Question 1 (1 point)

Place the six business functions in the order they appear along the value chain: A = Customer service B = Design C = Distribution D = Production or purchases E = Research and Development F = Marketing

Question 1 options:

	A, C, D, B, F, E
	E, B, D, F, C, A
	A, E, B, D, C, F
	E, B, A, D, F, C

Question 2 (1 point)

Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000. The monthly target operating income is $50,000.

What is the monthly margin of safety in dollars if Southwest Electric Co-op achieves its operating income goal?

Question 2 options:

	$125,000
	$437,500
	$250,000
	$62,500

Question 3 (1 point)

The difference between the sales price and the job cost is

Question 3 options:

	cost of goods sold
	gross profit
	operating income
	net income

Question 4 (1 point)

Which of the following is TRUE when using the income statement approach to finding break-even?

Question 4 options:

	Fixed expenses + variable expenses - sales revenue = operating income
	Fixed expenses + variable expenses + sales revenue = operating income
	Sales revenue - variable expenses - fixed expenses = operating income
	(Variable expenses number of units) - fixed expenses = operating income

Question 5 (1 point)

When determining the cost of a manufactured product, the cost of lighting the factory would be classified as

Question 5 options:

	a direct cost.
	an indirect cost.
	a period cost.
	a conversion cost.

Question 6 (1 point)

To compute the unit contribution margin, ________ should be subtracted from the sales price per unit.

Question 6 options:

	only variable period costs
	all fixed costs
	all variable costs
	only variable inventoriable product costs

Question 7 (1 point)

Which of the following represents a sunk cost?

Question 7 options:

	An outlay expected to be incurred in the future
	A historical cost that is never relevant
	A historical cost that is always relevant
	A cost that is relevant to any decision

Question 8 (1 point)

Assigning manufacturing overhead costs and other indirect costs is called

Question 8 options:

	cost allocation
	materials requisition
	cost driver
	predetermined manufacturing overhead rate

Question 9 (1 point)

Which of the following is calculated last before operating income can be determined for a manufacturer?

Question 9 options:

	Cost of direct materials
	Cost of goods sold
	Cost of goods manufactured
	Cost of goods available for sale

Question 10 (1 point)

Ricco was reviewing the water bill for his carwash business and determined that the highest bill, $6,000, occurred in July when 2,000 cars were washed. The lowest bill, $4,500, occurred in February when 1,000 cars were washed. Use the high-low method to answer the following questions.

What was the variable cost per carwash?

Question 10 options:

	$1.50
	$0.67
	$4.50
	$3.00

Question 11 (1 point)

A basic tenet of variable costing is that fixed manufacturing overhead costs be currently expensed. What is the rationale behind this?

Question 11 options:

	Allocation of fixed manufacturing costs are arbitrary at best.
	Fixed manufacturing overhead costs are generally immaterial in amount.
	Fixed manufacturing overhead costs occur regardless of level of production.
	Fixed manufacturing costs change as production changes.

Question 12 (1 point)

What types of businesses can use a job costing system?

Question 12 options:

	Service, manufacturing, and merchandising businesses
	Service and merchandising businesses
	Manufacturing and merchandising businesses
	Service and manufacturing businesses

Question 13 (1 point)

Overallocated manufacturing overhead results when

Question 13 options:

	production is less than last year
	estimated overhead is less than actual overhead
	actual overhead is less than allocated overhead
	actual overhead is less than expected

Question 14 (1 point)

Total fixed costs for Excelsior Corporation are $600,000. Total costs, both fixed and variable, are $750,000 if 125,000 units are produced. The fixed cost per unit at 300,000 units would be

Question 14 options:

	$4.80/unit.
	$0.50/unit.
	$6.00/unit.
	$2.00/unit.

Question 15 (1 point)

The cost of supplier evaluation from a supplier would be classified as a(n)

Question 15 options:

	internal failure cost
	prevention cost
	external failure cost
	appraisal cost

Question 16 (1 point)

Farm Supply plans to make 10,000 tractors at its plant. Fixed costs are $1,000,000 and variable costs are $500 per tractor. What is the average cost per tractor?

Question 16 options:

	$1,500
	$600
	$100
	$500

Question 17 (1 point)

Smith Paints allocates overhead based on machine hours. Selected data for the most recent year follow.

Estimated manufacturing overhead cost $250,000 Actual manufacturing overhead cost $230,000 Estimated machine hours 20,000 Actual machine hours 21,000

The estimates were made as of the beginning of the year, while the actual results were for the entire year.

At Smith Paints the predetermined manufacturing overhead rate per machine hour is closest to

Question 17 options:

	$11.90
	$10.95
	$12.50
	$11.50

Question 18 (1 point)

Sierra Ceramics makes custom ceramic tiles. During March, the company started and finished Job #231. Job #231 consists of 2,000 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #231.

Basic terra cotta tiles: 2,000 units at $2.00 per unit Specialty paint: 5 quarts at $4.00 per quart High gloss glaze: 3 quarts at $10.00 per quart

Labour time records show the following employees worked on Job #231: Emily Jergens: 20 hours at $22 per hour Dan Evrard: 12 hours at $15 per hour

Sierra Ceramics allocates manufacturing overhead at a rate of $25 per direct labour hour.

At Sierra Ceramics what is the total amount of direct materials, direct labour, and manufacturing overhead that should be shown on Job #231's job cost record?

Question 18 options:

	$24,000
	$5,470
	$800
	$4,670

Question 19 (1 point)

The contribution margin is equal to

Question 19 options:

	sales minus cost of goods sold.
	sales minus variable expenses.
	sales minus fixed expenses.
	sales minus operating expenses.

Question 20 (1 point)

Smith Paints allocates overhead based on machine hours. Selected data for the most recent year follow.

Estimated manufacturing overhead cost $250,000 Actual manufacturing overhead cost $230,000 Estimated machine hours 20,000 Actual machine hours 21,000

The estimates were made as of the beginning of the year, while the actual results were for the entire year.

At Smith Paints the amount of manufacturing overhead allocated for the year based on machine hours would have been

Question 20 options:

	$230,000
	$240,000
	$262,500
	$250,000

Question 21 (1 point)

Planning involves which of the following activities

Question 21 options:

	Getting feedback on results
	Overseeing the company's day-to-day operations
	Setting goals and objectives for the company
	Evaluating the results of operations

Question 22 (1 point)

Which of the following persons or groups would be LEAST likely to receive detailed managerial accounting reports?

Question 22 options:

	CEO
	Sales territory managers
	Plant managers
	Current shareholders

Question 23 (1 point)

Gregory Enterprises sells two products, larges and smalls. Larges sell for $120 per unit with variable costs of $80 per unit. Smalls sell for $30 per unit with variable costs of $10 per unit. Total fixed costs for the company are $40,000. Gregory Enterprises typically sells three larges for every two smalls. What is the break-even point in total units?

Question 23 options:

	2,500 units
	1,250 units
	294 units
	250 units

Question 24 (1 point)

Within the relevant range, which of the following statements is TRUE with respect to fixed costs per unit?

Question 24 options:

	They will increase as production increases.
	They will decrease as production decreases.
	They will increase as production decreases.
	They will remain the same as production levels change.

Question 25 (1 point)

Which of the following is an inventoriable cost?

Question 25 options:

	Direct labour expenses
	Marketing expenses
	Research and development expenses
	Distribution expenses

Question 26 (1 point)

Traceable fixed costs

Question 26 options:

	are allocated across all segments of a business.
	are directly related to a specific segment of a business.
	are also called common fixed costs.
	always account for all fixed costs.

Question 27 (1 point)

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars. Which of the following costs is irrelevant to its decision?

Question 27 options:

	The cost per gallon of gasoline
	The purchase price of the hybrid model
	The purchase price of the gasoline-engine model
	The book value of the current fleet of sales vehicles

Question 28 (1 point)

If production increases by 15%, how will total variable costs likely react?

Question 28 options:

	Increase by 15%
	Increase by 7.5%
	Decrease by 15%
	Remain the same

Question 29 (1 point)

A regression equation's "goodness of fit" is represented by the ________ on the regression analysis output.

Question 29 options:

	Residual
	X variable 1 coefficient
	Intercept coefficient
	R-square

Question 30 (1 point)

If manufacturing overhead has been underallocated during the period, and most of the jobs produced have been sold, then

Question 30 options:

	work in process inventory should be decreased
	cost of goods sold should be increased
	cost of goods sold should be decreased
	finished goods inventory should be increased

Question 31 (1 point)

Which comes first in the flow of costs?

Question 31 options:

	Cost of goods sold
	Raw materials inventory
	Work in process inventory
	Finished goods inventory

Question 32 (1 point)

Express Company reports the following data for its first year of operation.

Cost of goods manufactured $475,000 Work in process inventory, beginning 0 Work in process inventory, ending 140,000 Direct materials used 110,000 Manufacturing overhead 185,000 Finished goods inventory, ending 101,000

What is the cost of goods sold at Express Company?

