Which of the following is not a way managers use managerial accounting?
a.Provide information used in planning, evaluation and controlling functions within an
organization.
b.To assure appropriate use of its resources
c.To assure accountability for its resources
d.To communicate information to stockholders
Which of the following activities would be classified as non-value added in the
manufacture of wooden bird houses?
a. Moving materials
b. Nailing
c. Painting
d. Sanding
Ron Jensen, the controller of Inca Industries, has prepared an analysis to help
management determine whether one of Inca ‘s departments should be eliminated. The
department ‘s contribution margin is $44,000. The fixed expenses charged to the
department total $75,000. Of the fixed expenses, Jensen estimates that $36,000 of those
expenses would be eliminated if the department were discontinued. Based on Jensen ‘s
analysis, if the department is eliminated, Inca ‘s overall operating income would
a. Increase by $8,000 per year.
b. Decrease by $8,000 per year.
c. Decrease by $31,000 per year.
d. Decrease by $5,000 per year.
Which of the following is not a long-term tactical benefit of outsourcing a company ‘s
operations?
a. Frees managers ‘ time to focus on more important issues
b. Accelerates the benefits of process reengineering
c. Releases capital funds for use in other projects
d. Redirects resources to core activities
Which of the following is not a category for performance measures used for a balanced
scorecard?
a.Financial
b.Customer
c.Internal business processes
d.Regulatory
Jody Jewelry manufactures jewelry. In October Jody is planning to make 500 rings, 400
bracelets, and 210 pendants. Each ring requires 3 ounces of gold and 2 semi-precious
stones. Each bracelet requires 4 ounces of gold and 4 semi-precious stones. Each
pendant requires 3.5 ounces of gold and 1 semi-precious stone. The company can
purchase the 10k gold it uses in its manufacturing for $215 an ounce, and can purchase
a lot of 100 semi-precious stones for $3,080. What is the standard cost for direct
materials per bracelet?
a. $338.20
b. $983.20
c. $890.80
d. $245.80
Wolfe Manufacturing has provided the following information related to fixed overhead.
Required: a. Calculate the fixed overhead spending variance for the period. b. Calculate
the fixed overhead volume variance for the period.
A bottom-up budget approach is also referred to as
a. Participative budgeting.
b. Imposed budgeting.
c. Responsibility budgeting.
d. None of these answer choices are correct.
Which of the following is not included in the schedule of cost of goods manufactured?
a. Direct materials in inventory
b. Direct materials used in production
c. Direct labor
d. Overhead
Dawson Company manufactures two products, Regular and Deluxe. Overhead costs
consist of machining, $2,500,000; and assembly, $1,250,000. Recent data are provided
below:
Overhead allocated to Deluxe using a single overhead rate (based on number of parts)
and using activity based costing, respectively, are:
a. $2,400,000 and $2,625,000
b. $937,500 and $2,812,500
c. $1,350,000 and $1,125,000
d. $1,075,000 and $2,675,000
A company has total fixed costs of $200,000 and a contribution margin ratio of 20%.
The total sales necessary to break even are
a. $800,000.
b. $1,000,000.
c. $250,000.
d. $240,000.
A segment of an organization is any part of the organization that management wishes to
evaluate. Segment margin income statements highlight the elements under the segment
manager ‘s control.
Required:
a. What is ‘segment margin” and how is it calculated?
b. What is the difference between ‘segment margin” and a segment ‘s “net operating
income?”
c. Why are common allocated fixed costs an issue in evaluating the performance of a
segment manager?