1. SWOT analysis, a valuable analysis tool, stands for: (Points : 2) Strengths - Workability - Opportunities - Threats Strategies - Weaknesses - Opportunities - Threats Strengths - Weaknesses - Observations - Threats Strengths - Weaknesses - Opportunities - Threats Strategies - Weaknesses - Observations - Threats 2. Target costing determines the desired cost for a product upon the basis of a given competitive price such that the product will: (Points : 2) Earn at least a small profit. Earn a desired profit. Earn the maximum profit. Break even. Sell the highest volume. 3. In the current business environment, companies cannot survive without a long-term strategy. What exactly should an effective strategy include? (Points : 2) A set of policies, procedures, and approaches to business that will result in long-term success. A focus on accurate financial data, thus allowing the firm to effectively compete in any environment. A focus on long-term nonfinancial information that will provide the company with versatile management techniques capable of being used in a wide variety of situations. A clear, concise mission statement, naming every product and outlining the company's long-term goals of success. 4. Which of the following organizations presents awards to firms that excel at execution of strategy, based on criteria such as leadership, marketing, strategic planning and process management? (Points : 2) International Organization for Standardization. Malcolm Baldrige National Quality Program. Global Reporting Initiative. World Resources Institute. American Institute of Certified Public Accountants. 5. The change in total cost associated with each change in the quantity of the cost driver is: (Points : 2) Average cost. Controllable cost. Variable cost. Unit cost. 6. Which of the following could be considered part of the value chain in a service firm? (Points : 2) Inspection of product. Advertising. Raw materials. Customer service. Advertising and customer service. 7. Which of the following aspects of the contemporary business environment involves using statistical methods such as regression or correlation analysis to predict consumer behavior, to measure customer satisfaction, or to develop models for setting prices, among other uses? (Points : 2) Business Intelligence Target Costing Life Cycle Costing Benchmarking Business Process Improvement 8. Which of the following types of organizations can most benefit from value chain analysis? (Points : 2) Service firms. Not-for-profit organizations. Manufacturing firms. All types of organizations can benefit from value chain analysis. 9. Which of the following aspect of a contemporary management technique is a framework and process that organizations use to manage the occurrence of possible events that could negatively or positively affect the company's competitiveness and success? (Points : 2) Total quality management Lean accounting The theory of constraints Enterprise sustainability Enterprise risk management 10. JCH Company conducts business in the lumber and building products industry. Last week, JCH purchased 50 railcars of lumber from a mill in Oregon and sold all 50 to a Home Depot store in North Carolina. In this instance, JCH Company would most likely be classified as a: (Points : 2) Manufacturer. Retailer. Warehouse. Wholesaler. 11. After critical success factors (CSFs) have been identified, the next step in developing a competitive strategy is to develop relevant and reliable measures for these CSFs. These measures are important to help the organization: (Points : 2) Make profit for any extended period. Increase sales above previous year(s). Develop policies to enhance customer profitability. Improve productivity in selected product areas. Monitor progress toward achieving strategic goals. 12. The decline of the U.S. dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to: (Points : 2) Experience increasing sales in the U.S. Experience increasing sales worldwide. Locate plants in the U.S. to reduce overall manufacturing costs. Require dealers to make payments in the Euro. 13. The income statement for a merchandising company includes: (Points : 2) Direct Labor. Factory Overhead. Total Manufacturing Cost. Cost of Goods Sold. 14. The following problems have occurred at your company: management seems to be making decisions based on guesses and intuition, there's a lack of clarity concerning direction and goals, and profitable opportunities are being missed. What is your company suffering from? (Points : 2) A lack of strategic information; management has not determined its strategic competitive position. Managers have too much information. The company is not familiar with business reengineering and value chain analysis. The company has an inappropriate mission statement. 