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charter oak acc102 full course [ all discussion all quizes midterm and final ]

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Question;Week 2 discussionThis week covers Chapter 16 of the text, getting to know the differences between Financial Accounting and Managerial Accounting and what exactly Management Accounting is.Please post at least 3 times per week, during 3 different days of the week beginning no later than Wednesday to receive the most credit. Please review the measurement criteria and grading rubric under Course Policies. Don't be afraid to respond and build off of one another as well.Week 3This week we will be looking at two cost accounting systems, Job Order Costing and Activity Based Costing (ABC) and how the overhead rate of producing something is calculated using each method.**Review the powerpoint presentation because it gives a step by step procedure on how to calculate the overhead rate using ABC as well as job order and is an excellent resource to get you through the chapter.Week 4This week we are adding one more cost system into the mix, process costing. You should understand the differences between job order and process costing, how to calculate equivalent units and how to track costs using a process costing production report.**When reviewing the powerpoint slides, I just want to point out that there are notes associated with each slide that give a more detailed explanation of each.After reading the chapter, please discuss with one another when a company would use process costing over job order costing. What factors should be taken into account in deciding whether or not to use job order or process costing in any given production situation?Week 6Contribution margin is that portion of revenue that contributes to fixed costs and (after covering the fixed costs) to operating income. All revenue except for the contribution margin is consumed by the variable costs relating to the revenue.Try and do the demonstration problem without looking at the answers, it pretty much breaks down the whole chapter for you. Have a great week!Week 9This week we look at Responsibility Accounting and Transfer Pricing. We all know that an income statement is used to measure profit performance of a business, now we need to determine the performance of each center (responsibility center) within the business.Week 10Welcome back to Week 10 of ACC 102. This week we will focus on Chapter 23 ? Operational Budgeting where you will learn how to prepare budgets/flexible budgets and supporting schedules included in a master budget. You will also examine how a company can be "profit rich, yet cash poor."Week 11Welcome back to Week 11 of ACC 102. This week we focus on Chapter 24 - Standard Cost Systems.You will learn about the different standards associated with cost control as well has how to compute the different variances and the corrective action to take if these costs are different then the standard cost.Have a great week!Week 13Welcome back to Week 13 of ACC 102.This week you will have focused on how to evaluate capital investment proposals using payback period, return on investment, and discounted cash flow.Have a great week!15 out of 5 points1. When goods are completed and come off the assembly lineAnswer? Question 25 out of 5 points2.Costs that are traceable to a particular unit and are inventoriable are calledAnswer? Question 35 out of 5 points3..Goods that are still in the production process would be in which account?Answer? Question 45 out of 5 points4. The salaries paid to employees working directly on a company's products would be shown as aAnswer? Question 55 out of 5 points5.Determine the amount of manufacturing overhead given the following information:a.Depreciation on a factory building$1,200b.Telephone expense in factory office375c.Telephone expense in sales showroom425d.Factory foreman?s salary2,500e.Maintenance for factory`400f.Maintenance for sales showroom340Answer? Question 60 out of 5 points6.The cost of the employee who computes total manufacturing costs would be considered:Answer? Question 75 out of 5 points7.Which of the following is not a period costs?Answer? Question 85 out of 5 points8.A product cost is deducted from revenue in the period in which:Answer? Question 90 out of 5 points9.The following information is available about the August transactions of the Ace Tool Co.:Invoices for product costs paid during the month.....................