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ACC561 ACC/561 FINAL EXAM

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Question;1) Performance reports _____.;A. ignore areas that are presumed to be running smoothly;B. provide feedback by comparing results with plans and by highlighting;deviations from plans;C. are deviations from a plan;D. are quantitative expressions of action plans;2) Budgets _____.;A. ignore areas that are presumed to be running smoothly;B. are deviations from a plan;C. are quantitative expressions of action plans;D. provide feedback by comparing results with plans and by highlighting;deviations from plans;3) According to the Financial Executives Institute, one function of the;treasurer is _____.;A. government reporting;B. reporting and interpreting financial information;C. Short term financing;D. tax administration;4) Which of the following is not a major factor causing changes in management;accounting today?;A. E-commerce is not a major factor.;B. Declining work ethic is not a major factor.;C. Increased global competition is not a major factor.;D. Increasing importance of the service sector of the economy is not a major;factor.;5) Below is a statement from the Institute of Management Accountants? Statement;of Ethical Professional Practice. ?Refrain from disclosing confidential;information acquired in the course of their work except when authorized, unless;legally obligated to do so.? It is an example of _____.;A. integrity;B. competence;C. confidentiality;D. objectivity;6) Ethical accountants are important to society because _____.;A. none of these answers is correct;B. they pay their taxes;C. the information produced is reliable;D. they will not go to prison and waste taxpayers? money;7) _____ refers to accounting information developed for managers within an;organization.;A. Tax accounting;B. Financial accounting;C. Managerial accounting;D. Internal auditing;8) The primary users of management accounting;information are _____.;A. suppliers;B. internal decision makers;C. governmental regulatory authorities;D. bankers;9) _____ is the field of accounting that develops information for external;decision makers such as stockholders, suppliers, banks, and government;regulatory agencies.;A. Financial accounting;B. Management accounting;C. Tax accounting;D. Auditing;10) The _____ is also called the statement of financial position.;A. balance sheet;B. income statement;C. statement of retained earnings;D. statement of cash flows;11) Any event that affects the financial position of an organization and;requires recording is called a(n)_____.;A. account;B. transaction;C. posting;D. accounting change;12) _____ would not appear on the financial statements for a sole;proprietorship.;A. Cost of Goods Sold;B. Paid-in Capital;C. Accumulated Depreciation;D. Unearned Sales Revenues;13) The accounting convention of _____ guides the relative sophistication of;the accounting system.;A. cost benefit;B. objectivity;C. Conservatism;D. materiality;14) Mr. Bryant invested $50,000 cash in a new corporation. The new corporation;will record this transaction with a debit to_____.;A. Cash and a credit to Retained Income for $50,000;B. Cash and a credit to Paid-in Capital for $50,000;C. Retained Earnings and a credit to Cash for $50,000;D. Paid-in Capital and a credit to Retained Earnings for $50,000;15) The accounting convention of _____ means selecting the method of;measurement that yields the gloomiest immediate results.;A. objectivity;B. conservatism;C. cost benefit;D. materiality;16) The statement of cash flows is used for all of the following except_____.;A. determining a company?s ability to pay its debts when they are due;B. evaluating the creditworthiness of the organization;C. showing the relationship of net income to changes in cash;D. revealing commitments that may restrict future courses of action;17) The Rebecca Company acquired merchandise inventory costing $10,000 on;September 1. The company will not pay for the inventory until October 1. This;transaction will affect the Rebecca Company by increasing the Merchandise;Inventory account by $10,000 and _____.;A. decreasing the Accounts Payable account by $10,000;B. decreasing the Capital account by $10,000;C. increasing the Accounts Payable account by $10,000;D. increasing the Capital account by $10,000;18) Nonoperating items on the income statement_____.;A. reflect the effects of financial management decisions;B. appear on the income statement immediately after gross profit;C. are revenues and expenses arising from adjusting entries;D. appear only on corporate income statements;19) Which value chain function would include depreciation on transportation cost?;A. The customer service function would include depreciation on transportation;cost.;B. The marketing function would include depreciation on transportation cost;C. The distribution function would include depreciation on transportation cost.;D. The production function would include depreciation on transportation cost.;20) Which value chain function would include advertising costs?;A. The customer service function would include advertising costs.;B. The production function would include advertising costs.;C. The distribution function would include advertising costs.;D. The marketing function would include advertising costs.;21) Which of the following is not a cost driver of customer services costs?;A. Travel costs are not a cost driver of customer services costs.;B. Number of service calls is not a cost driver of customer services costs.;C. Hours spent servicing products are not a cost driver of customer services;costs.;D. All of these answers are correct;22) Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs;per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for;direct labor. If total fixed costs are $435,000, then the break even volume in;dollars is _____.;A. $1,023,529;B. $621,429;C. $1,450,000;D. $435,000;23) If the sales price per unit is $100, the unit variable cost is $75, and;total fixed costs are $150,000, then the break even volume in dollar sales;rounded to the nearest whole dollar is _____.;A. $600,000;B. $150,000;C. $200,000;D. $1,500;24) Knothole Company sells desks at $480 per desk. The costs associated with;each desk are as follows;Direct materials $195;Direct labor 126;Variable factory overhead 51;Total fixed costs for the period are $456,840. The break-even volume in dollars;is _____.;A. $1,573,560;B. $2,030,400;C. $456,840;D. none of these answers is correct;25) _____ of approximating cost functions does not involve the analysis of past;costs.;A. Visual fit analysis;B. Engineering analysis;C. High low analysis;D. least-squares regression;26) Managers should apply two principles to obtain accurate and useful cost;functions. These principles are ____.;A. plausibility and reliability;B. reliability and validity;C. plausibility and believability;D. believability and validity;27) In relation to a cost function, the term reliability means_____.;A. whether the cost function conforms to a given mathematical model;B. how well the cost function predicts future costs;C. whether the costs and activities can be easily observed;D. how well the cost function explains past cost behavior;28) _____ is a name for a system that first accumulates overhead costs for each;of the activities of an organization, and then assigns the costs of activities;to the products, services, or other cost objects that caused that activity.;A. Cost driver accounting;B. Activity based costing;C. Transaction costing;D. Transaction based accounting;29) _____ need cost accounting systems.;A. Service organizations and nonprofit organizations;B. Manufacturing firms and service organizations;C. Manufacturing firms, service organizations, and nonprofit organizations;D. Manufacturing firms and nonprofit organizations;30) _____ is an example of the external financial reporting purpose of the cost;management systems.;A. The product mix to optimize profitability;B. The cost of a manufacturing process;C. Budget reporting;D. The amount of inventory that should appear on the balance sheet;31) A sales forecast is _____.;A. the result of decisions to create conditions;B. a prediction of sales under a given set of conditions;C. all of these answers are correct;D. the same as a sales budget that will generate a desired level of sales;32) _____ budgeting is when budgets are formulated with the active;participation of all affected employees;A. Team;B. Financial;C. Shared;D. Participative;33) A _____ gives the expected sales under a given set of conditions.;A. sales budget;B. sales prediction;C. sales forecast;D. budget forecast;34) Unit sales of Product A are currently 10,000, while unit sales of Product B;are double those of Product A. The com?pany?s sales forecast will be;assuming sales of Product A increase by 10% and those of Product B increase by;4,000 units.;A. 11,000 and 22,000 units, respectively;B. none of these answers is correct;C. 11,000 and 24,000 units, respectively;D. 10,000 and 20,000 units, respectively;35) The master budget includes forecasts for all of the following except _____.;A. number of employees;B. cash disbursements;C. balance sheets;D. sales;36) A sales forecast is _____.;A. the result of decisions to create conditions;B. all of these answers are correct;C. the same as a sales budget that will generate a desired level of sales;D. a prediction of sales under a given set of conditions;37) _____ are components of a master budget.;A. An operating budget and a financial budget;B. A cash budget and an activity budget;C. A continuous budget and a static budget;D. A strategic plan and an operating budget;38) Which of the following statements is false?;A. Flexible budgets are not based on the same revenue and cost behavior;assumptions as the static budget.;B. Flexible budgets are automatically matched to changes in activity levels;C. Flexible budgets are prepared for a range of activity.;D. Flexible budgets help provide a basis for management by exception.;39) The master budget quantifies targets for all of the following except _____.;A. production;B. cost driver activity;C. markets;D. sales;40) Cost allocation base refers to the _____.;A. total costs to be allocated;B. total allocated costs;C. cost