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Question;Much of managerial accounting information is based on;A. a cost-benefit theme.;B. profit;maximization.;C. cost minimization.;D. the;generation of external information.;E. effectiveness;but not efficiency.;2.;Managerial accounting has changed in recent years because of;A. a;growing service economy in the United States.;B. the;growing popularity of cross-functional teams.;C. an;increase in global competition.;D. time-based;competition.;E. All of these factors.;3. The value chain of a manufacturer would tend to;include activities related to;A. manufacturing.;B. research;and development.;C. product;design.;D. marketing.;E. All of these.;4. The accounting;records of Bronco Company revealed the following information;Bronco's cost of goods manufactured is;A. $519,000.;B. $522,000.;C. $568,000.;D. $571,000.;E. some;other amount.;5. Carolina;Plating Company reported a cost of goods manufactured of $520,000, with the;firm's year-end balance sheet revealing work in process and finished goods of;$70,000 and $134,000, respectively. If supplemental information disclosed raw;materials used in production of $80,000, direct labor of $140,000, and;manufacturing overhead of $240,000, the company's beginning work in process;must have been;A. $130,000.;B. $10,000.;C. $66,000.;D. $390,000.;E. some;other amount.;6.;When 5,000 units are produced variable costs are $35 per unit and total costs;are $200,000. What are the total costs when 8,000 units are produced?;A. $200,000.;B. $305,000.;C. $240,000.;D. Some;other amount.;E. Total;costs cannot be calculated based on the information presented.;Wee Care is a nursery;school for pre-kindergarten children. The school has determined that the;following biweekly revenues and costs occur at different levels of enrollment;7.;The marginal cost when the twenty-first student enrolls in the school is;A. $55.;B. $155.;C. $300.;D. $3,045.;E. $3,255.;8.;Throughout the accounting period, the credit side of the Manufacturing Overhead;account is used to accumulate;A. actual;manufacturing overhead costs.;B. overhead applied to;Work-in-Process Inventory.;C. overapplied;overhead.;D. underapplied;overhead.;E. predetermined;overhead.;9. Strong;Company applies overhead based on machine hours. At the beginning of 20x1, the;company estimated that manufacturing overhead would be $500,000, and machine;hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000;and actual machine hours were 25,000. On the basis of this information, the;20x1 predetermined overhead rate was;A. $0.04;per machine hour.;B. $0.05;per machine hour.;C. $20;per machine hour.;D. $21;per machine hour.;E. $25 per machine hour;10. Armada Company;applies manufacturing overhead by using a predetermined rate of 150% of direct;labor cost. The data that follow pertain to job no. 831;If Armada adds a 30% markup on total cost to generate a profit, which of the;following choices depicts a portion of the accounting needed to record the;credit sale of job no. 831?;A. Choice;A;B. Choice B;C. Choice;C;D. Choice;D;E. Choice;E;11. Which;of the following is the proper sequence of events in an activity-based costing;system?;A. Identification;of cost drivers, identification of cost pools, calculation of pool rates;assignment of cost to products.;B. Identification of cost;pools, identification of cost drivers, calculation of pool rates, assignment of;cost to products.;C. Assignment;of cost to products, identification of cost pools, identification of cost;drivers, calculation of pool rates.;D. Calculation;of pool rates, identification of cost drivers, identification of cost pools;assignment of cost to products.;E. Some;other sequence of the four activities listed above.;12. Which of the following choices correctly depicts;the proper classification of direct materials used and management salaries?;A. Choice;A;B. Choice;B;C. Choice;C;D. Choice D;E. Choice;E;St. James, Inc.;currently uses traditional costing procedures, applying $800,000 of overhead to;products Beta and Zeta on the basis of direct labor hours. The company is;considering a shift to activity-based costing and the creation of individual;cost pools that will use direct labor hours (DLH), production setups (SU), and;number of parts components (PC) as cost drivers. Data on the cost pools and;respective driver volumes follow.;13. The overhead cost allocated