Managerial Accounting
a. the manufacturing overhead costs per unit.
b. the selling and administrative costs per unit.
c. the number of units sold.
d. the direct material and direct labor costs per unit.
e. None of the answer choices is correct.
a. $360,000
b. $240,000
c. $80,000
d. $60,000
e. None of the answer choices is correct.
a. The income statement.
b. The statement of owners’ equity.
c. The balance sheet.
d. The income statement, the balance sheet, and the statement of owners’ equity.
e. None of the answer choices is correct.
a. direct labor.
b. depreciation expense.
c. selling and administrative.
d. direct materials.
e. None of the answer choices is correct.
a. Cost reflecting benefits foregone when one alternative is selected over another.
b. Cost incurred in the past that cannot be changed by future decisions.
c. Fixed cost that cannot be traced directly to a product line.
d. Cost that can be avoided by selecting a particular course of action.
e. None of the answer choices is correct.
a. the company’s ability to generate enough cash from daily operations to cover capital expenditures.
b. the company’s ability to generate enough cash from daily operations to cover long-term liabilities.
c. the company’s ability to generate enough cash from daily operations to cover current liabilities.
d. the company’s ability to generate enough cash from financing operations to cover current liabilities.
e. None of the answer choices is correct.
a. The effect on variable costs.
b. The effect on employee morale.
c. The quality of the outsourced product.
d. The effect on unavoidable fixed costs.
e. None of the answer choices is correct.
a. Estimated Overhead Costs Estimated Cost Driver Activity.
b. Estimated Overhead Costs / Estimated Cost Driver Activity.
c. Estimated Overhead Costs Estimated Cost Driver Activity.
d. Estimated Overhead Costs + Estimated Cost Driver Activity.
e. None of the answer choices is correct.
a. duplication of administrative services.
b. quicker decision making at the division level.
c. loss of control at top management levels.
d. managers at the division level might make decisions that are in their best interest even if the decision is not in the best interest of the company as a whole.
e. None of the answer choices is correct.
a. net sales.
b. total assets.
c. total liabilities.
d. total long-term assets.
e. None of the answer choices is correct.
a. the receivable turnover ratio.
b. the current ratio.
c. the inventory turnover ratio.
d. the gross margin ratio.
e. None of the answer choices is correct.
a. Manufacturing overhead.
b. Direct materials.
c. Indirect labor.
d. Direct labor.
e. None of the above.
a. Beginning balance + Transfers in Ending balance = Transfers out
b. Beginning balance + Transfers in + Ending balance = Transfers out
c. Beginning balance Transfers in Ending balance = Transfers out
d. Beginning balance Transfers in + Ending balance = Transfers out
e. None of the above.
a. Raw Materials Inventory.
b. Work in Process Inventory.
c. Finished Goods Inventory.
d. Cost of Goods Sold.
e. None of the answer choices is correct.
a. the company has relatively high variable costs.
b. the company has relatively low fixed costs.
c. the company has relatively high fixed costs.
d. the company has a relatively low amount of debt.
e. None of the answer choices is correct.
a. Scattergraph method and regression analysis
b. Scattergraph method and account analysis
c. High-low method and account analysis
d. Scattergraph method and high-low method
e. None of the answer choices is correct.
a. 200%
b. 50%
c. 33.3%
d. 16.7%
e. None of the answer choices is correct.
a. less than the discount rate.
b. equal to the discount rate.
c. greater than the discount rate.
d. cannot be determined without more information.
e. None of the answer choices is correct.
a. Salaries of factory supervisors.
b. Rent on the factory building.
c. Property taxes on the factory building.
d. Indirect materials used in production.
e. None of the answer choices is correct.
a. must be multiplied by the tax rate for the IRR and NPV.
b. must be multiplied by one minus the tax rate for the IRR and NPV calculations.
c. is not included in the IRR and NPV calculations.
d. is only included in the payback calculation.
e. None of the answer choices is correct.
a. A landscaping company.
b. An accounting company.
c. A plumbing company.
d. A company manufacturing microprocessors.
e. None of these have high operating leverage.
a. Inventory turnover and gross margin ratio.
b. Inventory turnover and profit margin ratio.
c. Operating profit margin and EVA.
d. Operating profit margin and asset turnover.
e. None of the answer choices is correct.