$415,000Product costs charged to work in process...............................620,000Cost of finished goods manufactured......................................604,000Cost of goods sold................................................................622,000The product costs to be deducted from revenue in August amount to:Answer? Question 100 out of 5 points10.When a manufacturing company purchases raw materials or component parts to be used in manufacturing finished goods, these costs are initially debited to:Answer? Question 110 out of 5 points11.The accountant for Complete Plumbing Equipment Company recently made a journal entry consisting of a debit to Work in Process and a credit to Materials Inventory. This entry recorded:Answer? Question 125 out of 5 points12.Direct labor costs in a paint factory would include wages of employees who:Answer? Question 135 out of 5 points13.Manufacturing overhead is best described as:Answer? Question 145 out of 5 points14.In the year-end financial statements, the Manufacturing Overhead account should have:Answer? Question 150 out of 5 points15.In a manufacturing company, the cost of finished goods manufactured is equal to:AnswerProcess cost systemsAnswer? Question 25 out of 5 points2. If 8000 units were in beginning inventory, 24,000 units were started and 6,000 units were in the ending inventory, how many units were completed and transferred out?Answer? Question 35 out of 5 points12. Refer to the above information. Allenby's projected August operations will require approximately 110,000 machine hours. Using the high-low method, compute total manufacturing overhead estimated for August.Answer? Question 130 out of 5 pointsAnswerResponse Feedback:WIP is debited for DM, DL and applied overhead (not actual)? Question 92 out of 2 points0 out of 4 points29. Which of the following should not be classified as a manufacturing cost?A) Indirect factory labor costs, such as salaries of plant security guards.B) Direct materials used in the production process.C) Utility bills related to factory operations.D) Commissions paid to salespeople.Answer? ls, direct labor, and overhead applicable to the packaging operation only.C) Costs transferred from the Work in Process Inventory: Mixing Department, as well as materials, direct labor, and overhead applicable to the packaging operation.D) Costs transferred to the Finished Goods Inventory.Answer? Question 404 out of 4 pointsUse the following to answer questions 39-40:Winter Brothers manufactures a single product using a process involving (1) mixing ingredients and (2) a subsequent packaging operation. Winter uses a process cost system to account for the flow of costs through its production process.40. Refer to the information above. In Winter's operation, the Finished Goods Inventory account is debited for:A) The cost of units transferred directly from the Mixing Department.B) The cost of units transferred directly from the Packaging Department.C) The cost of units transferred directly from both the Mixing Department and the Packaging Department.D) The cost of the units sold.Answer? Question 414 out of 4 points41. The primary objective of activity-based management is:A) To develop more accurate product costs.B) To reduce and eliminate non-value added activities.C) To increase product quality.D) To identify instances of internal failure.Answer? Question 424 out of 4 points42. Quality costs includeA) Costs to prevent poor quality from occurring.B) Costs of appraising and inspecting the product.C) Costs to correct problems before the customer receives the goods.D) All of the above.Answer? Question 434 out of 4 points43. Just-in-time manufacturing systems are also known as:A) Supply push systems.B) Supply pull systems.C) Demand push systems.D) Demand pull systems.Answer? Question 444 out of 4 points44. Four categories of costs associated with product quality are:A) External failure, internal failure, prevention, and carrying.B) External failure, internal failure, prevention, and appraisal.C) External failure, internal failure, training, and appraisal.D) Warranty, product liability, prevention, and training.Answer? Question 454 out of 4 points45. External failure costs includeA) Inspections of materials.B) Training.C) Rework.D) Warranty costs.Answer? Question 464 out of 4 pointsUse the following to answer questions 46-50:Noble Corporation manufactures a single product. The selling price is $60 per unit, and variable costs amount to $48 per unit. The fixed costs are $12,000 per month.46. Refer to the above information. What is the contribution margin ratio of Noble's product?A) 65%.B) 80%.C) 72%.D) 20%.Answer? Question 474 out of 4 pointsUse the following to answer questions 46-50:Noble Corporation manufactures a single product. The selling price is $60 per unit, and variable costs amount to $48 per unit. The fixed costs are $12,000 per month.47. Refer to the above information. What is the monthly sales volume in dollars necessary to break even?A) $60,000.B) $16,667.C) $18,462.D) $15,000.Answer? Question 484 out of 4 pointsUse the following to