to Beta by using;traditional costing procedures would be;A. $240,000.;B. $356,000.;C. $444,000.;D. $560,000.;E. some;other amount.;14. The overhead cost allocated to Zeta by using;traditional costing procedures would be;A. $240,000.;B. $356,000.;C. $444,000.;D. $560,000.;E. some;other amount;15. The overhead cost allocated to Beta by using;activity-based costing procedures would be;A. $240,000.;B. $356,000.;C. $444,000.;D. $560,000.;E. some;other amount.;16. The;overhead cost allocated to Zeta by using activity-based costing procedures;would be;A. $240,000.;B. $356,000.;C. $444,000.;D. $560,000.;E. some;other amount.;17. A;company observed a decrease in the cost per unit. All other things being equal;which of the following is probably true?;A. The;company is studying a variable cost, and total volume has increased.;B. The;company is studying a variable cost, and total volume has decreased.;C. The company is studying;a fixed cost, and total volume has increased.;D. The;company is studying a fixed cost, and total volume has decreased.;E. The;company is studying a fixed cost, and total volume has remained constant.;Swanson and;Associates presently leases a copy machine under an agreement that calls for a;fixed fee each month and a charge for each copy made. Swanson made 7,000 copies;and paid a total of $360 in March, in May, the firm paid $280 for 5,000 copies.;The company uses the high-low method to analyze costs.;18. Swanson's;variable cost per copy is;A. $0.040.;B. $0.051.;C. $0.053.;D. $0.056.;E. an amount;other than those given above.;19. Swanson's;monthly fixed fee is;A. $80.;B. $102.;C. $106.;D. $112.;E. an;amount other than those given above.;20. Grime-X;is studying the profitability of a change in operation and has gathered the;following information;Should;Grime-X make the change?;A. Yes;the company will be better off by $6,000.;B. No;because sales will drop by 3,000 units.;C. No, because the company;will be worse off by $4,000.;D. No;because the company will be worse off by $22,000.;E. It is;impossible to judge because additional information is needed.;21. Yellow;Dot, Inc. sells a single product for $10. Variable costs are $4 per unit and;fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales;level would Yellow Dot have to achieve to earn a target profit of;$240,000?;A. $400,000.;B. $500,000.;C. $600,000.;D. $750,000.;E. $900,000.;22. Brooklyn;sells a single product to wholesalers. The company's budget for the upcoming;year revealed anticipated unit sales of 31,600, a selling price of $20;variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn's;unit sales are 200 units less than anticipated, its breakeven point will;A. increase;by $12 per unit sold.;B. decrease;by $12 per unit sold.;C. increase;by $8 per unit sold.;D. decrease;by $8 per unit sold.;E. not change.;23. S'Round;Sound, Inc. reported the following results from the sale of 24,000 units of;IT-54;Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. Sound has available;capacity, and the president is in favor of accepting the order. She feels it;would be profitable because no variable selling costs will be incurred. The;plant manager is opposed because the "full cost" of production is;$17. Which of the following correctly notes the change in income if the special;order is accepted?;A. $3,000;decrease.;B. $3,000;increase.;C. $12,000;decrease.;D. $12,000 increase.;E. None;of these.;24. Song;a division of Carolina Enterprises, currently makes 100,000 units of a product;that has created a number of manufacturing problems. Song's costs follow.;If Song were to discontinue production, fixed manufacturing costs would be;reduced by 70%. The relevant cost of deciding whether the division should;purchase the product from an outside supplier is;A. $540,000.;B. $594,000.;C. $666,000.;D. $720,000.;E. $726,000.;25. When;deciding whether to sell a product at the split-off point or process it;further, joint costs are not usually relevant because;A. such;amounts do not help to increase sales revenue.;B. such;amounts only slightly increase a company's sales margin.;C. such amounts are sunk;and do not change with the decision.;D. the;sales revenue does not decrease to the extent that it should, if compared with;separable processing.;E. such;amounts reflect opportunity costs.

 

Paper#45068 | Written in 18-Jul-2015

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