See attachment.

1) The theory of constraints: A) emphasizes long-term optimization. B) maintains that carefully managing production bottlenecks will increase operating income. C) helps managers make special one-time decisions. D) suggests that some component parts should be outsourced. 2) Constraints from the theory of constraints may include: A) the availability of direct materials in manufacturing. B) linear square feet of display space for a retailer. C) direct labor in the service industry. D) All of the above are correct. Narly Skateboards manufactures three different product lines, Base, Long, and Trick. Considerable market demand exists for all models. The following per unit data apply: Selling price Direct materials Direct labor ($12 per hour) Variable support costs ($4 per machinehour) Fixed support costs Base Model Long Model Trick Model $100 $120 $140 12 12 12 24 24 48 8 20 16 20 3) Which model has the greatest contribution margin per unit? A) base model B) long model C) trick model D) both the base model and the long model 4) Which model has the greatest contribution margin per machine-hour? A) base model B) long model C) trick model D) both the long model and the trick model 5) Customers that require a low price and lots of customized service are: A) high cost to serve and low margin. B) low cost to serve and low margin. C) high cost to serve and high margin. D) low cost to serve and high margin. 6) Customers are price sensitive with few special demands are: A) high cost to serve and low margin. B) low cost to serve and low margin. C) high cost to serve and high margin. 16 20 D) low cost to serve and high margin. 7) Typical sales person's compensation: A) is paid in the form of salary. B) encourages sales only to profitable customers. C) is usually based on customer profit. D) is usually based on sales revenue. 8) Staley company has 30 order operators with associated costs of $1,000,000 per year. Staley calculated that each operator worked about 2,000 hours per year. Allowing for time off, each operator provided about 1,600 or productive work per year. What is the rate per hour for each order entry employee? A) $20.83 B) $28.83 C) $500.00 D) $625.00 9) Return on investment (ROI) can be increased by: A) increasing sales. B) decreasing operating assets. C) decreasing operating income. D) decreasing asset turnover. 10) For most products, the majority of the product's total life costs are incurred during the: A) research, development, and engineering cycle. B) manufacturing cycle. C) post-sale service and disposal cycle. D) operating cycle. 11) The research development and engineering cycle of the total life-cycle concept which focuses on developing prototypes and production processes is the: A) research, development, and engineering cycle. B) manufacturing cycle. C) product design stage. D) product development stage. 12) Total-life-cycle costing is the name given to: A) a method of cost planning to reduce manufacturing costs to targeted levels. B) the process of examining each component of a product to determine whether its cost can be reduced. C) the process of managing all costs along the value chain. D) a system that focuses on reducing costs during the manufacturing cycle. 13) Deciding how to allocate resources over a product's life cycle usually is: A) decided once at the beginning of the product design phase. B) not known until the beginning of the manufacturing cycle. C) part of product development. D) an iterative process over the life of the product. 14) An understanding of total-life-cycle costs can lead to: A) additional costs during the manufacturing cycle. B) less need for the evaluation of opportunity costs. C) cost effective product designs that are easier to service. D) mutually beneficial relationships between buyers and sellers. 15) The stage of the research development and engineering cycle in which the technical aspects of products and services are developed is the: A) service phase. B) market research stage. C) product development stage. D) product design stage. 16) Traditional costing begins with: A) the research development and engineering cycle. B) marketing research. C) target costing. D) product specification. 17) Relevant costs for target costing include: A) variable manufacturing costs. B) variable manufacturing and variable nonmanufacturing costs. C) all fixed costs. D) all future costs, both variable and fixed. 18) Which BEST describes the control function in a management accounting and control system? A) MACS seeks out areas that are out-of-control but not for corrective action. B) MACS achieves cost reduction targets that are continually adjusted downward. C) MACS guides and motivates employees to achieve organizational objectives. D) MACS ensures performance standard goals are being met. 19) The five stages in the process of keeping an organization in control are: A) planning, implementing, measuring, evaluating and correcting. B) planning, executing, monitoring, evaluating and correcting. C) budgeting, implementing, monitoring, evaluation and feedback. D) budgeting, executing, measuring, feedback and evaluation. 20) The evaluation phase of the process of control in MACS focuses on: A) comparing the planned level to current performance to identify discrepancies and consider corrective measures. B) measuring the current level of performance. C) returning the system to an in control state. D) selecting measures to determine how well objectives are met. 21) Which BEST describes the purpose of a management accounting and control system (MACS)? A) A MACS defines the value chain and identifies nonvalue-added activities for a business. B) A MACS helps decision makers determine whether strategies and objectives are being met. C) A MACS offers a system of controls to ensure employees are meeting predetermined standards. D) A MACS provides a signal for management attention when areas are out-of-control. 22) Behavioral considerations of a well-designed management accounting and control system include all of the following EXCEPT: A) short-term qualitative and quantitative measures. B) incentive compensation. C) information accuracy. D) the organization's ethical code of conduct. 23) The two major categories of technical considerations for a management accounting and control system are: A) design and accuracy of information. B) relevance of information and scope of system. C) service and timely information. D) development and flexibility. 