Question

Which of the following would have the least effect on a cost-benefit analysis? Steadily rising prices Rapidly declining prices Constant prices None of these 2 points QUESTION 2 Management accounting requires an independent audit of the firm's books. True False 2 points QUESTION 3 Implementing a program to bill customers electronically, therefore saving paper, is a green initiative that reduces not only waste, but it also reduces company costs. True False 2 points QUESTION 4 Lean production cuts the throughput time of a manufacturing concern. True False 2 points QUESTION 5 The Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least at any time they choose. monthly. annually. quarterly. 2 points QUESTION 6 The Board of Directors is elected jointly by the CEO and CFO. True False 2 points QUESTION 7 Managerial accounting topics can be used in which of the following careers: Entrepreneurs Business Management Sales All of these careers could benefit from managerial accounting. 2 points QUESTION 8 Budgets are a way for managers to communicate their plans. control. hiring practices. decision-making. 2 points QUESTION 9 The SEC requires an independent certified public accountant (CPA) to audit reports generated by managerial accounting systems. True False 2 points QUESTION 10 Which person is hired directly by the board of directors to manage the daily operations of the company? The COO The CEO The Treasurer The CFO 2 points QUESTION 11 A restaurant is facing a decision about whether it should bake its own apple pies or whether it should continue to purchase the pies from a local bakery. Which of the following costs would be relevant to its decision? The salary of the restaurant manager The price the restaurant sells the apple pies for The original purchase price of the current machinery The purchase price of the apple pies purchased from the local bakery 2 points QUESTION 12 Merchandising companies include both wholesalers and retailers. True False 2 points QUESTION 13 Differential cost is the difference in cost between two alternatives. True False 2 points QUESTION 14 Which type of company makes up the largest sector of the United States economy? Manufacturers Service companies Merchandising Wholesalers 2 points QUESTION 15 The value chain is used by only manufacturing and merchandising businesses. service, manufacturing, and merchandising businesses. only service and manufacturing businesses. only service and merchandising businesses. 2 points QUESTION 16 Controlling costs across the whole value chain often requires a trade-off between the individual elements of the value chain. True False 2 points QUESTION 17 A marginal cost is the cost of making one more unit of a product. True False 2 points QUESTION 18 A company produces toy airplanes at a variable cost of $24 per toy. If 7090 toys are produced at a total variable cost of $170,160, the total variable cost at 4540 toys will be $108,960. $279,120. $170,160. $24. 2 points QUESTION 19 Selected information regarding a company's most recent quarter follows (all data in thousands). Direct labor $580 Beginning work in process inventory $320 Ending work in process inventory $340 Cost of goods manufactured $1560 Manufacturing overhead $870 What was the cost of direct materials used for the quarter? $1540 $870 $530 $130 2 points QUESTION 20 Which of the following would not be considered a direct cost of a mattress? Glue Lumber Fabric Steel 2 points QUESTION 21 Company X sells widgets. The following information summarizes the company's operating activities for the year: Beginning inventory $7900 Sales revenue $25,300 Sales commissions $900 Rent for office $2900 Utilities for the office $1700 Purchases $6900 Ending inventory $5200 What are total operating expenses? $3800 $5500 $4600 $2600 2 points QUESTION 22 Sneider Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: Depreciation expense on bottling machines $63,900 Glass juice bottles $60,500 Commissions for salespeople $30,400 Salaries of nutrition researchers $75,100 Costs of maintaining website used for customer orders $4600 Wages of factory workers $75,300 Freshness seals/caps for juice bottles $3000 Reconfiguring the factory layout $122,400 Customer help line $5100 Costs of refrigerated trucks used to deliver juice $25,700 What is the total cost for the distribution category of the value chain? $152,700 $25,700 $28,700 $223,400 2 points QUESTION 23 Which element of the value chain would depreciation on a factory be classified as? Research and development Production Design Distribution 2 points QUESTION 24 Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include: Plastics used to make products $151,200 Heating and lighting costs for factory $65,700 Factory janitor wages $67,400 Costs of shipping to customers $12,000 Lubricants used in factory equipment $2700 Lighting costs for sales office $20,600 Depreciation on factory equipment $23,800 Office supplies for sales office $6800 Insurance costs for factory $13,700 Maintenance worker wages $99,600 Freight-in (on plastics) $7600 Aluminum used to make products $175,900 Assembly-line worker wages $142,600 Salaries of salespeople $74,600 Product costs for Winner's Sporting Equipment totaled $728,900. $742,500. $618,800. $750,200. 