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38) Which of the following formulas determine cost of goods sold in a manufacturing entity? A) Beginning work-in-process inventory + Cost of goods manufactured - Ending work-in-process inventory = Cost of goods sold B) Beginning work-in-process inventory + Cost of goods manufactured + Ending work-in-process inventory = Cost of goods.
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5) A cost concept used for external reporting purposes may not be appropriate for internal, routine reporting to managers. 6) Controllership includes short- and long-term financing and investments, banking, cash management, foreign exchange, and derivatives management. 7) The method recommended for a management accountant in dealing with a resource allocation decision.
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The overall 3.75% unfavourable difference in advertising revenue is caused by offsetting differences in advertising pages sold (favourable) and the average rate per page (unfavourable). The performance report highlights the favorable increase in the advertising pages sold. While the percentage drop in advertising revenue per page is also dramatic, management.
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30) A new employee in the accounting department is having difficulty understanding two sets of accounting terms—variable and fixed costs as opposed to period and product costs. He understands that variable costs change during an accounting period while fixed costs do not. However, he explains that a period cost implies.
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Answer the following question using the information below. Pederson Company reported the following: Manufacturing costs $2,000,000 Units manufactured 50,000 Units sold 47,000 units sold for $75 per unit Beginning inventory 0 units 29) What is the average manufacturing cost per unit? A) $40.00 B) $42.55 C) $75.50 D) $35.00 E) $42.25 30) What is the amount of gross margin? A) $1,750,000 B) $3,525,000 C) $3,405,000.
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11) Which one of the following is a variable cost in a grocery store? A) rent B) president's salary C) inventory of vegetables D) property taxes E) administrative salaries 12) Which of the following is a fixed cost in a clothing store? A) store manager's salary B) electricity C) sales commissions D) inventory E) paper for the cash register 13) If each.
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11) A budget is defined as A) the qualitative expression of a plan. B) an aid in controlling income. C) the quantitative expression of a plan of action by management. D) the quantitative expression of a plan and an aid in controlling income. E) an aid in coordinating and implementing a plan. 12) Understanding the reasons.
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2.5   Explain cost identification, classification, and management systems and their use within the decision framework. 1) Product costs are the sum of the costs assigned to a product for a specific purpose. 2) For purposes of calculating inventory costs under GAAP, only production costs can be used. 3) Overtime premium is normally considered.
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1.5   Distinguish among corporate governance, professional codes of conduct, ethics, and corporate social responsibility. 1) An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Chartered Professional Accountants of Canada. 2) CPAs are required to.
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Johnson Advertising Agency incurs the following costs in its service activities. Match each one of them to one of the value chain functions listed. A) design of products, services, and processes B) customer service C) production D) marketing 43) amortization of the artist design desk 44) cost of computer time used to create designs for customers 45).
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67) Manitoba Industries Inc. had the following account balances at the end of the current year: Direct materials:      Beginning inventory $13,000      Purchases ?      Ending inventory 17,000 Direct manufacturing labour ? Manufacturing overhead 28,000 Cost of goods manufactured 210,000 Beginning work-in-process inventory 11,000 Ending finished goods inventory 17,000 Beginning finished goods inventory ? Ending work-in-process inventory ? Manufacturing costs incurred 213,000 Cost of goods sold 215,000 Total manufacturing costs to account for 224,000 Direct materials used 118,000 Required: Determine.
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Each of the following items pertains to one of these companies: Bedell Electronics (a manufacturing company), Gregory Food Retailers (a merchandising company), and Larson Real Estate (a service sector company). Match each item with either an inventoriable cost or a period cost. A) period B) inventoriable 70) salary of Bedell Electronics president Diff: 2   .
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63)  Evans Inc., had the following activities during 2015: Direct materials: Beginning inventory$40,000 Purchases123,200 Ending inventory20,800 Direct manufacturing labour32,000 Manufacturing overhead24,000 Beginning work-in-process inventory1,600 Ending work-in-process inventory8,000 Beginning finished goods inventory48,000 Ending finished goods inventory32,000 Required: a.What is the cost of direct materials used during 2015? b.What is cost of goods manufactured for 2015? c.What is cost of goods sold for 2015? Assume that Evans.
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Answer the following question(s) using the information below. The West Company manufactures several different products. Unit costs associated with Product ORD203 are as follows: Direct materials $40 Direct manufacturing labour 8 Variable manufacturing overhead 12 Fixed manufacturing overhead 23 Sales commissions (2% of sales) 6 Administrative salaries     9        Total $98 48) What are the variable costs per unit associated with Product ORD203? A) $60.
