The minimum required rate of return is often referred to as the
a. Benchmark rate.
b. Hurdle rate.
c. Project rate.
d. Activity rate.
A balanced scorecard does not
a. Integrate performance measures across four different perspectives.
b. Provide a visual display of the key measures related to an organization’s operational
goals and strategies.
c. Help managers understand the interrelationships between various areas of an
organization.
d. A balanced scorecard does all of the following
If a company chooses a low-cost production strategy, the company will set itself apart
from competitors in terms of
a.Quality
b.Lower selling price
c.Demand
d.High-cost design
Because the assets included in the current ratio have different levels of liquidity that
reflect different degrees of collectability, many companies use which of the following
ratios to measure current liquidity?
a. Current ratio.
b. Acid-test.
c. Working capital.
d. None of these answer choices are correct.
Suppose your cell phone company offers a plan under which you buy time per minute.
A one-minute call costs you $0.10. If you talk 100 minutes it costs you $10. This is an
example of a
a.Variable cost
b.Mixed cost.
c.Fixed cost.
d.Step cost.
Which of the following is not a limiting assumption of multiproduct CVP analysis?
a. All variable costs relationships are linear with respect to activity.
b. The sales mix can be determined and will remain constant.
c. Cost can be separated into fixed and variable components.
d. The relevant range will vary with a change in activity.
At the end of the accounting period after adjusting journal entries have been made, the
manufacturing Overhead Control account is generally
a. Overapplied.
b. Underapplied.
c. Zero.
d. None of these answer choices are correct.
Which of the following is not a step in the net present value approach to capital
budgeting?
a. Identify the amount and timing of each cash flow
b. Determine the payback period
c. Calculate the present value of each cash flow
d. Calculate the net present value of the project
When a department has work in process at the end of the period, we need to determine
the percentage of completion for the work in process. Based on that percentage we
calculate
a. Actual units of production
b. Particular units of production
c. Equivalent units of production
d. Half-units of production
Assume total sales of $600,000, total variable costs of $400,000, total fixed costs of
$100,000, product costs of $200,000, and period costs of $300,000. What is the degree
of operating leverage?
a. .50
b. .67
c. 1.5
d. 2
Mirada Manufacturing produces pumps for residential swimming pools. For the year,
management estimated that total manufacturing overhead would be $1,488,000.
Management decided to use direct labor hours to apply manufacturing overhead and
budgeted 62,000 direct labor hours. The following information was compiled before an
adjustment had been made to close Manufacturing Overhead Control:
What predetermined overhead rate did Mirada use during the year (if necessary, round
your answer to the nearest cent)?
a. 20.80/DLH
b. $24/DLH
c. $21.57/DLH
d. $23.14/DLH
Kimble Industries production division reported a net operating loss of $500,000 in
2014. Included in that amount were common fixed corporate expenses of $720,000 that
were allocated to divisions based on segment gross profit. The division ‘s segment
margin was
a. $220,000.
b. $500,000.
c. ($220,000).
d. ($500,000).