Info
Warning
Danger

Study Resources (Accounting)

Learning Objective 11-7 1) In computer-integrated manufacturing technology (CIM): A) computers give instructions that quickly and automatically set up and run equipment to manufacture many different products. B) managers do not need to track the rapid changes of consumer demand in the future. C) promotes a reduction in worker knowledge of, and experience with,.
3 Views
View Answer
Learning Objective 10-5 1) ________ is the purchase of materials so that they are delivered just as needed for production. A) Appraisal B) Just-in-time purchasing C) Conformance quality D) Manufacturing lead time E) Manufacturing cycle efficiency 2) ________ is inventory held at all times regardless of the quantity of inventory ordered using the EOQ model. A) Appraisal B) Prevention C).
4 Views
View Answer
Learning Objective 10-2 1) A ________ is a chart that indicates how frequently each type of defect occurs, ordered from the most frequent to the least frequent. A) chart B) linear C) quality D) pareto diagram E) lean production 2) A ________ identifies potential causes of defects using a diagram that resembles the bone structure of a.
2 Views
View Answer
Learning Objective 10-4 1) ________ arise in preparing and issuing purchase orders, receiving and inspecting the items included in the orders, and matching invoices received, purchase orders, and delivery records to make payments. A) Costs of quality B) Stockout costs C) Carrying costs D) Purchasing costs E) Ordering costs 2) ________ are the cost of goods acquired.
5 Views
View Answer
14) Exclusive Golfing Supplies (EGS), an outdoor golfing equipment producer that specializes in personalized, precision golf clubs, engaged in a laboratory analysis to test the newest metallic compounds on the market. In Stage I, the project-identification stage, EGS learned of a new compound that is expected to increase the precision.
3 Views
View Answer
11) The budget costs at companies are different for variable and fixed overhead costs. 12) Using activity-based cost drivers provide additional and detailed information that improves decision making compared with budgeting solely on output-based cost drivers. 13) Budgeting is a cross-functional activity. 14) How do sales managers and sales representatives build the revenue.
3 Views
View Answer
Learning Objective 12-4 1) ________ are mathematical representations of the relationships among operating activities, financing activities, and other factors that affect the master budget. A) Cash budget B) Master budget C) Process budget D) Production analysis E) Financial planning models 2) ________ is a "what-if" technique that examines how a result will change if the original predicted.
5 Views
View Answer
11) Budgets coupled with responsibility accounting provide feedback to top management about the performance relative to the budget of different responsibility center managers. 12) Differences between actual results and budgeted amounts can help managers implement and evaluate strategies. 13) A manager that works at a company that is evaluated as a profit.
2 Views
View Answer
11) Why do managers compare year-to-year changes in customer NPV? 1) ________ is the decline in the general purchasing power of the monetary unit. A) Inflation B) Deflation C) Real rate of return D) Nominal rate of return E) Forecasted rate of return 2) ________ is the rate of return demanded to cover investment risk if there.
6 Views
View Answer
Learning Objective 12-2 1) ________ is meshing and balancing all aspects of production or service and all departments in a company in the best way for the company to meet its goals. A) Budget B) Strategy C) Operations D) Coordination E) Communication 2) Which of the following is not true about the framework for judging performance? A) Budgets.
3 Views
View Answer
Learning Objective 12-5 1) ________ is an arrangement of lines of responsibility within an organization. A) Revenue center B) Responsibility center C) Responsibility accounting D) Organization structure E) Cost center 2) ________ is a part, segment, or subunit of an organization whose manager is accountable for a specified set of activities. A) Revenue center B) Responsibility center C) Responsibility accounting D).
2 Views
View Answer
Learning Objective 11-3 1) The ________ measures the time it will take to recoup, in the form of expected future cash flows, the net initial investment in a project. A) income tax B) payback method C) net present value D) internal rate of return E) external rate of return 2) Managers prefer projects with ________ payback periods. A).
2 Views
View Answer
11) How do some companies evaluate their response time improvement efforts? 12) How do manufacturing cycle times affect revenue and costs? 13) How do companies calculate inventory carrying costs? 14) Customer response time is an example of a time-related customer measure. 15) The manager at Middle Plantation Manufacturing needs to evaluate the response time.
5 Views
View Answer
11) The manager at the Chesapeake Bay Crab House reported a current disposal value of an old fish processing machine at $8,200. The current book value on the old machine is $43,500. A) ($22,000) B) ($26,000) C) ($28,500) D) ($31,480) E) ($35,300) 12) The manager at the Alexandria Environmental Services reported $14,250 as the current.
