Search
Info
Warning
Danger

Study Resources (Accounting)

Learning Objective 13-2 1) A flexible budget calculates budgeted revenues and budgeted costs based on ________. A) actual input in the budget period B) data from previous budget periods C) data from multiple budget periods D) actual output in the budget period E) variances in the accuracy of previous budget periods. 2) A sales-volume variance is the.
1 Views
View Answer
Learning Objective 15-5 1) ________ products or services at market prices generally lead to optimal decisions when the market for the intermediated product is perfectly competitive. A) Creating B) Evaluating C) Comparing D) Determining E) Transferring 2) Which of the following exists when there is a homogeneous product with buying prices equal to selling prices and no.
1 Views
View Answer
Learning Objective 15-3 1) Which of the following is not true about subunits in decentralized organizations? A) Decision-making power resides in individual subunits. B) Decision-making power resides in multiple subunits. C) Subunits interact by supplying goods to one another. D) Subunits interact by supplying services to one another. E) When subunits work together, top management uses.
0 Views
View Answer
Learning Objective 13-3 1) Managers find it useful to subdivide the flexible-budget variance for direct cost variance into a ________ variance and an efficiency variance. A) price B) input C) price recovery D) productivity E) sales-volume 2) What is a disadvantage to managers that use actual input data from past periods to calculate price and efficiency variances? A).
0 Views
View Answer
21) Which of the following is not a pitfall to avoid in implementing a balanced scorecard? A) Managers always assume the cause-and-effect linkages are precise. B) Manages should not assume the cause-and-effect linkages are precise. C) Managers should not seek improvements across all of the measures all of the time. D) Managers should not.
0 Views
View Answer
Learning Objective 14-3 1) Which of the following is not one of the four perspectives of the balanced scorecard? A) Financial perspective. B) Customer perspective. C) External control perspective. D) Learning and growth perspective. E) Internal business process perspective. 2) The ________ translates an organization's mission and strategy into a set of performance measures that provide the.
0 Views
View Answer
8) What is the purpose of standard costing? 9) How does the planning of fixed overhead costs differ from the planning of variable overhead costs? 10) Delicious Dishes Company is developing the budgeted variable overhead cost-allocation rates for the next twelve months. DDC's operating managers select machine-hours as the cost-allocation base. Based.
0 Views
View Answer
Learning Objective 13-1 1) The difference between actual results and expected performances is referred to as the ________. A) variance B) critical area C) target numerate D) cardinal denominator E) parameter of importance 2) The expected performance is also referred to as the ________. A) variance B) target output C) critical value set D) financial objective E) budgeted performance 3) Variances assist managers.
3 Views
View Answer
Learning Objective 14-5 1) To understand unused capacity, it is necessary to distinguish engineered costs and ________. A) elective costs B) facultative costs C) optional costs D) unrestricted costs E) discretionary costs 2) Engineered costs result from a cause-and-effect relationship between the cost driver and the ________. A) resources used to produce that output B) unused capacity of productivity C).
1 Views
View Answer
27) Why do companies consider a balanced scorecard a linked, or causal, scorecard? 28) Why are more companies in the manufacturing, merchandising, and service sectors giving greater weight to nonfinancial measures when employees are promoted? 29) How do managers evaluate the success or failure of their strategy and its implementation? .
0 Views
View Answer
9) The managerial accountant at International Solutions sells crude oil and it was reported that the company operates in the United States and Mexico. What are some of the tax issues could conflict with other objectives top management hopes to achieve via transfer pricing? 10) How can managers informally adjust transfer.
1 Views
View Answer
Learning Objective 16-4 1) Managers can use historical-cost ROIs to evaluate current performance by establishing ________ ROIs. A) target B) function C) ambition D) intention E) destination 2) In establishing targets for financial performance measures, companies using the balanced scorecard simultaneously determine targets in the customer, ________, and learning-and-growth perspectives. A) master budget B) peripheral market C) budgeted-sales objective D) internal-business-process E).