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11) A profit-volume graph shows the impact on operating income from changes in the output level. 12) The contribution margin method of CVP analysis uses the equation: break-even units = unit contribution margin/fixed costs. 13) The contribution margin method can be used to verify a break-even calculation. 14) The total costs line.
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2.2   Differentiate fixed from variable cost behaviour and explain the relationship of cost behaviour to direct and indirect cost classifications. 1) A relevant range is the range of the cost driver in which a specific relationship between cost and driver is valid. 2) Changes in particular cost drivers automatically result in decreases.
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21) Which of the following elements is contained within the Implement the Decision, Evaluate Performance, and Learn category in the Five-Step Decision-Making Process? A) Identify the problem and uncertainties. B) Obtain information. C) Make predictions about the future. D) Provide feedback. E) Make decisions by choosing among alternatives. 22) ________ includes reporting and interpreting information that.
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65) Helmer Sporting Goods Company manufactured 100,000 units in 2015 and reported the following costs: Sandpaper$32,000Leasing costs-plant$384,000 Materials handling320,000Amortization-equipment224,000 Coolants & lubricants22,400Property taxes-equipment32,000 Indirect manufacturing labour275,200Fire insurance-equipment16,000 Direct manufacturing labour2,176,000Direct material purchases3,136,000 Direct materials, 1/1/15384,000Direct materials, 12/31/15275,200 Finished goods, 1/1/15672,000Sales revenue12,800,000 Finished goods, 12/31/151,280,000Sales commissions640,000 Work-in-process, 1/1/1596,000Sales salaries576,000 Work-in-process, 12/31/1564,000Advertising costs480,000 Administration costs800,000 Required: a.What is the cost of direct materials used during.
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21) Sales total $200,000 when variable costs total $150,000 and fixed costs total $30,000. The break-even point in sales dollars is A) $200,000. B) $120,000. C) $40,000. D) $30,000. E) $180,000. 22) Cost-volume profit is used to analyze A) the behaviour of some costs and revenues as changes occur in the output level. B) the.
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17) A company may employ CPAs and other persons who are required to meet certain standards of professional conduct due to their membership in relevant professional organizations. These standards of conduct often include the areas of responsibility, competence, fairness and independence. However, holding only a few people responsible for sound.
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11) Rent for the building that contains the manufacturing and engineering departments can all be charged as manufacturing overhead costs. 12) The plant supervisor's salary is a direct labour cost. 13) Conversion costs include all direct manufacturing costs. 14) Prime costs consist of direct and indirect manufacturing labour. 15) Conversion costs are all manufacturing.
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8) Springfield Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labour, and indirect manufacturing costs. Total indirect manufacturing costs for January were $300 million, and were allocated to each product on the basis of direct manufacturing labour costs of.
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13) Berhannan's Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500. Required: a.What is the contribution margin per phone? b.What is the break-even point in phones? c.How many phones.
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61) Farley Muffler Inc. received the following monthly report from its newly hired accountant, who quit after only a week on the job. Farley Muffler Inc. Cost of Goods Sold Schedule Finished Goods Inventory (beginning)$15,000 Work-in-Process Inventory (beginning)   3,000 Total$18,000 Current Manufacturing Costs:   Salaries and wages: Direct manufacturing labour$5,000 Indirect manufacturing labour2,000 Sales salaries4,000 Administrative 3,000$14,000 Other: Manufacturing supplies$1,500 Manufacturing amortization3,500 Insurance on showroom1,000 Miscellaneous.
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30) Explain how a budget can help management implement strategy. 31) Jayhawk Basketballs manufactures and distributes rebounding equipment. The company is having a problem coordinating its marketing and production efforts. Every time marketing has a special promotion in a certain part of the country, production either cannot deliver the products.
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11) Inventoriable costs for merchandising companies are held in the work-in-process account. Use the information below to answer the following question(s). Consider the following data of the Vancouver Company for the year 2016: Sandpaper-Plant $10,000 Leasing costs - plant $120,000 Materials handling-Plant 100,000 Amortization- equip. 70,000 Coolants-Plant 7,000 Property taxes - equip. 10,000 Indirect manufacturing labour 86,000 Fire insurance - equip. 5,000 Direct manufacturing labour 680,000 Direct material purchases 980,000 Direct materials, 1/1/2016 120,000 Direct.
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35) Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products. Required: a.Classify each of the following costs as either direct or indirect.
