Which of the following can be calculated using built-in functions in spreadsheet
programs?
A.external rate of return.
B.internal rate of return.
C.investment rate of return.
D.international rate of return.
A company manager intentionally commits fraud by overstating the ending balance of
inventory in order to improve his current period’s performance evaluation and resulting
bonus. Which of the following statements is true?
A.All accounting frauds do not require repeated misrepresentation period after period
and the overstatement of income in one period does not cause a lower income in a
subsequent period.
B.All accounting frauds do not require repeated misrepresentation period after period
and the manager will most likely escape detection if internal controls are poor.
C.All accounting frauds require repeated misrepresentation period after period or else
the overstatement of income in one period causes a lower income in a subsequent
period.
D.According to Generally Accepted Auditing Standards, the independent auditors must
report all accounting frauds, regardless of amount, directly to the Securities and
Exchange Commission within 3 days of discovery.
Which of the following statements best describes cost allocation?
A.A company can maximize or minimize total company income by selecting different
bases on which to allocate indirect costs.
B.A company should select an allocation base to raise or lower reported income on
given products.
C.A company’s total income will remain unchanged no matter how indirect costs are
allocated.
D.A company, as a general rule, should allocate indirect costs randomly or based on an
“ability-to-bear” criterion.
The theory of constraints focuses on which of the following?
A.throughput contribution.
B.investments.
C.other operating costs.
D.All of the answers are correct.
Which of the following terms describes the cost of producing the next unit?
A.marginal cost.
B.programmed cost.
C.managed cost.
D.next cost.
What costs can be justified when a firm enters into agreements for the development and
production of customized products with the Federal government?
A.Variable costs
B.Fixed costs
C.Full costs
D.Absorption costs
Rewards that come from outside the individual, such as rewards from a teacher, a
parent, an organization, or a spouse that include grades, money, praise, and prizes are
called
A.traditional rewards.
B.intrinsic rewards.
C.extrinsic rewards.
D.outside rewards.
What does (Contribution Margin for Product 1 x Sales Volume for Product 1) +
(Contribution Margin for Product 2 x Sales Volume for Product 2) + (Contribution
Margin for Product x Sales volume for Product ) – Fixed Costs equal?
A.Net sales
B.Target sales
C.Operating profit
D.Target profits
When can a firm justify the use of full costs for pricing decisions?
A.when a firm enters into a short term contractual relationship to supply a product.
B.for development and production of standardized products.
C.when managers initially set prices to cover full costs plus a profit then adjust to
reflect market conditions.
D.because they are required by generally accepted accounting principles.
In which area will analysts likely err when making capital investment decisions?
A.predicting or estimating amounts.
B.the timing of cash flows
C.the discount rate.
D.all of the above.