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Financial and Managerial Accounting




1. Which one of the following characteristics would likely be associated with a just-in-time inventory method? (Points: 1);Ending inventory of work in process that would allow several production runs;A backlog of inventory orders not yet shipped;Minimal finished goods inventory on hand;An understanding with customers that they may come to the showroom and select from inventory on hand;2. Manufacturing costs include (Points: 1);direct materials and direct labor only.;direct materials and manufacturing overhead only.;direct labor and manufacturing overhead only.;direct materials, direct labor, and manufacturing overhead.;Question 3.3. Sales commissions are classified as (Points: 1);overhead costs;period costs.;product costs.;indirect labor.;Question 4.4. On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n) (Points: 1);addition to raw materials purchases.;addition to raw materials available for use.;subtraction from raw materials available for use.;subtraction from raw materials purchases.;Question 5.5. The reporting standard for external financial reports is (Points: 1);industry-specific.;company-specific.;generally accepted accounting principles.;department-specific.;Question 6.6. An important feature of a job order cost system is that each job (Points: 1);must be similar to previous jobs completed.;has its own distinguishing characteristics.;must be completed before a new job is accepted.;consists of one unit of output.;Question 7.7. Factory labor costs (Points: 1);are accumulated in a control account.;do not include pension costs.;include vacation pay.;are based on workers? net pay.;Question 8.8. If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a (Points: 1);debit to Manufacturing Overhead.;credit to Finished Goods Inventory;debit to Cost of Goods Sold.;credit to Work in Process Inventory.;Question 9.9. In computing equivalent units, ___________ is not part of the equivalent units of production formula. (Points: 1);units transferred out;beginning work in process;ending work in process;None of these is correct.;Question 10.10. A production cost report (Points: 1);is prepared for each product.;is prepared from a job cost sheet.;will show quantity and cost data for a production department.;will not identify a specific department if more than one department is involved in the production process.;Question 11.11. Differences between a job order cost system and a process cost system include all of the following except the (Points: 1);documents used to track costs.;point at which costs are totaled.;unit cost computations.;flow of costs.;Question 12.12. Which would be an appropriate cost driver for the ordering activity? (Points: 1);Machine setups.;Purchase orders.;Machine hours.;Inspections.;Question 13.13. Fixed costs normally will not include (Points: 1);property taxes.;direct labor.;supervisory salaries.;depreciation on buildings and equipment.;Question 14.14. In CVP analysis, the term "cost" (Points: 1);includes only manufacturing costs.;means cost of goods sold.;includes manufacturing costs plus selling and administrative expenses.;excludes all fixed manufacturing costs.;Question 15.15. The break-even point cannot be determined by (Points: 1);computing it from a mathematical equation.;computing it using contribution margin.;reading the prior year's financial statements.;deriving it from a CVP graph.;Question 16.16. The CVP income statement (Points: 1);is distributed internally and externally.;classifies costs by functions.;discloses contribution margin in the body of the statement.;will reflect a different net income than the traditional income statement.;Question 17.17. Which of the following is not a financial budget? (Points: 1);Capital expenditure budget;Cash budget;Manufacturing overhead budget;Budgeted balance sheet;Question 18.18. In a production budget, total required units are the budgeted sales units plus (Points: 1);beginning finished goods units.;desired ending finished goods units.;desired ending finished goods units plus beginning finished goods units.;desired ending finished goods units minus beginning finished goods units.;Question 19.19. Which one of the following sections would not appear on a cash budget? (Points: 1);Cash receipts;Financing;Investing;Cash disbursements;Question 20.20. Which one of the following budgets would be prepared for a manufacturer but not for a merchandiser? (Points: 1);Direct labor budget;Cash budget;Sales budget;Budgeted income statement;Question 21.21. A flexible budget (Points: 1);is prepared when management cannot agree on objectives for the company.;projects budget data for various levels of activity.;is only useful in controlling fixed costs.;cannot be used for evaluation purposes because budgeted data are adjusted to reflect actual results.;Question 22.22. The accumulation of accounting data on the basis of the individual manager who has the authority to make day-to-day decisions about activities in an area is called (Points: 1);static reporting.;flexible accounting.;responsibility accounting.;master budgeting.;Question 23.23. A measure frequently used to evaluate the performance of the manager of an investment center is (Points: 1);the amount of profit generated.;the rate of return on funds invested in the center.;the percentage increase in profit over the previous year.;departmental gross profit.;Question 24.24. All of the following statements are correct about management by exception except it (Points: 1);enables top management to focus on problem areas that need attention.;means that management has to investigate every budget difference.;requires that there must be some guidelines for identifying an exception.;means that top management's review of a budget report is focused primarily on differences between actual results and planned objectives.;Question 25.25. The cost of freight-in (Points: 1);is to be included in the standard cost of direct materials.;is considered a selling expense.;should have a separate standard apart from direct materials.;should not be included in a standard cost system.;Question 26.26. The investigation of materials price variance usually begins in the (Points: 1);first production department.;purchasing department.;controller's office.;accounts payable department.;Question 27.27. If the standard hours allowed are less than the standard hours at normal capacity, the volume variance (Points: 1);cannot be calculated.;will be favorable.;will be unfavorable.;will be greater than the controllable variance.;Question 28.28. In incremental analysis, (Points: 1);only costs are analyzed.;only revenues are analyzed.;both costs and revenues may be analyzed.;both costs and revenues that stay the same between alternate courses of action will be analyzed.;Question 29.29. Which decision will involve no incremental revenues? (Points: 1);Make or buy decision;Drop a product line;Accept a special order;Additional processing decision;Question 30.30. Capital budgeting is the process (Points: 1);used in sell or process further decisions.;of determining how much capital stock to issue.;of making capital expenditure decisions.; ;of eliminating unprofitable product lines.


Paper#74399 | Written in 18-Jul-2015

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