Question 25

Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable?

Select one:

a. Department managers should only be held accountable for controllable variances for their departments.

b. Department managers' performances should not be evaluated based on actual results to budgeted results.

c. Department managers should be held accountable for all variances from budgets for their departments.

d. Department managers should be credited for favorable variances even if they are beyond their control.

Question 26

The three types of inventory that a manufacturing company would display on their balance sheet are:

a. Work in Process, Raw Materials, Ending Inventory

b. Raw Materials, Finished Goods, Work in Process

c. Work in Process, Opening Inventory, Raw Materials

d. Finished Goods, Work in Process, Ending Inventory

Question 27

Which type of cost below would be most likely to be a mixed cost?

Select one:

a. Office Rent

b. Direct Labour

c. Maintenance Expense

d. Indirect Materials

Question 28

If a payback period for a project is greater than its expected useful life, the

a. entire initial investment will not be recovered.

b. project would only be acceptable if the company's cost of capital was low.

c. project will always be profitable.

d. project's return will always exceed the company's cost of capital.

Question 29

Management accountants would not

a. be concerned with the impact of cost and volume on profits.

b. assist in budget planning.

c. prepare reports primarily for external users.

d. determine cost behavior.

Question 30

Rosenberg Company's accounting records reflect the following inventories:

Dec. 31, 2020 Dec. 31, 2019

Raw materials inventory $310,000 $260,000

Work in process inventory 300,000 160,000

Finished goods inventory 190,000 150,000

During 2020, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000.

The total raw materials used during 2020 for Rosenberg Company is

Select one:

a. $1,150,000.

b. $1,110,000.

c. $990,000.

d. $850,000.

Question 31

Rogers Camera sold 1,000 cameras in 2020 for a total of $175,000. The company incurred the following costs: Direct Materials: 20,000 Direct Labour: 15,000 Variable Manufacturing Overhead: 9,000 Rent: 8,500 Depreciation: 7,000 For every single camera that the company sells, how much did it add to it's total contribution margin?

Select one:

a. $131.00

b. $144.00

c. $140.00

d. $115.50

Question 32

Below is a listing of costs for a manufacturing company:

Sales Manager's Salaries: $250,000

Plant Supervisor's Salaries: $190,000

Machine maintenance: $90,000

Office building depreciation: $80,000

Machine depreciation: $50,000

Indirect Materials: $20,000

Direct Materials: $300,000

Sales Commission: $40,000

The total Manufacturing Overhead would be?

Select one:

a. $350,000

b. $330,000

c. $390,000

d. $280,000