1) national inc. manufactures two models of cmd that can be used as cell phones, mpx,
and digital camcorders.
national uses a volume-based costing system to apply factory overhead based on direct
labor dollars. the unit prime costs of each product were as follows:
national’s controller had been researching activity-based costing and decided to switch
to it. a special study determined national’s two products have the following budgeted
activities:
using activity-based costing, applied miscellaneous overhead for the great p model per
unit is
(rounded to the nearest cent):
a.$4.60
b.$9.45
c.$13.44
d.$15.12
e.$42.61
2) sheen co. manufacturers laser printers. it has outlined the following overhead cost
drivers:
sheen co. has an order for 1,000 laser printers that has the following production
requirements:
what is the total overhead cost per unit of the laser printers order using activity-based
costing (rounded to the nearest cent)?
a.$39.55
b.$40.05
c.$42.25
d.$50.65
e.$58.30
3) done on a regular basis, relevant cost pricing in special order decisions can erode
normal pricing policies and lead to:
a.overconfidence in decision-making
b.a decrease in the firm’s long-term profitability
c.goal congruence between management and sales personnel
d.a cost leadership strategy
e.maximization of the value stream
4) data collected on the cost objects and cost drivers for cost estimation must be:
a.brief and limited
b.exhaustive
c.concrete
d.consistent and accurate
e.varied
5) stoltenberg co. had the following information for the month of june:
beginning work-in-process inventory is 30 percent complete as to conversion. ending
work-in-process inventory is 50 percent complete as to conversion. materials are added
at the end of the process.
how many units were started and completed in june?
a.12,000
b.10,000
c.14,000
d.16,000
e.18,000
6) a practical example of when the theory of constraints would not be an appropriate
management technique to use would be:
a.long lines at checkout stands
b.busy signals on internet server sites
c.one critical production process provides 60 parts/min. output, compared with a
company-wide output of 90 parts/min
d.balanced, fast movement of the product through the plant
7) which of the following is not one of the ethical standards included in the institute of
management accountants (ima) statement of ethical professional practice?
a.objectivity
b.integrity
c.competence
d.credibility
e.confidentiality
8) shaver co. manufactures a variety of electric razors for men and women. the
company’s plant is partially automated. listed below is cost driver information used in
the product-costing system:
in addition, shaver expects to spend $514,368 for 8,037 direct labor-hours. two current
product orders had the following requirements:
using abc, how much facility-level overhead is assigned to the current order for men’s
razors?
a.$403.00
b.$310.00
c.$708.50
d.$545.00
e.$936.00
9) cost to process monthly statements is an example of a:
a.customer unit-level cost
b.customer batch-level cost
c.customer-sustaining cost
d.distribution-channel cost
e.sales-level cost
10) which one of the following would not be found in a merchandising company?
a.beginning inventory
b.cost of goods sold
c.ending inventory
d.gross profit
e.work-in-process
11) which method is (are) used to prepare the departmental production cost report when
using a process cost system?
a.lifo method
b.fifo method
c.weighted average method
d.both a & b are correct
e.both b & c are correct
12) a company using regression analysis to correlate income to a variety of sales
indicators found that the relationship between the number of sales managers in a
territory and net income for the territory had a correlation coefficient of -1 . which is the
best description of this situation?
a.more sales managers should be hired
b.imperfect negative correlation
c.perfect inverse correlation
d.there is no correlation at all
13) acem hardware purchased 5,000 gallons of paint in march. the store had 1,500
gallons on hand at the beginning of march, and expects to have 1,000 gallons on hand at
the end of march. what is the budgeted number of gallons to be sold during march?
a.3,500
b.4,500
c.5,000
d.5,500
e.7,500
14) cleaning care inc. expects to sell 10,000 mops. fixed costs (for the year) are
expected to be $10,000, unit sales price is expected to be $12, and unit variable costs
are budgeted at $7.
cleaning care’s margin of safety (mos) in sales dollars is:
a.$12,000
b.$24,000
c.$48,000
d.$50,000
e.$96,000
15) the declining value of the u.s. dollar relative to other currencies in recent years
means that:
a.u.s. exporters will face a greater challenge in exporting u.s.-made products
b.u.s. firms will be eager to buy foreign products
c.u.s. firms will be less profitable
d.u.s. exporters will have a temporary advantage over other countries in foreign trade
e.the u.s. trade balance will worsen
16) marin products produces three products dbb-1, dbb-2, and dbb-3 from a joint
process. each product may be sold at the split-off point or processed further. additional
processing requires no special facilities, and production costs of further processing are
entirely variable and traceable to the products involved. key information about marin’s
production, sales, and costs follows.
the amount of joint costs allocated to product dbb-2 using the physical measure method
is (calculate all ratios and percentages to 2 decimal places, for example 33.33%, and
round all dollar amounts to the nearest whole dollar):
a.$54,250
b.$757,800
c.$1,705,320
d.$49,200
e.$1,136,880