answer questions 46-50:Noble Corporation manufactures a single product. The selling price is $60 per unit, and variable costs amount to $48 per unit. The fixed costs are $12,000 per month.48. Refer to the above information. How many units must be sold each month to earn a monthly operating income of $5,000?A) 283.B) 1,417.C) 85,000.D) 354.Answer? Question 494 out of 4 pointsUse the following to answer questions 46-50:Noble Corporation manufactures a single product. The selling price is $60 per unit, and variable costs amount to $48 per unit. The fixed costs are $12,000 per month.49. Refer to the above information. What will be the monthly margin of safety (in dollars) if 1,500 units are sold each month?A) $60,000.B) $30,000.C) $ 9,000.D) $12,000.Answer? Question 504 out of 4 pointsUse the following to answer questions 46-50:Noble Corporation manufactures a single product. The selling price is $60 per unit, and variable costs amount to $48 per unit. The fixed costs are $12,000 per month.50. Refer to the above information. What will be Noble's monthly operating income if 1,500 units are sold each month?A) $78,000.B) $30,000.C) $18,000.D) $ 6,000.Answer1. Which of the following is not a valid reason for developing responsibility center information?Answer? Question 25 out of 5 points2. In evaluating the long-run contribution of a particular profit center to the overall profitability of the company, management should be most interested in the center?s:Answer? Question 35 out of 5 points3. Fixed costs of a department that a manager can't change are called:Answer? Question 45 out of 5 points4. Kenny's Deli is organized as an investment center with the following information available, what is the responsibility margin of the deli during the year?Sales - $220,000Variable Expenses - $100,000Traceable fixed costs - $56,000Average total assets - $95,000Answer? Question 55 out of 5 points5. One of the unique services provided by San Francisco's St. Francis Hotel is cleaning and polishing coins (pocket change) for the guests. From the standpoint of hotel management, this "money laundry" should be viewed as:Answer? Question 65 out of 5 points6. The primary difference between a cost center and profit center is that:Answer? Question 75 out of 5 points7. The bookstore or a University would be classified as:Answer? Question 85 out of 5 points8) The most common value used for transfer pricing is:Answer? Question 95 out of 5 points9. Which of the following is NOT true about responsibility centers?Answer? Question 105 out of 5 points10. Which of the following is NOT one of the basic steps in the operation of a responsibility accounting system?Answer? Question 115 out of 5 points11) Many companies view performance margin as a more useful tool than responsibility margin for evaluating segment managers. This is because:Answer? Question 125 out of 5 points12. If a company wanted to evaluate the manager's ability to control costs, the company would probably look at the:Answer? Question 135 out of 5 points13. Responsibility margin is equal to:Answer? Question 145 out of 5 points14. In preparing a responsibility income statement that shows contribution margin and responsibility margin, two concepts are involved in allocating costs to the various centers. These concepts are:Answer? Question 155 out of 5 pointsUse the following to answer question 15. You can also reference page963 Exhibit 22-4 in the text bookEntire Company Division 1 Division 2Sales $575,000 $400,000 $175,000Variable 247,500 (1) (2)-------- -------- --------CM $327,500 $ $Fixed 110,000 (3) (4)------- -------- ---------RM $217,500 (5) (6)11. Variable costs are (1) 40% of sales and (2) 50% of sales. Fixed costs traceable to divisions: (3) $40,000, and (4) $70,000. What is the division responsibility margin for the Division 2 (6)?Answer1. Accounting systems can generate motivation byAnswer? Question 26.25 out of 6.25 points2. In considering customer's needs, the balanced scorecard method will look atAnswer? Question 36.25 out of 6.25 points3. The set of activities necessary to create and distribute a desirable product or service to a customer is known as:Answer? Question 46.25 out of 6.25 points4. Residual income is calculated by:Answer? Question 56.25 out of 6.25 points5. The value chain usually starts with the _________ and ends with the ____________.Answer? Question 66.25 out of 6.25 points6. The measure(s) used by the financial perspective lens of the balanced score card is (are):Answer? Question 76.25 out of 6.25 points7. One of the strategies of the business process perspective lens of the balanced score card is to improve the quality of the manufacturing process.Which of the following is not one of the measures?Answer? Question 80 out of 6.25 pointsUse the following to answer questions 8-10:The following information regarding Ross, Inc. is available:Sales....................................................................................