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Question;41.;Organic Laboratories;allocates research and development costs to its three research facilities based;on each facility's total annual revenue from new product developments;Using revenue as;an allocation base, the amount of costs allocated to the Kentucky research;facility is calculated to be;A.;$24,000,000.;B.;$18,000,000.;C.;$9,000,000.;D.;$14,000,000.;E.;$26,000,000.;42.;Organic Laboratories;allocates research and development costs to its three research facilities based;on each facility's total annual revenue from new product developments;Using revenue as;an allocation base, the amount of costs allocated to the Arizona research;facility is calculated to be;A.;$25,000,000.;B.;$31,000,000.;C.;$44,000,000.;D.;$19,000,000.;E.;$36,000,000.;43.;Organic Laboratories;allocates research and development costs to its three research facilities based;on each facility's total annual revenue from new product developments;Using revenue as;an allocation base, the amount of costs allocated to the Illinois research;facility is calculated to be;A.;$17,000,000.;B.;$33,000,000.;C.;$14,000,000.;D.;$28,000,000.;E.;$21,000,000.;44.;Todweed Academy allocates marketing and administrative costs to its three;schools based on total annual tuition revenue for the schools;Using revenue as;an allocation base, the amount of costs allocated to the Lower School is;calculated to be;A.;$240,000.;B.;$320,000.;C.;$400,000.;D.;$480,000.;E.;$600,000.;45.;Todweed Academy allocates marketing and administrative costs to its three;schools based on total annual tuition revenue for the schools;Using revenue as;an allocation base, the amount of costs allocated to the Middle School is;calculated to be;A.;$240,000.;B.;$320,000.;C.;$400,000.;D.;$480,000.;E.;$600,000.;46.;Todweed Academy allocates marketing and administrative costs to its three;schools based on total annual tuition revenue for the schools;Using revenue as;an allocation base, the amount of costs allocated to the Upper School is;calculated to be;A.;$240,000.;B.;$360,000.;C.;$400,000.;D.;$480,000.;E.;$600,000.;47.;Pane Inc. manufactures;hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in;both 2009 and 2010 was 3,000 units. There was no beginning inventory in 2009.;The following data summarized the 2009 and 2010 operations;Full costing;operating income for 2009 is calculated to be;A.;$935.;B.;$1,150.;C.;$1,200.;D.;$1,352.;E.;$1,395.;48.;Pane Inc. manufactures;hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in;both 2009 and 2010 was 3,000 units. There was no beginning inventory in 2009.;The following data summarized the 2009 and 2010 operations;Full costing;operating income for 2010 is calculated to be;A.;$935.;B.;$1,150.;C.;$1,200.;D.;$1,352.;E.;$1,395.;49.;Pane Inc. manufactures;hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in;both 2009 and 2010 was 3,000 units. There was no beginning inventory in 2009.;The following data summarized the 2009 and 2010 operations;Variable costing;operating income for 2009 is calculated to be;A.;$935.;B.;$1,150.;C.;$1,200.;D.;$1,352.;E.;$1,395.;50.Pane;Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit.;Budgeted production in both 2009 and 2010 was 3,000 units. There was no;beginning inventory in 2009. The following data summarized the 2009 and 2010;operations;Variable;costing operating income for 2010 is calculated to be;A.;$935.;B.;$1,150.;C.;$1,200.;D.;$1,352.;E.;$1,395.;51.;WriterOne Inc.;manufactures ball point pens that sell at wholesale for $0.80 per unit.;Budgeted production in both 2009 and 2010 was 8,000 units. There was no;beginning inventory in 2009. The following data summarized the 2009 and 2010;operations;Full costing;operating income for 2009 is calculated to be;A.;$149.;B.;$430.;C.;$655.;D.;$1,030.;E.;$1,180.;52.;WriterOne Inc.;manufactures ball point pens that sell at wholesale for $0.80 per unit.;Budgeted production in both 2009 and 2010 was 8,000 units. There was no;beginning inventory in 2009. The following data summarized the 2009 and 2010;operations;Full costing;operating income for 2010 is calculated to be;A.;$149.;B.;$430.;C.;$655.;D.;$1,030.;E.;$1,180.;53.;WriterOne Inc.;manufactures ball point pens that sell at wholesale for $0.80 per unit.;Budgeted production in both 2009 and 2010 was 8,000 units. There was no;beginning inventory in 2009. The following data summarized the 2009 and 2010;operations;Variable costing;operating income for 2009 is calculated to be;A.;$149.;B.;$430.;C.;$655.;D.;$1,030.;E.;$1,180.;54.;WriterOne Inc.;manufactures ball point pens that sell at wholesale for $0.80 per unit.;Budgeted