Archives: Quiz
Business Communication Chapter 1 1 Which of the following punctuation marks is used to separate a dependent clause at the beginning of a sentence from the rest of the sentence
Copyright © 2012 Pearson Education, Inc. Business Communication Today, 11e (Bovee/Thill) Handbook of Grammar, Mechanics, and Usage 1) Which of the following is a demonstrative pronoun? A) He B) This C) Who D) Anyone Answer: B Explanation: B) Demonstrative pronouns […]
Accounting Chapter 20 7 Complete a Business Valuation for the Jackson Company based on 2016 financial statement information.
The current compensation package is an annual bonus award. The managers share in the bonus pool. The pool is calculated as 10% of the annual residual income of the company. The residual income is defined as operating income minus an […]
Accounting Chapter 20 6 Wilson & Associates is a medium-size marketing organization specializing in professional promotion and publicity services
8. Tardiness/excess absenteeism 10 Points are deducted if an employee arrives late or is absent for causes other than illness or death in the immediate family. 100 The list of categories to evaluate the Plant/Field Supervisors is slightly different. Each […]
Accounting Chapter 20 5 Harold Small joined Morton Electric Company eight months ago as Vice President of Personnel Administration
D. $2,520,000 E. $8,437,500 1. Free Cash Flow = $377,000 – $230,000 – $80,000 = $67,000 2. 16 × $67,000 = $1,072,000 AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy […]
Accounting Chapter 20 4 The Harrison Bicycle Company had the following operating results for 2015-2016. In addition, the company paid dividends in both 2015 and 2016
D. $8,400,000 1. Free Cash Flow = $230,000 – $30,000 – $60,000 = $140,000 2. 18 × $140,000 = $2,520,000 AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 1 Easy Learning Objective: […]
Accounting Chapter 20 3 There is always a current tax deduction for the firm for which of the following types of compensation
59. There is a common concern today that executive compensation in the U.S. is: A. Not adequately linked to strategic performance measures. B. Ineffective as a performance incentive. C. Not properly disclosed to the IRS. D. Varies too greatly from […]
Accounting Chapter 20 2 Firms typically provide benefits (perks) to employees to enhance motivation. Which of the following would not be an example of a perk
40. Household Brands Inc. (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2008, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2016, comprised […]
Accounting Chapter 20 1 As a firm’s strategy changes to respond to different stages of a product’s life cycle, compensation
1. A bonus plan differs from a salary in terms of: A. Amount and timing. B. Base, timing, and financial statement effect. C. Tax implications. D. Motivation effects. E. Base, pool, and payment terms. AACSB: Reflective Thinking AICPA: BB Resource […]
Accounting Chapter 19 7 What changes to the divisional manager’s compensation contract might corporate management make that would better align
132. The manager of the processing division of XYZ Corporation is considering the purchase of new equipment, which would modernize an aging plant. Currently, the division has an asset base of $8,000,000 and net operating income of $1,200,000. The new […]
Accounting Chapter 19 6 What solution would be best for Edwards Inc., assuming Division B has the ability to operate at full capacity
123. T-shirts R Us Inc. operates two divisions that each manufactures t-shirts for universities. Each division has its own manufacturing facility. The historical-cost accounting system reports the following financial data for 2016. Atlantic Coast Division Condensed Income Statement Data (000s) […]
Accounting Chapter 19 5 Which method for computing profitability would each manager likely choose? Show supporting calculations
113. James Webb is the general manager of the Industrial Product Division, and his performance is measured using the residual income (RI) method. Webb is reviewing the followed forecasted information for his division for the coming year: Category Amount (thousands) […]
Accounting Chapter 19 4 Which of the following items would most likely not be incorporated into the calculation of a division’s investment base
AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 19-04 Explain the objectives of transfer pricing, and describe the advantages and disadvantages of various transfer-pricing alternatives. Topic: Transfer Pricing […]
Accounting Chapter 19 3 One approach to measuring the short-term financial performance of a business unit considered an investment center is return on investment
56. Selected data from Chering Division’s accounting records revealed the following: Sales $825,000 Average investment $440,000 Net operating income $66,000 Minimum rate of return (divisional cost of capital) 14% If the minimum rate of return (i.e., cost of capital) was […]
Accounting Chapter 19 2 A division’s after-tax cash operating income less depreciation and less an imputed cost of capital is called its
