All of the following are reasons to implement Activity Based Costing except:

	Indirect costs are being applied disproportionately across product lines using a standard costing methodology.
	Management has determined a specific cost it wants to target and needs to track activity accordingly.
	An ERP system has been implemented, and ABC is now feasible.
	Profit lines have diversified and more detailed analysis is required.

Question

b)

Which of the following organizations write accounting rules.

	FASB and Congress.
	EDGAR and the IASB.
	FASB, the SEC and the IASB.
	SOX, the SEC, and the IASB.

Question

c)

A project that is on track with regard to both schedule and cost will have all of the following except:

	A Schedule Performance Index that is less than 1.
	A Cost Performance Index that is less than 1.
	An Estimate at Completion (EAC) that is greater than the budget.
	An Estimate at Completion (EAC) that is less than the budget.

Question

d)

Why should the effective tax rate be evaluated when assessing earnings?

	It is important to understand whether earnings have increased because of tax techniques rather than from positive changes in core operations.
	Effective tax rates are irrelevant because they are mandated by law.
	Effective tax rates do not include the effect of foreign taxes.
	Net operating losses allow a firm to change its effective tax rates for each of the five years prior to the loss.

Question

e)

What is the SAP concept used exclusively to allocate charges between cost centers, internal orders and/or general ledger accounts?

	Journal Entry.
	WBS Element.
	Assessment Cycle.
	Internal Order.

Question

f)

What is meant by the term "Cookie Jar Accounting"?

	The abuse that occurs when companies create reserve accounts for the purpose of setting aside funds in good years and then shifting the reserve amounts to the income statement in years where performance is not as good.
	The abuse that occurs when companies use operation funds for nonoperational items such as parties, doughnuts, cookies and personal travel expenses.
	The abuse that occurs whenfirms acquire another company and then write down the cost of in-process research and development.
	The abuse that occurs when firms charge ordinary business expenses as restructuring charges.

Question

g)

Which SAP module is primarily directed towards external accounting processes?

	The Investment Management (IM) Module.
	The Finance (FI) Module.
	The Controlling (CO) Module.
	The Project System (PS) Module.

Question

h)

Target Costing involves all the following except:

	Analysis of the market price for a product.
	Determination of standard costs for measurement purposes.
	Determination of the desired profit margin.
	Working closely with suppliers and partners to achieve the desired cost for the product.

Question

i)

Your IT Department alone should determine:

	The annual IT project budget.
	If a project is a success or failure.
	Security and segregation of duty.
	None of the above.