0 Views
View Answer
11) In Step 2 of the designing accounting-based performance measures, managers ask, "Should performance reports be sent to top management daily, weekly, or monthly?" 12) Hospitality Inns use balanced-scorecard measures to evaluate and reward the performance of its managers. 13) What is the goal of all balanced scorecard implementations? 14) Some performance measures,.
1 Views
View Answer
Learning Objective 1-1 1) Accounting is the information system that measures business activity, processes the data into reports, and communicates the results to decision makers. 2) Accounting is "the language of business." 3) A debt that a corporation owes to an outside party is called: A) an asset. B) a liability. C) stockholders' equity. D).
4 Views
View Answer
Learning Objective 16-3 1) Which of the following is the alternative definition of all assets, regardless of their intended purpose used in the construction of accounting-based performance measures? A) The minimum ROS. B) Stockholders equity. C) Total assets available. D) Total assets employed. E) Total assets employed minus current liabilities. 2) Which of the following is the.
0 Views
View Answer
Learning Objective 15-9 1) Which of the following is correct about transfer pricing for tax minimization in global firms? A) Transfer prices affect payroll taxes. B) Transfer prices affect customs duties. C) Transfer prices affect value-added taxes. D) Transfer prices only affect income taxes. E) Transfer prices affect environment-related taxes. 2) Which of the following is not.
0 Views
View Answer
11) A ________ is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in the financial, customer, internal business process, and learning and growth perspectives. A) financial map B) strategy map C) mission statement D) company prospectus E) balanced scorecard 12) A useful first.
0 Views
View Answer
Learning Objective 13-5 1) A flexible budget allows management to highlight the differences between actual costs and ________; and, management uses budgeted costs; and, ________ for the actual output level. A) actual quantities; budgeted quantities B) expected costs; actual quantities C) expected quantities; expected costs D) cost variances; output variances E) fixed overhead; overhead variances 2) Management.
1 Views
View Answer
Learning Objective 16-5 1) Operating a division in a/an ________ economy like Singapore is very different from navigating a closed economy such as Venezuela. A) open B) closed C) cultural D) controlled prices E) threat of nationalization 2) Some countries in Asia, Latin America, and Eastern Europe impose ________ and custom duties to restrict imports of certain.
0 Views
View Answer
Learning Objective 15-1 1) Which of the following is not true about the formal management control system? A) Includes procedures. B) Includes explicit rules. C) Includes shared values. D) Includes incentive plans. E) Includes performance measures. 2) Which of the following is true about the informal management control system? A) Includes procedures. B) Includes explicit rules. C) Includes incentive plans. D).
3 Views
View Answer
11) The management accountant at Arlington Hills, a transcontinental private school company, is assessing the change in operating incomes for 2011 and 2012. The revenue in 2011 was $34,000,000 while the operating income was $17,564,000. The revenue in 2012 was $36,000,000, and the operating income was $14,100,000. Required Compute the change in.
0 Views
View Answer
Learning Objective 15-8 1) Which transfer-pricing method is useful for determining full cost of products and services? A) Cost-based. B) Negotiated. C) Market-based. D) Minimum-based. E) Maximum-based. 2) Which transfer-pricing method preserves subunit autonomy when markets are competitive? A) Cost-based. B) Negotiated. C) Market-based. D) Minimum-based. E) Maximum-based. 3) Which transfer-pricing method's market may not exist, or may be imperfect or in distress? A).
0 Views
View Answer
Learning Objective 15-2 1) Which of the following is an organizational structure in which power is concentrated at the top and there is relatively little freedom for managers at the lower levels to make decisions? A) Profit. B) Revenue. C) Autonomy. D) Centralization. E) Decentralization. 2) Which of the following is an organizational structure that gives managers.
