Which of the following statements relating to earnings per share is not True?
a. Earnings per share is an often-reported measure of the potential return to
stockholders.
b. Earnings per share is a financial measure.
c. Earnings per share is a cash measure.
d. Earnings per share is based on the accrual basis of accounting.
Which of the following is a type of unethical behavior employees might observe?
a.Putting one ‘s own interest ahead of the organization ‘s interest.
b.Misreporting of hours worked.
c.Lying to employees.
d.All of these answer choices are unethical behaviors.
Which of the following is a fifth perspective that some organizations add to the
balanced scorecard?
a. An additional area that the company expects to expand into at a later date.
b. An additional area that highlights an areas of strategic importance.
c. An additional area in which the company has found problems.
d. None of these answer choices are correct, a fifth perspective should not be added.
Warner Company produces flash drives. The Custom division would like to buy
1,000,000 units from the Thumb Drive division, which currently has sufficient excess
capacity. The units are normally sold for $9.99. The Thumb Drive division ‘s variable
production cost per unit is $2.10, variable selling and administrative expenses are $.80
and fixed cost per unit are $1.65. The drives could be purchased from another company
for $9.75. Both the Thumb Drive and the Custom divisions are operated as profit
centers. If the company choses to use a cost-plus-based transfer price based on variable
cost for the drives, what transfer price would the company use assuming a 50%
markup?
a. $4.35
b. $4.55
c. $6.83
d. $9.75
The amounts to be included in the standard price of direct labor is generally provided
by
a. Each employee ‘s supervisor.
b. The plant manager.
c. The payroll department.
d. The CFO.
Bonita Corporation produces only one product. Monthly data include: selling price per
unit, $42; unit variable expenses, $14; total fixed expenses, $84,000; actual sales for the
month of June, 4,000 units. What is the margin of safety?
a. $84,000
b. $42,000
c. $126,000
d. $1,000
Just-in-time inventory management (JIT) is an inventory strategy that focuses on
a.Performance measures.
b.Reducing waste and inefficiency.
c.Getting the right product to the right location at the right price.
d.None of these answer choices are correct.
Which of the following is not a correct statement?
a.Managerial accounting benefits internal users.
b.Managerial accounting reports must comply with generally accepted accounting
principles.
c.Managerial accounting includes reports and information prepared for a range of
decision makers within the organization.
d.Managerial accounting reports come in a variety of formats.
Which of the following is not a reason why actual prices might differ from standard
prices, resulting in a direct materials price variance?
a. The company may receive a discount for materials that are purchased in large
quantities.
b. The company may receive a reduced price from a new vendor to generate business.
c. The vendors may change their prices as a result of changes in the market.
d. All of these answer choices are correct.
Because an absolute dollar change does not give the whole picture, horizontal analysis
generally includes which of the following?
a. Rational dollars
b. Percentage changes
c. Explanations
d. Budget amounts
Utica Corporation reported the following financial information:
Required: a. If you prepared a horizontal analysis for inventory, what dollar change
would be shown for 2014? b. If you prepared a horizontal analysis for sales, what
percentage change would be shown for 2014?
Which of the following is not a flaw of cost-plus pricing?
a. Cost-plus pricing is complex to calculate.
b. Cost-plus pricing implies that the cost of the seller’s operational inefficiencies should
be borne by the customer.
c. A markup based on cost does not represent the value to the customer.
d. The price customers are willing to pay represents the value of the product or service.