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57) Office Supply Company manufactures office furniture. Recently the company decided to develop a formal cost accounting system. The company is currently converting all costs into classifications as related to its manufacturing processes. Required: For the following items, label each as being appropriate for ?direct cost tracing of the finished furniture,.
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Use the information below to answer the following question(s). Montreal Industries Inc. had the following activities during the year: Direct materials:      Beginning inventory $50,000      Purchases 154,000      Ending inventory 26,000 Direct manufacturing labour 40,000 Manufacturing overhead 30,000 Ending work-in-process inventory 10,000 Beginning work-in-process inventory 2,000 Ending finished goods inventory 40,000 Beginning finished goods inventory 60,000 20) What is Montreal's cost of direct materials used during the year? A) $204,000 B) $178,000 C).
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59) Eschliman Manufacturing Company had the following account balances for the quarter ending September 30, unless otherwise noted: Amortization of manufacturing equipment$88,000 Amortization of office equipment41,200 Direct manufacturing labour160,000 Direct materials used126,000 Finished goods inventory (July 1)180,000 Finished goods inventory (September 30)170,000 General office expenses101,800 Indirect manufacturing labour62,000 Indirect materials used28,000 Marketing distribution costs10,000 Miscellaneous plant overhead45,000 Plant utilities30,800 Property taxes on plant.
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11) An accountant that agrees with the company president to defer the recognition of an earned revenue is in a breach of which of the following dimensions of professional conduct? A) adherence to rules of professional conduct B) conduct that contravenes an act, the regulations, or the bylaws C) conduct that displays a.
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31) The determination of a cost as being either direct or indirect depends upon A) the accounting system. B) the allocation system. C) the cost tracing system. D) only the cost object chosen to determine its individual costs. E) the choice of the cost object, and the materiality of the cost in question. 32) Cost assignment.
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2.3   Interpret unitized fixed costs appropriately when making cost management decisions. 1) A unit cost is computed by dividing a total cost by some number of units. 2) Unit costs are considered to be an average cost per unit. 3) When a manager is making a decision based on cost figures, it is.
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33) Eichhorn Company's Process Engineering department has the responsibility of rearranging the individual work tasks for each assembly line worker, with the goal of utilizing each worker as much as possible. Currently, on average, each assembly line worker only has tasks that require 47 minutes per hour, and the plant.
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For each of the independent activities give the aspect of the Five-Step Decision-Making Process that best describes what is being undertaken. A) Obtain information B) Decide on and implement one of the alternatives C) Make predictions about the future D) Identify the problem and uncertainties E) Implement the decision, evaluate performance, and learn 43) Preparing a.
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1.3   Identify the five steps of decision making and the role of relevant accounting information. 1) Planning is choosing goals, predicting results under various alternative ways of achieving those goals, and then deciding how to attain the desired goals. 2) A bonus paid to high performing sales persons is an example of.
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56) Macadamia Co. produced and sold 40,000 units last year. Per unit revenue and costs were as follows: Revenues $120.00 Cost of Goods Sold: Direct Materials $15.00 Direct Labour 20.00 Variable Manufacturing Overhead 10.00 Fixed Manufacturing Overhead   6.00 Total Cost of Goods Sold   51.00 Gross Margin $69.00 Selling and Administrative Costs: Sales Commissions (10% of Sales) $12.00 Administrative Salaries    5.00 Total Selling and Administrative   17.00 Operating Income <Loss> $52.00 The Fixed.
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  2.1   Identify and distinguish between two manufacturing cost classification systems: direct and indirect, prime and conversion. 1) "Cost" is defined by accountants as a resource sacrificed or foregone to achieve a specific objective. 2) Costs of Sales is another way of phrasing Cost of Goods Sold. 3) An actual cost is a predicted.
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  3.1   Identify the essential elements of cost-volume-profit analysis and calculate the break-even point (BEP). 1) The contribution margin is computed by deducting all costs which vary on the basis of an output-related cost driver from revenues. 2) To perform cost-volume-profit analysis, a company must be able to separate costs into fixed and.
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2.4   Apply cost information to produce a GAAP-compliant income statement showing proper cost of goods sold and a balance sheet showing proper inventory valuation. 1) Manufacturing-sector companies purchase materials and other resources for conversion into various finished goods. 2) Manufacturing firms have three types of inventory: direct materials, work in process, and.
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19) Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making. 20) Discuss the potential behavioural implications of performance evaluation. 21) What areas of responsibility does a chief financial officer have in a typical organization? 22) How does a controller help "control" a company? .
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