34. A division’s after-tax cash operating income less depreciation and less an imputed cost of capital is called its: A. After-tax operating income. B. Income from continuing operations. C. Return on sales (ROS). D. Economic value added (EVA®). E. Residual […]
Accounting Chapter 19 1 Under the notion of controllability, it is most appropriate for top management to evaluate the profitability of an investment center in terms of
1. Under the notion of controllability, it is most appropriate for top management to evaluate the profitability of an investment center in terms of: A. Profits generated in relation to the amount of capital invested in the unit. B. Returns […]
Accounting Chapter 19 9 What are the primary factors affecting the setting of transfer prices between divisions of a company that operates in different countries
147. This question pertains to factors affecting the setting of transfer prices in an international setting. Required: What are the primary factors affecting the setting of transfer prices between divisions of a company that operates in different countries? There are […]
Accounting Chapter 19 8 What would the operating income for each of the two divisions be if the transfer price from Cutting to Assembly was set
1. Minimum selling price to Division B = incremental costs incurred by Division P, up to the point of transfer + opportunity cost on any external sales foregone (expressed per unit of internal transfer) = $80.00 + [$120.00 – $5.00 […]
Accounting Chapter 18 7 Lawson Company had the following manufacturing information for the current year. Assume the same per unit costs occurred in the prior yea
[This is a suggested response and answer presentation may vary.] 1. The business unit information prepared for public reporting purposes may not be appropriate for the evaluation of business unit management performance because: • an allocation of common costs incurred […]
Accounting Chapter 18 6 The Daniels Tool & Die Corporation has been in existence for a little over three years; its sales have been increasing each year as it has built a reputation
125. The Daniels Tool & Die Corporation has been in existence for a little over three years; its sales have been increasing each year as it has built a reputation. The company manufactures dies to its customers’ specifications; as a […]
Accounting Chapter 18 5 Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected
107. Sand and Sea Resorts owns and operates two resorts in a coastal town. Both resorts are located on a barrier island that is connected to the mainland by a high bridge. One resort is located on the beach and […]
Accounting Chapter 18 4 In the principal-agent model, the manager is modeled as having all of the following elements except
78. During January, Long, Inc. produced 10,000 units of product with costs as follows: Direct materials $40,000 Direct labor 22,000 Variable overhead 10,000 Fixed overhead 90,000 $162,000 What is Lang’s unit cost for January, calculated on the variable costing basis? […]
Accounting Chapter 18 3 The six steps Ittner and Larcker propose for maximizing the value of nonfinancial measures when using a balanced scorecard
Full Costing Variable Costing Sales $5,200 $5,200 Cost of Goods Sold: Beginning Inventory – – Cost of Goods Produced 2,800 1,600 Cost of Goods Available for Sale 2,800 1,600 Less Ending Inventory 525 300 Cost of Goods Sold: 2,275 1,300 […]
Accounting Chapter 18 2 Bradbo allocated the monthly costs of the baking facility to the two restaurants based on the number of tables served
40. Bradbo owned two adjoining restaurants, the Pork Palace and the Chicken Hut. Each restaurant was treated as a profit center for performance evaluation purposes. Although the restaurants had separate kitchens, they shared a central baking facility. The principal costs […]
Accounting Chapter 18 1 The process by which managers at all levels in the firm gain information about the performance of tasks within the firm and judge
1. Performance evaluation in most firms is applied at: A. Many different levels from top management down to individual production and sales employees. B. All levels of production, but only top levels of sales. C. Top and mid-management levels only. […]
Accounting Chapter 17 7 Define each of these two dimensions. How, conceptually, can cost management contribute to the management of each of these two dimensions of quality
1. The term Six Sigma refers to the overall strategy of an organization to accelerate improvements in processes and to achieve unprecedented performance levels by focusing on characteristics that are critical to customers, and identifying and eliminating causes of errors […]
Accounting Chapter 17 6 The amount of change in the estimated losses (or total quality cost) when the deviation from the quality characteristic doubled
130. Pandra Manufacturing specifies the quality characteristic of one of its popular products to be 0.500 ± 0.020. An analysis of company records for the last two years suggests that the average cost for warranty repair or replacement is $125 […]
