The managerial accountant at the Holiday Musical Academy is required to complete the
statement of cash flows. The managerial accountant is required to determine the amount
of money the company used to purchase property, plant, and equipment (PP&E) during
the year. The balance of PP&E at the beginning of the year is $1,850,000 and the
balance of PP&E at the end of the year is $2,950,000. The managerial accountant
reviewed the general journal and noticed that the original cost of equipment sold during
the year was $20,000.
Using the following information, calculate the amount of cash the company paid in cash
to purchase new property, plant, and equipment during the year:
A) $20,000
B) $1,850,000
C) $1,120,250
D) $2,950,250
The managerial accountant at Strategic Group Consulting reported the following
information about the sales budget for the period ending December 31, 20XX:
Observe the Sales Budget and determine which primary responsibility the managerial
accountant uses to
determine which quarter generated the most per-unit product sales data in order to
adjust the marketing strategy?
A) Planning
B) Controlling
C) Directing
D) Analyzing
E) Eliminating
The Bedford Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $30,000 of the current year’s current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $20.
What is the debt ratio for the current year?
A) 1.98
B) .53
C) 2.43%
D) .44
Jones Ice Cream Stand is operated by Mr. Jones and experiences different sales patterns
throughout the year. To plan for the future, Mr. Jones wants to determine its cost
behavior patterns. He has the following information available about the ice cream
stand’s operating costs and the number of soft serve cones served.
Using the high-low method, the monthly operating costs€if Mr. Jones sells 1,436 ice
cream cones in a month€are
A) $750.
B) $859.
C) $1,109.
D) $359.
Which of the following terms is useful because it compares “actual” revenues and
expenses against “budgeted” revenues and expenses?
A) Responsibility center
B) Capital budget
C) Performance report
D) Sensitivity analysis
The McCumber Corporation data for the current year:
With respect to current assets, what would a horizontal analysis report?
A) Inventory turnover of 9.34 times
B) Current ratio of 0.92
C) Current assets as 40.79% of total assets
D) A 27.00% increase in current assets
A ________ is a document manufacturing production personnel use to request that the
itemized materials be sent from the showroom into the factory.
A) cost ticket
B) job cost record
C) materials requisition
D) manufacturing ticket
The management accountant at Woodhaven Cycle Shoppe developed a budget to
establish the sales goals at the store in 2012. In 2013, the management accountant
evaluated the performance in the organization, reviewed the performance of the sales
staff, and compared the sales results to the actual budget that the managerial accountant
developed in 2012.
Which of the following management accounting responsibilities is the management
accountant using in this example?
A) Planning
B) Directing
C) Controlling
D) Designing
E) Implementing
The McCumber Corporation data for the current year:
With respect to current liabilities, what would a horizontal analysis report?
A) The current ratio is 0.92.
B) Current liabilities are 13.35% of total capital.
C) Current liabilities saw a 50% increase from the prior year to the current year.
D) Current liabilities saw a 66.67% increase from the prior year to the current year.
Weissfeld Corporation manufactures a single product. The direct materials standard
calls for 5 pounds of direct material per unit. The standard for direct material cost per
pound is $10. A computer error has wiped out the records for the direct labor standards
but the following information is found for the month of October:
Required:
a.Calculate the number of pounds of direct materials purchased and used during
October.
b.Calculate the materials quantity variance.
c.Calculate the standard direct labor rate per hour.
d.Calculate the standard direct labor hours allowed for October’s production.
The Suit Emporium carries brand name business attire. Each suit sells for the set price
of $99.99. The variable cost per suit is $61.24 and the contribution margin is $38.75.
The fixed expenses at Suit Emporium are $16,600. A new business apparel outlet has
opened fifteen miles from the emporium’s location and sales have decreased because
local completion offers consumers similar products at lower price per unit. As a result
of this decrease, the management at Suit Emporium is considering reducing the sales
price per unit to attract the consumer base back to the emporium. The forecasted price
per unit is $79.99.
1.What is the unit contribution margin using the forecasted sales price?
2.What is the new breakeven point in units?
A) $18.75; 886 units
B) $28.50; 1,022 units
C) $22.25; 560 units
D) $15.65; 730 units
Monroe Manufacturing produces and sells a product with a price of $100/unit. The
following data has been prepared for its estimated upper and lower levels of activity.
The only variable expenses for this company are
A) indirect materials, direct materials, and direct labor.
B) all categories of selling and administrative expenses.
C) indirect materials, indirect labor, direct materials, and direct labor.
D) none of the above.
Tasty Treats is a snow cone stand near the local park. To plan for the future, it wants to
determine its cost behavior patterns. It has the following information available about its
operating costs and the number of snow cones served.
Using the high-low method, the monthly operating costs€if Sunny sells 8,000 snow
cones in a month€are
A) $7,100.
B) $5,600.
C) $10,920.
D) $1,500.
All of the following are functions of the budget committee except
A) review the budgets it submits for approval in an organization.
B) determine the bonuses the organization awards to employees that achieve the target
budget.
C) approve the final budget it expects the organization to implement.
D) remove unwarranted slack in the workplace.