The learning and growth perspective of the balanced scorecard focuses on using an
organization’s intellectual capital to adapt to or influence customer needs and
expectations.
An investment in inventory yields a return when it is sold to a third party.
Overapplied overhead that is material in amount is allocated between Finished Goods
Inventory, Work in Process, and Cost of Goods Sold at year end.
A flexible budget is an effective tool for budgeting factory overhead.
Managerial accounting is most concerned with addressing the needs of individual
departments of the firm.
In a just-in-time (JIT) environment, design changes must be made early in the
production process.
A strategic alliance is a
A. packaged software.
B. way for two companies to jointly contribute to the supply chain.
C. way to downsize.
D. method of examining processes.
The definition of a sunk cost is
A. a cost that cannot be recovered regardless of what happens.
B. a cost that relates to money poured into the ground.
C. considered the original cost of an item.
D. also known as an opportunity cost.
Sullivan Company
Sullivan Company is preparing its Manufacturing Overhead budget for the second
quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced;
budgeted fixed factory overhead is $75,000 per month, with $16,000 of this amount
being factory depreciation.
Refer to Sullivan Company. If the budgeted production for April is 6,000 units, then
the total budgeted factory overhead for April is:
A. $77,000
B. $82,000
C. $85,000
D. $93,000
Which of the following have an impact on long-term variable costs?
A. no no no
B. no yes yes
C. yes no yes
D. yes yes yes
Epplin Company
The following information is provided for Epplin Company for the month of
September:
Refer to Epplin Company. What is the price variance?
A. $4,450 F
B. $4,450 U
C. $1,000 F
D. $1,000 U
In the “new era” of manufacturing, good performance indicators are
A. production-based.
B. sales-based.
C. cost-based.
D. consumer-based.
If the total cash inflows associated with a project exceed the total cash outflows
associated with the project, the project’s
A. net present value is greater than zero.
B. internal rate of return is greater than zero.
C. profitability index is greater than 1.
D. payback period is acceptable.
A functional classification of costs would classify “depreciation on office equipment”
as a
A. product cost.
B. general and administrative expense.
C. selling expense.
D. variable cost.
Which of the following are undesirable from a consumer perspective but are frequently
needed?
A. value-neutral activities
B. value-added activities
C. non-value-added activities
D. none of the above
Saturn Corporation
Material A is added at the start of production, while Material B is added uniformly
throughout the process.
Refer to Saturn Corporation Assuming a FIFO method of process costing, compute the
average cost per EUP for conversion.
A. $45.50
B. $45.00
C. $43.03
D. $47.59
Duffy Company makes fabric-covered hatboxes. The company began July with 500
boxes in process that were 100 percent complete as to cardboard, 80 percent complete
as to cloth, and 60 percent complete as to conversion costs. During the month, 3,300
boxes were started. On April 30, 350 boxes were in process (100 percent complete as to
cardboard, 70 percent complete as to cloth, and 55 percent complete as to conversion
costs). Using the FIFO method, what are equivalent units for cloth?
A. 3,295
B. 3,395
C. 3,450
D. 3,595
Under absorption costing, fixed manufacturing overhead could be found in all of the
following except the
A. work-in-process account.
B. finished goods inventory account.
C. Cost of Goods Sold.
D. period costs.
Romano Company
The following information pertains to Romano Company for September:
Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and
at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323
and #325 is identical.
Refer to Romano Company. What amount of overhead is applied to Job #323?
A. $4,800
B. $5,550
C. $6,300
D. $7,500
If a firm is successful in meeting its output goal for a period, the firm has been
A. efficient.
B. effective.
C. profitable.
D. exercising cost containment measures.
Wimberley Company
Wimberley Company has the following information available for December when 3,500
units were produced (round answers to the nearest dollar).
Refer to Wimberley Company. What is the material price variance (based on quantity
purchased)?
A. $3,075 U
B. $2,938 U
C. $2,938 F
D. $3,075 F
A control chart graphs
A. actual process results relative to a range of acceptable variation.
B. expected process results relative to upper and lower control limits.
C. actual process results relative to value-added and non-value-added activities.
D. the cost of process malfunctions relative to the cost of reducing process variations.
To what does workforce diversity refer?
The expression of what an organization wishes to accomplish and how it will serve its
customers is contained in the ______________________________.
Discuss how variable and fixed overhead application rates are calculated.
Compare and contrast results benchmarking and process benchmarking.
Adams Company has made the following information available for the month of
March:
Assume that Adams Company hires part-time employees for production of these units.
Compute the price and efficiency variances.
The __________________________________________________ is computed by
dividing the contribution margin by profit before tax.
A responsibility center in which a manger has only the authority to control cost is
referred to as a(n) _________________________.
Define a strategic alliance.