Accounting Chapter 17 5 Cari and Jeremy just bought a bed and breakfast inn at a very attractive price. The business had been doing poorly
117. Cari and Jeremy just bought a bed and breakfast inn at a very attractive price. The business had been doing poorly. Before they reopened the inn for business, they attended a seminar on operating a high-quality business. Now that […]
Accounting Chapter 17 4 Which of the following is not true regarding the determination of relevant costs and relevant revenues associated with quality-related initiatives
AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Learning Objective: 17-03 Develop a comprehensive framework for the management and control of quality. Learning Objective: 17-05 Prepare and interpret relevant financial […]
Accounting Chapter 17 3 Which of the following items represents a quadratic loss function associated with deviation of actual quality from target quality
0.54 $500.00 0.01 $5.0000 Expected Value $108.1250 AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 3 Hard Learning Objective: 17-04 Understand alternative approaches for setting performance expectations (Six Sigma, absolute vs. goalpost […]
Accounting Chapter 17 1 The Taguchi Quality Loss Function (QLF) demonstrates that as the quality measure of a product declines, the loss due to quality defects
1. The Taguchi Quality Loss Function (QLF) demonstrates that as the quality measure of a product declines, the loss due to quality defects: A. Increases as a quadratic function. B. Increases as a linear function. C. Increases at a decreasing […]
Accounting Chapter 17 2 A graphical representation of frequency of occurrence of the factors contributing to an indicated quality problem
39. A graph that depicts successive observations of an operation taken at constant intervals is a(n): A. Control chart. B. Pareto diagram. C. Histogram. D. Ishikawa diagram. E. Cause-and-effect diagram. AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement […]
Accounting Chapter 16 8 Showtime is a group of aspiring musicians and actors who perform in theaters and dinner clubs. It has a matinee and evening show
Labor 200,000.00 = 60,000/.3 Decomposition of Partial Productivity (as done in Exhibit 16.5) A B C D Output Current output/ Current output/ Current output/ Prior output/ Input Amount Current Input X Productivity Cur. Output at Prior Prod. Input Price ur. […]
Accounting Chapter 16 7 Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD
117. Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: Budgeted Actual Results AB CD AB CD Price per bushel […]
Accounting Chapter 16 6 Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported,
97. Hollaway Corp. has the following data for the current fiscal year: Actual Budget Sales Units Product X 20,000 90,000 Product Y 140,000 110,000 Total 160,000 200,000 Contribution Margin Product X $9.00 $8.00 Product Y $6.00 $5.00 The contribution margin […]
Accounting Chapter 16 5 Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed
79. Folsom Fashions sells a line of women’s dresses. The company uses flexible budgets to analyze its performances. The firm’s performance report for November is presented below: Actual Budget Dresses sold 5,000 6,000 Sales $235,000 $300,000 Variable costs 145,000 180,000 […]
Accounting Chapter 16 4 Folsom Fashions sells a line of women’s dresses. The company uses flexible budgets to analyze its performances
68. Winston Co. had two products code named X and Y. The firm had the following budget for August: Product X Product Y Total Sales $286,000 520,000 $806,000 Variable Costs 189,800 218,400 408,200 Contribution Margin $96,200 $301,600 $397,800 Fixed Costs […]
Accounting Chapter 16 3 Nappon Co. has two products named X and Y. The firm had the following master budget for the year just completed
56. Broha Company manufactured 1,500 units of its only product during 2016. The inputs for this production are as follows: 450 pounds of Material A at a cost of $1.50 per pound 300 pounds of Material H at a cost […]
Accounting Chapter 16 1 Which one of the following uses the number of units of an input factor in its assessment of productivity
1. Which one of the following uses the number of units of an input factor in its assessment of productivity? A. Partial financial productivity. B. Total productivity. C. Operational productivity. D. Partial productivity. AACSB: Reflective Thinking AICPA: BB Critical Thinking […]
Accounting Chapter 16 2 Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part
36. Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are […]
Accounting Chapter 15 9 Management is currently deciding whether or not to investigate a cost variance that was identified by the accounting system
AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Difficulty: 3 Hard Learning Objective: 15-03 Record overhead costs and associated standard cost variances. Learning Objective: 15-04 Dispose of standard cost variances at the end of a period. […]
Accounting Chapter 15 8 how such measures might be supplemented to better meet the planning and control needs of management.