production in both 2009 and 2010 was 8,000 units. There was no;beginning inventory in 2009. The following data summarized the 2009 and 2010;operations;Variable costing;operating income for 2010 is calculated to be;A.;$149.;B.;$430.;C.;$655.;D.;$1,030.;E.;$1,180.;55.;The value stream income statement can be compared to;A.;Value chain analysis.;B.;The contribution income;statement.;C.;A streamlined production;process.;D.;A streamlined accounting;system.;56.;The six steps Ittner and;Larcker propose for maximizing the value of nonfinancial measures when using a;balanced scorecard include all the following except;A.;Continually refine the model.;B.;Assess outcomes.;C.;Gather data.;D.;Base actions on the;data.;E.;Base actions on the;findings.;57.;The balanced scorecard is particularly important in difficult economic times;because;A.;Financial measures are even more;important.;B.;Nonfinancial measures;are even more important.;C.;Financial measures may;be distorted.;D.;Nonfinancial measures;may be distorted.;58.;The value stream income statement provides the following information not usually;contained in the contribution income statement;A.;Contribution by CPC.;B.;Contribution by profit;center.;C.;A separate accounting;for the effect of inventory change on profit.;D.;A separate accounting;for the effect of productivity change on profit.;59. Tokless;Inc. planned and manufactured 400,000 units of its single product in 2010, its;first year of operations. Variable manufacturing costs were $50 per unit of;production. Planned and fixed manufacturing costs were $800,000. Marketing and;administrative costs (all fixed) were $600,000 in 2010. Tokless Inc. sold;195,000 units of product in 2010 at $65 per unit. Sales for 2010 are calculated;to be;A.;$9,750,000.;B.;$12,675,000.;C.;$13,000,000.;D.;$13,900,000.;E.;$20,000,000.;60. Tokless;Inc. planned and manufactured 400,000 units of its single product in 2010, its;first year of operations. Variable manufacturing costs were $50 per unit of;production. Planned and fixed manufacturing costs were $800,000. Marketing and;administrative costs (all fixed) were $600,000 in 2010. Tokless Inc. sold;195,000 units of product in 2010 at $65 per unit. Full costing operating income;for 2010 is calculated to be;A.;$1,525,000.;B.;$1,850,000.;C.;$1,935,000.;D.;$2,260,000.;E.;$2,750,000.;61. Tokless;Inc. planned and manufactured 400,000 units of its single product in 2010, its;first year of operations. Variable manufacturing costs were $50 per unit of;production. Planned and fixed manufacturing costs were $800,000. Marketing and;administrative costs (all fixed) were $600,000 in 2010. Tokless Inc. sold;195,000 units of product in 2010 at $65 per unit. Variable costing operating;income for 2010 is calculated to be;A.;$1,525,000.;B.;$1,850,000.;C.;$1,935,000.;D.;$2,260,000.;E.;$2,750,000.;62.;Profit center income statements are most meaningful to managers when they are;prepared;A.;On a full cost basis.;B.;On a cost behavior;basis.;C.;On a cash basis.;D.;In a single-step format.;E.;In a multiple-step;format.;63. A;unit of an organization is referred to as a profit center if it has;A.;Authority to make decisions affecting;the major determinants of profit, including the power to choose its markets and;sources of supply.;B.;Authority to make;decisions affecting the major determinants of profit, including the power to;choose its markets and sources of supply and significant control over the;amount of invested capital.;C.;Authority to make;decisions over the most significant costs of operations, including the power to;choose the sources of supply.;D.;Authority to provide;specialized support to other units within the organization.;E.;Responsibility for;combining material, labor, and other factors of production into a final output.;64.;A unit of an organization is referred to as an investment center if it has;A.;Authority to make decisions affecting;the major determinants of profit, including the power to choose its markets and;sources of supply.;B. Authority;to make decisions affecting the major determinants of profit, including the;power to choose its markets and sources of supply and significant control over;the amount of invested capital.;C.;Authority to make;decisions over the most significant costs of operations, including the power to;choose the sources of supply.;D.;Authority to provide;specialized support to other units within the organization.;E.;Responsibility for;developing markets for and selling the output of the organization.;65.;Of most relevance in deciding how or which costs should be assigned to an SBU;is the degree