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July 1, 2023



Multiple Choice Questions

1. _____ is a statistically based approach that observes what behaviors are rare or occur infrequently in a specific society or culture and labels those deviations from the norm "abnormal."
A. Abnormality as deviation from the average
B. Abnormality as deviation from the ideal
C. Abnormality as a sense of personal discomfort
D. Abnormality as the inability to function effectively

2. _____ refers to behavior considered abnormal if it produces a sense of distress, anxiety, or guilt in an individual or if it is harmful to others in some way.
A. Abnormality as the inability to function effectively
B. Abnormality as a legal concept
C. Abnormality as deviation from the ideal
D. Abnormality as a sense of personal discomfort

3. Insanity is a(n) _____ term.
A. legal
B. psychological
C. archaic
D. colloquial

4. It is best to view abnormal behavior and normal behavior as:
A. discrete categories.
B. two well-demarcated and non-overlapping terms.
C. marking two ends of a continuum.
D. absolute states.

5. Andy visits his family doctor because he displays symptoms of depression. The doctor conducts an examination and deduces the root cause as a chemical imbalance in his brain. In this scenario, which perspective on psychological disorders does Andy's doctor use?
A. Medical perspective
B. Psychoanalytic perspective
C. Humanistic perspective
D. Behavioral perspective

6. Which of the following perspectives on psychological disorders assumes that physiological causes are at the root of psychological disorders?
A. Medical perspective
B. Psychoanalytic perspective
C. Humanistic perspective
D. Behavioral perspective

7. Which perspective on psychological disorders primarily argues that psychological disorders stem from childhood conflicts over opposing wishes regarding sex and aggression?
A. Sociocultural perspective
B. Medical perspective
C. Humanistic perspective
D. Psychoanalytic perspective

8. Psychoanalytic treatment typically involves:
A. administering drugs to maintain hormonal balance.
B. examining early childhood experiences.
C. using electroconvulsive therapy.
D. employing trephination techniques.

9. Which of the following statements accurately identifies either a strength or a limitation of the psychoanalytic perspective on psychological disorders?
A. Strength: It highlights individual responsibility for abnormal behavior.
B. Strength: The perspective offers a precise and objective approach for observing and treating behavior.
C. Limitation: There is no conclusive way to link childhood experiences with abnormal adult behavior.
D. Limitation: It does not take into account that prior experiences can have a profound effect on a person's current psychological functioning.

10. The behavioral perspective on psychological disorders assumes that abnormal behaviors are:
A. genetic anomalies.
B. learned responses.
C. hormonal imbalances.
D. chemical deficiencies.

July 1, 2023



31) Which of the following is NOT one of the reasons that companies use an annual time period to compute the budgeted indirect-cost rate? 31) ______ A) the variable indirect-cost rate is too high B) the benefits of shorter periods do not outweigh the costs C) the budgeted quantity of the allocation base may fluctuate too much in periods shorter than one year D) a single annual indirect-cost rate helps to smooth out some of the erratic and period specific bumps E) the shorter the time period, the greater the seasonal influence

32) The first step in Job Costing is to 32) ______ A) identify the cost object. B) select the cost allocation base. C) identify the indirect costs. D) compute the rate per unit. E) identify the direct costs.

33) A Law Office employs full-time attorneys and five paraprofessionals. For 20x1 indirect costs were budgeted at $225,000, but actually amounted to $350,000.

Direct and indirect costs are applied on a professional labour-hour basis which includes both attorney and paraprofessional hours. Total budgeted labour-hours were 25,000; however, actual labour-hours were 30,000.

What is the actual indirect-cost rate, if a client used 5,000 professional labour-hours? 33) ______ A) $11.67 B) $7.50 C) $6.00 D) $5.00 E) $9.00

34) The following data were taken from the records of a manufacturing company. The company has been calculating the actual indirect cost rate using direct labour hours as the allocation base. Calculate the rate using a different allocation base.

Actual total indirect costs$1,152,000

Budgeted total indirect costs$1,216,000

Actual direct labour costs$3,200,000

Actual direct labour rate$50 per hour

Actual machine hours300,000 hours

# of employees32 34) ______ A) $7.89 B) $10.67 C) $60.67 D) $4.05 E) $3.84

35) Which of the following is not possible to use as a cost allocation base for manufacturing overhead? 35) ______ A) indirect labour hours. B) direct labour dollars C) direct material dollars D) direct labour hours E) direct labour hours or dollars

36) Job # WPP 298 has already been charged for DM of $4,606, DL of $1,579, and MOH of $3,960 based on machine hours.. If the Materials requisition record showed an additional purchase of brackets, quantity 10, unit cost of $16, the direct labour costs doubled, and the total machine hours are now 140 at $45 per machine hour, calculate the revised total job cost. (direct materials + direct labour + manufacturing overhead) 36) ______ A) $10,145 B) $11,884 C) $14,224 D) $14,064 E) $12,645

37) Why are longer time periods used to calculate indirect cost rates? 37) ______ A) each month does not have the same number of working days B) the shorter the period, the greater the influence of seasonal patterns in the level of costs, to spread monthly fixed indirect costs over fluctuating levels of output, and each month does not have the same number of working days C) the shorter the period, the lesser the influence of seasonal patterns in the level of costs D) to spread monthly fixed indirect costs over fluctuating levels of output E) the shorter the period, the greater the influence of seasonal patterns in the level of costs