Question 32 options:

	$770,000
	$374,000
	$514,000
	$475,000

Question 33 (1 point)

If a job consists of a batch of identical units, managers find the unit cost by

Question 33 options:

	multiplying the total job cost by the number of units in the job
	tracing direct materials to each unit
	dividing the total job cost by the number of units in the job
	tracing direct labour to each unit

Question 34 (1 point)

Managerial accounting

Question 34 options:

	must comply with IFRS/ASPE
	emphasized reliable and objective
	focuses on the future and includes activities such as preparing next year's operating budget
	must be audited by an independant auditor

Question 35 (1 point)

When managers use their judgment to classify costs as variable, fixed, or mixed, which method are they using?

Question 35 options:

	Regression analysis
	Low-high method
	Account analysis
	High-low method

Question 36 (1 point)

All else being equal, a company with a high operating leverage will have

Question 36 options:

	relatively high variable costs
	relatively low fixed costs
	a relatively high contribution margin ratio
	a relatively low risk

Question 37 (1 point)

The contribution margin ratio explains the percentage of each sales dollar that contributes towards

Question 37 options:

	variable costs
	sales revenue
	fixed costs and generating a profit
	period expenses

Question 38 (1 point)

Express Company reports the following data for its first year of operation.

Cost of goods manufactured $475,000 Work in process inventory, beginning 0 Work in process inventory, ending 140,000 Direct materials used 110,000 Manufacturing overhead 185,000 Finished goods inventory, ending 101,000

What are the total manufacturing costs to account for at Express Company?

Question 38 options:

	$475,000
	$295,000
	$615,000
	$529,000

Question 39 (1 point)

Which of the following pertains to a lean production system?

Question 39 options:

	It will produce goods in smaller batches than a traditional production system
	It will require higher inventory levels than a traditional production system
	It will require longer set-up times than a traditional system
	It will have like machines grouped together

Question 40 (1 point)

If a company were to increase its appraisal costs by inspecting more units as the units are completed, the company's internal failure costs

Question 40 options:

	would usually decrease.
	would usually increase.
	could not be predicted.
	would usually remain the same.

Question 41 (1 point)

Fixed costs divided by weighted-average contribution margin per unit equals

Question 41 options:

	contribution margin ratio
	margin of safety ratio
	break-even sales in dollars
	break-even sales in units

Question 42 (1 point)

Which term listed below describes a system where companies purchase raw materials when needed in production and complete finished goods when needed by customers?

Question 42 options:

	Total quality management
	Traditional production system
	Supply chain management
	Just-in-time inventory

Question 43 (1 point)

Which term below best describes the quality cost category for "cost to re-inspect reworked food processors"?

Question 43 options:

	External failure costs
	Prevention costs
	Appraisal costs
	Internal failure costs

Question 44 (1 point)

Which of the following statements is TRUE if the variable cost per unit decreases while the sales price per unit and total fixed costs remain constant?

Question 44 options:

	The contribution margin decreases and the break-even point increases
	The contribution margin increases and the break-even point decreases
	The contribution margin increases and the break-even point increases
	The contribution margin decreases and the break-even point decreases

Question 45 (1 point)

Total fixed costs for Yellow Boats Inc. are $100,000. Total costs are $500,000 if 125,000 units are produced. The total variable costs at a level of 200,000 units would be

Question 45 options:

	$640,000.
	$160,000.
	$312,000.
	$800,000.

Question 46 (1 point)

Ricco was reviewing the water bill for his carwash business and determined that the highest bill, $6,000, occurred in July when 2,000 cars were washed. The lowest bill, $4,500, occurred in February when 1,000 cars were washed. Use the high-low method to answer the following questions.

What was the fixed portion of the water bill at the car wash?

Question 46 options:

	$5,000
	$5,250
	$3,000
	$1,500

Question 47 (1 point)

The "triple bottom line" focuses on what three factors that influence a firm's ability to survive and thrive in the long run

Question 47 options:

	People, places, things
	Planet, profit, place
	Profit, people, planet
	Profit, people, place

Question 48 (1 point)

A company produces toy airplanes. If 6,000 toys are produced at a total variable cost of $126,000, the total variable cost at 4,000 toys will be

Question 48 options:

	$126,000
	$86,000
	$84,000
	$210,000

Question 49 (1 point)

Evaluating results against the plan is an example of the management function of

Question 49 options:

	planning
	directing
	controlling
	decision-making

Question 50 (1 point)

Before these materials are used to manufacture its cars, Honda classifies steel, glass, and plastic as

Question 50 options:

	work in process inventory.
	finished goods inventory.
	merchandise inventory.
	raw materials inventory.