of;A.;Avoidability.;B.;Causality.;C.;Controllability.;D.;Reliability.;66. A;significant problem in comparing profitability measures among companies is the;A.;Lack of general agreement over which;profitability measure is best.;B.;Differences in the size;of the companies.;C.;Differences in the;accounting methods used by the companies.;D.;Differences in the;dividend policies of the companies.;E.;Effect of interest rates;on net income.;67.;The most important objective of a strategic performance measurement system is;A.;Budgeting.;B.;Motivation.;C.;Authority.;D.;Variances.;E.;Pricing.;68.;What costs are treated as product costs under variable costing?;A.;Only variable costs.;B.;Only variable production;costs.;C.;All variable costs.;D.;All variable and fixed;manufacturing costs.;69.;Inventory under the variable costing method includes;A.;Direct materials cost, direct labor;cost, but no factory overhead cost.;B.;Direct materials cost;direct labor cost, and variable factory overhead cost.;C.;Prime cost but not;conversion cost.;D.;Prime cost and all;conversion cost.;70.;In an income statement prepared using the variable costing method, which of the;following terms should appear?;A.;A;B.;B;C.;C;D.;D;71.;Other things being equal, income computed by the variable costing method will;exceed that computed by the full costing method if;A.;Units produced exceed units sold.;B.;Units sold exceed units;produced.;C.;Fixed manufacturing;costs increase.;D.;Variable manufacturing;costs increase.;72. Home;Products Inc has failed to reach its planned activity level during its first;two years of operation. The following table shows the relationship between;units produced, sales, and normal activity for these years and the projected;relationship for Year 3. All prices and costs have remained the same for the;last two years and are expected to do so in Year 3. Income has been positive in;both Year 1 and Year 2.;Because Home;Products uses a full costing system, one would predict operating income for;Year 3 to be;A.;Greater than operating income under;variable costing.;B.;Less than year 2.;C.;The same as operating income under;variable costing.;D.;Less than the operating;income under variable costing.;73.;A company's operating;income was $70,000 using variable costing for a given period. Beginning and;ending inventories for that period were 45,000 units and 50,000 units;respectively. Ignoring income taxes, if the fixed overhead application rate was;$8.00 per unit, what would operating income have been using full costing?;A.;$30,000.;B.;$140,000.;C.;$110,000.;D.;$100,000.;E.;Cannot be determined;from the information given.;74. A;company had income of $50,000 using variable costing for a given period.;Beginning and ending inventories for that period were 80,000 units and 90,000;units, respectively. If the fixed overhead application rate were $10.00 per;unit, what would operating income have been using full costing?;A.;$(50,000).;B.;$170,000.;C.;$150,000.;D.;$0.;E.;Cannot be determined;from the information given.;75.;The balanced scorecard;is widely used in performance evaluation and management control. In which;regions around the world is it most and least, respectively, commonly used?;A.;Europe, Asia;B.;U.S and Canada, Africa;C.;U.S. and Canada, South;and Central America;D.;South and Central;America, Europe;76.;Operating income reported under full costing will exceed operating income;reported under variable costing for a given period if;A.;Production equals sales for that period.;B.;Production exceeds sales;for that period.;C.;Sales exceed production;for that period.;D.;The variable overhead;exceeds the fixed overhead.;77. A;company's operating income recently increased by 30% while its inventory;increased in a given year. Which of the following accounting methods would be;most likely to produce the favorable income results?;A.;Full costing.;B.;Direct costing.;C.;Variable costing.;D.;Standard direct costing.;78.;During January, Lang, Inc. produced 10,000 units of product with costs as;follows;What is Lang's;unit cost for January, calculated on the variable costing basis?;A.;$6.20.;B.;$7.20.;C.;$7.50.;D.;$8.50.;E.;$9.50.;79.;In the principal-agent model, the manager is modeled as having all of the;following elements except;A.;Risk aversion;B.;Outcomes of actions;C.;Provides effort;D.;Decision Making;80.;During October, Rover Industries produced 35,000 units of product with costs as;follows;What is Rover's;unit cost for October, calculated on the variable costing basis?;A.;$3.25.;B.;$3.75.;C.;$4.00.;D.;$4.50.;E.;$5.00.

 

Paper#45008 | Written in 18-Jul-2015

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