Archives: Quiz

Trade law has been used in the U.S. to further not only U.S. economic policy but also U.S. foreign policy. a. True b. False Answer: All of the following are principles established by the codes of conduct promulgated by the […]

The creation of a foreign subsidiary has few tax consequences to the foreign firm. a. True b. False Answer: Many countries grant preferential tariff treatment to select countries to help those countries’ economic development. For example, the United States grants […]

The following are all problems faced by developing countries in their business contract relationships with wealthier nations except: a. Lack of trained professionals to assist their governments in contract negotiations. b. Lack of natural resources to use as collateral for […]

Which of the following statements is untrue regarding NAFTA and nontariff barriers? a. Most nontariff barriers were to be eliminated within five years under NAFTA. b. NAFTA prohibits new export taxes on goods under any circumstances. c. Special rules allow […]

Tariffication is the process in which quotes, licensing schemes, and other nontariff barriers to trade are “converted” to tariffs. a. True b. False Answer: Tariffs on imported products are imposed for which of the following reasons: a. Collection of revenue. […]

Nations that express their willingness to join a treaty are called: a. ratifiers. b. signatories. c. contracting parties. d. abrogators. Answer: If the seller wishes to make his goods available to the buyer at his place of business with the […]

The SWIFT System is an electronic network to handle for the exclusive transmission of international banking transactions and regulated by the World Bank. a. True b. False Answer: Under the FPCA, U.S. courts have jurisdiction over a person who commits […]

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) requires developing countries that are members of the WTO to adopt intellectual property laws similar to the United States. a. True b. False Answer: There is very little debate over […]

The Trade Agreements Act of 1979 contains a provision allowing standard-setting by the U.S. government on private U.S. firms. a. True b. False Answer: In the Crosby v. National Foreign Trade Council case, the US Supreme Court ruled that the […]

In J. Gerber & Co. v. SS Sabine Howaldt, a lawsuit brought by the owner of cargo (steel products) against an ocean carrier for damage to the cargo caused by sea water and moisture, the court ruled that: a. The […]

The concept of local participation refers to: a. A portion of the employees of the business in the host country will be nationals of the home country. b. Employees of the business contribute a certain number of hours to community […]

Under normal trade relations, when a nation extends some privilege or right to one of its trading partners, that privilege automatically becomes applicable to all other trading partners. a. True b. False Answer: Which of the following does not generally […]

Materials used by Jefferson Company in producing Division C’s product are currently purchased from outside suppliers at a cost of $10 per unit. However, the same materials are available from Division A. Division A has unused capacity and can produce […]

Average rate of return equals average investment divided by estimated average annual income. a. True b. False Answer: What type of analysis is indicated by the following? Increase (Decrease) Current Year Preceding Year Amount Percent Current assets $ 430,000 $ […]

In a lean environment, process problems are more visible than they are in a traditional environment. a. True b. False Answer: The internal rate of return method of analyzing capital investment proposals uses present value concepts to compute a rate […]

A process-oriented layout segments production facilities into functional departments. a. True b. False Answer: Fashion Jeans, Inc. sells two lines of jeans; Simple Life and Fancy Life. Simple Life sells for $85, and Fancy Life sells for $100. The company […]

maintenance supplies Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d). a. direct labor b. direct materials c. factory overhead d. not a product cost Answer: The management of […]

For a period during which the quantity of inventory at the end was larger than that at the beginning, income from operations reported under variable costing will be larger than income from operations reported under absorption costing. a. True b. […]

All of the following are examples of indirect labor except a. maintenance personnel b. janitorial personnel c. machine operators d. plant managers Answer: A manager in a cost center also has responsibility and authority over the revenues. a. True b. […]

The total manufacturing cost variance is a. the difference between actual costs and standard costs for units produced b. the flexible budget variance plus the time variance c. the difference between planned costs and standard costs for units produced d. […]

Target costing is arrived at by taking a. the selling price minus desired profit b. the selling price and adding desired profit c. the selling price and subtracting the budget standard cost d. the budget standard cost and reducing it […]

For a period during which the quantity of product manufactured exceeded the quantity sold, income from operations reported under absorption costing will be larger than income from operations reported under variable costing. a. True b. False Answer: If in evaluating […]

Depreciation expense’”factory The following are some of the costs incurred by Cupcake Company. Identify them as either: a. Prime costs b. Conversion costs c. Both prime and conversion costs d. Neither prime or conversion costs Answer: Just-in-time processing is a […]

