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Study Resources (Accounting)

20) The executive vice president of Robotics, Inc., is concerned because the cost of materials has not been in line with the budget for several periods, even after implementing an EOQ model. The company has the normal direct material variance computations of price and efficiency at the end of each.
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4) All of the following are potential financial benefits of just-in-time EXCEPT: A) lower investments in inventories B) lower investments in plant space for inventories C) reducing the risk of obsolescence D) reducing manufacturing lead time 5) A system that comprises a single database that collects data and feeds it.
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15) Capital investment decisions that are strategic in nature: A) are easily handled by the capital budgeting process when the accrual accounting rate of return method is used as the tool to analyze the alternatives. B) are often referred to as "real options." C) require managers to consider a broad range of factors.
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11) In a profit center, the manager is accountable for investments, revenues, and costs. 12) Suboptimal decision making is also called congruent decision making. 13) Surveys indicate that decisions made most frequently at the corporate level are related to sources of supplies and products to manufacture. 14) An important advantage of.
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1) ________ means minimum constraints and maximum freedom for managers at the lowest levels of an organization to make decisions and to take actions. A) Total centralization B) Use of market-based transfer pricing C) Total decentralization D) Use of negotiated transfer pricing 2) An advantage of decentralization is that it: A) creates greater responsiveness to.
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10) The manufacturing manager of New Technology Company is concerned about the company's newest plant. When the plant began operations three years ago, it had the best of everything. It had modern equipment, well-trained employees, engineered work and assembly stations, and a controlled environment. During the first two years, the.
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1) Which of the following industries would have the highest cost of goods sold percentage relative to sales? A) computer manufacturers B) retail organizations C) drug manufacturers D) The percentage will usually depend on the success of a particular company. 2) The costs of goods acquired from suppliers including incoming.
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35) Soda Manufacturing Company provides vending machines for soft-drink manufacturers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of three years and the new equipment has a value of $52,650 with a three-year life. The expected additional.
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14) Xenon Autocar Company manufactures automobiles. The Fastback Car Division sells its cars for $50,000 each to the general public. The fastback cars have manufacturing costs of $25,000 each for variable and $15,000 each for fixed costs. The division's total fixed manufacturing costs are $75,000,000 at the normal volume of.
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54) EIF Manufacturing Company needs to overhaul its drill press or buy a new one. The facts have been gathered, and they are as follows: Current Machine New Machine Purchase Price, New $80,000 $100,000 Current book value 30,000 Overhaul needed now 40,000 Annual cash operating costs 70,000 40,000 Current salvage value 20,000 Salvage value in five years 5,000 20,000 Required: Which alternative is the most desirable with.
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12) Party Animals sells stuffed tigers. Products, Inc., manufactures many different stuffed animals. Party Animals orders 10,400 tigers per year, 200 per week, at $10 per tiger. The manufacturer covers all shipping costs. Party Animals earns 12% on its cash investments. The purchase-order lead time is 3 weeks. Party Animals.
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7) Opportunity costs represent the cash flows directly associated with the production and transfer of the products and services. 8) Market-based transfer prices are ideal when there is no idle capacity.in the selling division. 9) If the product sold between divisions has no intermediate market, the opportunity cost of supplying.
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Answer the following questions using the information below: Division A sells ground veal internally to Division B, which in turn, produces veal burgers that sell for $10 per pound. Division A incurs costs of $1.50 per pound while Division B incurs additional costs of $5.00 per pound. 23) What is Division A's.
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3) The most significant manager evaluation and goal congruence issues arise because of inconsistencies between the following methods of choosing among alternatives for capital budgeting purposes: A) net present value method and the internal rate of return method B) payback method and the net present value method C) net present value method and.
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11) Explain why a corporation's customer base is considered an intangible asset. 12) Explain capital budgeting and then briefly discuss each of the five stages of a capital budgeting project? 13) Cast Iron Stove Company wants to buy a molding machine that can be integrated into its computerized manufacturing process..
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11) The essence of decentralization is the freedom for managers at lower levels of the organization to make decisions. 12) The formal management control system includes shared values, loyalties, and mutual commitments among members of the company, company culture, and norms about acceptable behavior for managers and other employees. 13).
