Incremental revenues and costs need to be considered when using which allocation
method?
A. yes yes
B. yes no
C. no no
D. no yes
The combined weighted average interest rate that a firm incurs on its long-term debt,
preferred stock, and common stock is the
A. cost of capital.
B. discount rate.
C. cutoff rate.
D. internal rate of return.
The primary accounting document in a job-order costing system is a(n)
A. bill of materials.
B. job-order cost sheet.
C. employee time sheet.
D. materials requisition.
The organization whose primary function is to provide a means to share information
among cost and management accountants in the United States is the
A. Internal Revenue Service.
B. American Institute of CPAs.
C. Institute of Management Accountants.
D. Institute of Certified Management Accountants.
As part of its control function, a cost management system is useful for
A. yes yes yes
B. no yes yes
C. yes no no
D. yes yes no
All costs related to the manufacturing function in a company are
A. prime costs.
B. direct costs.
C. product costs.
D. conversion costs.
Contracting with vendors outside the organization to obtain or acquire goods and/or
services is called
A. target costing.
B. insourcing.
C. outsourcing.
D. product harvesting.
Colorful Creations Corporation
The Colorful Creations Corporation makes wreaths in two departments: Forming and
Decorating. Forming began the month with 500 wreaths in process that were 100
percent complete as to material and 40 percent complete as to conversion. During the
month, 6,500 wreaths were started. At month end, Forming had 2,100 wreaths that were
still in process that were 100 percent complete as to material and 50 percent complete
as to conversion. Assume Forming uses the weighted average method of process
costing. Costs in the Forming Department are as follows:
The Decorating Department had 600 wreaths in process at the beginning of the month
that were 80 percent complete as to material and 90 percent complete as to conversion.
The department had 300 units in ending Work in Process that were 50 percent complete
as to material and 75 percent complete as to conversion. Decorating uses the FIFO
method of process costing, and costs associated with Decorating are:
Refer to Colorful Creations Corporation. Assume 8,000 units were transferred to
Decorating. Compute the number of equivalent units in Decorating for conversion.
A. 7,925
B. 7,985
C. 8,360
D. 8,465
The Jordan Company makes three products. The cost data for these three products is as
follows:
Total annual fixed costs are $840,000. The firm’s experience has been that about 20
percent of dollar sales come from product A, 60 percent from B, and 20 percent from C.
Required:
The Foreign Corrupt Practices Act is directed at
A. U.S. corporations operating overseas.
B. foreign businesses operating in the U.S.
C. all businesses dealing with U.S. consumers.
D. all U. S. businesses with operations in foreign countries.
Stillwater Corporation
The following information is available for Stillwater Corporation for the current year:
All materials are added at the start of production.
Refer to Stillwater Corporation. Using FIFO, what are equivalent units for conversion
costs?
A. 72,225
B. 67,225
C. 69,725
D. 78,100
Productive capacity is a measure used in computing
A. residual income.
B. net cash flow.
C. return on investment.
D. throughput.