Description of this paper

Gb519 unit 6 final exam

Description

solution


Question

Question;1. Which of the;following aspects of a company would not be considered a critical success;factor, for a company that competes on differentiation? (Points: 2);Cutting edge;research and development.;Excellent;customer service.;Award-winning;product quality.;Continually;beating competitors to the market with new, innovative products.;A high level of production;efficiency;Question 2. 2. Which;of the following tend to be non-differential in the short term since they;cannot be changed, but are more likely to be differential in the long term?;(Points: 2);Fixed costs.;Variable;costs.;Mixed costs.;Semi-variable;costs.;Question 3. 3. The;competitive strategy in which the firm succeeds by developing and maintaining a;unique value for the product, as perceived by the customer, is termed: (Points;2);Differentiation.;Specialization;advantage.;Design;strategy.;Benchmarking.;Product;Specialization.;Question 4. 4. Using;value-chain analysis, a firm can develop a competitive advantage by;specifically looking for ways to: (Points: 2);Add value and reduce cost.;Improve;manufacturing productivity.;Improve;customer service.;Improve product quality.;Question 5. 5. Which;of the following contemporary management techniques requires a balancing of;multiple goals? (Points: 2);Target costing.;The theory of;constraints.;Benchmarking.;Business;process improvement.;Enterprise sustainability.;Question 6. 6. Direct;materials and direct labor costs total $40,000 and factory overhead costs total;$100 per machine hour. If 200 machine hours were used for Job #202, what is the;total manufacturing cost for Job #202? (Points: 2);$95,000;$75,000;$65,000;$60,000;Question 7. 7.;Tierney Construction, Inc. recently lost a portion of its financial;records in an office theft. The following accounting information remained in;the office files;COGS = $80,000;WIP Inventory ? January 1. = $18,500;WIP Inventory ? December 31 = $14,500;Selling & Administrative Expenses = $16,000;Net Income = $30,000;Factory O/H = $20,000;Direct Materials Inventory, January 1= $26,000;Direct Materials Inventory, December 31= $14,000;COGM = $98,000;Finished Goods Inventory, January 1 = 31,000;Direct labor cost incurred during the period amounted to 2.5;times the factory overhead. The CFO of Tierney Construction, Inc. has asked you;to recalculate the following accounts and to report to him by the end of;tomorrow.;What should be the amount in the finished goods inventory at;December 31, 2013? (Points: 2);$55,500.;$35,000.;$43,000.;$49,000.;Question 8. 8. The;key difference between weighted-average and FIFO process costing methods is the;handling of the partially completed: (Points: 2);Beginning;direct materials inventory.;Ending direct;materials inventory.;Beginning work-in-process inventory.;Ending;work-in-process inventory.;Beginning;finished goods inventory.;Question 9. 9. When;completed units are transferred to the warehouse: (Points: 2);Cost of Goods;Sold account is debited.;Cost of Goods;Manufactured account is debited.;Finished Goods Inventory account;is debited.;Work-in-Process Inventory account is debited.;Finished Goods;Inventory account is credited.;Question 10. 10.;Effective implementation of activity-based costing (ABC) requires;(Points: 2);Normally the;assistance of a consultant.;A;sophisticated and expensive computer system.;Support of top management and;key employees.;Capturing;properly the complexity of the data.;ABC has no;significant implementation issues.;Question 11. 11. The;total cost of direct materials, direct labor, and factory overhead transferred;from the Work-in-Process Inventory account to the Finished Goods Inventory;account during an accounting period is: (Points: 2);Normal cost of;goods sold.;Adjusted cost;of goods sold.;Total;manufacturing cost.;Cost of goods manufactured.;Actual cost of;goods sold.;Question 12. 12.;Units accounted for includes units completed and transferred out plus;(Points: 2);Beginning;inventory.;Units to;account for.;Ending inventory.;Units started.;Question 13. 