Question

Manufacturing companies are not required to allocate joint-process costs in the valuation of inventories and cost of goods sold for

a. Managerial reporting

b. Tax reporting

c. Financial reporting

d. All of the above

What would the initial cash flows associated with an investment project include?

a. asset, freight and installation costs.

b. cash proceeds from disposing of existing assets made redundant or unnecessary by the new project.

c. income tax effect of gain(loss) on disposal of existing assets.

d. all of the above

Decentralization requires significant overnight from top management.

1. True
2. False

Cash bonuses and profit sharing are used to reward employees for achieving short-term goals.

1. True
2. False

Direct labor variances stem from:

1. Managers do not correctly anticipate changes in wage rates.
2. Poor materials are used in production.
3. Supervisors encounter scheduling problems.
4. All of the above.

Answer 1

Ans:-

1). Option d is right

Explanation:-. Manufacturing companies are not required to allocate joint process in valuation of inventory and cost of goods sold for managerial reporting,tax reporting and financial reporting.

2). Option b is right

Explanation:-. cash proceeds from disposing of existing assets made redundant or unnecessary by the new project is an initial cash flow associated with investment project.

3). Option b is right ( False )

Explanation:- Decentralisation is not an overnight significant process from top management.

4). Option a is right ( True )

Explanation:-. Cash bonus and profit sharing is reward for employees to achieve short term goals.

5). Option a is right

Explanation:- Direct labour variance stem from manager do not correctly anticipated changes in wage rates.