Annual after-tax corporate net income can be converted to annual after-tax cash flow
by
A. adding back the depreciation amount.
B. deducting the depreciation amount.
C. adding back the quantity (t x depreciation deduction), where t is the corporate tax
rate.
D. deducting the quantity [(1- t) x depreciation deduction], where t is the corporate tax
rate.
The master budget usually includes
A. an operating budget.
B. a capital budget.
C. pro forma financial statements.
D. all of the above.
In a balanced scorecard, measurements should be directly linked to
A. organizational strategy and values.
B. the cost management system.
C. current organizational profitability.
D. activity-based management concepts.
A mandate to reduce costs, increase product quality, and/or improve production
processes through continuous improvement is known as
A. kaizen costing.
B. activity-based costing.
C. the theory of constraints.
D. mass customization.
Total quality management is inseparable from the concept of
A. ISO certification.
B. centralized organizational structure.
C. continuous improvement.
D. the product life cycle.
Charlotte Company
Charlotte Company is a manufacturer of electronic components. The following
manufacturing information is available for the month of February:
Refer to Charlotte Company. What is the throughput per hour?
A. .83 units
B. 1.43 units
C. 1.67 units
D. 2.00 units
What costs are treated as product costs under variable (direct) costing?
A. only direct costs
B. only variable production costs
C. all variable costs
D. all variable and fixed manufacturing costs
A favorable fixed overhead spending variance indicates that
A. budgeted fixed overhead is less than actual fixed overhead.
B. budgeted fixed overhead is greater than applied fixed overhead.
C. applied fixed overhead is greater than budgeted fixed overhead.
D. actual fixed overhead is less than budgeted fixed overhead.
Striving for flexibility in the number of products that can be produced in a short period
of time is characteristic of
A. EOQ systems.
B. push systems in general.
C. JIT.
D. pull systems in general.
Profit margin indicates the portion of sales that
A. covers fixed expenses.
B. is not used to cover expenses.
C. equals contribution margin.
D. equals product contribution margin.
Which of the following represents a proper sequencing in which the budgets below are
prepared?
A. Direct Material Purchases, Cash, Sales
B. Production, Sales, Income Statement
C. Sales, Balance Sheet, Direct Labor
D. Sales, Production, Manufacturing Overhead