Archives
Chapter 1 1 Accounting Information System The Inputs Are
Chapter 1—Introduction to Cost Management Key 1. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into information that is provided to users. 2. The two major subsystems of the accounting information system are the […]
Chapter 1 2 Which The Following Positions Would Most
90. Which of the following positions would most likely be a staff manager? 91. Which of the following would be considered a line function? A. production B. maintenance C. public relations D. administrative services 92. Which of the following job […]
Chapter 10 1 Economic Value Added Eva After tax Operating
Chapter 10—Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing Key 1. Responsibility accounting is a system that measures the results of each responsibility center and compares those results with some expected or budgeted outcome. 2. A responsibility center is a […]
Chapter 10 2 When There Outside Market For Intermediate
102. In the Bombadier Company, Division A has a product that can be sold either to outside customers or to Division B. Information about these divisions is given below: Case 1 Case 2 Division A: Capacity in units 100,000 100,000 […]
Chapter 11 1 The Strategy Which Involves Choosing Among
Chapter 11—Strategic Cost Management Key 1. Strategic cost management is the identification of strategies to develop a competitive advantage. 2. Strategic decision making is important to achieve good inventory control. FALSE 3. The objective of strategic cost management is to […]
Chapter 11 2 Lifecycle Cost Management Emphasizes Cost Control
94. Life-cycle cost management emphasizes 95. The difference between the sales price needed to capture a predetermined market share and the desired profit per unit is called: A. Gross profit B. Target market C. Target price D. Target cost 96. […]
Chapter 11 3 The Variance Recognized What Will The Entry
137. Prior to installing a JIT system, Clarendon Company used machine hours to assign maintenance costs to its three products of 6-inch, 8-inch, and 11-inch insulation. The maintenance costs totaled $400,000 per year. The machine hours used by each product […]
Chapter 12 1 The Process That Focuses Accountability For
Chapter 12—Activity-Based Management Key 1. Activity-based management focuses management’s attention on activities resulting in improving customer value and profits. 2. Activity-based costing does not provide good information for activity-based management. FALSE 3. Activity-based costing is very concerned with waste issues. […]
Chapter 12 2 Technique For Improving Performance Activities And
102. When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called 103. A technique for improving performance of activities and processes that predicts […]
Chapter 13 1 Activity based Responsibility Accounting Adds Which The
Chapter 13—The Balanced Scorecard: Strategic-Based Control Key 1. Activity-based responsibility accounting focuses on processes and uses both operational and financial measures. 2. Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous improvement. TRUE 3. A strategic-based responsibility accounting […]
Chapter 13 2 The Perspective That Defines The Capabilities
93. The perspective that defines the capabilities needed by the organization to create long-term improvement is the 94. Which of the following would NOT be a core outcome measure for employee capabilities? A. employee satisfaction ratings B. number of employees […]
Chapter 14 1 Quality Experts Maintain That Total Quality
Chapter 14—Quality and Environmental Cost Management Key 1. A quality product or service is one that meets or exceeds customer expectations. 2. If costs of quality were evaluated accurately, they would range in the 2 to 4 percent of sales […]
Chapter 14 2 The Following Information Pertains Molotov Inc
100. The following information pertains to Molotov, Inc., for 2014: Sales $20,000,000 Internal failure costs 600,000 External failure costs 400,000 Appraisal costs 250,000 Prevention costs 100,000 Cost of goods sold 10,000,000 If quality costs were reduced to 2.5 percent of […]
Chapter 14 3 The Costs Processes That Produce Market
170. The costs of processes that produce, market, deliver, and dispose of products are called: 171. The assignment of private and societal costs to products is referred to as: A. Full private costing B. Full environmental costing C. Life-cycle costing […]
Chapter 14 4 Long range Performance Report Exceptional Foods For The
a. Long-Range Performance Report Exceptional Foods For the Year Ended December 31, 2015 Actual Costs* Long-Range 2015 Target Costs** Variance Prevention costs: Training program $ 12,000 $ 7,500 $ 4,500 U Supplier evaluation 26,000 9,375 16,625 U Total prevention $ […]