13. ABC;Company uses a Materials Inventory account to record both direct and indirect;materials. ABC charges direct materials to WIP, while indirect materials are;charged to the Factory Overhead account. During the month of April, the company;has the following cost information;Total Materials (Direct and Indirect) Purchased =;$ 90,000;Indirect Materials Issued to Production = 30,000;Total Materials Issued to Production = 110,000;Beginning Materials Inventory = 50,000;The ending materials inventory cost is: (Points: 2);$110,000.;$30,000.;$90,000.;$80,000.;Question 14. 14.;Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct;labor hours, and had the following manufacturing overhead;Overhead Cost Pool -;Budgeted O/H $ - Budgeted Level for;Cost Driver - O/H Cost Driver;Materials Handling;$160,000;3,200 lbs. Material Weight;Machine Setup 13,200 390 S/U?s # of S/Us;Machine Repair 1,380 30,000 Mach. Hrs Machine Hrs.;Inspections 10,560 160 Inspections # of Inspections;Requirements for Job #971 which included 4 Units of;Production;D/L Hours = 20 Hours;D/Mat?ls = 130 lbs.;Machine S/U = 30 Set-ups;Machine Hrs. = 15,000 Machine Hours;Inspections = 15 Inspections.;Using ABC, the materials handling overhead cost assigned to;Job #971 is: (Points: 2);$2,300.;$990.;$6,500.;$690.;$1,020.;Question 15. 15.;Which of the following is required for multiple regression? (Points;2);The use of;dummy variables.;The use of more than one cost;driver.;The use of;more than one dependent variable.;The use of a;trend variable.;The use of;multiple sets of data.;Question 16. 16.;Technology and complexity issues often lead management to simplify and;to: (Points: 2);Use linear estimation methods.;Use;volume-based costing and nonlinear estimation methods.;Use;volume-based costing methods.;Use nonlinear;estimation methods.;Use;activity-based costing and volume-based costing methods.;Question 17. 17.;Which of the following methods considers all reciprocal flows between;service departments through simultaneous equations? (Points: 2);Dual method.;Step method.;Reciprocal method.;Direct method.;The net;realizable value method.;Question 18. 18. A;relatively low margin of safety ratio (MOS%) for a product is usually an;indication that the product: (Points: 2);Is losing;money.;Has a high;contribution margin.;Is riskier than a product with a;higher margin of safety ratio.;Is less risky;than a product with a higher margin of safety ratio.;Requires heavy;fixed cost to produce or sell.;Question 19. 19. The;use of a relationship of total factory overhead to direct labor hours is said;to be valid only within the relevant range, which means: (Points: 2);Within a;reasonable dollar amount for labor costs.;Within the range of observations;of the cost driver.;Within the;range of reasonableness as judged by the department supervisor.;Within the;budget allowance for overhead.;Question 20. 20.;Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs (for the;year) are expected to be $10,000, unit sales price is expected to be $12, and;unit variable costs are budgeted at $7.;Cleaning Care's margin of safety (MOS) in units is: (Points;2);1,000.;2,000.;4,000.;8,000.;9,000.;Question 21. 21.;Stylish Sitting is a retailer of office chairs located in San Francisco;California. Due to increased market competition, the CFO of Stylish Sitting has;grown worried about the firm's upcoming income stream. The CFO asked you to use;the company financial information provided below.;Sales Price;$75.00;Per Unit Variable Costs;Invoice;Cost 41.70;Sales;Commission 18.30;Total Per Unit Variable Cost $60.00;Fixed Costs;Advertising $ 56,000;Rent;78,000;Salaries 226,000;Total Annual Fixed Costs $360,000;If 40,000 office chairs were sold, Stylish Sitting's;operating income would be: (Points: 2);$240,000.;$280,000.;$210,000.;$340,000.;$120,000.;Question 22. 22. The;Robinson-Patman Act, administered by the U.S. Federal Trade Commission;addresses pricing that could substantially damage the competition in an;industry. This pricing is called: (Points: 2);Competitive;pricing.;Predatory pricing.;Cost-benefit;pricing.;Variable;pricing.;Question 23. 