Which one of the following is true of the CVP income statement?;a. It is part of accounting information provided to all financial statement users.;b. It is used by internally by management.;c. It provides users the amount of gross profit of a company.;d. It will reflect the same net income as that reported on the traditional income statement.;Question 10;Faucet Company reported the following information for 2006;budgeted sales sept oct nov dec;$240,000 $310,000 $290,000 360,000;All sales are on credit;Costumers amonts on account are collected 50% in the month of sale and 50% the following month.;How much is the November 30, 2006 budgeted Accounts Receivable?;a. $300,000;b. $180,000;c. $155,000;d. $145,000;Question 11;What sources of information does a manufacturing company use to determine cost of goods sold?;a. Only the sales budget;b. Only the cost of purchases budget;c. The materials budget, the labor budgets and the overhead budgets;d. The sales and the cost of purchases budget;Question 12;What might an unfavorable price variance for direct materials indicate?;a. That the purchasing manager purchased too much inventory;b. That production scheduling problems were a problem;c. That the purchasing manager was unable to negotiate better prices during the period;d. That the supply in the market exceeded the demand of the materials;Question 13;What does the controllable variance measure?;a. Whether a company incurred more or less fixed overhead costs compared to the amount of overhead applied;b. Whether a company incurred more or less overhead costs than allowed;c. The efficiency of using variable overhead resources;d. Whether the production manager is able to control the production facility;Question 14;Choco Latte Shop can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $45 and takes three machine hours to make and Product B has a unit contribution margin of $32 and takes two machine hours to make. There are 1,200 machine hours available to manufacture a product. What should Choco Latte Shop do?;a. Make Product A which creates $13 more profit per unit than Product B does;b. Make Product B which creates $1 more profit per constraint than Product A does;c. Make Product B because more units can be made and sold than product A;d. The same total profits exists regardless of which product is made.;Question 15;Project A has a higher rate of return than Project B. Which statement is true about Project A?;a. It is more attractive than Project B.;b. It is less attractive than Project B.;c. It is less than the cost of capital.;d. It is higher than the hurdle rate.
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