1) The cash budget is a schedule of expected cash receipts and disbursements that
________.
A) requires an aging of accounts receivable and accounts payable
B) is a self-liquidating cycle
C) is prepared immediately after the sales forecast
D) predicts the effect on the cash position at given levels of operations
2) The conversion cost for September was:
A) $114,000
B) $131,000
C) $171,000
D) $103,000
3) An advantage of decentralization is that it ________.
A) creates greater responsiveness to local needs
B) focuses manager’s attention on the organization as a whole
C) does not result in a duplication of activities
D) reduces the cost of gathering information
4) The management accountant aids in MRP by ________.
A) doing journal entries as requested
B) preparing plant appropriation requests
C) maintaining accurate records of inventory and its costs
D) contacting vendors to make sure they can deliver the materials in time
5) Which of the following is a component of operating budgets?
A) sales budget
B) budgeted statement of cash flows
C) capital expenditures budget
D) budgeted balance sheet
6) Generally, companies follow one of two broad strategies: offering a quality product
at a low price, or offering a unique product or service priced higher than the
competition. Assume you are opening a small food outlet across the street from your
campus. How might that business be operated under each of the two broad strategies?
Consider the following specific operational areas:
a.target customers
b.products offered
c.product pricing
d.location choice
e.advertising content
f.advertising media
7) The operating capabilities is an example of the ________ measure of a
balanced-scorecard.
A) internal business process perspective
B) customer perspective
C) learning and growth perspective
D) financial perspective
8) The internal rate of return method assumes that project cash flows can be reinvested
at the project’s ________.
A) internal rate of return
B) required rate of return
C) growth rate
D) accounting rate of return
9) At the Auric Company, the cost of the personnel department has always been charged
to production departments based upon number of employees. Recently, opinions
gathered from the department managers indicate that the number of new hires might be
a better predictor of personnel costs.
Total personnel department costs are $287,500.
If the number of employees is considered the cost driver, what amount of personnel
costs will be allocated to Department A?
A) $35,000
B) $10,667
C) $140,000
D) $43,700
10) Financing decisions primarily deal with ________.
A) the use of scarce resources
B) how to obtain funds to acquire resources
C) acquiring equipment and buildings
D) preparing financial statements for stockholders
11) Patrick Ross has three booth rental options at the county fair where he plans to sell
his new product. The booth rental options are:
Option 1: $1,000 fixed fee, or
Option 2: $750 fixed fee + 5% of all revenues generated at the fair, or
Option 3: 20% of all revenues generated at the fair.
The product sells for $37.50 per unit. He is able to purchase the units for $12.50 each.
How many actions and events will a decision table contain?
A) 1 action and 3 events
B) 1 action and 6 events
C) 2 actions and 3 events
D) 3 actions and 6 events