Chapter 15 1 Lean Manufacturing Best Defined Operating Approach
Chapter 15—Lean Accounting and Productivity Measurement Key 1. Lean manufacturing is concerned with eliminating waste in manufacturing processes. 2. Lean manufacturing adds value by reducing labor costs. FALSE 3. Customer value is the difference between what a customer receives and […]
Chapter 15 2 Which The Following Not Disadvantage Partial
108. Which of the following is NOT a disadvantage of partial productivity measures? 109. Information about Papanicolou Corporation is as follows: 2014 2015 Output (units) 45,000 47,000 Selling price per unit $25 $25 Input quantities: Materials (pounds) 2,500 2,500 Labor […]
Chapter 15 3 Information About Delorean Corporation Follows 2014
154. Information about DeLorean Corporation is as follows: 2014 2015 Output (units) 40,000 42,000 Selling price per unit $25 $25 Change in profits $48,012.50 Profit-linked measurements: Materials $550.00 Labor 412.50 What is the price-recovery component? 155. In calculating the profit […]
Chapter 16 1 The Breakeven Point The Volume Activity
Chapter 16—Cost-Volume-Profit Analysis Key 1. Cost-volume-profit analysis focuses on the break-even point and the impact of changes in fixed costs and price. 2. The break-even point is the point where total costs equal sales revenues. TRUE 3. The term net […]
Chapter 16 2 When Company Sells More Units Than
89. The following diagram is a cost-volume-profit graph for a manufacturing company: The difference between line AB and line AC (area BAC) is the 90. The following diagram is a cost-volume-profit graph for a manufacturing company: The formula to determine […]
Chapter 17 1 The Choosing Among Alternatives With Immediate
Chapter 17—Activity Resource Usage Model and Tactical Decision Making Key 1. Tactical decision making consists of choosing among alternatives with an immediate or limited end in view. 2. Sound tactical decision making is limited to achieve small objectives. FALSE 3. […]
Chapter 17 2 Decision That Focuses Whether Specially Priced
88. Figure 17-2 Wannabee Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: Direct materials $12 Direct labor 36 Variable manufacturing overhead 18 Fixed manufacturing overhead 24 The company has the […]
Chapter 17 3 Mortimer Company Manufactures Three Joint Products
119. The following three situations are given for Gioulis Architects: I. Gioulis Architects employs 10 architects who can supply a capacity of 18,000 billable hours per year. The costs related to these 10 architects amounts to $900,000 or $50 per […]
Chapter 18 1 Which The Following Not Example Market
Chapter 18—Pricing and Profitability Analysis Key 1. The relationship between supply and demand helps set pricing. 2. Price elasticity of demand is the percent change in price demanded for a given percent change in quantity. FALSE 3. Goods that are […]
Chapter 18 2 Absorption Costing Gross Margin Variable Costing
86. Octagonal Company has the following information for 2014: Selling price $150 per unit Variable production costs $40 per unit produced Variable selling and admin. expenses $16 per unit sold Fixed production costs $200,000 Fixed selling and admin. expenses $140,000 […]
Chapter 18 3 Hornitos Company Produced 30000 Units And
148. Lilah Fabulous operates a catering company. Lilah provides food and servers for parties. She also rents tables, chairs, dinnerware, glassware, and linens. Jeff and Jessica Mantooth contacted Lilah about catering for their daughter’s wedding. They have requested an open […]
Chapter 19 1 Decisions Concerned With The Process Planning
Chapter 19—Capital Investment Key 1. Capital investment decisions are concerned with planning, setting goals, arranging financing, and the selection of long-term assets. 2. Independent projects directly affect the cash flows of other projects once accepted or rejected. FALSE 3. Nondiscounting […]
Chapter 19 2 Heckrwee Industries Considering Project That Would
86. Heckrwee Industries is considering a project that would require an initial investment of $101,000. The project would result in cost savings of $62,000 in year 1 and $70,000 in year 2. The internal rate of return is 87. Ursula […]
Chapter 2 1 The Set Interrelated Parts That Performs
Chapter 2—Basic Cost Management Concepts Key 1. The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives. 2. The Financial accounting information system provides information for three […]
Chapter 2 2 Figure 211 Information From The Records
