The annual award to Japanese companies created in 1950 by the Union of Japanese
Scientists and Engineers that focuses on quality improvement is called the
A.Baldrige Award.
B.Deming Prize.
C.ISO 9000 Award.
D.UJSE Prize.
What should a firm do to reduce the temptation for planners to inflate their estimates of
the benefits associated with the project to get it approved?
A.conduct regular capital investment post-audits.
B.fire all managers who miss their cost or benefit estimates by more than 10 percent.
C.recognize that the capital budgeting process is based on subjective estimates and that
managers cannot control the actual project implementation.
D.promote project managers that have the largest project(s) or number of employees.
To reduce subjectivity in the budgeting process and gather as much information as
possible, management often uses which of the following method(s)?
A.asking sales staff and/or market researchers for an estimate of the future period’s
sales.
B.using the Delphi technique and trend analysis.
C.entering past sales data into a regression model to obtain a statistical estimate of
factors affecting sales (econometric model).
D.all of the above.
Which of the following is a cost that changes as the level of activity changes?
A.fixed costs.
B.engineered costs.
C.sunk costs.
D.opportunity costs.
Which of the following is a useful feature of spreadsheet programs?
A.Spreadsheet programs reduce the errors in predicting the amounts of future cash
flows.
B.Spreadsheet programs reduce the errors in predicting the timing of future cash flows.
C.Spreadsheet programs reduce the errors in predicting the discount rate.
D.Spreadsheet programs help the user see the effect on the net present value of changes
in assumptions and estimates.
Which of the following concepts is least useful for managing costs more effectively?
A.Activity-based management.
B.Value-added and non-value-added activities.
C.The value chain.
D.Generally accepted accounting principles.
Which one of the following activities is appropriate as a cost driver for material
handling costs?
A.Number of direct labor hours used
B.Number of machine hours used
C.Number of raw material moves
D.Number of units produced
SunDevil Co. plans to sell 200,000 special Rose Bowl footballs with fixed costs of
$400,000 and variable expenses at 60% of sales. To have a net income of $100,000
SunDevil management must set the sales price at
A.$3.75
B.$4.17
C.$5.00
D.$6.25
Fred’s Fine Roasted Coffee
Fred’s Fine Roasted Coffee reports the following data for April 2010 where 500,000
pounds of roasted gourmet coffee beans were actually produced (note: standard costs do
not allow for any wastage),
Refer to Fred’s Fine Roasted Coffee. Calculate the direct materials efficiency variance.
A.$51,000 U
B.$56,000 U
C.$5,000 U
D.$40,500 U
If management desires finished goods inventory to decrease over the period, what can
be said about the relationship between units produced and units sold?
A.Units produced > units sold.
B.Units produced < units sold.
C.Units produced = units sold.
D.Nothing can be said without more information.
The theory of constraints focuses on revenue and cost management when dealing with
bottlenecks. The objective is to do the following
Throughput
ContributionInvestments
A.increase minimize
B.increase maximize
C.decrease minimize
D.decrease maximize
Activity-based costing. Lena Marks, the manager of Eco Tour Charters, uses
activity-based costing to compute the costs of her eco-tour charters for various groups.
Each chartered boat holds six paying customers and a guide. The company offers two
types of charters to groups that contract by event-half-day trips for birding and to see
the pelican islands and full-day jungle cruises through manatee habitats. The breakdown
of the costs is as follows:
Required:
a. Compute the cost of a corporate event requiring four boats for half-day charters for
28-persons (including four guides).
b. Compute the cost of a corporate event requiring four boats for full-day charters for
28-persons (including four guides).
c. Recommend a minimum price per customer to the manager if she wants to cover her
costs.
Which statement is true concerning depreciation?
A.Depreciation affects the tax cash flow because it is a deductible expense that affects
taxable income.
B.Depreciation should be considered in the cash flow analysis.
C.Depreciation is affected by income tax laws which specify the allowable methods.
D.all of the above.
Why might a material variance arise?
A.More efficient use of materials than the standard.
B.The purchase of inferior raw materials.
C.Both “a” and “b” above.
D.None of the above.
Biloxi Corporation
Refer to Biloxi Company. What are the total internal failure costs?
A.$475,000
B.$525,000
C.$300,000
D.$225,000