Which of the following is not a qualitative issue that must be considered before
reaching a decision to outsource?
a. Potential theft of intellectual property.
b. Quality of the outsourced product.
c. Number of employees to be terminated.
d. All of these answer choices are qualitative issues to be considered.
The contribution margin is calculated as
a.Sales revenue less cost of goods sold.
b.Sales revenue less discretionary costs.
c.Sales revenue less committed costs.
d.Sales revenue less total variable costs.
Which of the following is a product- or service-related activity?
a. Batch-level
b. Customer-level
c. Organization-level
d. All of these answer choices are product- or service-related activities.
Preparing a budget allows managers to
a. Plan for the future.
b. Reduce the need for knee-jerk responses to unexpected situations.
c. Assess whether a division ‘s strategic direction is in line with corporate strategy.
d. All of these answer choices are correct.
FastPrint Company leases a machine that stuffs, seals, and stamps envelopes in one
process. FastPrint’s lease agreement calls for a base charge of $4,000 per year plus
$0.25 for every envelope over 1,000 the machine processes per month.
Required:
a.What is the firm’s total annual cost for the lease if a total of 2,500 envelopes are
processed each month?
b.What is the firm’s total processing cost per envelope at a level of 2,500 envelopes
processed each month?
c.What is the firm’s processing cost per envelope if only 1,500 envelopes are processed
each month?
Based on the matching principle, all product cost flow through
a. Raw Material Inventory, Work in Process Inventory and Finished Goods until the
goods are sold.
b. Raw Material Inventory, Work in Process Inventory and Manufacturing Overhead
until the goods are sold.
c. Raw Material Inventory, Direct Materials and Conversion, and Work in Process.
d. Raw Material Inventory, Conversion, and Finished Goods until the goods are sold.
Processing a sales order is an example of a
a. Product-level activity.
b. Unit-level activity.
c. Customer-level activity.
d. None of these answer choices are correct..
Activity-based costing information may be used by managers for
a. Process improvement.
b. Distribution channel profitability decisions.
c. Pricing decisions.
d. All of these answer choices are correct.
A contribution format income statement allows a manager to
a.Assess the impact of product costs on net profit.
b.Assess the impact of sales volume on gross margin.
c.Assess the impact of sales volume on operating income.
d.Assess the impact of profit margin on product costs.
According to a 2011 National Business Ethics Survey, what percentage of employers
had a written code of conduct?
a.26%, up from 17% in 1994.
b.47%, up from 35% in 1994.
c.67%, up from 47% in 1994.
d.82%, up from 67% in 1994.
The final component of the operating budget is the
a. Cash budget.
b. Budgeted balance sheet.
c. Sales budget.
d. None of these answer choices are correct.
An investment center manager ‘s performance can be based on
a. The same methods as managers of cost centers.
b. The same methods as managers of profit centers.
c. Residual income.
d. All of these answer choices are correct.
When a project’s internal rate of return equals the discount rate,
a. A manager has probably manipulated the analysis
b. The net present value is zero
c. The discount rate is equal to the industry average
d. None of these answer choices are correct