Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Project A requires an original investment of $50,000. The project will yield cash flows
of $15,000 per year for 7 years. Project B has a calculated net present value of $13,500
over a 4-year life. Project A could be sold at the end of 4 years for $25,000. (a) Using
the table below, determine the net present value of Project A over a 4-year life with
salvage value assuming a minimum rate of return of 12%. (b) Which project provides
the greatest net present value?
Which of the following would record the labor costs to an individual job?
a. clock cards
b. in-and-out cards
c. time tickets
d. a payroll register
Responsibility accounting reports for profit centers will include
a. costs only
b. revenues only
c. expenses and fixed assets
d. revenues, expenses, net income or loss from operations
All of the following would be reported on the balance sheet as a current asset except
a. factory overhead
b. materials inventory
c. finished goods inventory
d. work in process inventory
Panamint Systems Corporation is estimating activity costs associated with producing
disk drives, tapes drives, and wire drives. The indirect labor can be traced to four
separate activity pools. The budgeted activity cost and activity base data by product are
provided below.
Determine the activity rate for production per machine hour.
a. $62.50
b. $150.00
c. $75.00
d. $176.47
By using the rate of return on investment as a divisional performance measure,
divisional managers will always be motivated to invest in proposals which will increase
the overall rate of return for the company.
a. True
b. False
The document that serves as the basis for recording direct labor on a job cost sheet is
the clock card.
a. True
b. False
A series of budgets for varying rates of activity is termed a(n)
a. flexible budget
b. variable budget
c. master budget
d. activity budget
Cost of goods manufactured during the year is $240,000 work in process inventory on
December 31 is $50,000. Work in process inventory during the year decreased by 60%.
Total manufacturing costs incurred are
a. $190,000
b. $165,000
c. $290,000
d. $315,000
