The numerator in calculating the accounts receivable turnover is
a. total assets
b. sales
c. accounts receivable at year-end
d. average accounts receivable
Answer:
Periods in time that experience increasing price levels are known as periods of
a. inflation
b. recession
c. depression
d. deflation
Answer:
Which of the following would use a process costing system?
a. a custom home builder
b. a custom furniture manufacturer
c. a wedding dress designer
d. a lumber mill
Answer:
List the accounts used in the cost flow for (a) a manufacturer and (b) a service provider.
Answer:
The flexible budget is, in effect, a series of static budgets for different levels of activity.
a. True
b. False
Answer:
Consider Derek’s budget information: materials to be used totals $64,750; direct labor
totals $198,400; factory overhead totals $394,800; work in process inventory January 1,
$189,100; and work in progress inventory on December 31, $197,600. What is the
budgeted cost of goods manufactured for the year?
a. $649,450
b. $657,950
c. $197,600
d. $1,044,650
Answer:
All of the following employees hold line positions in Facebook except
a. vice president of production
b. vice president of finance
c. manager of the web design
d. vice president of sales
Answer:
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices
are $55, $78, and $32, respectively. The variable costs for each product are $20, $50,
and $15, respectively. Each product must go through the same processing in a machine
that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales, 7 hours;
and Wales 1 hour.
What is the contribution per machine hour for Wales?
a. $35
b. $28
c. $17
d. $7
Answer:
Production and sales estimates for June are as follows:
The budgeted total sales for June is
a. $225,000
b. $500,000
c. $525,000
d. $200,000
Answer:
A qualitative characteristic that may impact upon capital investment analysis is the
impact of investment proposals on product quality.
a. True
b. False
Answer:
A rental cost of $20,000 plus $0.70 per machine hour of use is an example of a mixed
cost.
a. True
b. False
Answer:
Gilbert Corporation had 25,000 finished units and 8,000 units 35% complete. The
equivalent units totaled 30,200.
a. True
b. False
Answer:
A loss on disposal of a segment would be reported in the income statement as a(n)
a. administrative expense
b. other expense
c. deduction from income from continuing operations
d. selling expense
Answer:
Recording jobs shipped and customers billed would include a debit to
a. Accounts Payable
b. Cash
c. Finished Goods
d. Cost of Goods Sold
Answer:
Accounting for lean operations requires fewer transactions because
a. large batches of inventory are combined in a smaller number of transactions.
b. costs are accumulated in one department and then transferred to the next department.
c. combined material and conversion costs are transferred to finished goods.
d. costs are transferred from department to department allowing for better controls in
costs.
Answer:
The factory supervisor’s salary for the bar stool factory
Bartel Corporation produces bar stools for restaurants. Indicate whether the cost
would typically be considered direct or indirect cost for the cost object given.
a. Direct
b. Indirect
Answer:
A decentralized business organization is one in which all major planning and operating
decisions are made by top management.
a. True
b. False
Answer: