A causal model of lead and lag indicators of performance based on financial and
non-financial perspectives is known as which of the following?
A.balanced scorecard.
B.managerial report card.
C.hierarchical scorecard.
D.management by objectives.
The objectives of the theory of constraints include which of the following?
A.minimizing investments and managing production by letting the bottleneck set the
pace for the rest of operations.
B.maximizing investments and managing production by letting the bottleneck set the
pace for the rest of operations.
C.maximizing investments and decreasing throughput contribution.
D.maximizing investments and increasing throughput contribution.
What does the differential approach to pricing presume?
A.The price must be less than the differential cost of producing and selling the product.
B.The price must at least equal the differential cost of producing and selling the
product.
C.The price must equal the market price.
D.The price must equal full costs plus a profit margin.
The major purpose of cost estimation is to break down total cost into which of the
following components?
A.short-run and long-run components.
B.fixed and variable components.
C.controllable and noncontrollable components.
D.direct and indirect components.
Which of the following was created by Congress in 1987 to recognize U.S. firms with
outstanding records of quality improvement and quality management?
A.ISO 9000 certification.
B.Deming Prize.
C.Baldrige Award.
D.CQM Prize.
Marlow Company
The following information pertains to the three divisions of Marlow Company:
Refer to Marlow Company. What is the division investment for Division Z?
A.$75,000
B.$500,000
C.$1,250,000
D.$187,500
Arron company sells three products, X, Y, and Z. The company has fixed costs in the
amount of $3,900. The following information is presented to you:
REQUIRED:
Lydia’s Delivery Company
Lydia’s Delivery Company reports the following information for 2010:
Actual:
Standard:
Refer to Lydia’s Delivery Company. What is the variable overhead efficiency variance
for fuel costs?
A.$10.00 U
B.$16.00 F
C.$26.00 F
D.$ 6.00F
The following reduces the need for in-house information technology people as well as
for transaction and system managers:
A.Theory of constraints.
B.Web hosting.
C.Generally accepted accounting principles.
D.Stand-alone accounting systems.
A division manager may decide to purchase materials from an outside supplier even
though another division of the firm could produce the materials at a lower incremental
cost using currently idle facilities. This is an example of
A.profit maximization.
B.centralization.
C.goal-congruent behavior.
D.non-goal-congruent behavior.
Shenandoah Company
Shenandoah Company is considering the introduction of a new product with the
following price and cost characteristics
The company expects to sell 2,000 units for the year.
Refer to Shenandoah Company. How many units must be sold to make an operating
profit of $15,000?
A.1,667
B. 1,000
C.2,500
D. 2,000
If the National Division of American Products Company had a investment turnover
ratio of 4.2 and a profit margin percentage 10%, the return on investment would be
A.23.8%
B.420.0%
C.42.0%
D.238.0%
Stephanie Company
Stephanie Company has two production departments: D and J. Stephanie also has 3
service departments: Personnel, Administration, and Shipping. Shipping costs are
allocated on the basis of number of packages, while Personnel and Administration costs
are allocated using number of employees. Assume that the ranking of the benefits
provided is in the order listed below.
Refer to Stephanie Company. Using the direct method, what amount of personnel costs
is allocated to Department D (rounded to the nearest $)?
A.$ 73,171
B.$240,000
C.$300,000
D.$333,333
Which of the following is not normally added to the work-in-process account?
A.Direct labor.
B.Depreciation on factory equipment.
C.General factory labor.
D.Depreciation on office equipment.
Dropping a product line. Sparkle Products, a Christmas ornament manufacturer,
operates at capacity. Constrained by machine time, the company decides to drop the
most unprofitable of its three product lines. The accounting department came up with
the following data from last year’s operations:
Required:
Which line should Sparkle Products drop? (Hint: Compute the contribution per machine
hour because machine time is the constraint.)
(Sparkle Products; dropping a product line.)
Correll Company
Correll Company has two divisions, A and B. Information for each division is as
follows:
Refer to Correll Company. What is EVA for Division B?
A.$144,000.
B.$116,000.
C.$216,000
D.$44,000.
Which of the following describes a transfer pricing system based on either variable
costs or full-absorption costs, and applies a normal markup to costs as a surrogate for
market prices when intermediate market prices are not available?
A.hybrid.
B.dual.
C.cost-plus.
D.mark-to-market.