Young Company has a tax rate of 40 percent. Information for the company is as
follows:
What is the weighted cost of capital?
A.0.1098
B.0.2480
C.0.0827
D.0.0366
Which of the following are the two costs of controlling quality?
A.prevention costs and appraisal costs.
B.appraisal costs and internal failure.
C.internal failure and external failure costs.
D.prevention costs and external failure costs.
Based on the types of costs incurred, what are the two categories of cost centers?
A.engineered cost centers and discretionary cost centers.
B.direct cost centers and indirect cost centers.
C.sunk cost centers and opportunity cost centers.
D.short-term cost centers and long-term cost centers.
Accounting data used for managerial reports
A.must be the same data used for reporting to shareholders, but may be different for tax
purposes.
B.must be the same data used for tax purposes, but may be different data for reporting
to shareholders.
C.must be the same data used for both tax purposes and reporting to shareholders.
D.may be different from data used for both tax purposes and reporting to shareholders.
Ethical standards that comprise the Institute of Management Accountant’s Code of
Ethics do not include which of the following?
A.competence.
B.collegiality.
C.integrity.
D.objectivity.
The decision to accept or reject an investment proposal that computes the investment’s
net present value, using the organization’s adjusted cost of capital as the discount rate
and undertakes the investment if its net present value is positive, or rejects the
investment if its net present value is negative is called the
A.net present value method.
B.future value method.
C.internal rate of return method.
D.external rate of return method.
In comparison with firms that use traditional costing, which of the following statements
is true for firms that adopt activity-based costing (ABC)?
A.Firms using ABC only experience better cost control.
B.Firms using ABC only experience better asset utilization.
C.Firms using ABC experience better cost control and asset utilization.
D.There is no appreciable difference in cost control or asset utilization for firms using
ABC.
Which of the following is not a major assumption underlying CVP analysis?
A.All costs incurred by a firm can be separated into their fixed and variable
components.
B.The product selling price per unit is constant at all volume levels.
C.Operating efficiency and employees productivity are constant at all volume levels.
D.For multiproduct situations, the sales mix can vary at all volume levels.
Decreasing the order receipt time, order waiting time, order manufacturing time, and
order delivery time will reduce the delivery cycle time and the
A.throughput time.
B.customer response time.
C.order fulfillment time.
D.delivery time.
Which of the following describes the difference in operating profits from the flexible
budget to the master budget results from the difference between budgeted sales volume
and actual sales volume?
A.the margin of safety.
B.a profit-volume variance.
C.a sales volume variance.
D.a differential volume variance.