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17) Aunt Lydia's Cookies, Inc., prepares frozen gourmet cookies for shipment to upscale grocery stores as well as mailing to web and catalog customers.  The company has two workstations, cooking and distribution. The cooking station is limited by the cooking time of the food. Distribution is limited by the speed.
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9) Kretzinger Company makes extensive use of financial performance reports for each of its departments. Although most departments have been reporting favorable cost variances with the company's current inventory system, management is concerned about the overall performance of the purchasing department. For example, the following information is for the purchasing.
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1) Which of the following is NOT a characteristic of a management control system? A) It aids and coordinates the process of making decisions. B) It encourages short-term profitability. C) It motivates individuals throughout the organization to act in concert. D) It coordinates forecasting sales and cost-driver activities, budgeting, and.
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5) The stage of the capital-budgeting process in which projects get underway and performance is monitored is the: A) implement the decision, evaluate performance, and learn stage B) make predictions stage C) identify projects stage D) management-control stage 6) The two factors capital budgeting emphasizes are: A) qualitative and nonfinancial B) quantitative and nonfinancial.
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20) Tornado Electronics manufactures stereos. All processing is initiated when an order is received. For April there were no beginning inventories. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Direct Materials are purchased under a just-in-time system. Backflush costing is used with a finished goods trigger point..
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1) Traditional normal and standard costing systems use: A) backflush costing B) delayed costing C) post-deduct costing D) sequential tracking 2) A costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods is.
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9) Jensen Manufacturing is considering buying an automated machine that costs $500,000. It requires working capital of $50,000. Annual cash savings are anticipated to be $206,000 for five years. The company uses straight-line depreciation. The salvage value at the end of five years is expected to be $20,000. The working.
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Answer the following questions using the information below: Calculate the Division operating income for the AlphaShoe Company which manufactures only one type of shoe and has two divisions, the Sole Division, and the Assembly Division. The Sole Division manufactures soles for the Assembly Division, which completes the shoe and sells it.
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5) An advantage of using budgeted costs for transfer pricing among divisions is that: A) overall corporate profitability is usually higher B) it usually provides a basis for optimal decision making C) the divisions know the transfer price in advance D) it promotes subunit autonomy 6) The transfer-pricing method that.
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11) Inventory management is the planning, organizing, and controlling activities that focus on the flow of materials into, through, and from the organization. 12) Purchasing costs arise in preparing and issuing purchase orders, receiving and inspecting the items included in the orders, and matching invoices received, purchase orders, and delivery.
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1) Transferring products or services at market prices generally leads to optimal decisions when: A) the market for the intermediate product is perfectly competitive B) the interdependencies of the subunits are minimal C) there are no additional costs or benefits to the company in buying or selling in the external.
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5) The Lancaster Corporation has an annual cash inflow from operations from its investment in a capital asset of $22,000 each year for five years. The corporation's income tax rate is 25%. Calculate the five years total after-tax cash inflow from operations. A) $10,000 B) $82,500 C) $88,000 D) $110,000 6) Comparison of the.
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1) Which of the following involves significant financial investments in projects to develop new products, expand production capacity, or remodel current production facilities? A) capital budgeting B) working capital C) master budgeting D) project-cost budgeting 2) The accounting system that corresponds to the project dimension in capital budgeting is the:.
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45) Discounted cash flow methods focus on operating income. 46) The three common discounted cash flow methods are net present value, internal rate of return, and payback. 47) The net present value (NPV) method calculates the expected monetary gain or loss from a project by discounting all expected future cash.
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34) Bedtime Bedding Company manufactures pillows. The Cover Division makes covers and the Assembly Division makes the finished products. The covers can be sold separately for $5.00. The pillows sell for $6.00. The information related to manufacturing for the most recent year is as follows: Cover Division manufacturing costs $6,000,000 Sales of.
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Answer the following questions using the information below: Captain Carl's Seascapes produces sea pictures for sale through catalogs. The company has two workstations, photo production and framing. The photo production station is limited by the speed of operating the photo development machine. Framing is limited by the speed of the employees..
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