a. Total sales total variable costs
b. Total sales total fixed costs
c. Total sales total variable costs total fixed costs
d. Total sales total variable costs + total fixed costs
e. None of the answer choices is correct.
a. less than the discount rate.
b. equal to the discount rate.
c. greater than the discount rate.
d. cannot be determined without more information.
e. None of the answer choices is correct.
a. a note below the statement of cash flows.
b. the investing activities section of the statement of cash flows.
c. the financing activities section of the statement of cash flows.
d. the operating activities section of the statement of cash flows.
e. None of the answer choices is correct.
a. $580,000
b. $420,000
c. $400,000
d. $600,000
e. None of the answer choices is correct.
a. Sandpaper.
b. Jet engines.
c. Inexpensive fasteners.
d. Cleaning supplies.
e. None of the above.
a. 3 year, 5 months.
b. 2 years, 5 months.
c. 2 years, 6 months.
d. 3 years, 6 months.
e. None of the answer choices is correct.
a. Salaries for the factory supervisors.
b. Salaries for sanding operators.
c. Salaries for production machine operators.
d. Salaries for staining and painting personnel.
e. None of the above.
a. $42,000
b. $78,000
c. $44,835
d. $60,000
e. None of the answer choices is correct.
a. an analysis of the benefits foregone when one alternative is selected over another.
b. an analysis of allocated fixed costs related to each product line.
c. an analysis of variable costs that are the same from one alternative course of action to another.
d. an analysis that looks at the difference in revenues and costs from one alternative course of action to another.
e. None of the answer choices is correct.
a. profit margin ratio.
b. return on assets.
c. market capitalization.
d. gross margin ratio.
e. None of the answer choices is correct.
a. Y = f – vX
b. Y = f + vX
c. Y = f + v + X
d. Y = fv + X
e. None of the answer choices is correct.
a. The standards are not likely to be achieved.
b. The standards allow for occasional downtime for equipment.
c. The standards reflect what really happens in the factory.
d. The standards motivate employees to achieve perfection.
e. None of the answer choices is correct.
a. net sales.
b. total assets.
c. total liabilities.
d. total long term liabilities.
e. None of the answer choices is correct.
a. $4.12
b. $4.26
c. $3.76
d. $4.00
e. None of the answer choices is correct.
a. cash.
b. equipment.
c. accounts payable.
d. accounts receivable.
e. None of the answer choices is correct.
a. The use of a higher discount rate would cause the net present value to be positive.
b. The guaranteed rate of return on the new purchase is 18%.
c. The net present value will be positive if the actual purchase price is less than $170,000.
d. The internal rate of return on the truck is negative.
e. None of the answer choices is correct.
a. Decentralization allows decisions to be made more quickly at the division level.
b. Managers at the division level might make decisions that are in their best interest even if the decision is not in the best interest of the company as a whole.
c. Decentralization allows top-level management at a corporate headquarters to work with division managers in making day-to-day decisions at the division level.
d. Decentralization allows for the duplication of administrative services.
e. None of the answer choices is correct.
a. $54,422
b. $72,945
c. $53,550
d. $63,000
e. None of the answer choices is correct.
a. percentage of damage-free goods.
b. percentage of on-time deliveries.
c. average collection period.
d. hours of employee training.
e. None of the answer choices is correct.
a. 110,250 units
b. 83,250 units
c. 96,750 units
d. 123,750 units
e. There is not enough information to answer this question.
a. $5,192
b. $4,438
c. $4,800
d. $4,416
e. None of the answer choices is correct.
a. This calculation only includes variable costs.
b. This measure is used to assign costs to units transferred out.
c. This measure always stays the same from one month to the next regardless of different levels of production.
d. The formula to calculate this measure uses total equivalent units accounted for divided by total costs to be accounted for.
e. None of the answer choices is correct.
a. overhead expenses rarely require cash payments.
b. overhead expenses only require cash payments for factory rent.
c. overhead expenses only require cash payments for indirect materials.
d. depreciation expense does not require a cash payment.
e. None of the answer choices is correct.
a. Both divisions will have the same ROI.
b. Division B will have a higher ROI.
c. Division A will have a higher ROI.
d. More information is needed to answer this question.
e. None of the answer choices is correct.
a. only direct materials and direct labor.
b. only direct materials and overhead.
c. only direct labor.