38) Which of the following is NOT one of the steps used in assigning costs to individual jobs? 38) ______ A) identify the direct cost pools associated with the job B) select the cost-allocation bases to use in allocating indirect costs to the cost object C) identify the indirect cost pools associated with the job D) develop the rate per unit of the cost allocation base used to allocate indirect costs to the job E) identify the job that is the chosen cost object

39) John wants to identify the total cost for computing the corporate tax return he prepared for his client. Labour is the only direct cost at $50 per hour. Indirect costs are $60 per labour hour. What is the total direct cost, indirect cost, and job cost, respectively, if 15 hours are spent preparing the tax return? 39) ______ A) $800, $900, $1,440 B) $750, $800, $1,550 C) $750, $900, $1,650 D) $700, $850, $1,550 E) $800, $640, $1,440

40) Professional labour costs in a CGA firm are traced directly to the cost object of a given job. Generally, other operating costs are 40) ______ A) allocated to an intermediate cost object, assigned to a given auditor, and then traced to a cost pool which is then allocated to the final cost object, the given job. B) indirect costs which are allocated to a given job via an allocation base. C) first traced to a cost pool and then allocated to the final cost object, the given job. D) allocated directly to the final cost object, the given job. E) direct costs which are allocated to a given job via an allocation base.

July 1, 2023



31) Which of the following is NOT one of the reasons that companies use an annual time period to compute the budgeted indirect-cost rate? 31) ______ A) the variable indirect-cost rate is too high B) the benefits of shorter periods do not outweigh the costs C) the budgeted quantity of the allocation base may fluctuate too much in periods shorter than one year D) a single annual indirect-cost rate helps to smooth out some of the erratic and period specific bumps E) the shorter the time period, the greater the seasonal influence

32) The first step in Job Costing is to 32) ______ A) identify the cost object. B) select the cost allocation base. C) identify the indirect costs. D) compute the rate per unit. E) identify the direct costs.

33) A Law Office employs full-time attorneys and five paraprofessionals. For 20x1 indirect costs were budgeted at $225,000, but actually amounted to $350,000.

Direct and indirect costs are applied on a professional labour-hour basis which includes both attorney and paraprofessional hours. Total budgeted labour-hours were 25,000; however, actual labour-hours were 30,000.

What is the actual indirect-cost rate, if a client used 5,000 professional labour-hours? 33) ______ A) $11.67 B) $7.50 C) $6.00 D) $5.00 E) $9.00

34) The following data were taken from the records of a manufacturing company. The company has been calculating the actual indirect cost rate using direct labour hours as the allocation base. Calculate the rate using a different allocation base.

Actual total indirect costs$1,152,000

Budgeted total indirect costs$1,216,000

Actual direct labour costs$3,200,000

Actual direct labour rate$50 per hour

Actual machine hours300,000 hours

# of employees32 34) ______ A) $7.89 B) $10.67 C) $60.67 D) $4.05 E) $3.84

35) Which of the following is not possible to use as a cost allocation base for manufacturing overhead? 35) ______ A) indirect labour hours. B) direct labour dollars C) direct material dollars D) direct labour hours E) direct labour hours or dollars

36) Job # WPP 298 has already been charged for DM of $4,606, DL of $1,579, and MOH of $3,960 based on machine hours.. If the Materials requisition record showed an additional purchase of brackets, quantity 10, unit cost of $16, the direct labour costs doubled, and the total machine hours are now 140 at $45 per machine hour, calculate the revised total job cost. (direct materials + direct labour + manufacturing overhead) 36) ______ A) $10,145 B) $11,884 C) $14,224 D) $14,064 E) $12,645

37) Why are longer time periods used to calculate indirect cost rates? 37) ______ A) each month does not have the same number of working days B) the shorter the period, the greater the influence of seasonal patterns in the level of costs, to spread monthly fixed indirect costs over fluctuating levels of output, and each month does not have the same number of working days C) the shorter the period, the lesser the influence of seasonal patterns in the level of costs D) to spread monthly fixed indirect costs over fluctuating levels of output E) the shorter the period, the greater the influence of seasonal patterns in the level of costs

38) Which of the following is NOT one of the steps used in assigning costs to individual jobs? 38) ______ A) identify the direct cost pools associated with the job B) select the cost-allocation bases to use in allocating indirect costs to the cost object C) identify the indirect cost pools associated with the job D) develop the rate per unit of the cost allocation base used to allocate indirect costs to the job E) identify the job that is the chosen cost object

39) John wants to identify the total cost for computing the corporate tax return he prepared for his client. Labour is the only direct cost at $50 per hour. Indirect costs are $60 per labour hour. What is the total direct cost, indirect cost, and job cost, respectively, if 15 hours are spent preparing the tax return? 39) ______ A) $800, $900, $1,440 B) $750, $800, $1,550 C) $750, $900, $1,650 D) $700, $850, $1,550 E) $800, $640, $1,440

40) Professional labour costs in a CGA firm are traced directly to the cost object of a given job. Generally, other operating costs are 40) ______ A) allocated to an intermediate cost object, assigned to a given auditor, and then traced to a cost pool which is then allocated to the final cost object, the given job. B) indirect costs which are allocated to a given job via an allocation base. C) first traced to a cost pool and then allocated to the final cost object, the given job. D) allocated directly to the final cost object, the given job. E) direct costs which are allocated to a given job via an allocation base.

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