answer all questions

Which of the following statements concerning budgets is true? OA A strategic budget is a long-term plan used to coordinate the activities needed to achieve the long-term goals of the company. OB. Budgetary slack occurs when managers intentionally overstate expected revenues and understate expected expenses. OG. Operational budgets often span 3 to 10 years. OD. All of the above QUESTION 14 For 2019, Silly Company had net income of $13,000, cash provided by operating activities of $20,000, cash provided by investing activities of $14,000, and cash used by financing activities of $6,000. If Silly's cash balance at the end of 2018 was $1,000, what is its balance at the end o 2019? A $54,000 B. 542,000 C. $29,000 D. It is not possible to determine. QUESTION 15 Which of the following statements about managerial accounting is true? A Managerial accounting reports must follow GAAP. B. Managerial accounting reports tend to focus on the future, instead of the past. D . Managerial accounting reports must be audited by an independent auditor before they are used by management in decision-making. D.None of the above. QUESTION 16 Happy, Inc. manufactures Vases. The standard direct labor time is 0.25 hours per vase, at a cost of $20 per hour. The actual results for one month's production of 7,000 vases were 0.4 hours per vase, at a cost of $14 per hour. What is the direct labor cont variance? O A $10,500 Favorable B. $16,800 Favorable C. $21,000 Unfavorable OD. None of the above QUESTION 17 In process costing, how can production cost reports be used by management? O A Controlling costs B. Evaluating performance OC. Pricing products D. All of the above QUESTION 18 Which of the following analysis methods for capital budgeting uses accrual accounting figures? A. Payback BARR CNPV D. All of the above QUESTION 19 You are trying to decide whether you should stay to finish this exam properly or to leave very early to go party. Which of the following information is relevant for making the decision? O A Your transportation costs to get to the exam OB. The cost of your next meal, the same one from Wendy's take-out every day OC. Your grade is very likely to be higher if you stay than it would be if you leave D. All of the above QUESTION 20 In capital budgeting, which of the following items would not be considered a capital asset? O A Delivery van B. Inventory C. Land D. None of the above (that is, they are all capital assets) QUESTION 21 Which of the following would accountants most likely consider to be a period cost for a company (not a product cost)? A Direct materials B. Direct labor C. Salaries of the top executives D.None of the above QUESTION 25 Which of the following costs would accountants most likely consider to be fixed costs in one carry-out pizza restaurant? OA. Pizza boxes OB. Rent OC. Depreciation on the ovens OD. Both B and C QUESTION 26 Which of the following statements is correct? A Trend analysis is a form of horizontal analysis. B. Benchmarking is the practice of comparing a company's performance with its prior performance or with best practices from other companies. Horizontal analysis could use data from the notes to the financial statements. D. All of the above. Fralam - 30205 Prin angurial de QUESTION 28 Which of the following statements about a Just-in-Timo (JM) management systern is true? OA Such systems use a single Conversion Costs account that works like the Manufacturing Overhead account used in traditional systems. OB. Such systems combine Raw and In-Process Inventory into a single account. UU. Such systems are sometimes called "backflush' costing because they seem to work backwards--starting with output that is completed and then assigning manufacturing costs to units sold and to inventories. D. All of the above. QUESTION 29 Conquest, Inc. produces a special kind of light-weight, recreational vehicle that has a unique design. It allows the company to follow a cost-plus pricing strategy. Conquest has $9,000,000 of average assets, and the desired profit is a 8% return on assets. Assume all products produced are sold. Additional data are as follows: units per year Sales volume Variable costs Fixed costs 1000 $1,000 $4,000,000 per unit per year Using the cost-plus pricing approach, what should be the sales price per unit? A $5,720 B. $9,000 C.$1,080 D. None of the above QUESTION 30 Which of the following steps in the first one in preparing a production cost report in a process conting system OA Summarize the flow of physical units OB. Compute the output in terms of equivalent units of production OG. Compute the cost per equivalent unit of production OD. Assign costs to units completed and units in process QUESTION 31 Which of the following choices concerning methods of financial statement analysis are true? CA The numerators and denominators of financial statement ratios must come from the same financial statement. donemies It is not possible to perform a vertical analysis of a balance sheet because the balance sheet does not contain "total net revenues." REISER OC. A common-size statement removes dollar value bias when comparing companies of different sizes. OD. None of the above. QUESTION 