23. In;terms of evaluating mutually exclusive projects, the internal rate of return;(IRR) method mistakenly favors investment proposals with: (Points: 2);Short useful;lives.;Long useful lives.;Moderate cash;flow returns.;Large residual;values.;Question 24. 24.;Which of the following statements regarding a joint production process;is NOT true? (Points: 2);The essential decision facing;management is whether to sell products at the split-off point or to sell these;products after further processing.;The allocation of joint (common);production costs to individual products helps management determine which;products should be processed beyond the split-off point.;Costs incurred;up to the split-off point are referred to as joint production costs.;The decision;as to whether individual products should be sold "as is" or processed;further is made on the basis of comparing incremental revenues and incremental;costs.;Question 25. 25.;Which of the following is not true regarding the appropriate discount;rate to be used in conjunction with discounted cash flow (DCF) decision models?;(Points: 2);For projects of "above;average" risk, the appropriate discount rate is the weighted-average cost;of capital (WACC);It includes an;estimate of the after-tax cost of debt.;It can differ;across investment projects, according to perceived risk.;It is also;sometimes referred to as the "hurdle rate" for capital budgeting;purposes.;Question 26. 26. In a;sell-or-process-further decision, joint production costs: (Points: 2);Are irrelevant;to the decision.;Should be allocated to outputs;on the basis of relative sales dollars.;Should be;allocated to outputs on the basis of relative physical units.;Cannot be;allocated to products for financial reporting purposes.;Question 27. 27.;Pique Corporation wants to purchase a new machine for $300,000.;Management predicts that the machine can produce sales of $200,000 each year;for the next 5 years. Expenses are expected to include direct materials, direct;labor, and factory overhead (excluding depreciation) totaling $80,000 per year.;The firm uses straight-line depreciation with no residual value for all;depreciable assets. Pique's combined income tax rate is 40%. Management;requires a minimum after-tax rate of return of 10% on all investments.;What is the payback period for the new machine (rounded to;nearest one-tenth of a year)? (Assume that the cash inflows occur evenly;throughout the year.) (Points: 2);2.5 years.;2.7 years.;3.1 years.;3.6 years.;Question 28. 28.;is an important first step in value engineering;because it identifies critical consumer preferences that will define the;product's desired functionality: (Points: 2);Consumer analysis.;Sales force;analysis.;Design;analysis.;R&D;analysis.;Market place;analysis.;Question 29. 29. The;flexible budget" can best be described as a budget that adjusts;(Points: 2);Revenues for;sales-dollar changes.;Revenues and expenses for;changes in output (such as sales volume).;Expenses for;changes in budgeted output between two periods.;For;efficiency, but not selling price and cost variances.;For selling;price and cost variances, but not efficiency variances.;Question 30. 30. An;organization's overall management accounting and control system: (Points: 2);Includes the;planning function.;Is also referred as the;organization's core performance-measurement system.;Is separate;from its operational control system.;Includes;nonfinancial, but not financial, performance measures.;Focuses on strategic, not operational;control;Question 31. 31. The;total operating income variance for a period reveals whether a company has;achieved: (Points: 2);The sales level;budgeted for the period.;An adequate return;on investment (assets) during the period.;Control of;basic business processes.;Control of;total expenses for the period.;The master budgeted operating;income for the period.;Question 32. 32.;Which of the following benefits is not typically associated with a move;to a just-in-time (JIT) manufacturing system? (Points: 2);Raw materials;are delivered as close as possible to time of production.;Existence of;long-term contracts with selected suppliers.;Reduction in employee training;and education costs.;Decreases in;manufacturing lead time.;Improved;customer-response time (CRT).;Question 33. 33. The;difference between the total actual sales revenue of a period and the total;flexible-budget sales revenue for the units sold during the period is the;(Points: 2);Total;flexible-budget variance.;Sales volume;variance.;Selling price variance.;Operating;income flexible-budget variance.;Question 34. 34. The;process by which managers at all levels in the firm gain information about the;performance of tasks within the firm and judge that performance against;pre-established criteria is: (Points: 2);Performance measurement.;Employee;inspection.;Goal;congruence.;Managerial;evaluation.;Management;control.;Question 35. 35.;Matinna Co. maintains no inventories and has the following data;pertaining to one of its direct materials in July;Standard Quantity of DM for the Units Manufactured =;30,000;DM Purchased ? Actual Cost;= $63,000;Standard Price per Unit of DM (SP) = $2.00;Direct Material Efficiency Variance =;$4,500 (F);All materials purchased during the month were issued to;production.;What was the company's direct materials flexible-budget (FB);variance for July? (Points: 2);$1,500;favorable.;$3,000 unfavorable.;$3,000;favorable.;$7,500;unfavorable.;$7,500;favorable.;Question 36. 36. The;manager acting independently in such a way as to simultaneously achieve top;management's objectives is: (Points: 2);Performance;evaluation.;Operational;control.;Goal congruence.;Principal-agent model.;Management;control.;Question 37. 37. The;risk-averse" manager will be improperly biased to: (Points: 2);Seek out;decisions with uncertain outcomes.;Make risky;decisions.;Avoid decisions with uncertain;outcomes.;Maximize his;or her own risk and minimize the company's risk.;Use resources;beyond his/her control.;Question 38. 38.;Other things being equal, income computed by the variable costing method;will exceed that computed by the full costing method if: (Points: 2);Units produced;exceed units sold.;Units sold exceed units;produced.;Fixed;manufacturing costs, increase.;Variable;manufacturing costs increase.;Question 39. 39. The;common factor among control systems in hiring practices, promotion policies;and strategic performance measurement is: (Points: 2);Management sets expectations for;desired employee performance.;Employee-determined expectations for desired employee performance.;Coordination;of activities.;Communication;of results.;Question 40. 40. The;contribution by profit center (CPU) expands the contribution margin income;statement by distinguishing: (Points: 2);Variable and;fixed costs.;Short-term and;long-term fixed costs.;Controllable;and non-controllable fixed costs.;Noncontrollable and untraceable;fixed costs.;Net income and;contribution margin.;Question 41. 41.;Controllable margin is determined by subtracting short-term controllable;fixed costs from the: (Points: 2);Long-term;controllable fixed cost.;Contribution margin.;Variable;costs.;Fixed costs.;Variable costs;and fixed costs.;Question 42. 42.;Economic value added is calculated from: (Points: 2);Average total;assets, current liabilities, net income, and the cost of capital.;EVA net income;and EVA invested capital.;Net income;cost of capital, and net assets.;Net income and;the cost of capital.;EVA net income, the cost of;capital, and EVA invested capital.;Question 43. 43.;Which one of the following develops the value of the firm as the present;value of the firm's net free cash flows? (Points: 2);Discounted cash flow method.;Cash flow;liquidity method.;Multiples-based method.;Profitability;method.;Purchasing;power method.;Question 44. 44. When;strategic performance measures or critical success factors are used to;determine bonus compensation, the bonus will usually depend either on the;amount of improvement in the measure or on: (Points: 2);Maintaining the;current level.;Achieving a predetermined goal.;Quality of;work completed.;Intensity of;effort expended.;Question 45. 