24) When implementing a new management accounting and control system, it is BEST: A) to allow management to implement their ideas. B) for management to involve employees in the implementation. C) to involve consultants and implement their experienced ideas. D) to engage in benchmarking. 25) In a management accounting and control system design, behavioral expectations are BEST incorporated by: A) using a mix of short-term and quantitative performance measures. B) developing a task-related control system. C) including the organization's code of conduct. D) monitoring behavior with time and motion studies. 26) Assumptions of the human resources model of motivation include all of the following EXCEPT: A) employees prefer to follow highly-detailed, prescribed procedures. B) individuals are motivated by both financial and nonfinancial awards. C) employees are knowledgeable about their jobs. D) individuals are highly creative, ethical, and responsible. 27)) The contemporary management view of motivation, the ________ is based on initiatives to improve the quality of working life. A) balanced scorecard B) human resources model of motivation C) scientific management school D) results control system 28) To promote ethical decision making: A) consequences of unethical behavior should be left undefined to allow for flexibility. B) a statement of the organization's code of ethics should be communicated to each employee. C) violators of the code of ethics should be allowed several warnings before severe consequences are imposed. D) management should be excused from adhering to the organization's ethical code of conduct when it conflicts with personal values. 29) The elements of an effective ethical control system include all of the following EXCEPT: A) a statement of the employee's ethical responsibilities. B) an ongoing internal audit of the efficiency of the organization's ethical control system. C) a statement of the organization's values and code of ethics. D) a reward system for turning in those who violate the organization's ethical code. 30) Which of the following is NOT a role of budgeting in organizations? A) performance evaluation. B) historical financial statements. C) allocation of resources. D) motivation of employees. 31) Budgeting does NOT require: A) knowledge of the organization's activities. B) specialized expertise in financial management and control. C) knowledge about how activities affect costs. D) the ability to see how the organization's different activities fit together. 32) All of the following are true statements about the role of budgets and budgeting EXCEPT that: A) a budget is a quantitative summary of the expected allocations and financial consequences of the organization's short-term operating activities. B) budgeting includes the process of estimating money inflows and outflows to determine a financial plan that will meet an organization's objectives. C) the difference between actual results and the budget plan are called variances. D) budgeting solves most business challenges because it coordinates activities and communicates the organization's short-term goals to its members. 33) Operating budgets include the: A) projected balance sheet. B) projected income statement. C) capital spending plan. D) expected cash flow statement. 34) Financial budgets are prepared: A) to specify expectations for selling, purchasing, and production. B) to evaluate the financial results of the proposed decisions. C) so that financial statements can be prepared for shareholders. D) to plan for production capacity. The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year. Sales Variable expenses Contribution margin Other costs Segment margin Allocated avoidable costs Segment income Allocated corporate costs Corporate profit Produce Fish & Meat $80,000 $120,000 36,000 65,000 44,000 55,000 18,000 21,000 26,000 34,000 Sundries $60,000 20,000 40,000 8,000 32,000 Total $220,000 121,000 99,000 47,000 52,000 2,000 24,000 3,000 31,000 3,000 29,000 8,000 44,000 7,000 $17,000 7,000 $ 24,000 7,000 $ 22,000 21,000 $ 23,000 35) If the Produce department had been eliminated prior to this year, the company would have reported: A) greater corporate profits. B) the same amount of corporate profits. C) less corporate profits. D) resulting profits cannot be determined. 36) If the Fish & Meat department (the Martino Organics Company) had been discontinued, the short-term effect on corporate profits would be a decrease of: A) $55,000. B) $34,000. C) $31,000. D) $24,000. 37) Assume that the Sundries department (the Martino Organics Company) has been discontinued and long-term capacity of the company has had time to adjust. The projected long-term effect of this action on annual corporate profits would be a decrease of: A) $40,000. B) $32,000. C) $29,000. D) $22,000. 38) Assume an advertising campaign (the Martino Organics Company) could increase revenues for any of the products by $15,000. To maximize corporate profits, the ________ department should receive the advertising dollars. Assume the cost of the advertising campaign is less than the revenues it generates. A) Sundries B) FIsh & Meat C) Produce D) From the information given, the correct product line cannot be determined. The Jordan Company manufacturers only one type of shoe and has two divisions, the Sole Division and the Assembly Division. The Sole Division manufactures soles and then "sells" them to the Assembly Division, which completes the shoes and sells them to retailers. The market price for the Assembly Division to purchase a pair of soles is $40. Fixed costs are per pair at 100,000 units. Sole's costs per pair of soles are: Direct materials Direct labor Variable overhead Division fixed costs Assembly's costs per completed pair of shoes are: Direct materials Direct labor Variable overhead Division fixed costs $8 $6 $4 $2 $10 $2 $2 $18 39) If the cost-based transfer price is 180% of variable costs , what is the transfer price per pair of soles from the Sole Division to the Assembly Division? A) $28.8 B) $25.20 C) $32.40 D) $57.60 40) Assume an organization's cost of capital is 10% and Division X has operating income of $3 million and uses $20 million of capital. The economic value added for Division X is: A) $200,000. B) $300,000. C) $1,000,000. D) $1,700,000