Archives: Quiz

1) in the current year, becker sofa company expected to sell 12,000 leather sofas. fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200. […]

1) east bay fisheries inc. processes king salmon for various distributors. two departments are involved processing and packaging. data relating to tons of king salmon processed in the processing department during june 2013 are provided below: total equivalent units for […]

1) cost estimation includes all of the following steps except: a.defining the cost object for which the related costs are to be estimated b.determining the cost drivers c.graphing the data d.selecting and employing the appropriate estimation method e.calculating the multiple […]

1) sales forecasting by its nature is: a.precise b.deterministic in nature c.objective d.somewhat subjective e.mechanical 2) quick telephone response (qtr) was started several years ago to provide an outsource telephone service for the growing number of small, specialty catalog mail-order […]

1) which of the following statements about budgeting is not true? a.budgeting is designed to be an aid to planning and control b.budgets create standards for performance evaluation c.budgets help coordinate the activities of the entire organization d.budgeting forces managers […]

1) process costing is not intended to help determine a.departmental cost flows b.product costs c.profitability of products d.profitability of product mix 2) crown co. can produce two types of lamps, the enlightner and foglighter. the data on the two lamp […]

1) the contribution margin per machine hour is calculated as: a.full cost per unit number of machine-hours per unit b.number of machine-hours per unit full-cost per unit c.selling price per unit less variable manufacturing cost per unit d.selling price per […]

1) a manager uses regression to express sales as a function of advertising expenditures (x1), and per capita income (x2) in your sales area. the following multiple linear regression equation is developed: y = 10 + .51×1 + .45×2 the […]

1) a time ticket: a.shows the time an employee worked on each job, the pay rate, and the total cost chargeable to each job b.shows the time that a department’s employees worked on all jobs, the pay rate of each […]

1) which of the following items is not useful for addressing risk and uncertainty in cvp analysis? a.regression analysis b.sensitivity analysis c.what-if analysis d.monte carlo simulation (mcs) analysis e.decision trees and decision tables 2) sales forecasts are the first step […]

1) national inc. manufactures two models of cmd that can be used as cell phones, mpx, and digital camcorders. national uses a volume-based costing system to apply factory overhead based on direct labor dollars. the unit prime costs of each […]

1) pearson electric company uses the high-low method to analyze mixed costs. the following information relates to the production data for the first six months of the year. what is the estimated total cost at an operating level of 1,180 […]

1) wings co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: the total overhead of job #971 under the abc costing is: a.$95 b.$380 c.$1,520 d.$2,300 e.$9,200 2) randall company manufactures products to […]

1) which of the following is not a step in the cost estimation process? a.determine the cost drivers b.determine the outliers c.select and employ the estimation method d.graph the data 2) assume only the specified parameters change in a sensitivity […]

1) a firm has decided to use the balanced scorecard. which of the following is not an advantage the company will gain by using the balanced scorecard? a.it links the firm’s csfs to its strategy b.it helps the firm monitor […]

1) which of the following should be considered a structural cost driver? a.scale b.experience c.complexity d.technology e.all of the above 2) moss point manufacturing recently completed and sold an order of 50 units that had the following costs: * applied […]

1) national inc. manufactures two models of cmd that can be used as cell phones, mpx, and digital camcorders. national uses a volume-based costing system to apply factory overhead based on direct labor dollars. the unit prime costs of each […]

1) effective execution of the cost leadership strategy requires all of the following except: a.incentives based on meeting strict quantitative goals b.frequent, detailed control reports c.tight cost control d.structured organization and policies e.strong coordination among functions: research, product development, manufacturing, […]

1) orange computer co. is quickly becoming a major player in the personal computer market. the company currently has multiple companies producing products that go into an orange computer. this practice of having an outside firm provide a function for […]

1) tierney construction, inc. recently lost a portion of its financial records in an office theft. the following accounting information remained in the office files: direct labor cost incurred during the period amounted to 2.5 times the factory overhead. the […]

1) a manager of a large retail firm is interested in knowing what the company’s product costs are. which of the following would be considered a product cost for the manager’s company? a.direct materials b.direct labor c.factory overhead d.transportation costs […]

1) abnormal spoilage is considered what kind of cost? a.period cost b.product cost c.opportunity cost d.sunk cost 2) the balanced scorecard can be made more effective by developing it at a detail level so that employees: a.can see how it […]

1) assume the following information pertaining to moonbeam company: costs incurred during the period are as follows: cost of goods sold is calculated to be: a.$890,000 b.$896,000 c.$883,000 d.$877,000 e.$870,000 Answer: c cogm = $85,000 + $896,000 – $104,000 = […]

1) manders manufacturing corporation uses the following model to determine its product mix for metal (m) and scrap metal (s): the point where m = 2 and s = 3 would: a.minimize total cost b.minimize total variable cost c.lie in […]

1) armer company is accumulating data to use in preparing its annual profit plan for the coming year. the cost behavior pattern of the maintenance costs must be determined. the accounting staff has suggested the use of linear regression to […]