15. The cause and effect relationships among critical success factors are best captured in: (Points : 2) The balanced scorecard Business intelligence The value chain The strategy map SWOT analysis 16. Firms should use a process costing system when they produce products that: (Points : 2) Are semi-homogeneous. Pass through a series of manufacturing processes. Pass through only one department. Have small batch sizes. 17. Which of the following is most likely to be the cost driver for the packaging and shipping activity? (Points : 2) Number of setups. Number of components. Number of orders. Hours of testing. Number of production runs. 18. Normal spoilage is defined as: (Points : 2) Spoilage that occurs under efficient operations. Scrap. Uncontrollable waste as a result of a special production run. Spoilage that arises under inefficient operations. Controllable spoilage. 19. Freight charges based on number of units shipped to customers is a: (Points : 2) Customer unit-level cost. Customer batch-level cost. Customer-sustaining cost. Distribution-channel cost. Sales-level cost. 20. ABC Company listed the following data for 2010: Budgeted Factory Overhead $1,044,000 Budgeted Direct Labor Hours 72,000 Budgeted Machine Hours 24,000 Actual Factory Overhead 1,037,400 Actual Direct Labor Hours 72,000 Actual Machine Hours 23,000 Round calculations to two significant digits. Assuming ABC applied overhead based on machine hours, the company's predetermined overhead rate for 2010 is: (Points : 2) $43.50 per machine hour. $14.38 per machine hour. $44.24 per machine hour. $14.50 per machine hour. 21. Which one of the following is the amount of factory overhead applied that exceeds the actual factory overhead cost? (Points : 2) Factory overhead applied. Actual factory overhead. Overapplied overhead. Allocated factory overhead. Underapplied overhead. 22. The sum of units transferred out and ending inventory units, assuming no spoilage, determines the: (Points : 2) Units completed during the period. Units spoiled. Units transferred in during the period. Units accounted for. 23. Customer equity is a type of analysis used to: (Points : 2) Assess the ethical practices of each salesperson-customer relationship. Assess the current profit potential of a customer. Assess the long term profit potential of a customer. Assess the current profit potential of all the firm's customers. Assess the long term profit potential of all the firm's customers. 24. The journal entry to record incurred direct labor would include a credit to: (Points : 2) Work-in-Process Inventory. Accrued Payroll. Factory Overhead. Materials Inventory. Finished Goods Inventory. 25. With the increase in competition over the past several years, traditional cost accounting systems have become less common in product costing because (Points : 2) They use volume-based cost drivers. They use structural cost drivers. They use executional cost drivers. They use indirect cost drivers. 26. In regard to selling activities, which one of the following would be a cost driver for selling expense? (Points : 2) Number of invoices. Number of sales calls. Number of production runs. Number of shipments. 27. In an organization that makes furniture, which of the following is a high value-added activity? (Points : 2) Using direct materials in production. Inspecting production. Storing finished goods inventory. Moving work-in-process inventory between work stations. Reworking the product to repair defects. 28. Place the following Process costing steps in the correct order: 1 - Calculate equivalent units 2 - Determine the total costs to account for 3 - Analyze flow of physical units 4 - Assign total manufacturing costs 5 - Compute unit costs (Points : 2) 3,5,2,1,4. 2,1,5,4,3. 2,3,5,4,1. 3,1,2,5,4. 29. Conversion costs in a process cost system include: (Points : 2) Direct materials and direct labor. Direct labor and manufacturing overhead. Direct materials and manufacturing overhead. Manufacturing overhead and selling, general & administrative expenses. 30. In the context of ABC, cross-subsidization refers to: (Points : 2) Productions department subsidizing each other Costing inaccuracies which affect the relative profitability of products Cross-selling products lines, which affect customer profitability Efforts to increased coordination among department heads 31. The p-value measures: (Points : 2) The probability that the regression equation is reliable. The statistical significance of the dependent variable. The risk that a particular independent variable has only a chance relationship to the dependent variable. The confidence range around the regression prediction. 32. The independent variable in regression analysis is: (Points : 2) The cost to be estimated. The cost driver used to estimate the value of the dependent variable. Hard to define because of its independence. Usually expressed as a range of values. Not always necessary to perform regression analysis. 