption costing or variable costing methods
(B) The use of absorption costing produces a higher net income than the use of variable costing
(C) The use of absorption costing produces a lower net income than the use of variable costing
(D) The use of absorption costing causes inventory value to increase more than they would through the use of variable costing
642. Which of the following loss is not included as part of the cost of transferred or finished goods, but rather treated as a period cost?
(A) Operating loss
B) Abnormal loss
(C) Normal loss
(D) Non-operating loss
643. The term Cost apportionment is referred to?
(A) The costs that cannot be identified with a specific cost center.
(B) The total cost of factory overhead needs to be distributed among specific cost centers but must be divided among the concerned department/cost centers
C) The total cost of factory overhead needs to be distributed among specific cost centers.
(D) None of the given options
644. Which of the following best describes the piece rate system?
(A) The increased volume of production results in decreased cost of production
B) The increased volume of production in minimum time
(C) Establishment of fair standard rates
(D) Higher output is a result of efficient management
645. Financial statements differ from management account because:
A: They are mainly prepared for external users of financial information
B: They are more complex and hard to prepare
C: They are the summary of accounting data
D: They are prepared on the basis of actual concept
646. Specialized journals are more adequate for which TYPE OF BUSINESSES?
A: Small businesses
B: Big businesses
C: Sole proprietorship
D: Partnership
647. Which of the following is known as evidence that a transaction took place?
A: Cash receipts journal
B: General journal
C: Source document
D: Cash book
648. A BUSINESS paid rent amounting to $100. Which of the following specialized journals records this transaction?
A: Cash receipts journal
B: Cash payments journal
C: Sales journal
D: Purchase journal
649. Credit memo or credit note No. is entered in which of the following journals?
A: General journal
B: Cash journal
C: Purchase journal
D: Sales return day book
650. Which of the following specialized journals records “goods returned by customers”?
A: Purchase journal
B: Sales journal
C: Purchases return journal
D: Sales return journal
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