4 Views
View Answer
Learning Objective 10-1 1) The American Society for Quality defines ________ as the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during use. A) costs B) margin C) quality D) integrity E) appraisal 2) ________ refers to how closely the.
8 Views
View Answer
Learning Objective 11-1 1) ________ is the process of making long-run planning decisions for investments in projects. A) Payback B) Predictions C) Capital budgeting D) Initial investment E) Obtain information 2) In what stage of the capital budgeting process do managers identify potential capital investments that agree with the organization's strategy? A) Stage 1: Identify projects. B) Stage 2:.
9 Views
View Answer
10) The manager at Elite Transportation Company is exploring options to determine if it is cost effective to purchase the new vehicle, or keep the existing vehicle. The new vehicle could offer a considerable amount of savings in operating costs. The manager compiled the following information: Existing vehicleNew vehicle Original cost$45,000$85,000 Annual operating.
2 Views
View Answer
Learning Objective 9-8 1) In which step of the performance-evaluation model would the manager replace the machine rather than keep it? A) Step 1: Identify the Problem and Uncertainties. B) Step 2: Obtain Information. C) Step 3: Make Predictions about the Future. D) Step 4: Make Decisions by Choosing Among Alternatives. E) Step 5: Implement the.
2 Views
View Answer
10) The manager at the Trailer Manufacturing plant has the option to continue to inspect, or redesign. Listed below are the estimated effects of quality improvement on costs of quality report obtained by the managerial accountant. Estimated Effects of Quality Improvement on Costs of Quality   Inspection Option Relevant itemsRelevant Benefit per unitQuantityTotal Benefits Savings.
3 Views
View Answer
Learning Objective 10-7 1) ________ is the time it takes to fulfill a customer order. A) Average waiting time B) Customer-response time C) Purchase-order lead time D) Manufacturing lead time E) Manufacturing cycle time 2) ________ is how long it takes from the time an order is received by manufacturing to the time finished good is produced. A).
3 Views
View Answer
1) A ________ is the quantitative expression of a proposed plan of action by management for a specified period and helps managers coordinate the activities that need to be done to implement the plan. A) pro forma statements B) strategy C) budget D) coordination E) communication 2) ________ specifies how an organization matches its own capabilities.
10 Views
View Answer
18) The managerial accountant at Midlothian Manufacturing recently implemented JIT and she wants to compare the financial performance measure before she implemented JIT. The inventory turnover ratio prior to implementing JIT was 2.5. After JIT, cost of goods sold was $500,000,000 and the average inventory was $1,900,000. What was the.
3 Views
View Answer
Learning Objective 12-3 1) Rolling budgets are the same as: A) Kaizen budgets. B) operating budgets. C) activity-based budgets. D) rolling forecasts. E) financial budgets. 2) Which of the following terms is used to describe an income statement and its supporting budget schedules? A) Budgetary slack. B) Financial budget. C) Financial planning analysis. D) Operating budget. E) Activity-based budget (ABB). 3) Which of.
2 Views
View Answer
21) Prime Time Home Furniture, a warehouse store specializing in bedroom furnishing sets is assembling the revenue budget for the next fiscal year. Sales of the current year indicate that they sold 64,000 units from their Super-Savings line and 12,000 units from their Specialty line. The average price of each.
2 Views
View Answer
Learning Objective 12-7 1) Which of the following is not true about budgeting in multinational companies? A) Managers reduce the possible negative impact on performance caused by unfavorable exchange rate movements. B) Managers need to understand the political, legal, and economic movements in the different countries that engage in corporate operations. C) Countries that.
3 Views
View Answer
11) How is the AARR method different, compared to the payback method? 12) Why is the finance theory important when managers use different methods that lead to different ranking of projects? 13) The manager at Nielson's Paper purchased a new upgraded machine with an initial investment of $409,000 and forecasted an increase.
2 Views
View Answer
Learning Objective 12-6 1) ________ is the practice of underestimating budgeted revenues, or overestimating budgeted costs, to make budgeted targets more easily to achieve. A) Kaizen budgeting B) Budgetary slack C) Rolling budget D) Contingent budget E) Contingency budget 2) Which of the following is true about budgetary slack? A) Budgeting is most effective when lower-level managers actively.
3 Views
View Answer
Appendix Chapter 9 1) The ________ of a linear program expresses the objective, or goal to be maximized or minimized. A) error B) trial C) simplex D) optimal solution E) objective function 2) In the ________ approach, managers find the optimal solution by working with coordinates of the area of feasible solution. A) fixed method B) mixed method C) variable.
2 Views
View Answer
Learning Objective 10-6 1) ________ is a "push through" system that manufactures finished goods for inventory on the basis of demand forecasts. A) Bottle neck B) Time driver C) Value stream D) Carrying costs E) Materials requirements planning 2) ________ is a "demand pull" manufacturing system that manufactures each component in a production line as soon as,.
