Brandon, Inc. is a consulting firm headquartered in Dallas. Trish Hardin, CEO of the
company plans to attend a professional conference in Atlanta where she intends to
network in the pursuit of business. She enjoys shopping and dining in Atlanta and is
looking forward to the trip. She registered for the conference and made hotel and airfare
reservations six weeks ago. Her airline ticket and registration fee are non-refundable,
but it is not too late to cancel her hotel room. The day before the conference, a company
executive from El Dorado calls and wishes to meet with Trish the next day regarding a
consulting project. If Trish chooses to make the trip to El Dorado, she will drive. Both
trips will require an overnight stay. Trish does not have a prediction of how much
revenue either trip may generate. Costs related to the two trips are as follows:
Required:
a. Which of the above costs are not relevant?
b. Without considering qualitative factors, which alternative will Trish choose? Why?
c. What are three factors other than costs that Trish should consider?
A visual display of the key measures related to an organization’s operational goals and
strategies is referred to as a
a. Balanced scorecard.
b. Performance dashboard.
c. Strategy map.
d. Benchmark report.
Investing activities include all of the following except
a. Loans made and collected
b. Purchases and sales of another company’s stock
c. Issuing and repaying debt
d. Purchases and sales of property and equipment
Which of the following is a cash flow that might occur when new equipment is
purchased?
a. Cash outflow in the form of cash payments
b. Cash inflow in the form of cost savings
c. Both a cash outflow in the form of cash payments and a cash inflow in the form of
cost savings
d. Neither a cash outflow in the form of cash payments nor a cash inflow in the form of
cost savings
Which of the following strategies relate to the financial perspective?
a. Increase profit
b. Achieve operational excellence
c. Infuse corporate culture of quality throughout workforce
d. Retain and grow customer base
Morgan Manufacturing is preparing its cash budget for the second quarter. The
inventory manager has provided the following amounts budgeted for materials
purchases
The controller reports that Morgan pays for 20% of its purchases in the month of
purchase, 60% in the month following purchase, and 20% in the second month after
purchase. What are Morgan ‘s budgeted cash payments for purchases in June?
a. $39,552
b. $49,022
c. $89,912
d. $9,472
International Imports is a merchandising firm. Last year they reported sales of $674,500
and cost of goods sold of $404,700. The company’s total variable selling and
administrative expense was $60,705, and fixed selling and administrative expense was
$53,960. The total fixed costs for the firm are:
a.$458,660
b.$404,700
c.$60,705
d.$53,960
After selecting the appropriate measures, managers should
a. Set a limit on the measure.
b. Select a committee to enforce the use of the measures.
c. Set a target for each measure.
d. Select a manager to evaluate each measure.
Which of the following inventory accounts is not used in a process costing system?
a. Work in process
b. Finished goods
c. Cost of goods sold
d. All of these answer choices are used in a process costing system
Which of the following combinations results in irrelevant information?
a. Occurs in the past and is unavoidable
b. Occurs in the past and is avoidable
c. Occurs in the future and is unavoidable
d. All of these answer choices result in irrelevant information
In a traditional inventory system
a.Inventory is stockpiled in large amounts.
b.Inventory is ordered just in time to be put into production.
c.The marketing manager determines how much inventory should be in stock.
d.The cost of carrying inventory is no more than with a JIT system.