$2,000,000Cost of goods sold................................................................1,200,000Operating expenses..............................................................600,000Operating income.................................................................200,000Average invested capital.......................................................4,000,0008. Refer to the information above. What is the return on investment for Ross, Inc?Answer? Question 90 out of 6.25 points9. Refer to the information above. What is the return on sales for Ross, Inc.?Answer? Question 100 out of 6.25 points10. Refer to the information above. What is the capital turnover for Ross, Inc.?Answer? Question 116.25 out of 6.25 points11. Lacy Stores has sales of $1,640,000, cost of sales of$680,000, and operating expenses of $304,000. What is Lacy's return on sales?Answer? Question 126.25 out of 6.25 points12. Calculate the residual income assuming the following information:Operating earnings.$300,000Minimum acceptable return.15%Invested capital.1,500,000Answerfinaluestion 11.1.1. Accepting a special order is profitable whenever the revenue from the special order exceeds:A) The average unit cost of production multiplied by the number of units in the order.B) The incremental cost of producing the order.C) The materials and direct labor costs of producing the order.D) The fixed manufacturing costs for the period.AnswerABCD4 pointsQuestion 21.2. Which of the following would be an example of a sunk cost?A) The cost of a new oil burner that replaced a destroyed one.B) The cost of an old inefficient oil burner that will be replaced by a more modern and efficient one.C) Depreciation expense.D) Lost revenue from a bad debt.AnswerABCD4 pointsQuestion 31.3. Hardware Hut manufactured 100 personal computers at a cost of $55,000. It can sell them as is for $90,000 or install hard disks in them and sell them for $130,000. The $55,000 original manufacturing cost is:A) An out-of-pocket cost because it has already been paid.B) A sunk cost because it is not relevant to the decision.C) An incremental cost because it is relevant to the decision.D) A fixed cost because it will remain the same no matter which action isAnswerABCD4 pointsQuestion 41.Use the following to answer question 4:Louis Industries normally produces and sells 5,000 keyboards for personal computers each month. Variable manufacturing costs amount to $24 per unit, and fixed costs are $144,000 per month. The regular sales price of the keyboards is $85 per unit. Louis has been approached by a foreign company that wants to purchase an additional 1,000 keyboards per month at a reduced price. Filling this special order would not affect Louis's regular sales volume or fixed manufacturing costs.4. Refer to the information above. Assume that the price offered by the foreign company is $42 per unit. Accepting the special order will cause Louis's operating income to:A) Increase by $18,000.B) Decrease by $2,000.C) Decrease by $33,000.D) Decrease by $35,000.AnswerABCD4 pointsQuestion 51.5. An example of a revenue center isA) The accounting department in a manufacturing companyB) The maintenance department of a universityC) The furniture department of a retail department storeD) The human resources department in a hospitalAnswerABCD4 pointsQuestion 61.Use the following to answer questions 6-7:Tap's Department Store prepares monthly income statements by sales departments. These income statements are organized to show contribution margin, performance margin, and responsibility margin for each sales department, as well as operating income for the store as a whole.6. Refer to the information above. The monthly salaries of the employees of the store's Accounting Department should be classified as a:A) Common fixed cost.B) Traceable fixed cost.C) Committed fixed cost.D) Controllable fixed cost.AnswerABCD4 pointsQuestion 71.Use the following to answer questions 6-7:Tap's Department Store prepares monthly income statements by sales departments. These income statements are organized to show contribution margin, performance margin, and responsibility margin for each sales department, as well as operating income for the store as a whole.7. Refer to the information above. Depreciation of the fixtures and equipment used exclusively in a particular sales department should be classified as a:A) Common fixed cost.B) Variable cost.C) Controllable fixed cost.D) Committed fixed cost.AnswerABCD4 pointsQuestion 81.8. Flexible budgeting may be used for profit centers by applying cost-volume-profit relationships to the actual level of:A) Units