The following data is given for the Harry Company: Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor time variance is a. $6,000 favorable b. $6,000 unfavorable c. $33,000 unfavorable d. $33,000 […]

A business operated at 100% of capacity during its first month and incurred the following costs: If 500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable […]

A 15% change in sales will result in a 15% change in net income. a. True b. False Answer: If the under applied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of […]

The variance from standard for factory overhead resulting from incurring a total amount of factory overhead cost that is greater or less than the amount budgeted for the level of operations achieved is termed controllable variance. a. True b. False […]

Standard variable overhead for actual units produced Match the following formulas or descriptions with the term (a-e) it defines. a. Direct materials price variance b. Direct labor rate variance c. Direct labor time variance d. Direct materials quantity variance e. […]

After the sales budget is prepared, the production budget is normally prepared next. a. True b. False Answer: Jacoby Company received an offer from an exporter for 30,000 units of product at $15 per unit. The acceptance of the offer […]

Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that […]

Flexible budgeting builds the effect of changes in level of activity into the budget system. a. True b. False Answer: If the activities causing overhead costs are different across different departments and products, use of a plantwide factory overhead rate […]

Schedule of Activity Costs From the above schedule, calculate the (a) value-added and (b) non-value-added costs. Answer: Salesman commissions Match the items below for a bakery to the type of cost (a-d). a. Direct materials b. Direct labor c. Factory […]

Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the […]

The budgeted balance sheet assumes that all operating and financing plans are met. a. True b. False Answer: Principal components of a master budget include a. production budget b. sales budget c. capital expenditures budget d. all of these Answer: […]

Which of the following results in long lead time? a. long setup times b. large batch sizes c. large inventories d. all of the above Answer: A business operated at 100% of capacity during its first month and incurred the […]

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials. a. True b. False Answer: Nails and screws used in the production of the bar stools Bartel Corporation produces bar stools for restaurants. Indicate whether […]

In net present value analysis for a proposed capital investment, the expected future net cash flows are averaged and then reduced to their present values. a. True b. False Answer: A company reports the following: Determine the (a) accounts receivable […]

Based on the above data, what is the amount of quick assets? a. $168,000 b. $96,000 c. $60,000 d. $61,000 Answer: actions to achieve budgeted goals Match each phrase that follows with the term (a-e) it describes. a. planning b. […]

For a construction contractor, the wages of carpenters would be classified as factory overhead cost. a. True b. False Answer: Using measures to assess a business’s ability to pay its current liabilities is called current position analysis. a. True b. […]

Costs on the income statement for both a merchandiser and a manufacturer would be a. operating expenses b. direct materials c. direct labor incurred d. cost of goods manufactured Answer: The level of inventory of a manufactured product has increased […]

The debits to Work in Process’”Assembly Department for May, together with data concerning production, are as follows: All direct materials are placed in process at the beginning of the process and the firstÂ- in, firstÂout method is used to cost […]

Equivalent units are the sum of direct materials used and direct labor incurred. a. True b. False Answer: The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit. a. True b. False Answer: […]

Allocated equally among divisions An activity base is used to charge service department expenses. Match the following activity bases with the appropriate department (a-h). a. Purchasing b. Payroll accounting c. Human resources d. Maintenance e. Information systems f. Marketing g. […]

When estimated costs are used in applying the cost-plus approach to product pricing, the estimates should be based upon normal levels of performance. a. True b. False Answer: For the current year ending January 31, Harp Company expects fixed costs […]

For Years 1’“5, a proposed expenditure of $500,000 for a fixed asset with a 5-year life has expected net income of $40,000, $35,000, $25,000, $25,000, and $25,000, respectively, and net cash flows of $90,000, $85,000, $75,000, $75,000, and $75,000, respectively. […]

Yield measures the ratio of the materials output quantity to the materials input quantity. a. True b. False Answer: If a company uses average costing instead of FIFO, it will still get the same unit costs. a. True b. False […]

The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each, to work in process is a. Materials Work in Process 4,000 4,000 b. Work in Process Factory Overhead 4,000 4,000 […]

A performance report that identifies the amount of employee downtime is a financial accounting report. a. True b. False Answer: Common allocation bases are a. direct labor dollars, direct labor hours, direct material dollars b. direct labor dollars, direct labor […]

As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000, and $150,000, respectively. Of each month’s sales, 20% are for cash. Of […]

The inventory at June 1 and costs charged to Work in Process’”Department 60 during June are as follows: Total cost to be accounted for $880,400 During June, 32,000 units were placed into production and 31,200 units were completed, including those […]