78. Financial accounting provides a historical perspective, while cost accounting emphasizes
79. Which of the following does not represent a main focus of cost management information?
80. Surf Boards, Inc. had the following summarized results for the month ending July 30:
As the cost accountant, which single note to the above financial results is most appropriate in the
report to management?
81. Surf Boards, Inc. had the following summarized results for the month ending July 30:
Assume that the budget was based on the sale of 104 surfboards at $500 each and the actual
results reflect the sale of 104 surfboards. What is the most appropriate conclusion in the report to
management?
82. Surf Boards, Inc. had the following summarized results for the month ending July 30:
Assume that an additional 10 surfboards were sold at the regular price, during additional store
opening hours. What is the most appropriate conclusion in the report to management?
83. Lucena Corporation purchased a machine 7 years ago for $339,000 when it launched
product X05K. Unfortunately, this machine has broken down and cannot be repaired. The machine
could be replaced by a new model 360 machine costing $353,000 or by a new model 280 machine
costing $332,000. Management has decided to buy the model 280 machine. It has less capacity
than the model 360 machine, but its capacity is sufficient to continue making product X05K.
Management also considered, but rejected, the alternative of dropping product X05K and not
replacing the old machine. If that were done, the $332,000 invested in the new machine could
instead have been invested in a project that would have returned a total of $426,000. In making
the decision to buy the model 280 machine rather than the model 360 machine, the differential
cost was:
84. A responsibility center has a manager assigned to lead the unit, taking responsibility for
the unit’s operations and resources, and the unit may be called a
85. Al’s Brake Shop had sales revenues and operating costs in 2014 of $650,000 and
$525,000, respectively. In 2015, Al’s plans to expand the services it provides to customers to
include lubrication services. Revenues are expected to increase by $85,000 and operating costs by
$50,000 as a result of this expansion. Assuming that there are no changes to the existing brake
business, operating profits would be expected to increase during 2015 by
86. Al’s Brake Shop had sales revenues and operating costs in 2014 of $650,000 and
$525,000, respectively. In 2015, Al’s plans to expand the services it provides to customers to
include lubrication services. Revenues are expected to increase by $85,000 and operating costs by
$50,000 as a result of this expansion. Assuming that there are no changes to the existing brake
business, what is the amount of operating profits that are expected be earned in 2015?
87. The goals and objectives of establishing budgeting in an organization include all of the
following except:
88. In 2013, the Turnkey Company had consulting revenues of $1,000,000 while operating
costs were $750,000. In 2014, Turnkey will be introducing a new service that will generate
$150,000 in sales revenues and $60,000 in operating costs. Assuming no changes are expected for
the other services, the differential operating costs for 2014 will be
89. In 2013, the Turnkey Company had consulting revenues of $1,000,000 while operating
costs were $750,000. In 2014, Turnkey will be introducing a new service that will generate
$150,000 in sales revenues and $60,000 in operating costs. Assuming no changes are expected for
the other services, the differential revenue for 2014 will be
90. San Juan, Inc. is considering two alternatives: A and B. The costs associated with the
alternatives are listed below:
Are the materials costs and processing costs differential in the choice between alternatives A and
B? (Ignore the building costs and equipment rental in this question.)
91. San Juan, Inc. is considering two alternatives: A and B. The costs associated with the
alternatives are listed below:
If only the differential costs of the two decisions are considered, the total cost of Alternative B is
92. Two alternatives, identified A and B, are under consideration at Hayden Corporation.
Costs associated with the alternatives are listed below.
Are the materials costs and processing costs differential in the choice between alternatives A and
B? (Ignore the building costs and equipment rental in this question.)
93. Two alternatives, identified X and Y, are under consideration at Hayden Corporation. Costs
associated with the alternatives are listed below.
What is the differential cost of Alternative Y over Alternative X?
94. Which of the following cost accounting methods does not help firms keep the supply chain
“lean” and add value throughout the chain?
95. An Enterprise Resource Planning System can best be described as
96. The approaches and activities of managers in short-run and long-run planning and control
decisions that increase value for customers and lower costs of products and services are known
as
97. R&D, production, and customer service are business functions that are all included as part
of
98. Cost leadership can improve on execution through
99. All of the following are examples of total quality management practices except
100. Which area(s) of a business can be improved by using a just–in-time (JIT) system?
101. The ________ is primarily responsible for cost accounting and financial accounting.
102. All of the following individuals would report to the Chief Financial Officer (CFO) except
the
103. Examples of the controller’s functions include all except