1) the coefficient of determination is a number between: a.0 and 1 b.-1 and 1 c.-2 and 2 d.the coefficient of determination can be any number 2) which of the following is not a way for a management accountant to […]

1) the following table was taken from firm x’s production cost report: what is the number of weighted-average equivalent units? a.40,000 b.50,000 c.48,000 d.38,000 2) the following costs were for bikeway inc., a bicycle manufacturer: at an output level of […]

1) successful activity-based costing (abc) implementation depends upon the firm: a.having support of consultants with needed expertise b.having a thorough activity analysis c.starting with a relatively simple system d.having well-trained managers e.having adequate computer resources 2) marin products produces three […]

1) if a firm has 1,200 completed and transferred out units, 200 equivalent units of beginning work in process and 500 ending work-in-process equivalent units, what is the total of equivalent units of production using the weighted-average method? a.1,500 units […]

1) maple mount fishery is a canning company in astoria. the company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. budgeted factory overhead for the year was $680,400, and management […]

1) during the current year, outlytech corp. expected to sell 24,000 telephone switches. fixed costs for the year were expected to be $12,144,000, the unit sales price was budgeted at $3,200, and unit variable costs were budgeted at $1,440. outlytech’s […]

1) nafta and wto refer to a.organizations with expertise in business process improvement b.laws and organizations which regulate international trade c.laws and regulations regarding sustainability d.organizations and trade groups that work for global economic development e.none of the above 2) […]

1) cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on: a.competitive pricing b.domestic marketing c.short-term thinking d.strategic thinking e.independent judgment 2) sheen co. manufacturers laser […]

1) customer profitability analysis: a.always shows that the company with the highest total sales generates the highest net customer profit b.always shows that the company with the lowest total sales generates the lowest net customer profit c.produces the same results […]

1) moss manufacturing has just completed a major change in its quality control (qc) process. previously, products had been reviewed by qc inspectors at the end of each major process, and the company’s ten qc inspectors were charged as direct […]

1) matrix inc. calculates cost for an equivalent unit of production using both the weighted-average and the fifo methods. total equivalent units for materials under the weighted-average method are calculated to be: a.126,000 equivalent units b.114,000 equivalent units c.90,000 equivalent […]

1) the journal entry to record the application of factory overhead to work in process would include a credit to: a.work-in-process b.cost of goods sold c.factory overhead d.materials inventory e.finished goods inventory 2) which of the following is not a […]

1) factory overhead costs for a given period were 2 times as much as the direct material costs. prime costs totaled $8,000. conversion costs totaled $11,350. what are the direct labor costs for the period? a.$4,650 b.$3,560 c.$4,200 d.$3,860 2) […]

1) the ideal criterion for choosing an allocation base for overhead is: a.ease of calculation b.a cause-and-effect relationship c.ease of use d.its preciseness e.its applicability 2) consider the following for guardian manufacturing company: what are the cost of goods manufactured […]

1) many companies in the consumer products and electronics industries such as walmart and texas instruments compete using a strategy of: a.professionalism b.growth c.cost leadership d.abc costing e.target costing 2) financial budgets include the: a.pro forma balance sheet b.projected income […]

1) structural cost drivers are to executional cost drivers as: a.long-term is to short-term b.fixed is to variable c.total is to partial d.direct is to indirect 2) sutherland company listed the following data for 2013: if overhead is applied based […]

1) horton company uses a job costing system, and factory overhead is applied on the basis of machine hours. at the beginning of the year, management estimated that the company would incur $1,050,000 of factory overhead costs and use 70,000 […]

1) (ignore income taxes in this problem.) stern corporation is considering the purchase of a machine that would cost $270,000 and would last for 9 years. at the end of 9 years, the machine would have a salvage value of […]

1) how many units were started into production during the month? a.68,000 units b.84,000 units c.72,000 units d.56,000 units 2) electrical costs at one of gotch corporation’s factories are listed below: management believes that electrical cost is a mixed cost […]

1) waldvogel corporation has provided data concerning the company’s manufacturing overhead account for the month of april. prior to the closing of the overapplied or underapplied balance to cost of goods sold, the total of the debits to the manufacturing […]

1) the standards for product j35 call for 1.0 pounds of a raw material that costs $15.60 per pound. last month, 5,700 pounds of the raw material were purchased for $90,345. the actual output of the month was 5,280 units […]

1) a new product, an automated crepe maker, is being introduced at boorman corporation. at a selling price of $72 per unit, management projects sales of 20,000 units. launching the crepe maker as a new product would require an investment […]

1) hurst co. manufacturers and sells a single product. price and cost data regarding this product are as follows: how many units need to be sold to earn an annual net operating income equal to 10% of sales? a.44,000 units […]

1) parlee company’s sales are 30% in cash and 70% on credit. sixty % of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. the […]

1) division x makes a part that it sells to customers outside of the company. data concerning this part appear below: selling price to outside customers $50 variable cost per unit $30 total fixed costs $400,000 capacity in units 25,000 […]