Question

In: Accounting

8. The Smart CPA firm held an End of Tax Season party. The company expected attendance...

8. The Smart CPA firm held an End of Tax Season party. The company expected attendance of 75 people and prepared the following budget:

Hotel room rental $600
Food 1,000
Entertainment 750
Decorations 250
Total Costs $2,600

Seventy five people attended the party. The following costs were incurred:

Hotel room rental $600
Food 1,150
Entertainment 750
Decorations 350
Total Costs $2,850

What is the variance for total costs?
A) $300 Unfavorable
B) $300 Favorable
C) $250 Favorable
D) $250 Unfavorable

9. The various stages through which a product passes are called the ________.
A) product life cycle
B) value chain
C) performance plan
D) product performance plan

10. Research and development is the function of a value chain that involves ________.
A) the detailed design and engineering of products, services or processes
B) the generation of ideas related to new products only
C) the generation of ideas related to new products, services or processes
D) the detailed design and engineering of new processes

11. Which of the following is a major factor causing changes in management accounting today?
A) additional value chain functions
B) small advances in technology
C) increased global competition
D) shift to manufacturing-based economy

Solutions

Expert Solution

8) Variance for Total Cost    = Actual Total Cost   - Budgeted Total Cost

                                                  = 2850 -2600

                                                   = 250 (UF)

Answer D) $250 Unfavorable

9. The various stages through which a product passes are called the

Answer A) product life cycle

10. Research and development is the function of a value chain that involves

Answer A) the detailed design and engineering of products, services or processes

11. Which of the following is a major factor causing changes in management accounting today?

Answer C) increased global competition


Related Solutions

29) The IRS has issued a summons for the tax file held by CPA Ann Whitman...
29) The IRS has issued a summons for the tax file held by CPA Ann Whitman for her clients, the Harberts. The file consists of paper and electronic spreadsheets in which Whitman detailed some tax computations using assumptions that the IRS would find to be “too aggressive.” In addition, the file includes notes from meetings with the Harberts, income and balance sheet data as to their personal assets, and other technical correspondence, including email messages. In a memo to the...
Choose a CPA firm as a service company. Instructions 1. Discuss how a CPA firm could...
Choose a CPA firm as a service company. Instructions 1. Discuss how a CPA firm could use a job order cost system. Note: use at least 150 words in your original post. Note: add citations when necessary.
A CPA has been asked to audit the financial statements of a publicly held company for...
A CPA has been asked to audit the financial statements of a publicly held company for the first time. All preliminary verbal discussions and inquiries among the CPA, the company, the predecessor auditor, and all other necessary parties have been com- pleted. The CPA is now preparing an engagement letter.
9. At the end of tax season, you and your friends go out to celebrate. Unfortunately,...
9. At the end of tax season, you and your friends go out to celebrate. Unfortunately, you enjoy the evening a bit too much and, on the way home, are pulled over by the police. After given a sobriety test, you are arrested for felony DUI. Do you report this incident to the board of accountancy? If not, under what circumstances are you required to do so?
Henry Owens, CPA works in a local accounting firm. He is the tax manager on a...
Henry Owens, CPA works in a local accounting firm. He is the tax manager on a major client in the office. The firm prepares compiled financial statements for the client on a quarterly basis. The client was impacted by the BP oil spill off the Gulf coast, and the client would like to engage Henry to help the business prepare a claim for damages from BP. The client would like to pay Henry on a contingent fee basis where Henry...
You are a CPA working for a local firm and have been assigned the 2020 tax...
You are a CPA working for a local firm and have been assigned the 2020 tax return of Bobby Crosser. In going over the data that Bobby gave the firm, you are surprised to see that he has reported no dividend income or gains from the sale of stock. You recently prepared the 2020 gift tax return of Bobby’s aunt Ester. In that return, Ester reported a gift of stock to Bobby on January 6, 2020. The stock had a...
Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for...
Will Jones, LLP is a small CPA firm that focuses primarily on preparing tax returns for small businesses. The company pays a $500 annual fee plus $10 per tax return for a license to use Mega Tax software. (a) What is the company’s total annual cost for the Mega Tax software if 300 returns are filed? If 400 returns are filed? If 500 returns are filed? Total cost for 300 returns: Total cost for 400 returns: Total cost for 500...
Maria Garcia is a CPA whose firm has prepared the tax returns of Stanley Corporation for...
Maria Garcia is a CPA whose firm has prepared the tax returns of Stanley Corporation for many years. A review of Stanley’s last three tax returns by a new staff accountant, who has been assigned to the client for the first time, reveals that the corporation may be paying excessive compensation to one of its key officers. The staff accountant feels that the firm should inform the IRS and/or report the excess amount as a nondeductible dividend. Although the facts...
Eliot Rey, the owner of a publicly held technology company, asked Mary Messup, CPA, to conduct...
Eliot Rey, the owner of a publicly held technology company, asked Mary Messup, CPA, to conduct an audit of the company’s records. The financial statements to be audited covered a two-year period. The statements needed to be ready to submit to the SEC by September 30, 2017. Rey also needed to provide the audited financial statements to their bank as part of a large loan application. Messup immediately accepted the engagement and agreed to provide an auditor’s report within one...
1. Dividend discount model: Company X is expected to pay an end-of-year dividend of $8 a...
1. Dividend discount model: Company X is expected to pay an end-of-year dividend of $8 a share. After the dividend, its stock is expected to sell at $105. If the market capitalization rate is 10%, what is the current stock price? 2. Dividend discount model: Consider the following three stocks: a) Stock A is expected to provide a dividend of $10 a share forever. b) Stock B is expected to pay a dividend of $5 next year. Thereafter, dividend growth...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT