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ACC 560 FINAL EXAM

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Question;1) According to the;Financial Executives Institute, one function of controllership is _____.;A.short term financing;B. reporting and interpreting financial information;C.investments;D.provision of capital;2) Performance reports;A. provide feedback by comparing results with plans and by highlighting;deviations from plans;B.ignore areas that are presumed to be running smoothly;C.are quantitative expressions of action plans;D.are deviations from a plan;3) Budgets _____.;A.provide feedback by comparing results with plans and by highlighting;deviations from plans;B.ignore areas that are presumed to be running smoothly;C. are quantitative expressions of action plans;D.are deviations from a plan;4) Ethical accountants;are important to society because _____.;A. the information produced is reliable;B.none of these answers is correct;C.they pay their taxes;D.they will not go to prison and waste taxpayers? money;5) According to the;Institute of Management Accountants? Statement of Ethical Professional;Practice, the standard of competence includes;A.avoiding actual or apparent conflicts of interest;B.All of these answers are correct;C. the ongoing development of the accountant?s knowledge and skills;D.disclosing all relevant information;6) According to the;Institute of Management Accountants? Statement of Ethical Professional;Practice, the standard of objectivity includes _____.;A.all of these answers are correct;B.disclosing all relevant information;C.avoiding actual or apparent conflicts of interest;D. the ongoing development of the accountant?s knowledge and skills;7) Which scorecard;function is associated with making non-routine decisions?;A. None of these answers is correct;B. Problem solving is associated with making non-routine decisions.;C.Attention directing is associated with making non-routine decisions.;D.Scorekeeping is associated with making non-routine decisions.;8) _____ 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;9) Launching a new;product line is an example of _____.;A.organization;B.controlling;C.planning;D. decision making;10) The _____ is also;called the statement of financial position.;A.statement of cash flows;B.statement of retained earnings;C. balance sheet;D.income statement;11) The accrual basis of;accounting recognizes the impact of transactions on the financial statements in;the period when _____.;A.the accounting equation is decreased;B.the transaction occurs;C.cash is received or disbursed;D. revenues are earned and expenses are incurred;12) The _____ is not one;of the three major financial statements.;A. statement of equity position;B.balance sheet;C.income statement;D.statement of cash flows;13) The use of;acquisition cost less depreciation in valuing an asset on the balance sheet is;the logical result of the _____ accounting convention.;A.materiality;B. cost-benefit;C.conservatism;D. continuity;14) The accounting;convention of _____ guides the relative sophistication of the accounting;system.;A materiality;B.conservatism;C. cost benefit;D.objectivity;15) The accounting;convention of _____ means selecting the method of measurement that yields the;gloomiest immediate results.;A. conservatism;B.materiality;C.objectivity;D.cost benefit;16) The statement of;cash flows is used for all of the following except_____.;A.evaluating the creditworthiness of the organization;B. revealing commitments that may restrict future courses of action;C.determining a company?s ability to pay its debts when they are due;D.showing the relationship of net income to changes in cash;17) The difference;between a single and multiple step income statement is that a single step;income statement_____.;A.shows only one year?s net income, whereas a multiple step income statement;shows multiple years? net income;B.calculates gross profit and operating income, whereas a multiple step income;statement does not;C.calculates net income using one method, whereas a multiple step income;statement calculates net income under two or more methods;D. groups all revenues together and all expenses together, whereas a multiple;step income statement separates certain revenues and expenses from each other;and presents subtotals;18) Sylvester Company;requires clients to pay in advance for legal services. One such client made a;$4,000 payment on May 1, and Sylvester Company recorded this transaction in the;appropriate liability account. As of May 20, the legal services that the client;requested had been completed. The May 20 accounting entry will;A. decrease liabilities and increase revenues;B. increase revenues and increase liabilities;C.decrease assets and decrease liabilities;D.decrease assets and increase revenues;19) Output measures of;both resources and activities are _____.;A.variable activities;B.fixed activities;C.stages of production;D. cost drivers;20) 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. All of these answers are correct;C.Number of service calls is not a cost driver of customer services costs.;D.Hours spent servicing products are not a cost driver of customer services;costs.;21) Which value chain;function would include the cost of computer-aided design equipment and cost to;develop the prototype of a product?;A. The design of product, services, and processes function would include these;costs.;B.The marketing function would include these costs;C.The production function would include these costs.;D. The distribution function would include these costs.;22) Walnut Corporation;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 contribution margin per desk;is _____.;A. $108;B.$126;C.$51;D.