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Study Resources (Accounting)

Learning Objective 2-7 1) Which of the following is not a prominent labor component of overhead? A) Direct programming labor that cannot be traced to individual products. B) Indirect labor compensation for office staff. C) Indirect compensation for idle time. D) Indirect labor compensation for rework labor. E) Indirect labor compensation for office security. 2) The wage.
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Multiple Choice 1.Which of the following formulations of the accounting equation is incorrect? a.assets - liabilities = equity b.assets = liabilities + equity c.assets = liabilities + opening equity + (revenues - expenses) + (owner additions to – withdrawals from equity) d.assets = liabilities - equity 2.John pays cash to buy auto insurance for a three-year.
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Learning Objective 2-5 1) Which of the following is not a characteristic of the type of inventory used in manufacturing-type sector companies? A) Direct materials inventory. B) Work-in process inventory. C) Finished goods inventory. D) Materials in stock and waiting to use. E) Products already manufactured and sold. 2) Which of the following is not a commonly.
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Learning Objective 2-3 1) The costing systems that managers use to identify the cost of each activity such as testing, design, or set-up are called: A) product-based costing systems. B) action-based costing systems. C) managerial-based costing systems. D) activity-based costing systems. E) resource-based costing systems. 2) Financial accountants realize that a mixed cost is: A) a fixed cost. B).
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Learning Objective 3-1 1) The term(s) used to describe the behavior and relationship among elements as changes occur in units sold, selling price, variable cost per unit, or fixed costs of product is: A) event. B) revenues. C) probability. D) contribution. E) cost volume profit analysis (CVP). 2) The difference between total revenues and total variable costs.
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Learning Objective 3-6 1) Sally's Optimist Club promotes optimism to the youth in Virginia. If the club has a degree of operating leverage of 3.0 and the sales increase by 25%, then: A) total variable costs will increase by 75%. B) total variable costs will increase by 50%. C) total variable costs will not.
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11) The ________ ________ is an administration function that includes the human resource management function of training front-line workers. A) design function B) distribution function C) production function D) marketing function E) customer service function 12) The ________ function is the function of analyzing, reporting, and accounting for those resources spent in different marketing channels; while.
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Learning Objective 3-2 1) The term that is used to identify the quantity of output sold at which total revenues equal total costs and that quantity of output sold that results in $0 operating income is: A) contribution margin. B) breakeven point (BEP). C) contribution margin per unit. D) contribution margin percentage. E) contribution income statement. 2).
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Learning Objective 2-2 1) The general term used to identify the tracing and allocation of accumulated costs to a cost object is: A) cost accumulation. B) cost assignment. C) cost tracing. D) conversion costing. E) convertible costing. 2) Cost tracing: A) describes the assignment of direct costs to a particular cost object. B) is the cost incurred which is.
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Learning Objective 3-8 1) In the airline industry, an example of output is: A) passenger miles. B) room-nights occupied. C) patient days. D) student credit-hours. E) telephone call center hours. 2) In the hotel/motel industry, an example of a measure of output is: A) passenger miles. B) room-nights occupied. C) patient days. D) student credit-hours. E) telephone call center hours. 3) An example.
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Learning Objective 3-3 1) Which of the following is true about net income? A) Income targets are expressed in terms of operating income. B) Income targets are expressed in terms of net income. C) Income targets are not expressed in terms of net income. D) Managers always ignore the effect of net income on income.
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11) Which of the following is not true about payroll fringe costs? A) Managers do not need to classify payroll fringe costs. B) Contracts and laws should be as specific as possible regarding definitions and measurements. C) Disputes arise about whether they should be included as part of direct labor costs when calculating.
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Learning Objective 3-9 1) Managers compute gross margin as: A) sales revenue less variable costs. B) sales revenue less cost of goods sold. C) contribution margin less fixed costs. D) contribution margin less variable costs. E) contribution margin plus cost of goods sold. 2) Managers confuse gross margin and contribution margin in merchandising companies because: A) cost of.
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Learning Objective 1-1 1) Managers use management accounting information to do all of the following except: A) collect. B) analyze. C) perform. D) categorize. E) summarize. 2) Managers make cost management decisions to increase the value of products and services they provide to customers and to achieve organizational goals. Which of the following is not an.
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Appendix Chapter 2 1) Which of the following methods is not used to reduce the undesirable affects of absorption costing? A) Focus on careful planning and budgeting of inventory amounts. B) Incorporate carrying charges for inventory in the internal accounting system. C) Place greater weight on reporting performance over longer periods. D) Include only financial.
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Learning Objective 2-1 1) The cost incurred is: A) actual costs. B) budgeted costs. C) cost object. D) cost accumulation. E) cost allocation. 2) A ________ is usually measured as the amount of money that must be paid to acquire goods and services. A) time B) cost C) goal D) product E) prediction 3) Which of the following explains why managers compare the.
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Learning Objective 3-7 1) For any given total quantity of units sold, as the sales mix shifts toward units with lower contribution margins, operating income will be: A) lower. B) higher. C) consistent. D) parallel. E) does not change. 2) When there is a shift in the sales mix to lower-contribution-margin products, the breakeven quantity: A) levels. B) increases. C).