2 points QUESTION 25 Advertising expenses would be considered which element of the value chain? Customer service Research and development Production Marketing 2 points QUESTION 26 Collectively, all costs such as distribution, marketing, and design are part of downstream activities. the value chain. manufacturing costs. fixed costs. 2 points QUESTION 27 A company's total costs are calculated by adding total fixed costs to total variable costs. subtracting total variable costs from total fixed costs. subtracting total fixed costs from total variable costs. subtracting total fixed costs and total variable costs from sales. 2 points QUESTION 28 Over the long-term, all costs are uncontrollable. True False 2 points QUESTION 29 Porches, Inc. sells lawn furniture. Selected financial information for the most recent year is as follows: Beginning merchandise inventory on January 1 was $33,300. Ending merchandise inventory on December 31 was $35,000. Purchases during the year were $92,300. Selling and administrative expenses were $75,900. Sales for year were $262,700. What was operating income for the year? $94,500 $92,800 $90,600 $96,200 2 points QUESTION 30 Company X sells widgets. The following information summarizes the company's operating activities for the year: Beginning inventory $7200 Sales revenue $25,000 Sales commissions $700 Rent for office $2200 Utilities for the office $1400 Purchases $6500 Ending inventory $5600 What is cost of goods sold? $13,700 $8100 $6500 $9300 2 points QUESTION 31 Job costing is often used by professional service providers, such as law firms. True False 2 points QUESTION 32 Zanny Moldings has the following estimated costs for the upcoming year: Direct materials used $25,700 Direct labor costs $62,100 Salary of factory supervisor $37,400 Advertising expense $33,100 Heating and lighting costs for factory $22,600 Depreciation on factory equipment $5500 Sales commissions $8000 The company estimates that 1600 direct labor hours will be worked in the upcoming year, while 2100 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour is closest to $51. $31. $13. $93. 2 points QUESTION 33 A job costing system can be used by which types of companies? Service and manufacturing businesses Manufacturing and merchandising businesses Service and merchandising businesses Service, manufacturing, and merchandising businesses 2 points QUESTION 34 Which of the following entries would be made to record $20,800 of labor-85% of which is direct, and 15% of which is indirect- to jobs? Work in Process Inventory ​ 17,680 ​ Manufacturing Overhead ​ 3120 ​ ​ Wages Payable ​ 20,800 Work in Process Inventory ​ 20,800 ​ ​ Wages Payable ​ 20,800 Manufacturing Overhead ​ 20,800 ​ ​ Manufacturing Wages ​ 20,800 Wages Payable ​ 20,800 ​ ​ WIP Inventory ​ 17,680 ​ Manufacturing Inventory ​ 3120 2 points QUESTION 35 Here is some basic data for Honey Dukes Corporation: Beginning raw materials inventory $37,000 Beginning work in process inventory $68,000 Beginning finished goods inventory $59,000 Cost of materials purchased $188,000 Cost of direct materials requisitioned $87,000 Direct labor incurred $195,000 Actual manufacturing overhead $195,000 Completed goods $287,000 Cost of goods sold ​ $255,000 Manufacturing overhead rate ( % of direct labor) 125% The journal entry to record the cost of jobs sold would include a credit to Finished Goods Inventory account for $287,000. debit to Finished Goods Inventory account for $255,000. credit to Finished Goods Inventory account for $255,000. debit to Cost of Goods Sold account for $287,000. 2 points QUESTION 36 The entry to transfer sold goods includes a debit to the Finished Goods Inventory account. True False 2 points QUESTION 37 Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost $500,800 Actual direct labor cost $465,400 Estimated manufacturing overhead costs $425,700 Actual manufacturing overhead costs $350,000 Estimated direct labor hours 250,700 Actual direct labor hours 232,100 If Quick Step Company uses direct labor hours as the allocation base, what would the allocated manufacturing overhead be for the year? (Round intermediary calculations to the nearest cent.) $394,570 $425,700 $324,033 $350,000 2 points QUESTION 38 Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost $500,300 Actual direct labor cost $465,700 Estimated manufacturing overhead costs $425,800 Actual manufacturing overhead costs $350,000 Estimated direct labor hours 250,200 Actual direct labor hours 232,800 If Quick Step Company uses direct labor hours as the allocation base, what would the predetermined manufacturing overhead rate be? $1.50 per direct labor hour $1.70 per direct labor hour $1.40 per direct labor hour $1.83 per direct labor hour 2 points QUESTION 39 Here are selected data for Crumb Company: Cost of goods manufactured $320,500 Work in process inventory, beginning $109,300 Work in process inventory, ending $104,700 Direct materials used $73,600 Manufacturing overhead is allocated at 70% of direct labor cost. What was the amount of direct labor costs? $242,300.00 $142,529.41 $224,350.00 $66,019.41 2 points QUESTION 40 Showboat Corporation had actual manufacturing overhead costs for the most recent year of $30,300. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $2.75 per direct labor hour. Direct labor cost is $28 per hour. At the end of the year, Cabaret Corporation found it had overallocated manufacturing overhead by $2250. How many direct labor hours were worked in total during the year? 11,018 10,200 6188 11,836 2 points QUESTION 41 The cost of direct labor used in production is recorded as a debit to Manufacturing Overhead account. debit to wages payable. debit to wages expense. debit to Work-in-Process Inventory account. 2 points QUESTION 42 The total cost of a job shown on the job cost record is the sum of the direct labor traced to the job and the manufacturing overhead allocated to the job. True False 2 points QUESTION 43 A(n) ________ is an estimated manufacturing overhead rate computed at the beginning of the year. cost driver actual manufacturing overhead rate cost allocation predetermined manufacturing overhead rate 2 points QUESTION 44 Which of the following is an example of an industry that would use a process costing-rather than a job costing-system? Smith & Zu Certified Public Accountants Computer Repair Pepsi Brugman Custom Cabinetry 2 points QUESTION 45 Process costing would be most likely used by a cereal company. salsa company. soft drink manufacturer. All of these would use process costing. 2 points QUESTION 46 To record the costs of indirect labor, which of the following accounts would be debited? Work-in-Process Inventory account Wages Payable account Finished Goods Inventory account Manufacturing Overhead account 2 points QUESTION 47 An internal request to transfer raw materials requires personnel to complete a materials requisition document. purchase order document. bill of materials document. labor time record document. 2 points QUESTION 48 The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost. True False 2 points QUESTION 49 The gross profit on the sale of a job is the difference between the sales price and the total unit cost reported on the job cost record. True False 2 points QUESTION 50 Generally Accepted Accounting Principles (GAAP) mandates the type of product costing system (job costing or process costing) that must be used by a manufacturer. True False 2 points Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Answer 1

Which of the following would have the least effect on a cost-benefit analysis?

Constant prices

As the price of the products will be same in all situations, regardless of industry supply or demand.

QUESTION 2

Management accounting requires an independent audit of the firm's books.

False

Management accounting involves collecting of data, analyzing it and also involves reporting information about the operations and financial issues of the business.

Management audit involves assessment of policies, procedures and methods and use of resources and also involves assessing tactical and strategic planning and aims towards improvement of organization.

QUESTION 3

Implementing a program to bill customers electronically, therefore saving paper, is a green initiative that reduces not only waste, but it also reduces company costs.

True.

Electronic billing saves paper and helps to reduce the work to staff member in storing them in proper place. This initiative saves the usage of paper, storage costs, employee costs etc

QUESTION 4

Lean production cuts the throughput time of a manufacturing concern.

True