32 Which of the following is a component of the master budget? O A Operating budget B. Capital expenditures budget C.Financial budget D. All of the above When making a product mix for sales mix) decision, management should do which of the following? O A Emphasize selling the product with the highest contribution margin per unit. OB. Emphasize selling the product with the highest contribution margin ratio. OG. Sell only the product with the highest contribution margin per unit of constraint. OD. None of the above. QUESTION 34 Batteries, Ino, manufactures and sells car batteries for $50 each. Car Corp. has offered Batteries, Inc. $40 per battery for a one-time order of 1,100 batteries. The total manufacturing cost per battery is $30 per unit, consisting of variable costs of $21 per battery and fixed overhead costs of $9 per battery. Assume that Batteries, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order? A. Increase of $22,000 B. Decrease of $11,000 OC. Increase of $20,900 OD. None of the above QUESTION 35 Which of the following choices concerning IRR is true? OA IRR is a company's hurdle rate. OB. Depreciation on capital assets is necessary for calculating IRR. It is not possible to calculate IRR on capital projects with unequal periodic net cash flows. D. None of the above. QUESTION 38 Which of the following staternents concerning capital budgeting is true? JA Once a company has invested in a capital asset, there is no need to perform post-audits because management cannot change its mind atte already having acquired the asset. OB. When rationing capital, management should rank the capital asset with the highest NPV as the best investment alternative for the company One weakness of the payback method is that is impossible to use if the expected future net cash flows for each period are not equal in amounts. OD. None of the above. QUESTION 39 Accountants provide a company's financial statements, such as cash flow statements, to resource providers (such as bankers and shareholder help them make which of the following decisions? A To determine whether they should allocate resources to the company. OB. To determine whether management is being efficient and effective with the resources that they have received C. Both A and B. D. None of the above. QUESTION 40 Which of the following statements is true concerning short-term business decisions? WA Management should never drop a product or segment if its contribution margin is positive. B. Management should never reject a special pricing order if its contribution margin is positive. C. Both A and B. D. None of the above. Which of the following statements concerning budgets is true? OA A strategic budget is a long-term plan used to coordinate the activities needed to achieve the long-term goals of the company. OB. Budgetary slack occurs when managers intentionally overstate expected revenues and understate expected expenses. OG. Operational budgets often span 3 to 10 years. OD. All of the above QUESTION 14 For 2019, Silly Company had net income of $13,000, cash provided by operating activities of $20,000, cash provided by investing activities of $14,000, and cash used by financing activities of $6,000. If Silly's cash balance at the end of 2018 was $1,000, what is its balance at the end o 2019? A $54,000 B. 542,000 C. $29,000 D. It is not possible to determine. QUESTION 15 Which of the following statements about managerial accounting is true? A Managerial accounting reports must follow GAAP. B. Managerial accounting reports tend to focus on the future, instead of the past. D . Managerial accounting reports must be audited by an independent auditor before they are used by management in decision-making. D.None of the above. QUESTION 16 Happy, Inc. manufactures Vases. The standard direct labor time is 0.25 hours per vase, at a cost of $20 per hour. The actual results for one month's production of 7,000 vases were 0.4 hours per vase, at a cost of $14 per hour. What is the direct labor cont variance? O A $10,500 Favorable B. $16,800 Favorable C. $21,000 Unfavorable OD. None of the above QUESTION 17 In process costing, how can production cost reports be used by management? O A Controlling costs B. Evaluating performance OC. Pricing products D. All of the above QUESTION 18 Which of the following analysis methods for capital budgeting uses accrual accounting figures? A. Payback BARR CNPV D. All of the above QUESTION 19 You are trying to decide whether you should stay to finish this exam properly or to leave very early to go party. Which of the following information is relevant for making the decision? O A Your transportation costs to get to the exam OB. The cost of your next meal, the same one from Wendy's take-out every day OC. Your grade is very likely to be higher if you stay than it would be if you leave D. All of the above QUESTION 20 In capital budgeting, which of the following items would not be considered a capital asset? O A Delivery van B. Inventory C. Land D. None of the above (that is, they are all capital assets) QUESTION 21 Which of the following would accountants most likely consider to be a period cost for a company (not a product cost)? A Direct materials