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34.              (Preparation of financial statements) (This problem is based on the transactions for problem 33.) Following is a trial balance for LilyRose Day Care, as of July 31, 2013, the end of its first month of business. Based on the trial balance, prepare an income statement for the month ended July 31,.
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Learning Objective 1-5 1) Which of the following is not a true statement about a manager that utilizes the cost-benefit approach? A) Senior managers could spend resources if the expected benefits to the company exceed the expected costs. B) Senior managers can compare the expected benefits to the expected costs associated with a.
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Learning Objective 1-7 1) Which of the following is not an ethical behavior of Practitioner's of Management Accounting and Financial Managers? A) Maintains an appropriate level of professional expertise by continually developing knowledge and skills. B) Performs professional duties in accordance with relevant laws, regulations, and technical standards. C) Provides decision support information and.
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11) The Tree Shoppe reported the following information: Budgeted revenues$10,000 Breakeven revenues4,000 Budgeted sales (in units)35 Breakeven sales (in units)15 Required: Compute the margin of safety percentage at the Tree Shoppe. A) 20% B) 30% C) 40% D) 50% E) 60% 12) Organizations that have a low margin of safety have an increased risk of loss. 13) A more comprehensive approach to recognizing.
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11) Managers use PV graphs because it shows how changes in the quantity of units sold affect operating income. 12) Managers can use profit volume analysis to understand how profits change with sales volume and to target levels of sales needed to achieve profit goals. 13) Management accountants usually calculate the breakeven.
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31.              In August, 2013, a publisher receives a check for $120 from a subscriber for a one-year subscription to "Willie," a monthly magazine. The subscriber will receive the first magazine in September. Prepare: (a) the journal entry to record the amount received in August; and (b) the adjusting entry to.
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Learning Objective 3-5 1) ________ ________ is a "what-if" technique that managers use to examine how an outcome will change if the original predicted data are not achieved or if an underlying assumption changes. A) Electronic Spreadsheet B) Weighted average C) Manufacturing option D) Electronic analysis E) Sensitivity analysis 2) Managers understand that the margin of safety.
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36. (Preparation of financial statements)               (This problem is based on the transactions for problem 35.) Following is a trial balance for Ricardo Sanchez's Auto Repair as of January 31, 2013. Prepare an (1) income statement and a (2) statement of changes in owner's equity for the month ended January 31, 2013,.
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Learning Objective 1-2 A) is not consistent with organizational goals. B) does not relate to ethical practices. C) has no focus on the organization. D) specifically focuses on strategic issues. E) does not specifically focus on strategic issues. 2) Which of the following is not one of the six primary business functions that managerial accountants use.
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11) Carpenter Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to.
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Learning Objective 2-4 1) Which of the following is not true about unit costs? A) Decision makers think in terms of total costs rather than unit costs. B) Decision makers think in terms of unit costs rather than total costs. C) Calculating unit cost is essential. D) Unit costs are also known as average costs. E).
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Learning Objective 3-4 1) Which of the following is not correct about CVP analysis? A) Managers estimate the predicted profitability of choices. B) Useful to managers because they calculate units that need to be sold to breakeven. C) Managers make strategic decisions about selling prices and operating income. D) Managers make decisions about choosing additional.
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33.(Transaction analysis, journal entries, and adjusting journal entries) Lillian Rose opened a facility to provide day care for children. The following transactions occurred during the month of July 2013, the first month of business. a.Lillian Rose invested $10,000 of her personal funds in a business, to be known as LilyRose Day Care. b.To.
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11) In the United States, the Institute of Management Accountants (IMA) issues ethical guidelines. 12) Ethics form the basic foundation of any well-functioning economy. 13) What are the four standards of ethical conduct for management accountants. List each standard and provide an example that demonstrates compliance with that standard. 14) What should a.
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Learning Objective 1-3 1) Which of the following is not a way for a company to improve customer response time? A) An increase in capacity of bottleneck operations. B) Decrease in response time to consumer requests. C) Faster delivery procedures. D) Produce the product quicker. E) Effective management accounting information. 2) Trader Joe's is known for delivering.
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9) The comparison of ________ performance to ________ performance, this is known as the control or postdecision role of information. A) low; high B) actual; budgeted C) real; superficial D) known; unknown E) new; existing 10) ________ can lead to changes in goals, strategies, and the ways decision alternatives are identified, and the range of information.
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Problems 23.Tina opens a business to do small printing jobs. Her first few transactions are shown below. For each of them, state which two of the following six possibilities occurred as a result of each transaction - an asset increased, an asset decreased, a liability increased, a liability decreased, equity increased,.
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Learning Objective 1-6 1) Line management: A) is also known as staff management. B) is directly responsible for achieving the goals of the organization. C) is never responsible for achieving the goals of the organization. D) is not responsible for achieving the financial goals of the organization because that is the job of the CFO. E).
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Learning Objective 1-4 1) Which of the following is not true about a managerial accountant that links rewards to performance? A) Not used to motivate managers. B) Allows companies to charge premium prices. C) Should only be based on financial information. D) Recognizes managers for a well-done job. E) Rewards managers by salary, bonuses, and performance. 2).
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