At the end of January, Monroe Industries had completed 65,000 units and left 8,000
units in Work In process, 60% complete with respect to materials and 80% complete
with respect to conversion. How many equivalent units will be used to determine the
cost per equivalent unit for materials?
a. 66,600
b. 68,200
c. 69,800
d. 71,400
To calculate the present value of an annuity, multiply
a. The total dollars to be received by the present value factor
b. The total dollars to be received by the discounted interest rate
c. The amount to be received each year by the present value factor
d. The amount to be received each year by the discounted interest rate
Which of the following budget approaches begins each year at $0 and each individual
budget item must be justified?
a. Dollar value based budgeting
b. Governmental-based budgeting
c. Justification-based budgeting
d. Zero-based budgeting
Which of the following not a qualitative measure that McDonald’s would use?
a. Accidents per month
b. Customer retention
c. Current ratio
d. Number of orders filled incorrectly.
One way to compute the expected change in operating income due to a change in sales
volume at a given level of sales is to compute
a. Degree of operating leverage.
b. High-low analysis.
c. Scattergraph analysis.
d. Horizontal analysis.
In preparing cash flows provided by operating activities using the indirect method,
which of the following items is added to net income?
a. Non-cash expenses such as depreciation
b. Decreases in current asset balances
c. Gains on investing and financing transactions
d. Both non-cash expenses such as depreciation and decreases in current asset balances,
but not gains on investing and financing transactions
Incremental analysis helps decision makers to understand
a. The sunk costs involved in their decision.
b. The impact of their choices.
c. The classification of costs.
d. None of these answer choices are correct.
A problem with traditional computerization of operations was that
a.Functional areas such as marketing and production created systems to meet their own
needs without considering the needs of other areas.
b.Traditional systems often resulted in a collection of mismatched or redundant
systems.
c.Both functional areas such as marketing and production created systems to meet their
own needs without considering the needs of other areas and traditional systems often
resulted in a collection of mismatched or redundant systems.
d.Neither functional areas such as marketing and production created systems to meet
their own needs without considering the needs of other areas nor traditional systems
often resulted in a collection of mismatched or redundant systems.
Martin Company has a current breakeven point of 47,000 units. To reduce the
breakeven point, Martin should
a. Reduce the contribution margin per unit.
b. Increase the contribution margin per unit.
c. Reduce the sales price per unit.
d. Increase variable costs.
Using the direct method of preparing the statement of cash flows, to determine the cash
effects of operating activities, a gain on the sale of equipment would be
a. Added to operating expenses
b. Deducted from payments for operating expenses
c. Deducted from sales revenue
d. Ignored because a gain is not a part of sales or operating expenses
Which of the following terms indicate general corporate cost incurred to support
operations as a whole?
a. Allocated
b. Assigned
c. Common
d. All of these answer choices are correct
The costing method in which only variable product costs are accumulated in inventory
is called
a. Absorption costing
b. Normal costing
c. Direct costing
d. Full costing
If the amount of overapplied or underapplied manufacturing overhead is relatively
large, most companies will generally make an adjustment to
a. Work in Process Inventory.
b. Finished Goods Inventory.
c. Cost of Goods Sold.
d. All of these answer choices are correct.