Fixed overhead applied to production = (units produced × standard hours/unit) × standard fixed overhead rate/hour (128,000 units × 0.5 hours/unit) × $6.00/hour -384,000 Production-volume variance $24,000 favorable AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply […]
Accounting Chapter 15 7 In terms of the variance-investigation decision under uncertainty, which of the following items contains a cross-listing of costs associated
AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Learning Objective: 15-08 Formulate the variance-investigation decision under uncertainty (appendix). Topic: Variances and Activity-Based Costing 143. In terms of the variance-investigation decision […]
Accounting Chapter 15 6 A comprehensive management accounting and control system regarding manufacturing overhead costs
117. Megan, Inc. uses the following standard costs per unit for one of its products: Direct labor (2 hrs. @ $5/hr.) = $10; overhead (2 hrs. @ $2.50/hr.) = $5. The flexible budget for overhead is $120,000 plus $1 per […]
Accounting Chapter 15 5 What were the total actual direct labor hours worked by Oslund Company during the past month
101. Zero Company’s standard factory overhead rate is $3.75 per direct labor hour (DLH), calculated at 90% capacity = 900 standard DLHs. In December, the company operated at 80% of capacity, or 800 standard DLHs. Budgeted factory overhead at 80% […]
Accounting Chapter 15 4 Blue cap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains
87. Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2016: Denominator volume—number of units 8,000 Denominator volume—percent of capacity 80% Denominator volume—standard direct labor hours 24,000 Budgeted variable factory […]
Accounting Chapter 15 3 The following information for the past year is available from Thin news Co., a company that uses machine hours to apply factory overhead
69. The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead: Actual total factory overhead cost $24,000 Actual fixed overhead cost $10,000 Budgeted fixed overhead cost $11,000 Actual […]
Accounting Chapter 14 6 Poke man Bunch Inc., manufactures Poke Monster figures and has the following data from its operation for the year just completed
122. Pokeman Bunch Inc., manufactures Poke Monster figures and has the following data from its operation for the year just completed. Actual A Flexible Budget B Master Budget Units 1,500 1,200 Sales (dollars) $93,000 C $18,000F Variable cost E $60,000 […]
Accounting Chapter 14 5 Sheldon Company manufactures only one product and uses a standard cost system. During the past month, manufacturing operations for the company
103. A company’s master budget for October is to manufacture and sell 30,000 units for a total sales revenue of $270,000, total variable costs of $180,000, and total fixed costs of $24,000. The company actually manufactured and sold 32,000 units […]
Chapter 19 3 You are interning at an advertising research company this summer, and you will be learning how to implement persuasion tests
105) Cheryl is an account planner at a major advertising agency, and one of her responsibilities is to evaluate ads and campaigns through testing, monitoring, and measurement. Explain these three terms. 105) 106) Mini–Case Question. Dell uses a combination of […]
Accounting Chapter 14 4 Marv Company’s direct labor costs for manufacturing its only product were as follows for October
85. Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5 kilograms × $12.00/kilogram) = $60.00/unit. Direct labor (3.5 hours/unit × $20.00/hour) […]