How would income tax laws affect investment decisions?
A.Through their effect on the discount rate allowed.
B.Through their effect on the type of investments allowed.
C.Through their effect on the internal rate of return allowed.
D.Through their effect on the type of depreciation method allowed.
What tools do firms use to identify quality control problems?
A.Control charts
B.Cause-and-effect analyses
C.Pareto charts
D.All of the answers are correct.
Framing Division
The Framing Division had the following data:
Refer to the Framing Division. What is the profit margin percentage for Year 2009?
A.6%
B.8%
C.10%
D.12%
Costs that will continue regardless of production level are
A.capacity costs.
B.committed costs.
C.discretionary costs.
D.opportunity costs.
Resources used for an activity are measured by the
A.cost driver rate times the cost driver volume.
B.resources supplied to an activity.
C.expenditures for the activity.
D.unused resource capacity.
Which of the following is the correct formula to use to calculate the contribution margin
per unit?
A.Selling price per unit less fixed costs and variable costs per unit.
B.Selling price per unit less fixed costs per unit.
C.Selling price per unit less variable costs per unit.
D.None of the answers is correct.
Which of the following statements is true?
A.The standard error of the estimate represents a measure of variability of the actual
observations from the regression line.
B.The standard error of the estimate represents a range of values over which the
probability may be estimated based upon the regression equation.
C.The standard error of the estimate represents a variability about the regression line
that is uniform for all values of the independent variable in the data.
D.The standard error of the estimate represents the proportion of the variance explained
by the independent variable.
Which of these is the perspective of the balanced scorecard that uses such measures as
customer satisfaction, customer retention, market share, and customer profitability?
A.financial perspective.
B.internal business and production process perspective.
C.learning and growth perspective.
D.customer perspective.
Which of the following is true regarding normal costing?
A.Normal costing assigns to products actual direct material and direct labor costs plus
an amount representing “normal” manufacturing overhead.
B.Under normal costing, a firm derives a rate for applying overhead to units produced
before the production period begins.
C.Under normal costing, a firm uses a predetermined overhead rate in applying
overhead to each unit as the firm produces it throughout the year.
D.All of the answers are correct.
The Work-in-Process account both describes the transformation of inputs into outputs in
a company and accounts for the costs incurred in the process. The key equation in
symbols is
A.BB + TI = TO + EB.
B.EB + TI = TO + BB.
C.BB + TO = TI + EB.
D.None of the answers is correct.
Briefly explain the concepts of customer costing and profitability analysis.
Explain the components of JIT production methods. Discuss how accountants adapt
costing systems to these components.
Discuss why cost-volume-profit analysis could be useful to managers.
Fisher Products Company
The Fisher Products Company uses a job costing system. The company estimated its
annual overhead to be $100,000, and the number of direct labor hours for the year to be
20,000 hours. In the first month, the following jobs were completed:
Refer to the Fisher Products Company. What is the overhead assigned to job #205?
Cost flow model. Oxford Penley’s accountant resigned and left the books a mess.
Oxford is trying to compute unknown values in inventory accounts in four regions.
Knowing of your expertise in cost flows, he asks for your help and provides you with
the following information about each store:
Required: Tell Oxford what the missing values (?) are for each region.
Overhead variances. Upton, Inc., uses standard costing. The company reported the
following overhead information for the current period:
Required:
Calculate the variable and fixed overhead variances.
Alma Mater College
The Admissions Department of Alma Mater College plans to hold several “open house”
parties during the year. All the refreshment costs will be charged to the department.
However, the party creates extra work for the Maintenance Department. The
maintenance crew must work overtime and the maintenance supervisor is complaining
about cost overruns in the Maintenance Department.
Refer to the Alma Mater College. How can the accounting system be changed so that
the concept of responsibility accounting is achieved?