1) Use the following information to do a horizontal analysis of Marcus Corporation’s
income statement for the current year and prior year:
What is the dollar change in gross profit?
A) $22,000
B) $(4,840)
C) $179,400
D) $25,800
2) Which of the following cost of quality categories represent the cost incurred to
“rework a defective product” before the product is shipped to a consumer?
A) Prevention costs
B) Appraisal costs
C) Internal failure costs
D) External failure costs
3) Johnson Trucking Company wants to determine a fuel surcharge to add to its
customers’ bills based on the number of miles driven to each area. It wants to separate
the fixed and variable portion of the truck’s operating costs so it has a better idea of how
distance affects these costs. Johnson Trucking Company has the following data
available.
The variable cost per mile using the high-low method is
A) $1.33.
B) $0.75.
C) $1.43.
D) $1.00.
4) The income statement and a partial balance sheet for Jetson Company is presented
below. Prepare the operating activities section of the statement of cash flows using the
direct method.
5) Which of the following items could be found in work in process inventory at a candy
bar manufacturer?
A) Candy bars made but not coated in chocolate
B) Cocoa products to make candy bars
C) Sugar products to make candy bars
D) Candy bars completed but not yet sold
6) Taylor Company reported the following information for the current year:
What would a vertical analysis report with respect to the relationship between current
year net sales revenue and COGS?
A) COGS was 60.00% of net sales revenue
B) A 8.20% decrease from prior to current year
C) An increase of $19,680 from prior to current year
D) An increase of $460,320 from prior to current year
7) A ________ is used to accumulate all of the direct materials and direct labor used on
the job, as well as the manufacturing overhead allocated to the job.
A) bill of materials
B) job cost record
C) labor time record
D) production schedule
8) A company uses the direct method to prepare the statement of cash flow computes
the amount of cash it receives from customers as
A) cost of goods sold plus ending inventory minus beginning inventory.
B) cost of goods sold minus ending inventory plus beginning inventory.
C) sales revenue plus the decrease (or minus the increase) in accounts receivable.
D) sales revenue minus the decrease (or plus the increase) in accounts receivable.
9) The following information relates to Woolf Unlimited for the past two years.
What is the price-earnings ratio for the current year?
A) 13.33
B) 1.75
C) 13.00
D) 10.00
10) Johnson Trucking Company wants to determine a fuel surcharge to add to its
customers’ bills based on the number of miles driven to each area. It wants to separate
the fixed and variable portion of the truck’s operating costs so it has a better idea of how
distance affects these costs. Johnson Trucking Company has the following data
available.
Using the high-low method, the fixed costs in a month are
A) $2,100.
B) $13,650.
C) $46,200.
D) $10,500.
11) Enter the letters of the items needed to compute that variance on the line in front of
each variance. You can enter more than one item on each line as applicable.
A.Standard overhead allocated to production
B.Flexible budget overhead for actual number of outputs
C.Actual variable overhead cost
D.Fixed overhead costs