produced.B) Resources consumed.C) Costs incurred.D) Sales achieved.AnswerABCD4 pointsQuestion 91.9. Skyways, Inc. uses a flexible budget. Skyways produced 15,000 units in May incurring direct materials cost of $19,200. Its master budget for the year projected direct materials cost of $360,000, at a production volume of 288,000 units. A flexible budget for May should reflect direct materials cost of:A) $19,200.B) $18,750.C) $21,000.D) $18,150.AnswerABCD4 pointsQuestion 101.10. If the standard quantity of materials is 79,200 units @ $0.15 per unit and the actual quantity is 90,000 units @ $0.12 per unit then the total materials cost variance isA) 2,700 FavorableB) 1,620 UnfavorableC) 1,080 FavorableD) 2,700 UnfavorableAnswerABCD4 pointsQuestion 111.11. Excessive overtime hours worked by direct labor workers often results in:A) An unfavorable labor rate variance.B) A favorable labor rate variance.C) A favorable materials price variance.D) An unfavorable materials price variance.AnswerABCD4 pointsQuestion 121.12. A labor efficiency (usage) variance is most likely to occur if:A) Employees are paid at an overtime wage rate.B) Employees are inefficient and units must be reworked.C) Labor cost per unit exceeds materials costs per unit.D) Employee turnover rates are low.AnswerABCD4 pointsQuestion 131.13. Residual income can be defined asA) That income left over after dividends are paid outB) Operating earnings minus return on investmentC) Operating earnings minus a minimum acceptable returnD) Operating earnings minus a minimum acceptable return times invested capitalAnswerABCD4 pointsQuestion 141.14. Lacy Stores has sales of $1,640,000, cost of sales of$680,000, and operating expenses of $304,000. What is Lacy's return on sales?A) 58.5%.B) 41.5%.C) 60%.D) 40%.AnswerABCD4 pointsQuestion 151.Use the following to answer questions 15-17:The following information regarding Winn, Inc. is available:Sales.$1,600,000Cost of goods sold.700,000Operating expenses.500,000Operating income.400,000Average invested capital.2,500,00015. Refer to the information above. What is the return on investment for Winn, Inc?A) 64%.B) 25%.C) 16%.D) 8%.AnswerABCD4 pointsQuestion 161.Use the following to answer questions 15-17:The following information regarding Winn, Inc. is available:Sales.$1,600,000Cost of goods sold.700,000Operating expenses.500,000Operating income.400,000Average invested capital.2,500,00016. Refer to the information above. What is the return on sales for Winn, Inc.?A) 16%.B) 25%.C) 48%.D) 60%.AnswerABCD4 pointsQuestion 171.Use the following to answer questions 15-17:The following information regarding Winn, Inc. is available:Sales.$1,600,000Cost of goods sold.700,000Operating expenses.500,000Operating income.400,000Average invested capital.2,500,00017. Refer to the information above. What is the capital turnover for Winn, Inc.?A) 32%.B) 48%.C) 64%.D) 84%.AnswerABCD4 pointsQuestion 181.18. Calculate the residual income assuming the following information:Operating earnings.$300,000Minimum acceptable return.15%Invested capital.1,500,000A) $225,000.B) $100,000.C) $75,000.D) $45,000.AnswerABCD4 pointsQuestion 191.19. When using the net present value method for evaluating an investment, an increase in the required rate of return will:A) Make it more difficult to accept the investment.B) Make it less difficult to accept the investment.C) Not effect the decision if the length of the investment's benefits remain constant.D) Not be a consideration because it is not used in the net present value method.AnswerABCD4 pointsQuestion 201.20. Hempstead Corporation is considering the purchase of new equipment costing initially $74,000. The equipment has an estimated life of 6 years with no salvage value. Straight-line depreciation is to be used. Net annual after tax cash flow is estimated to be $24,000 for 6 years. The payback period is:A) 1.2300 years.B) 3.0833 years.C) 5.0799 years.D) 6.0000 years.AnswerABCD4 pointsQuestion 211.21. An investment cost $60,000 with no salvage value, a 5 year useful life and had an expected annual increase in net income of $5,000. Straight line depreciation is used. What is the expected rate of return on this investment?A) 2.8%B) 20%C) 8.3%D) 10.4%AnswerABCD4 pointsQuestion 221.22. A machine cost $44,000 and had a useful life of 4 years and a residual value of $8,000. What is the net present value of the machine if the annual cash flow is $16,000 and the company uses a discount rate of 10%. The annuity table shows the present value of $1 at 10% for 4 years is 0.683. The present value of an ordinary annuity of $1 discounted at 10% for 4 years is 3.170.A) $56,184B) $50,720C) $12,184D) ($7,712)AnswerABCD4 pointsQuestion 231.23. An unfavorable overhead volume variance results from:AnswerA) An unfavorable overhead spending