In March, Connor’s, Inc. completed 150,000 units; 12,000 units still in process at the
end of the period were 60% complete with respect to materials and conversion.
Required:
a. How many equivalent units were in Connor’s ending work in process inventory? b.
How many equivalent units will be used to calculate the cost per equivalent unit?
Which of the following items would most likely differ on the Cash Budget and the
Budgeted Income Statement?
a. Insurance expense
b. Advertising expense
c. Bad debt expense
d. Supplies expense
Which of the following is a disadvantage of participative budgeting?
a. It is a time-consuming process.
b. Managers may pad the budget.
c. Both it is a time-consuming process and managers may pad the budget.
d. Neither that it is a time-consuming process nor that managers may pad the budget.
Identify which of the following items would be classified as capital assets.
a. New equipment to replace less efficient old equipment
b. Car wash business
c. Depreciation on building
d. 150 acres of land to be used to build a new factory building
e. Computed Axial Tomography Machine (CAT Scan machine)
f. Manufacturing overhead
g. Pollution prevention technology
h. Direct material
i. Computer generated manufacturing system
j. Office supplies
Which of the following is not a use of cash?
a. Purchasing supplies for cash
b. Repayment of bond payable
c. Paying dividends to stockholders
d. Buying inventory on account
For the past two years, Monroe Corporation’s statement of cash flows has shown net
cash used by financing activities. Which of the following choices could explain this
result?
a. Repayment of debt
b. Purchase of land
c. Receipt of cash dividends from investments in other company’s stock
d. Issuance of long-term debt
Step costs are fixed over only a small range of activity. Once that level of activity has
been exceeded, total cost
a.Increases because the excess costs become variable.
b.Increases and remains constant over another small range of activity.
c.Remains the same regardless of activity.
d.None of these answer choices is correct.
Fixed manufacturing overhead is treated as a period expense in which of the following
costing methods?
a. Absorption costing
b. Normal costing
c. Full costing
d. Variable costing
Which of the following is not an input into the monitoring activities relating to
production?
a.Actual production rate and output
b.Checking output against the planned inventory level
c.Anticipated manufacturing capacity
d.All of these answer choices are monitoring activities
A performance dashboard does which of the following?
a. Offers a visual display of key performance measures
b. Offers managers the opportunity to drill down into the data to obtain information
c. Both Offers a visual display of key performance measures and Offers managers the
opportunity to drill down into the data to obtain information
d. Neither Both Offers a visual display of key performance measures nor Offers
managers the opportunity to drill down into the data to obtain information
In a manufacturing setting, practical standards do not allow for
a. Machine breakdowns.
b. Employee fatigue.
c. Vacations.
d. Excess employee idleness.
The direct materials quantity variance is calculated using which of the three amounts?
a. Actual quantity used, standard quantity allowed for actual production, actual price
paid
b. Actual quantity used, standard quantity allowed for actual production, standard price
paid
c. Standard quantity used, actual price paid, standard price paid
d. Actual quantity used, actual price paid, standard price paid
An advantage of using regression analysis over the high-low and scattergraph methods
is that
a.Regression analysis is less costly to implement than high-low or scattergraph
methods.
b.Regression analysis is a more precise approach than the high-low or scattergraph
methods.
c.Both A and B are advantages of using regression analysis.
d.Neither A nor B are advantages of using regression analysis.
Grantham Manufacturing Company makes oak rocking chairs. Budgeted sales are
20,000 for July, 25,000 for August, 28,000 for September and 30,000 for October.
Grantham maintains an ending inventory equal to 10% of the current month ‘s sales.
Ending inventory at June 30th was 3,000.
Required
Prepare a production budget for the 3rd quarter ending September 30.
If unprofitable customers cannot be turned to profitable ones, the company should never
drop them.
Classify the following costs as product or period costs by placing an “X” in the
appropriate columns.
Countless measures could be captured and reported to managers. The best measures are
SMART: specific, measurable, actionable, relevant, and timely. Listed below are
examples of poorly constructed performance measures. For each component of
SMART, provide two better measures for the following poorly constructed performance
measures.
The following information relating to variable overhead is available for Haven
Industries:
Which of the following is the correct journal entry to record the spending and efficiency
variances?
You have been hired by University Bike Shop as the controller. The CEO has been
using a traditional GAAP income statement for internal decision making. However the
CEO has just completed an MBA program where she covered the contribution format
income statement. She has asked you to explain the contribution format income
statement to the other managers of the company with emphasis on the differences
between the two income statements and how the contribution format income statement
can help all the managers.