1 Views
View Answer
Learning Objective 15-7 1) In the ________ method, the eventual transfer price results from a bargaining process between the selling and buying subunits. A) negotiated pricing B) negotiated buying C) negotiated purchasing D) negotiated distribution E) negotiated parallelism 2) Under the ________ method, top management does not administer a specific split of the eventual profits across the.
0 Views
View Answer
9) How can managers respond to unfavorable sales-volume variances? 10) Why is the flexible-budget variance for revenues referred to as the selling-price variance? 11) The following data was gathered for Anu-U, an electronic commercial hair dryer manufacturer: Anu-U Budgeted fixed costs for production between 0 and 500,000 units$500,000 Budgeted selling price$5,000 per unit Budgeted production and.
0 Views
View Answer
11) The DuPont method recognizes the two basic ingredients in profit-making: increasing income per dollar of revenues and using assets to generate more revenues. 12) The imputed cost of the investment is a cost recognized in particular situations and it is always recorded in financial accounting systems. 13) Should operating income or.
0 Views
View Answer
Learning Objective 13-7 1) Which of the following if not true about the variance-analysis approach? A) Variable costs have unused capacity. B) Variable costs never have any unused capacity. C) The detailed analysis helps managers identify and focus on the areas not operating as expected. D) Manages of small businesses understand their operations based on.
0 Views
View Answer
Learning Objective 14-2 1) ________ aid(s) managers in rethinking business practices and improving performance on measures such as cost, quality, service, speed, and customer satisfaction. A) Designs B) Schemes C) Satisfaction D) Determination E) Reengineering 2) When managers reduce defect rates and improve manufacturing yields, they ________. A) reduce product quality B) improve product quality C) eliminate product quality D) do.
0 Views
View Answer
Learning Objective 14-1 1) ________ specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. A) Strategy B) Competition C) Centralization D) Consolidation E) Industry analysis 2) Which one of the following is not one of the five forces that managers focus on in industry analysis? A) Competitors. B) Potential entrants.
4 Views
View Answer
11) The ________ requires detailed disclosures of the compensation arrangements of top-level executives. A) Federal Reserve B) United States Government C) Generally Accepted Accounting Principles (GAAP) D) Federal Accounting Standards Board (FASB) E) Securities and Exchange Commission (SEC) 12) Companies never put the most skillful division managers in charge of the division producing the poorest economic.
0 Views
View Answer
11) Managers determine the cause of flexible-budget variances when they subdivide the flexible-budget variance for direct-cost inputs into two or more detailed variances. What are two detailed variances of the flexible-budget variance for direct-cost inputs? 12) What three sources do managers use to obtain budgeted input prices and budgeted input quantities? 13).
0 Views
View Answer
Learning Objective 16-7 1) To prevent unethical and outright fraudulent behavior, companies need to balance the push for performance resulting from ________, the first of four levers of control, with three other levers. A) strategic goals B) belief systems C) boundary systems D) diagnostic control systems E) interactive control systems 2) Which of the following systems describes.
0 Views
View Answer
Learning Objective 15-4 1) Review the transfer-price methods listed below and choose the best transfer-price method ideal to managers when prices of products and services listed in trade association Web sites are competitive. A) Market-based transfer prices. B) Cost-based transfer prices. C) Hybrid transfer prices. D) Segment-based transfer prices. E) Demographic-based transfer prices. 2) Choose the appropriate.
0 Views
View Answer
11) The following data was compiled for Infer-Tech PC Company in order to assess the effect of a $500,000 initial investment with a $70,000 operating cost increase per year over a five year period. The company factored in a 15% required rate of return. YEAR       YEAR 0   YEAR 1   YEAR 2   YEAR 3   YEAR 4  YEAR 5.
0 Views
View Answer
Learning Objective 15-6 1) Which of the following is not true about cost-based transfer prices? A) Prices are helpful to managers when market prices are unavailable. B) Prices are helpful to managers when market prices are inappropriate. C) Prices are helpful to managers when the product is specialized. D) Prices are helpful to managers when.