45.;Which of the following is one of the most comprehensive bases of;compensation? (Points: 2);Balanced scorecard.;Unit-based;compensation pool.;Firm-wide;compensation pool.;Salary.;Question 46. 46. The;receivables turnover ratio is a measure of: (Points: 2);Asset value.;Leverage.;Sales;performance.;Profitability.;Liquidity.;Question 47. 47. The;stock option form of bonus payments to managers usually: (Points: 2);Motivates well;even in extended market downturns.;Can lose some motivation because;of the delay in reward.;Focuses on the;short-term.;Is not;consistent with shareholder interests.;Has less risk;than other types of bonus payment plans.;Question 48. 48. The;King Mattress Company had the following operating results for 2012-2013. In;addition, the company paid dividends in both 2012 and 2013 of $60,000 per year;and made capital expenditures in both years of $30,000 per year. The company's;stock price in 2012 was $8 and $7 in 2013. The industry average earnings;multiple for the mattress industry was 9 in 2013 and the free cash flow and;sales multiples were 18 and 1.5, respectively. The company is publicly owned;and has 1,200,000 shares of outstanding stock at the end of 2013.;Balance Sheet, December 31;2013 2012;Cash;$ 340,000 $;100,000;Accounts Receivable 350,000 400,000;Inventory;250,000 300,000;Total;Current Assets $ 940,000 $;800,000;Long Lived Assets;1,080,000 1,100,000;Total Assets $ 2,020,000 $ 1,900,000;Current Liabilities $ 200,000 $;300,000;Long-Term Liabilities 600,000 500,000;Stockholder?s Equity 1,220,000 1,100,000;Total;Liabilities & Equity;$ 2,020,000 $ 1,900,000;Income Statement for the Year Ended December 31;Sales;$ 4,750,000 $ 4,500,000;Cost of Sales;4,100,000;4,000,000;Gross;Margin;$ 650,000 $ 500,000;Operating Expenses 350,000 400,000;Operating;Income $ 300,000 $ 100,000;Taxes;120,000 40,000;Net Income $ 180,000 $ 60,000;Cash Flow from Operations;Net Income;$ 180,000 $ 60,000;Plus Depreciation Expense 50,000 50,000;+Decrease (-Inc) in A/T and Inventory 100,000 - 0 -;+Increase (-Dec) in Current Liabilities (100,000) - 0 ?;Cash Flow from;Operations $ 230,000;$ 110,000;The inventory turnover ratio for 2013 is (rounded): (Points;2);11.2;12.7;13.7;14.9;Question 49. 49.;During October, Rover Industries produced 35,000 units of product with;costs as follows;DM =;$ 84,000;DL;= 43,000;Variable O/H = 13,000;Fixed O/H = 147,000;Total =$ 287,000;What is Rover's unit cost for October, calculated on the;variable costing basis? (Points: 2);$3.25.;$3.75.;$4.00.;$4.50.;$5.00.;Question 50. 50. The;King Mattress Company had the following operating results for 2012-2013. In;addition, the company paid dividends in both 2012 and 2013 of $60,000 per year;and made capital expenditures in both years of $30,000 per year. The company's;stock price in 2012 was $8 and $7 in 2013. The industry average earnings;multiple for the mattress industry was 9 in 2013 and the free cash flow and;sales multiples were 18 and 1.5, respectively. The company is publicly owned;and has 1,200,000 shares of outstanding stock at the end of 2013.;Balance Sheet, December 31;2013 2012;Cash $ 340,000 $;100,000;Accounts Receivable 350,000 400,000;Inventory;250,000 300,000;Total;Current Assets $ 940,000 $;800,000;Long Lived Assets;1,080,000 1,100,000;Total Assets $ 2,020,000 $ 1,900,000;Current Liabilities $ 200,000 $;300,000;Long-Term Liabilities 600,000 500,000;Stockholder?s Equity 1,220,000 1,100,000;Total;Liabilities & Equity;$ 2,020,000 $ 1,900,000;Income Statement for the Year Ended December 31;Sales;$ 4,750,000 $ 4,500,000;Cost of Sales;4,100,000 4,000,000;Gross;Margin;$ 650,000 $ 500,000;Operating Expenses 350,000 400,000;Operating;Income $ 300,000 $ 100,000;Taxes;120,000 40,000;Net Income $ 180,000 $ 60,000;Cash Flow from Operations;Net Income;$ 180,000 $ 60,000;Plus Depreciation Expense 50,000 50,000;+Decrease (-Inc) in A/T and Inventory 100,000 - 0 -;+Increase (-Dec) in Current Liabilities (100,000) - 0 ?;Cash Flow from;Operations $ 230,000 $ 110,000;The current ratio for 2013 is: (Points: 2);1.8;2.0;3.9;4.7

 

Paper#45194 | Written in 18-Jul-2015

Price : $37
SiteLock