33. The process of examining how a change in a single item in a budget (e.g., sales volume) affects one or more items in the budget (e.g., budgeted sales revenue and budgeted operating income) is generally referred to as: (Points : 2) Flexible budgeting. Sensitivity analysis. Uncertainty programming. What-if analysis. Activity-based budgeting (ABB). 34. Data collected on the cost objects and cost drivers for cost estimation must be: (Points : 2) Brief and limited. Exhaustive. Concrete. Consistent and accurate. Varied. 35. Which one of the following is defined as the ratio of the contribution margin to profit? (Points : 2) Contribution margin ratio. Margin of safety ratio. Operating leverage. Breakeven point. Margin of safety. 36. Which one the following is a variable that takes on values of 1, 2, 3,? for each period in sequence? (Points : 2) Dummy variable. Outlier. Trend variable. Dependent variable. Independent variable. 37. All of the following are ways of setting the budget, except: (Points : 2) Negotiation-based budgeting. Two-stage budgeting. Participative budgeting. Authoritative budgeting. All of the above are ways of setting the budget. 38. The name for a variety of methods used to examine how an amount will change if factors involved in predicting that amount change is: (Points : 2) Sensitivity analysis. What-if analysis. Factor analysis. Cost analysis. Profit Analysis. 39. A plan that states the units or costs of merchandise to be purchased by a retailer or wholesaler during the budget period is called a: (Points : 2) Production budget. Merchandise purchases budget. Accounts payable budget. Cash payments budget. Cost of goods sold budget. 40. General Manufacturing expects to have 40,000 pounds of raw materials inventory on hand on June 30, the end of the current year. The company has budgeted the following production for the first four months of the coming year: July August September October Production Units 100,000 120,000 150,000 110,000 For the budgeting period, the firm desires each month's ending raw material inventory to be 20% of the next month's production needs. A finished unit requires two pounds of raw materials. The budgeted purchases of materials during September should be: (Points : 2) 60,000 lbs. 228,000 lbs. 248,000 lbs. 284,000 lbs. 300,000 lbs. 41. Which of the following factors is not involved in studying cost/volume/profit relationships? (Points : 2) Desired profit. Variable costs. Fixed costs. Product mix. Actual sales. 42. Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs were $8,400,000; unit sales price was $4,600; and unit variable costs were $2,200. Becker Sofa Company's margin of safety in units is calculated to be: (Points : 2) 8,800. 8,000. 9,900. 9,100. 8,500. 43. Which of the following is not a potential benefit of having a sound budgeting process? (Points : 2) Improved decision-making. Improved performance-evaluation process. Improved coordination of business activities. Improved motivation for company employees. Lower acceptance rate for capital budgeting projects. 44. OutlyTech Corp. expected to sell 24,000 telephone switches. Fixed costs were $12,144,000, unit sales price was $3,200, and unit variable costs were $1,440. OutlyTech's margin of safety ratio is: (Points : 2) 71.25%. 87.00%. 70.25%. 92.50%. 76.15%. 45. The equation method and the contribution margin method: (Points : 2) Can determine the breakeven point in units sold but not in sales dollars. Can determine the breakeven point in sales dollars but not in units sold. Cannot determine the breakeven point in units sold. Cannot determine the breakeven point in sales dollars. Can determine the breakeven point in units sold or sales dollars. 46. CVP analysis using activity-based costs will tend to shift cost from fixed to variable classifications, resulting in: (Points : 2) Lower breakeven sales. Higher breakeven sales. Breakeven sales can be higher or lower, depending on batch size. A higher contribution margin per unit. A lower contribution margin per unit. 47. Which of the following is the percentage by which average time (or total time) falls from previous levels as output doubles? (Points : 2) Learning speed. Learning curve. Learning analysis. Learning average. Learning rate. 48. Which of the following is not used for evaluating a regression analysis? (Points : 2) Correlation. t-value. R-Squared. F value Multicollinearity. 49. Cleaning Care Inc. expects to sell 10,000 mops. Fixed costs are $10,000, unit sales price is $12, and unit variable costs are $7. Cleaning Care's margin of safety in units is: (Points : 2) 1,000. 2,000. 4,000. 8,000. 9,000. 50. Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs were $8,400,000; unit sales price was $4,600; and unit variable costs were $2,200. Becker Sofa Company's margin of safety ratio is calculated to be: (Points : 2) 71.29%. 77.98%. 70.83%. 79.27%. 73.35%.
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