objectives;D. cost driver;41) The preferred guidelines for allocating service department costs include;A. evaluating performance using allocated costs for each service department;B. establishing part or all of the details regarding cost allocation in advance;of rendering the service;C. allocating variable- and fixed-cost pools simultaneously;D. identifying the direct and indirect costs;42) _____ is not a type of cost allocation.;A. Reallocation of costs from service departments to production departments;B. Allocation of costs of a particular organizational unit to products or;services;C. Reallocation of costs from production departments to service departments;D. Allocation of costs to the appropriate organizational unit;43) Kevin Company has two service departments, Maintenance and Personnel, as;well as two production departments, Mixing and Finishing. Maintenance costs are;allocated based on square footage while personnel costs are allocated based on;number of employees. The following information has been gathered for the;current year;Maintenance Personnel Mixing Finishing;Direct dept. costs $126,000 $84,000 $105,000 $175,000;Square footage 800 400 1,600 1,200;Number of employees 8 12 24 32;If the step-down method of allocating costs is used and the Personnel;Department is allocated first, then the amount of overhead that would be;allocated from Personnel to Finishing is _____.;A. $72,000;B. $31,500;C. $105,000;D. $42,000;44) Murphy Company has two service departments, Maintenance and Personnel, as;well as two production departments, Mixing and Finishing. Maintenance costs are;allocated based on square footage while personnel costs are allocated based on;number of employees. The following information has been gathered for the;current year;Maintenance Personnel Mixing Finishing;Direct dept. costs $126,000 $84,000 $105,000 $175,000;Square footage 800 400 1,600 1,200;Number of employees 8 12 24 32;If the step-down method of allocating costs is used and the Personnel;Department is allocated first, then the amount of overhead that would be;allocated from Personnel to Mixing is _____.;A. $58,500;B. $63,000;C. $78,000;D. $31,500;45) Serena Company has two service departments, Maintenance and Personnel, as;well as two production departments, Mixing and Finishing. Maintenance costs are;allocated based on square footage while personnel costs are allocated based on;number of employees. The following information has been gathered for the;current year;Maintenance Personnel Mixing Finishing;Direct dept. costs $126,000 $84,000 $105,000 $175,000;Square footage 800 400 1,600 1,200;Number of employees 8 12 24 32;If the step-down method is used to allocate costs and the Maintenance;Department is allocated first, then the amount of overhead that would be;allocated from Maintenance to Finishing is _____.;A. $31,500;B. $57,000;C. $47,250;D. $42,750;46) When the variable costing method is used, fixed factory overhead appears on;the income statement as a_____.;A. fixed expense;B. production-volume variance;C. component of cost of goods sold and as a production-volume variance;D. component of cost of goods sold;47) _____ is (are) used for external reporting.;A. Absorption costing;B. Variable costing;C. Absorption costing and variable costing;D. Direct costing;48) In absorption costing, costs are separated into the major categories;of_____.;A. manufacturing and nonmanufacturing;B. manufacturing and fixed;C. variable and nonmanufacturing;D. fixed and variable;49) _____ is the first step in designing a;management control system.;A. Evaluating management?s performance;B. Establishing organizational goals;C. Distinguishing between profit centers and cost centers;D. Preparing financial statements;50) _____ is (are) the most basic component of a management control system.;A.The organization?s long-range budget;B.The organization?s goals;C.Top management?s preferences;D.The stockholder?s preferences;51) Identify which of the following is not a characteristic of a management;control system.;A.A management control system aids and coordinates the process of making;decisions.;B.A management control system encourages short term profitability.;C.A management control system coordinates forecasting sales and cost driver;activities, budgeting, and measuring and evaluating performance.;D.A management control system motivates individuals throughout the organization;to act in concert.;52) Jewel Company?s revenues are $300 and invested capital is $240. Expenses;are currently 60% of sales. Jewel Company?s current return on investment is;A. 50%;B. 100%;C. none of these answers are correct;D. 80%;53) The following information is available for the Peter Company;Sales $500,000;Invested Capital 312,500;ROI 10%;The return on sales is _____.;A. 10.000%;B. none of these answers is correct;C. 6.250%;D. 1.000%;54) The following information is available for the Peter Company;Sales $150,000;Invested Capital 156,250;ROI 10%;The return on sales is _____.;A. 10.00%;B. none of these answers is correct;C. 10.42%;D. 62.50%

 

Paper#37599 | Written in 18-Jul-2015

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