Throughput contribution equals
a. Sales revenue less fixed costs.
b. Sales revenue less product costs.
c. Sales revenue less direct materials costs.
d. Sales revenues less manufacturing overhead.
Which of the following is not a reason that actual direct labor costs may differ from the
flexible budget amounts?
a. The purchasing manager resigned and a higher-paid replacement was hired.
b. After the company set the standard wage rate, the union reached an agreement that
required a pay raise for all factory workers.
c. Because the air conditioner in the factory was not working properly, workers did not
work as efficiently in the hot afternoons as expected.
d. All of these answer choices are correct.
Any cost that varies in proportion to a business activity is a
a.Fixed cost.
b.Variable cost.
c.Mixed cost.
d.Step cost.
Murphy Company produces two products: Standard and Deluxe. The company uses an
activity-based costing system. Murphy produces 8,000 units of Standard and 2,000
units of Deluxe. The company uses two activity cost pools, with estimated total cost and
activity as follows:
What is the cost per unit of Deluxe under activity-based costing?
a. $1.75
b. $11.00
c. $15.00
d. $16.00
Which of the following is not a step in preparing the cost of goods sold budget?
a. Add the budgeted direct materials, budgeted direct labor, and budgeted
manufacturing overhead used in production to the beginning work in process balance.
b. Subtract the budgeted ending work in process balance to determine the budgeted cost
of goods manufactured.
c. Add the beginning finished goods balance.
d. All of these answer choices are steps in preparing the cost of goods sold budget.
A cost center manager should be evaluated by
a. Examination of actual costs against budgeted costs.
b. A review of both revenues and expenses, with a focus on operating income.
c. How well assets have been used to generate income.
d. None of these answer choices are correct.
During the current year, Jamison Manufacturing had net income of $15,000 and paid
dividends of $8,000. Jamison also borrowed $50,000 on January 1st and repaid $5,000
of the note during the year. Jamison’s net cash flows provided by financing activities is
a. $37,000
b. $42,000
c. $50,000
d. $65,000
A low inventory turnover might signal
a. A problem with old and obsolete inventory.
b. Slow-moving inventory.
c. Too much inventory.
d. All of these answer choices are correct.
The process of evaluating an organization’s investment in long-term assets is called
a. Activity-based evaluation.
b. Capital budgeting.
c. Investment control.
d. None of these answer choices are correct.
ROI can be improved by
a. Increasing revenue.
b. Decreasing expenses.
c. Decreasing assets.
d. All of these answer choices are correct.
Barry’s Ice Cream Shoppe is interested in improving his performance in the area of
quality control and customer service. This interest came about after Barry put a
‘suggestions box ” near the counter. Several suggestions related to employees not being
clean in handling their orders, not filling orders properly, and rudeness from employees.
Barry has discussed his problems with his neighboring store, a local dry cleaning
business.
Required:
List five processes that Barry and the dry cleaning business have in common.
Managerial and financial accounting differ in several different ways. Explain these
differences by completing the table below.
What are the three factors needed to determine the present value of any future amount?
If a manager desires to increase profit, he or she might attempt to alter sales volume,
sales price or fixed or variable costs. Discuss how each of these might affect profit.
Calculate the breakeven point in units and sales dollars.