$195;23) 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. $435,000;C. $621,429;D. $1,450,000;24) 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;25) _____ of;approximating cost functions does not involve the analysis of past costs.;A. Visual fit analysis;B. least-squares regression;C. Engineering analysis;D. High low analysis;26) 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 explains past cost behavior;C. how well the cost function predicts future costs;D. whether the costs and activities can be easily observed;27) The _____ method of;measuring cost functions is the least reliable.;A. visual fit;B. multiple least squares regression;C. simple least squares regression;D. high low;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. Transaction costing;C. Transaction based accounting;D. Activity based costing;29) The change from;traditional costing to activity-based costing may reveal that _____.;A. low volume products are overcosted;B. both high and low volume products are undercosted;C. both high and low volume products are overcosted;D. high volume products are overcosted;30) _____ is an example;of the external financial reporting purpose of the cost management systems.;A.The product mix to optimize profitability;B.All of these answers are correct;C. The amount of inventory that should appear on the balance sheet;D. The cost of a manufacturing process;31) _____ models are;mathematical models of the master budget that can react to any set of;assumption about sales, costs, and product mix.;A. Financial planning;B.Futuring;C.Accounting;D. Budgeting analysis;32) Budgets generate;negative feelings if they are _____.;A.used primarily to limit spending;B. used to point out managers? failings and used primarily to limit spending;C. congruent with rewards;D. used to point out managers? failings;33) _____ budgeting is;when budgets are formulated with the active participation of all affected;employees;A. Team;B.Shared;C. Participative;D. Financial;34) Important factors;considered by sales forecasters include all of the following except _____.;A.marketing research studies;B. the desired level of sales;C.competitors? activities;D.past patterns of sales;35) A _____ gives the;expected sales under a given set of conditions.;A.sales budget;B. sales forecast;C.budget forecast;D. sales prediction;36) The master budget;includes forecasts for all of the following except _____.;A.cash disbursements;B.balance sheets;C.sales;D. number of employees;37) _____ are components;of a master budget.;A. A cash budget and an activity budget;B.A continuous budget and a static budget;C.A strategic plan and an operating budget;D. An operating budget and a financial budget;38) The master budget;quantifies targets for all of the following except _____.;A. cost driver activity;B.markets;C.sales;D.production;39) Differences between;the static budget and the flexible budget are due to _____.;A. actual activity differing from expected activity levels;B.a combination of price and material variances;C.problems of cost control;D.poor usage of material and labor;40) Costs are allocated;for all the following purposes except to _____.;A.compute income and asset valuation;B. determine inventory levels;C.predict the economic effects of planning and control decisions;D.obtain reimbursement;41) The use of budgeted;service department cost rates protects using departments from _____.;A.all of these answers are correct;B. service outages;C.service department efficiencies;D. price fluctuations;42) Cost allocation base;refers to the _____.;A.cost objectives;B.total allocated costs;C. cost driver;D.total costs to be allocated;43) 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;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.$78,000;B.$63,000;C. $31,500;D.$58,500;44) 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;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. $47,250;B.$57,000;C.$42,750;D.$31,500;45) Gomez 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 _____.;If the step-down method;is used to allocate costs and the Maintenance Department is allocated first;the amount of overhead that would be allocated from Maintenance to Mixing is;A. $36,000;B. $42,750;C.$42,000;D. $63,000;46) In absorption;costing, costs are separated into the major categories of_____.;A.variable and nonmanufacturing;B.fixed and variable;C. manufacturing and nonmanufacturing;D.manufacturing and fixed;47) _____ is another;term for variable costing.;A. Absorption costing;B.Traditional costing;C.Full costing;D. Direct costing;48) When the variable;costing method is used, fixed factory overhead appears on the income statement;as a_____.;A.component of cost of goods sold and as a production-volume variance;B.production-volume variance;C.component of cost of goods sold;D. fixed expense;49) _____ is the first;step in designing a management control system.;A. Preparing financial statements;B. Establishing organizational goals;C. Distinguishing between profit centers and cost centers;D. Evaluating management?s performance;50) _____ is (are) the;most basic component of a management control system.;A. The stockholder?s preferences;B. The organization?s goals;C. Top management?s preferences;D. The organization?s long-range budget;51) Identify which of;the following is not a characteristic of a management control system.;A. A management control system motivates individuals throughout the;organization to act in concert.;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 aids and coordinates the process of making;decisions.;52) The following;information is available for the Peter Company;Sales $500,000;Invested Capital 312,500;ROI 10%;The return on sales is _____.;A. 1.000%;B. 6.250%;C. none of these answers is correct;D. 10.000%;53) _____ is a measure;of income or profit divided by the investment required to obtain that income or;profit.;A. Return on investment;B. Capital turnover;C. Residual income;D. Return on sales;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. 62.50%;D. 10.42%

 

Paper#37627 | Written in 18-Jul-2015

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