d. direct materials, direct labor, and overhead.
e. None of the answer choices is correct.
a. 58.4 days
b. 292.0 days
c. 73.0 days
d. 5.0 days
e. None of the answer choices is correct.
a. Direct labor.
b. Direct materials.
c. Actual manufacturing overhead incurred.
d. Manufacturing overhead applied.
e. None of the answer choices is correct.
a. An estimate of cash expenditures for long-term assets.
b. A short-term budget that focuses on the daily operations of the organization.
c. A series of budget schedules outlining the organization’s plans for the next three years.
d. An estimate of all operating costs other than production.
e. None of the answer choices is correct.
a. units completed.
b. units to account for.
c. units started.
d. total costs to account for.
e. None of the answer choices is correct.
a. Market capitalization will decrease.
b. Market capitalization will increase.
c. Market capitalization will stay the same.
d. Earnings per share will increase.
e. None of the answer choices is correct.
a. ABC cost information tends to be more accurate compared to traditional costing.
b. Managers can use ABC costing to improve efficiency.
c. ABC allows managers to make better product mix decisions.
d. ABC is typically expensive to implement.
e. None of the answer choices is correct.
a. maximizing the contribution margin per unit of constrained resource.
b. engineering the product to achieve the target cost.
c. designing a product that provides the features and price demanded by customers.
d. deriving the target cost by subtracting the desired profit.
e. None of the answer choices is correct.
a. No, because total fixed costs will increase by $2,000 and total sales will decline by $6,000 from this special order.
b. Yes, because they will make $6 per shirt from this special order.
c. Yes, because they will make $8 per shirt from this special order.
d. No, because they will lose $6 per shirt from this special order.
e. None of the answer choices is correct.
a. Are more accurate.
b. May result in poor decisions.
c. Mean that cost behavior patterns are accurate at all levels of activity.
d. Mean the cost estimates will be relevant.
e. None of the answer choices is correct.
a. Normal costing averages overhead costs and levels out overhead fluctuations that might occur from month to month.
b. Normal costing tracks actual direct materials, actual direct labor costs, and actual manufacturing overhead costs.
c. Normal costing simplifies recordkeeping.
d. Normal costing provides information for managers to quote customers the price of products based on estimated costs.
e. None of the answer choices is correct.
a. Intranet budgeting minimizes or eliminates the uploading of Excel spreadsheets.
b. Intranet budgeting saves input time.
c. Intranet budgeting provides real-time reports.
d. Intranet budgeting eliminates technology support.
e. None of the answer choices is correct.
a. 8.3%
b. 5.0%
c. 10.0%
d. 25.0%
e. None of the answer choices is correct.
a. Variable costs.
b. Opportunity costs.
c. Sunk costs.
d. Avoidable fixed costs.
e. None of the answer choices is correct.
a. $150,000
b. $120,000
c. $30,000
d. $270,000
e. None of the answer choices is correct.
a. 15,000 units
b. 97,500 units
c. 135,000 units
d. 52,500 units
e. None of the answer choices is correct.
a. $26.00
b. $37.40
c. $28.60
d. $34.00
e. None of the answer choices is correct.
a. 3,600
b. 6,000
c. 4,500
d. 18,000
e. None of the answer choices is correct.
a. in days, months, or years.
b. as a percent.
c. as a dollar amount.
d. in the same format as the required rate of return.
e. None of the answer choices is correct.
a. gross margin.
b. total assets.
c. net sales.
d. current assets.
e. None of the answer choices is correct.
a. less than the discount rate.
b. equal to the discount rate.
c. greater than the discount rate.
d. cannot be determined without more information.
a. units to be produced.
b. projected sales in units.
c. quantity of direct materials to be purchased.
d. quantity of desired direct materials ending inventory.
e. None of the answer choices is correct.
a. units to be produced.
b. direct labor cost per unit.
c. indirect labor cost per unit.
d. total fixed overhead costs.
e. None of the answer choices is correct.
a. attainable standards reflect what really happens in the factory.
b. attainable standards allow for occasional downtime for equipment.
c. attainable standards motivate employees to achieve perfection.
d. attainable standards recognize that some materials might have to be scrapped.
e. None of the answer choices is correct.
a. 0.40
b. 0.60
c. 2.50
d. 0.70
e. None of the answer choices is correct.