What transfer pricing mechanism is used when a company does not have a measure of
differential or variable cost?
A.Market price-based transfer pricing
B.Full-absorption costing
C.Activity-based costing
D.Actual cost-based transfer pricing
In using the budget for performance evaluation, accountants compare actual results
achieved with budgets to derive
A.variances.
B.delta(s).
C.flexible budgets.
D.master budgets.
Which of the following represents the performance measures used in a just-in-time
system?
A.inventory levels.
B.materials, people, and machine failures.
C.moving and storing.
D.All of the answers are correct.
Using the following information, calculate equivalent units of production for XYZ
Company using the FIFO method:
Beginning Inventory: 50,000 units, 70% complete
Units started & completed: 100,000 units
Units in ending inventory: 25,000 units, 40% complete
A.175,000
B.150,000
C.145,000
D.125,000
When can using full costs for pricing decisions be justified?
A.when a firm enters into a short term contractual relationship to supply a product.
B.for development and production of customized products and contracts with the
government.
C.when managers initially set prices to cover development costs and then adjust to
reflect market conditions.
D.for development and production of standardized commercial products.
When substituting computerized equipment for direct labor, variable overhead may be
associated more with
A.labor hours than machine usage.
B.machine usage than labor hours.
C.machine usage than direct materials.
D.machine usage than manufacturing overhead.
What is the process by which an organization decides on its major programs and the
approximate resources to devote to them?
A.capital budgeting.
B.strategic planning.
C.program planning and budgeting.
D.zero-based budgeting.
Gem Systems
Gem Systems uses an activity-based costing system. The company has gathered the
following information concerning various cost pools and activity drivers;
The following data was collected and is specific to Job 150.
Refer to Gem Systems. What is the amount of machine handling cost allocated to Job
150?
A.$ 1,000
B.$ 5,000
C.$25,000
D.None of the above
Three Dog Bite Company:
Refer to Three Dog Bite Company. What are the total internal failure costs?
A.$ 600,000
B.$ 925,000
C.$ 320,000
D.$1,220,000
What organization developed the €Standards of Ethical Conduct for Management
Accountants€ mandating that management accountants have a responsibility to maintain
the highest levels of ethical conduct?
A.Institute of Management Accountants
B.Cost Accounting Standards Board
C.General Accounting Office
D.American Institute of Certified Public Accountants
One of the lessons of activity-based costing (ABC) is that costs depend on
A.volume of the product, only.
B.complexity of the product, only.
C.volume and complexity of the product.
D.factors other than the volume or complexity of the product.
The theory of motivation which deals with relationships between supervisors and
workers where the principals assign responsibility to the workers and the workers work
on behalf of the supervisors is called
A.agency theory.
B.principal theory.
C.expectancy theory.
D.traditional theory.