varianceB) Poor decisions made by the production manager.C) Producing at levels of output which exceed normal output levelsD) Producing at levels of output which fall short of normal output levels4 pointsQuestion 241.24. Standard costs:AnswerA) Are the same for all companies in a given industryB) Are the costs that should be incurred to produce a product under normal conditions.C) May be used in job order cost systems but not in process cost accounting systemsD) Should be revised upward when actual costs are higher then expected because of waste and inefficiency.4 pointsQuestion 251.25. If the actual amount of direct materials used in production was less than the standard amount allowed for units produced, there was:AnswerA) A favorable materials price varianceB) A unfavorable total materials varianceC) An unfavorable materials quantity varianceD) A favorable materials quantity variance4 pointsQuestion 261.26. The term "out of pocket cost" is often used to describe costs which have not yet been incurred and which may vary among alternative courses of action>Answer True False2 pointsQuestion 271.27. In determining whether to scrap or to rebuild defective units of product, the cost already incurred in producing the defective units is not relevant.Answer True False2 pointsQuestion 281.28. Products resulting from a shared manufacturing process are referred to as complimentary products.Answer True False2 pointsQuestion 291.29. Incremental analysis rarely requires the decision maker to exercise judgment.Answer True False2 pointsQuestion 301.30. Opportunity costs refer to benefits actually obtained by deciding to pursue alternative courses of action.Answer True False2 pointsQuestion 311.31. Profit centers generate revenues and expenses.Answer True False2 pointsQuestion 321.32. Responsibility margin is useful in evaluating the consequences of short-run marketing strategies, while contribution margin is more useful in evaluating long - term profitability.Answer True False2 pointsQuestion 331.33. The responsibility margin is the contribution margin less common fixed costs.Answer True False2 pointsQuestion 341.34. In an income statement segmented by sales departments, salaries to departmental salespeople would be an example of "common" fixed cost.Answer True False2 pointsQuestion 351.35. Return on assets and residual income are two commonly used measures of an investment cost center's performance.Answer True False2 pointsQuestion 361.36. The typical starting point of a master budget would be to prepare a budgeted balance sheet.Answer True False2 pointsQuestion 371.37. A debt service budget summarizes cash payments required for interest, and includes those required to pay down the principal.Answer True False2 pointsQuestion 381.38. Flexible budgeting may be viewed as combining the concepts of budgeting with cost-volume-profit analysis.Answer True False2 pointsQuestion 391.39. A favorable variance occurs when actual costs are less than standard costs.Answer True False2 pointsQuestion 401.40. A standard cost is the per unit cost actually incurred under normal operating conditions.Answer True False2 pointsQuestion 411.41. Return on investment (ROI) tells us how much earnings can be expected for the average invested dollar.Answer True False2 pointsQuestion 421.42. The balance scorecard approach attempts to measure whether an organization is meeting its strategic goals.Answer True False2 pointsQuestion 431.43. Operating earnings rather than net income is used to compute return on sales.Answer True False2 pointsQuestion 441.44. The value chain starts with the supplier and ends with the consumer.Answer True False2 pointsQuestion 451.45. Capital investment refers to large expenditures to purchase plant assets. develop new products, or sell more company stock.Answer True False2 pointsQuestion 461.46. The present value of a future cash flow is the amount you would pay today for the right to receive the future amount.Answer True False2 pointsQuestion 471.47. In selecting among alternative investment opportunities, the investment with the shortest payback period is the most desirable alternative?Answer True False2 pointsQuestion 481.48. When straight line depreciation is used, the average carrying value of an asset with no salvage value is equal to the asset's original cost divided by its estimated useful life.Answer True False2 pointsQuestion 491.49. The recognition of depreciation expense often causes the annual net income of an investment to be less than the amount of its annual net cash flows.Answer True False2 pointsQuestion 501.50. To determine the average investment over the life of an asset, divide the total depreciation of the investment by two.Answer True False

 

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