2 Views
View Answer
11) Working capital refers to the difference between current assets and current liabilities. 12) What is working capital? 13) Cutting Edge Concrete (CEC) set the industry standard for high-performance concrete from the company's conception in 2008 until 2012. New environmentally beneficial innovations opened a new marketing arena for concrete manufacturers in 2008,.
7 Views
View Answer
Learning Objective 11-2 1) ________ measure all expected future cash inflows and outflows of a project discounted back to the present point in time. A) Income tax B) Payback period C) Net present value D) Internal rate of return E) Discounted cash flow methods 2) The minimum acceptable annual rate of return on an investment is referred.
4 Views
View Answer
Learning Objective 10-3 1) Which of the following is not an advantage of COQ measures? A) The measure focuses on managers' attention on how poor quality affects operating income. B) Helps manager aggregate costs to evaluate tradeoffs among prevention costs. C) Helps manager aggregate costs to evaluate tradeoffs among D) Does not help manager.
4 Views
View Answer
11) Rapid, meaningful feedback is critical because the lack of inventories in a demand-pull system makes it urgent for managers to detect and solve problems in a time-efficient manner. 12) How does an increase in demand of a product or service affect the production process? 13) How do managers use enterprise resource.
2 Views
View Answer
Learning Objective 11-5 1) Relevant cash flow in discounted cash analysis: A) are not used in discounted cash flow analysis. B) is not a challenge in capital budgeting decisions. C) are obtained when managers identify only the past costs. D) are the similarities of the past costs of products and services. E) are the differences.
3 Views
View Answer
Learning Objective 11-4 1) The ________ divides the average annual income of a project by a measure of the investment in it. A) real rate of return B) nominal rate of return C) discounted payback method D) discounted cash flow method E) accrual accounting rate of return (AARR) 2) Which of the following is not true about.
2 Views
View Answer
11) How does information-gathering technology with barcoding increase the reliability and timeliness of inventory information? 12) What is the economic-order-quantity decision model? 13) When are the relevant ordering and carrying costs equal in EOQ models? 14) What do managers do when they are uncertain about demand, lead time, or the quantity that suppliers.
3 Views
View Answer
16) To implement JIT, the manager at Seaton Hammock Manufacturing must incur $110,000 in annual production costs to reduce setup times. The manager expects JIT to reduce average inventory by $450,000 and relevant costs of insurance, storage, materials handling, and setup by $35,000 each year. The required rate of return.
3 Views
View Answer
Learning Objective 9-9 1) The ________ is the juncture in a joint production process when two or more products become separately identifiable. A) joint cost B) single cost C) splitoff point D) separable cost E) throughput margin 2) Which of the following is not an example of a joint cost? A) Cost of distillation. B) Coal is distilled to.
2 Views
View Answer
Learning Objective 11-6 1) In which stage of the capital budgeting process begins the choice to manage the project? A) Stage 1: Identify projects. B) Stage 2: Obtain information. C) Stage 3: Make predictions. D) Stage 4: Make decisions by choosing among the alternatives. E) Stage 5: Implement the decision, evaluate performance, and learn. 2) Which of.
3 Views
View Answer
10) The Engine Testing Organization tests engines before they are sold to manufacturers. The available machine-hours are limited and they are released as follows:         Use of Capacity in Hours per Unit of Product         Daily Maximum Production in Units Department Available Daily Capacity in Hours Truck Engine Airplane Engine Truck Engine Airplane Engine Assembly 500 machine- hours 3.0 machine- hours 6.0 machine- hours Testing 140 testing- hours 1 machine- hour 0.5 machine- hour Required: Compute.
3 Views
View Answer
24) The Plastic Saver company produces a specialty plastic product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase order$450 Relevant carrying costs per year: Required annual return on investment15% Required other costs per year$3.50 Annual demand is 30,000 packages per year. The purchase price per package is $45. Required: a.Compute.
4 Views
View Answer
Appendix Chapter 12 1) The schedule of expected cash receipts and disbursements that predicts the effects on the cash position at the given level of operations is ________. A) cash budget B) flexible budget C) operating budget D) unexpected budget E) administrative budget 2) Which of the following is true about the cash available for needs before.
2 Views
View Answer
11) What are costs of qualities (COQ)? 12) What is the most direct financial measure of quality? 13) The managerial accountant at Change Organization needs to determine the total indirect Research and Development (R&D) cost associated with a new machine. The manager revealed total revenues were $4,000,000; and reported that the only.
3 Views
View Answer