0 Views
View Answer
Learning Objective 13-6 1) The fixed overhead flexible-budget variance is the difference between ________ and fixed overhead costs in the flexible budget. A) the actual results B) the static budget C) fixed overhead costs D) actual fixed overhead costs E) budgeted fixed overhead costs 2) When there is no efficiency variance, the fixed overhead spending variance is.
0 Views
View Answer
Learning Objective 13-8 1) To make sure that managers interpret variances correctly and make appropriate decisions based on them, managers need to recognize that ________. A) variances are active indicators B) variances are easily miscalculated C) variances can have multiple causes D) variances are not accurate indicators E) decisions should not be made based on variances 2).
1 Views
View Answer
11) The static-budget variance is the difference between the actual result and the corresponding budgeted amount in the static budget. 12) What are the benefits of variance analysis to a public official? 13) How does variance analysis relate to the five-step decision-making process? 14) Laurel Corporation used the following data to evaluate their.
2 Views
View Answer
Learning Objective 16-6 1) Which of the following describes a situation in which an employee exerts less effort than the owner desires because the owner cannot accurately monitor and enforce the employee's effort? A) Moral hazard. B) Employee hazard. C) Situational hazard. D) Professional hazard. E) Occupational hazard. 2) ________ measures are those that are sensitive to.
0 Views
View Answer
Learning Objective 13-4 1) To effectively plan variable overhead costs for a product or service, managers must focus attention on the activities that make a superior product and ________. A) create a balanced scorecard B) eliminate activities that do not add value C) instruct staff in time-saving initiatives D) calculate possible unused capacities E) curtail activities.
9 Views
View Answer
Learning Objective 1-2 1) Managerial accounting focuses on information for decision makers outside the company, such as creditors and taxing authorities. 2) Business owners use accounting information to set goals, evaluate progress toward those goals, and take corrective action when needed. 3) Outside investors would ordinarily use financial accounting information to decide.
2 Views
View Answer
11) Which of the following are MOST likely to be users of managerial accounting information? A) Potential investors B) Creditors C) Customers D) Company managers 12) Which of the following are likely to be users of financial accounting information? A) Taxing authorities B) Creditors C) Potential investors D) All of the above Learning Objective 1-3 1) The AICPA's Code of.
0 Views
View Answer
Learning Objective 16-1 1) Many organizations are increasingly presenting financial and nonfinancial performance measures for their subunits in a single report referred to as the ________. A) balance sheet B) balanced scorecard C) resource statement D) fixed cost flexible-budget E) variable unfixed cost flexible-budget 2) Different organizations stress different measures in their scorecards, but the measures are.
7 Views
View Answer
11) Decentralization speeds decision making, creating a competitive advantage over centralized organizations. 12) Centralization slows decision making because responsibility for decisions creeps upward through layer after layer of management. 13) Profit centers can be coupled with a highly centralized organization, and cost centers can be coupled with a highly decentralized organization, 14) Job.
0 Views
View Answer
Learning Objective 14-4 1) To evaluate the success of a strategy, managers and management accountants need to link ________ to the sources of operating-income increases? A) goals B) strategy C) functions D) fiscal cliff E) debt ceilings 2) One difference between variance analysis and subdividing the change in operating income is that management accountants compare actual operating.
0 Views
View Answer
17) Why is it beneficial for managers to master the strategic analysis of operating income? 18) Why is it important for managers to further analyze the changes in operating income? 19) In which step of the five-step decision-making framework does a manager realize that strategy choice depends on resolving whether the company.
1 Views
View Answer
Learning Objective 16-2 1) Companies commonly use four measures to evaluate the performance of their subunits. Which of the following options is not one of these four common measures? A) AARR. B) ROI. C) Residual income. D) Economic value added. E) Return on sales. 2) ________ is popular because it blends all ingredients of profitability into one.
0 Views
View Answer