126. Figure 2-11 Information from the records of the Abel Corporation for July 2014 was as follows: Sales $1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead * 405,000 *variable overhead is $205,000, fixed […]
Chapter 2 3 Which The Following Items Never Relevant
173. Which of the following items is NEVER relevant to the cost flows of a service organization? 174. Assume the following data for Rodriguez Services, an accounting firm, for November: Beginning materials inventory $ 20,000 Beginning work-in-process inventory 40,000 Ending […]
Chapter 20 1 Which The Following Not Example Ordering
Chapter 20—Inventory Management: Economic Order Quantity, JIT, and the Theory of Constraints Key 1. Effective inventory management conserves investment capital and facilitates response to customer demands. 2. Just-in-case inventory management is a traditional inventory model based on a wait-until-needed demand. […]
Chapter 20 2 Linear Programming Problem Has The Following
98. A linear programming problem has the following objective function: 20X + 40Y + 60Z. If the optimal solution provided by the model is to produce and sell 100, 200, and 300 units of X, Y, and Z, respectively, what […]
Chapter 3 1 Feature Regression Routines Not Provided The
Chapter 3—Cost Behavior Key 1. Costs can display variable, fixed, or mixed behavior, and it important that they are classified accurately. 2. A cost that does not change as output changes is a variable cost, and one that changes is […]
Chapter 3 2 Total Costs May Computed Follows Fixed
129. Total costs may be computed as follows: 130. Amigos Industries analyzed the relationship between total factory overhead and changes in direct labor hours. It found the following: Y = $6,000 + $6X The Y in the equation is an […]
Chapter 3 3 Which The Following Equations Uses Multiple
175. Figure 3-8 The following computer printout estimated overhead costs using multiple regression: t for H(0) Std. error Parameter Estimate Parameter = 0 Pr > t of parameter Intercept 1000 1.96 0.0250 510.204 Setup hours 25 81.96 0.0001 0.305 # […]
Chapter 4 1 Unit level Product Costing Assigns Direct Materials
Chapter 4—Activity-Based Costing Key 1. Unit based costing first assigns overhead costs to departmental pools and then assigns these costs to products using predetermined overhead rates. 2. Management information systems can be divided into a unit-based type and activity-based type. […]
Chapter 4 2 Lamar Corporation Uses Departmental Manufacturing Overhead
84. Lamar Corporation uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B. Dept. A Dept. B direct labor cost $66,000 $33,000 […]
Chapter 4 3 Figure 411 Longview Manufacturing Company Manufactures
120. Figure 4-11 Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($58,000) have been divided into three cost pools that use the following activity drivers: Number of Labor Product Number of Orders Transactions Labor Hours I […]
Chapter 4 4 Batch level Costs Are Assigned Using Non unit based
152. Figure 4-18 Marion Manufacturing uses an activity-based costing system. The company produces Model X and Model Y. Information relating to the two products is as follows: Model X Model Y Units produced 20,000 40,000 Machine hours 8,000 10,000 Direct […]
Chapter 4 5 The Collected Data Sets That Are
175. Figure 4-21 Appleby Manufacturing uses an activity-based costing system. The company produces Model F and Model G. Information relating to the two products is as follows: Model F Model G Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct […]
Chapter 4 6 Simonson Company Manufactures Two Products
196. Simonson Company manufactures two products (DD and EE). The overhead costs have been divided into four cost pools that use the following activity drivers: Number of Number of Number of Labor Labor Product Orders Setups Transactions Hours DD 60 […]
Chapter 5 1 Which The Following Manufactured Product Bungee
Chapter 5—Product and Service Costing: Job-Order System Key 1. A production process may yield a tangible product or a service and their unique characteristics determine the best approach for developing a cost management system. 2. Manufacturing firms produce intangible products […]
Chapter 5 2 Canmore Company Has The Following Data
113. Figure 5-5 Tonneau Corporation had the following information available for October 2014: Work in Process, October 1 $20,000 Materials placed into production, October 27,500 Direct labor, October 37,500 Factory overhead rate is 150 percent of direct labor costs. Job […]
Chapter 5 3 The Cost Spoilage Added Job When
136. Figure 5-9 The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: direct materials $3,000 direct labor ($10/hr) 1,000 overhead (150% DL$) 1,500 After inspection, 2 units […]
Chapter 6 1 What System Would Manufacturer Unique Special
Chapter 6—Process Costing Key 1. A process is a series of activities or operations, which are linked to perform a specific objective. 2. The cost flows for a process-costing system are totally different from those of a job order costing […]
Chapter 6 2 Figure 67 Edelstein Company Had The
92. Figure 6-7 Edelstein Company had the following data for 2014: Units in process at the beginning of the month 4,000 Units in process at the end of the month 10,000 Units started during the month 40,000 Materials are added […]
Chapter 6 3 Which The Following Process Costing Methods
137. Figure 6-15 The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%. Units: units % complete […]
Chapter 6 4 Refer Figure 622 Department Cs Equivalent
172. Figure 6-22 The following information is available for Department C for the month of August: Units Cost Work in process, August 1 (70% complete) 10,000 Direct materials $ 36,000 Direct labor 18,000 Manufacturing overhead 24,000 Total work in process, […]
Chapter 7 1 Support Department Cost The Producing Departments
Chapter 7—Allocating Costs of Support Departments and Joint Products Key 1. Common costs are mutually beneficial costs, used in the output of two or more services or products. 2. Allocation increases total costs. FALSE 3. Producing departments create products and […]
Chapter 7 2 Evergreen Company Has Two Support Departments
86. Fairfield Company allocates common Building Department costs to producing departments (P1 and P2) based on space occupied, and it allocates common Personnel Department costs based on the number of employees. Space occupancy and employee data are as follows: Building […]
Chapter 7 3 Hibernation Company Incurred 500000 Manufacture The
139. Hibernation Company incurred $500,000 to manufacture the following products in a joint process: Selling Price Product Units Produced Weight per Unit per Unit I 1,250 8 lbs. $ 5 J 2,500 6 lbs. 10 K 3,750 4 lbs. 10 […]
Chapter 7 4 Eagle Company Applies Factory Overhead Its
164. Albemarle, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows: 2011 Support department hours used: Department X 8,000 Department Y […]
Chapter 8 1 The Quantitative Expression Plan Stated Either
Chapter 8—Budgeting for Planning and Control Key 1. A budget is a financial plan for the future used for planning, controlling, and decision making. 2. Budgeting means to set standards, receive feedback, and executing corrective action. FALSE 3. The budget […]
Chapter 8 2 Which The Following Financial Budget Capital
95. Which of the following is a financial budget? 96. Which of the following is NOT a component of the Cash Budget? A. Sales forecast B. Cash Disbursements C. Financing D. Cash excess or deficiency 97. Which of the following […]
Chapter 8 3 the budget most appropriate for control purposes
129. Figure 8-8 Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below: Rammazzotti Inc., had the following budgeted data: Unit sales for 2014 […]
Chapter 8 4 Goal Congruence Means There Alignment Organizational
176. Villanova, Inc., has done a cost analysis for its production of rubber stamps. The following activities and cost drivers have been developed: Activity Cost Formula Design $5,000 + $0.05 per machine hour Machining $25,000 + $0.01 per machine hour […]
Chapter 8 5 Edison Inc Retailer Specialty Art Supplies
199. High Life Corporation has the following sales budget for the last four months of 2014: Month Sales September $400,000 October 320,000 November 440,000 December 360,000 Historically, the following trend has been established regarding cash collection of sales: 65 percent […]
Chapter 9 1 The Following Condition Which Demands Maximum
Chapter 9—Standard Costing: A Functional-Based Control Approach Key 1. Developing standards for input prices and quantities allows for a more detailed understanding of flexible budget variances. 2. Price standards specify amounts and quantity standards specify prices. FALSE 3. Standard costs […]
Chapter 9 2 Actual Fixed Manufacturing Overhead Was
91. If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been 92. Fixed manufacturing overhead was budgeted at $200,000, and 25,000 direct […]
Chapter 9 3 Fixed Overhead Budget Variance Give One Possible
119. Mulligan Company uses standard costing for direct materials and direct labor. Management would like to use standard costing for variable and fixed overhead. The following monthly cost functions were developed for manufacturing overhead items: Overhead Item Cost Function Indirect […]