B. Direct labor C. Salaries of the top executives D.None of the above QUESTION 25 Which of the following costs would accountants most likely consider to be fixed costs in one carry-out pizza restaurant? OA. Pizza boxes OB. Rent OC. Depreciation on the ovens OD. Both B and C QUESTION 26 Which of the following statements is correct? A Trend analysis is a form of horizontal analysis. B. Benchmarking is the practice of comparing a company's performance with its prior performance or with best practices from other companies. Horizontal analysis could use data from the notes to the financial statements. D. All of the above. Fralam - 30205 Prin angurial de QUESTION 28 Which of the following statements about a Just-in-Timo (JM) management systern is true? OA Such systems use a single Conversion Costs account that works like the Manufacturing Overhead account used in traditional systems. OB. Such systems combine Raw and In-Process Inventory into a single account. UU. Such systems are sometimes called "backflush' costing because they seem to work backwards--starting with output that is completed and then assigning manufacturing costs to units sold and to inventories. D. All of the above. QUESTION 29 Conquest, Inc. produces a special kind of light-weight, recreational vehicle that has a unique design. It allows the company to follow a cost-plus pricing strategy. Conquest has $9,000,000 of average assets, and the desired profit is a 8% return on assets. Assume all products produced are sold. Additional data are as follows: units per year Sales volume Variable costs Fixed costs 1000 $1,000 $4,000,000 per unit per year Using the cost-plus pricing approach, what should be the sales price per unit? A $5,720 B. $9,000 C.$1,080 D. None of the above QUESTION 30 Which of the following steps in the first one in preparing a production cost report in a process conting system OA Summarize the flow of physical units OB. Compute the output in terms of equivalent units of production OG. Compute the cost per equivalent unit of production OD. Assign costs to units completed and units in process QUESTION 31 Which of the following choices concerning methods of financial statement analysis are true? CA The numerators and denominators of financial statement ratios must come from the same financial statement. donemies It is not possible to perform a vertical analysis of a balance sheet because the balance sheet does not contain "total net revenues." REISER OC. A common-size statement removes dollar value bias when comparing companies of different sizes. OD. None of the above. QUESTION 32 Which of the following is a component of the master budget? O A Operating budget B. Capital expenditures budget C.Financial budget D. All of the above When making a product mix for sales mix) decision, management should do which of the following? O A Emphasize selling the product with the highest contribution margin per unit. OB. Emphasize selling the product with the highest contribution margin ratio. OG. Sell only the product with the highest contribution margin per unit of constraint. OD. None of the above. QUESTION 34 Batteries, Ino, manufactures and sells car batteries for $50 each. Car Corp. has offered Batteries, Inc. $40 per battery for a one-time order of 1,100 batteries. The total manufacturing cost per battery is $30 per unit, consisting of variable costs of $21 per battery and fixed overhead costs of $9 per battery. Assume that Batteries, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order? A. Increase of $22,000 B. Decrease of $11,000 OC. Increase of $20,900 OD. None of the above QUESTION 35 Which of the following choices concerning IRR is true? OA IRR is a company's hurdle rate. OB. Depreciation on capital assets is necessary for calculating IRR. It is not possible to calculate IRR on capital projects with unequal periodic net cash flows. D. None of the above. QUESTION 38 Which of the following staternents concerning capital budgeting is true? JA Once a company has invested in a capital asset, there is no need to perform post-audits because management cannot change its mind atte already having acquired the asset. OB. When rationing capital, management should rank the capital asset with the highest NPV as the best investment alternative for the company One weakness of the payback method is that is impossible to use if the expected future net cash flows for each period are not equal in amounts. OD. None of the above. QUESTION 39 Accountants provide a company's financial statements, such as cash flow statements, to resource providers (such as bankers and shareholder help them make which of the following decisions? A To determine whether they should allocate resources to the company. OB. To determine whether management is being efficient and effective with the resources that they have received C. Both A and B. D. None of the above. QUESTION 40 Which of the following statements is true concerning short-term business decisions? WA Management should never drop a product or segment if its contribution margin is positive. B. Management should never reject a special pricing order if its contribution margin is positive. C. Both A and B. D. None of the above