Which of the following contemporary management techniques requires a balancing of multiple goals? (Points : 2)

Target costing. The theory of constraints. Benchmarking. Business process improvement. Enterprise sustainability.

Question 3.3. The range of the cost driver in which the actual value of the driver is expected to fall is the: (Points : 2)

Actual cost range. Driver range. Activity range. Relevant range.

Question 4.4. When managers produce value for the customer, their orientation consists of all the following except: (Points : 2)

Quality and Service. Timeliness of delivery. The ability to respond to the customer's desire for specific features. State of the art manufacturing facilities.

Question 5.5. Which of the following tend to be non-differential in the short term since they cannot be changed, but are more likely to be differential in the long term? (Points : 2)

Fixed costs. Variable costs. Mixed costs. Semi-variable costs.

Question 6.6. Assume the following information pertaining to Moonbeam Company: Beginning Finished Goods Inventory = $130,000 Ending Finished Goods Inventory = $124,000 Beginning WIP Inventory = $85,000 Ending WIP Inventory = $104,000 Beginning Direct Materials = $117,000 Ending Direct Materials = $130,000 Costs incurred during the period are as follows: Total Manufacturing Costs = $896,000 Factory Overhead = $199,000 Direct Materials Used = $156.000 Materials purchases are calculated to be: (Points : 2)

$143,000. $156,000. $91,000. $169,000. $140,000.

Question 7.7. Direct materials and direct labor costs total $40,000 and factory overhead costs total $100 per machine hour. If 200 machine hours were used for Job #202, what is the total manufacturing cost for Job #202? (Points : 2)

$95,000 $75,000 $65,000 $60,000

Standard costs are: (Points : 2)

Planned costs the firm should attain. Associated with direct materials and factory overhead only. Associated with direct labor and factory overhead only. Targeted low costs the firm should strive for. None of the above.

Question 10.10. The key difference between weighted-average and FIFO process costing methods is the handling of the partially completed: (Points : 2)

Beginning direct materials inventory. Ending direct materials inventory. Beginning work-in-process inventory. Ending work-in-process inventory. Beginning finished goods inventory.

Question 11.11. Effective implementation of activity-based costing (ABC) requires: (Points : 2)

Normally the assistance of a consultant. A sophisticated and expensive computer system. Support of top management and key employees. Capturing properly the complexity of the data. ABC has no significant implementation issues.

Question 12.12. Which of the following is most likely to be the cost driver for the packaging and shipping activity? (Points : 2)

Number of setups. Number of components. Number of orders. Hours of testing. Number of production runs.

Question 13.13. ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information: Total Materials (Direct and Indirect) Purchased = $ 90,000 Indirect Materials Issued to Production = 30,000 Total Materials Issued to Production = 110,000 Beginning Materials Inventory = 50,000 The ending materials inventory cost is: (Points : 2)

$110,000. $30,000. $90,000. $80,000.

Question 14.14. Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. Direct Materials January 1 = $77,000 Direct Materials December 31 = 40,000 WIP January 1 = 66,000 WIP December 31 = 42,000 Finished Goods January 1 = 115,000 Finished Goods December 31 = 100,000 Other Information: Direct Materials Purchased = $324,000 Cost of Goods Available for Sale = 950,000 Actual Factory Overhead = 206,000 The cost of goods manufactured during the year is: (Points : 2)

$850,000. $348,000. $672,000. $835,000. $811,000.

Question 15.15. The point in a joint production process at which individual products can be identified for the first time is called the: (Points : 2)

Separable point. By-pass point. Split-off point. Joint identification point.

Question 16.16. Regression analysis is better than the high-low method of cost estimation because regression analysis: (Points : 2)

Is mathematical. Can provide greater precision and reliability. Fits data into a mathematical equation. Takes less time. Is a statistical method.

Question 17.17. In measuring the variable cost per unit, CVP analysis includes: (Points : 2)

Only variable production costs. Only variable distribution and selling costs. Both variable production and variable selling/distribution costs. Only variable and semi-variable production costs.

Question 18.18. Which of the following is an example of a physical measure used in the physical measure method? (Points : 2)

Pounds. Minutes. Seconds. Dollars. Volume.

Question 19.19. Which one of the following methods uses units of output to allocate joint costs to joint products? (Points : 2)

Net realizable value method. Physical units method. Net sales value method. Sales value at split-off method

Which of the following statements regarding capital investment analysis is false? (Points : 2)

A long-term planning horizon is assumed. Benefits of potential investment projects are conceptually expressed in terms of accounting income (or reduction in costs). Project acceptance decisions are based on models that explicitly incorporate the time value of money. Need to incorporate income-tax effects in the analysis, for both revenues (gains) as well as expenses (losses). Discounted cash flow (DCF) decision models are used by a majority of large organizations.

Question 24.24. For a typical capital investment project, the bulk of the investment-related cash outflow occurs: (Points : 2)

During the initiation stage of the project (i.e., at time period 0). During the operation stage of the project. Either during the initiation stage or the operation stage. During neither the initiation stage nor the operation stage. Evenly during all three stages: initiation, operation, and final disposal.

Question 25.25. In a joint production process, the allocation of joint (common) costs to the joint products is needed: (Points : 2)

To meet external reporting requirements (i.e., for financial statement preparation purposes). To determine whether the firm in question should produce at all. To assess managerial performance. To determine which products, if any, should be produced beyond the split-off point.

Carmino Company is considering an investment in equipment that will generate an after-tax income of $6,000 for each year of its four-year life. The asset has no salvage value. The firm is in the 40% tax bracket. The net book value (NBV) of the investment at the beginning of each year will be as follows: Year 1 = $30,000 Year 2 = 15,000 Year 3 = 7,500 Year 4 = 3,750 Calculate this asset's book (accounting) rate of return on average investment, which is defined as a simple average of the average book value for each of the four years. Round the final answer to the nearest whole %. (Points : 2)

15%. 27%. 36%. 43%. 58%.

Question 29.29. The difference between the actual operating income of the period and master budgeted operating income for the period is the: (Points : 2)

Total flexible-budget variance. Sales volume variance. Sales price variance Operating income flexible-budget variance. Total operating income variance.

Question 30.30. Which of the following benefits is not typically associated with a move to a just-in-time (JIT) manufacturing system? (Points : 2)

Raw materials are delivered as close as possible to time of production. Existence of long-term contracts with selected suppliers. Reduction in employee training and education costs. Decreases in manufacturing lead time. Improved customer-response time (CRT).

During which stage of the sales life cycle of a product do sales continue to increase but at a decreasing rate, and competition tends to focus on cost? (Points : 2)

Maturity. Decline. Inflation. Growth. Introduction.

Question 33.33. The "flexible budget" can best be described as a budget that adjusts: (Points : 2)

Revenues for sales-dollar changes. Revenues and expenses for changes in output (such as sales volume). Expenses for changes in budgeted output between two periods. For efficiency, but not selling price and cost variances. For selling price and cost variances, but not efficiency variances.

Question 34.34. Matinna Co. maintains no inventories and has the following data pertaining to one of its direct materials in July: Standard Quantity of DM for the Units Manufactured = 30,000 DM Purchased