Info
Warning
Danger

Study Resources (Accounting)

11. According to the Sarbanes-Oxley Act of 2002 and PCAOB Auditing Standard No. 5, management must audit and report on auditors' assertions about the organizations' systems of internal controls. 12. According to the Sarbanes-Oxley Act's Section 409, material changes in the organization's financial condition must be disclosed to the public.
5 Views
View Answer
13-4: Developing Additional Variances for Performance Evaluation Maidwell Company manufactures washers and dryers on a single assembly line in its main factory. The market has deteriorated over the last five years and competition has made cost control very important. Management has been concerned about the materials costs of both washers and.
13 Views
View Answer
7-6:Allocating Overhead versus Direct Tracing Nixon & Ross, a law firm, is about to install a new accounting system that will allow the firm to track more of the overhead costs to individual cases.  Overheads are currently allocated to individual client cases based on billable professional staff salaries.  Attorneys working on.
5 Views
View Answer
12-9:Developing Standards ColdKing Company is a small producer of fruit-flavored frozen desserts.  For many years, ColdKing's products have had strong regional sales on the basis of brand recognition; however, other companies have begun marketing similar products in the area, and price competition has become increasingly important.  John Wakefield, the company's controller,.
8 Views
View Answer
2-14:Make/Buy and the Opportunity Cost of Freed Capacity Leland Manufacturing uses 10 units of part KJ37 each month in the production of radar equipment.  The cost to manufacture one unit of KJ37 is presented in the accompanying table. Direct materials $  1,000 Materials handling (20% of direct material cost) 200 Direct labor 8,000 Manufacturing overhead   12,000 Total manufacturing cost $21,200 Materials.
7 Views
View Answer
10-4:  Absorption Costing’s Effect on Earnings when Volumes Fluctuate BBG Corporation is a manufacturer of a synthetic chemical.  Gary Voss, president of the company, has been eager to get the operating results for the just-completed fiscal year.  He was surprised when the income statement revealed that income before taxes had dropped.
14 Views
View Answer
14-1:Productivity Measure With A Single Input and Output An tax accountant is examining his productivity.  In 1996 he did 300 tax returns in 1400 hours.  In 1997 he did 250 tax returns in 1200 hours.  What was his percentage increase in productivity from 1996 to 1997? 14-2:Productivity Measures With Multiple Inputs and.
19 Views
View Answer
12-1: Standard Labor Variances A CPA firm estimates that an audit will require the following work: Type of Auditor Expected Hours              Cost per Hour              Standard Costs Manager10$50$  500 Senior2040800 Staff4030  1,200 Totals70$2,500 The actual hours and costs were: Type of AuditorActual HoursActual Cost per HourActual Costs Manager9$52$   468 Senior2238836 Staff4430   1,320 Totals75$2,624 Required: Calculate the direct labor, wage rate, and labor efficiency variances.
16 Views
View Answer
11-2: Different Overhead Allocation Bases Set-Up Company produces blue things and gray things.  Blue things are in much greater demand in the market and the firm sells 120,000 blue things a year.  Set-Up Co. sells 6,000 gray things per year in small boutiques.  Things have a short shelf life.  They must.
13 Views
View Answer
9-6:Plantwide vs. Department Overhead Rates Rose Bach has recently been hired as controller of Empco Inc., a sheet-metal manufacturer.  Empco has been in the sheet-metal business for many years and is currently investigating ways to modernize its manufacturing process.  At the first staff meeting Bach attended, Bob Kelley, chief engineer, presented.
8 Views
View Answer
12-3: Establishing a Standard Cost System The Tippa Canoe Company makes fiberglass canoes.  The fiberglass resin is initially molded to the shape of a canoe, then sanded and painted.  Metal or wooden seats and frames are added for stability.  The Tippa Canoe Company was started several years ago in the owner's.
10 Views
View Answer
6-4:The Effect of Budgets on Organization Describe how budgets and budgeting systems help solve the organization problem.  Give examples. 6-5:Appendix Estimating Production Costs The Fancy Umbrella Company makes beach umbrellas.  The production process requires 3 square meters of plastic sheeting and a metal pole.  The plastic sheeting costs $0.50 per square meter and.
7 Views
View Answer
13-1:Overhead Variances Overhead is applied on the basis of direct labor hours.  Three direct labor hours are required for each product unit.  Planned production for the period was set at 8,000 units.  Manufacturing overhead for the period is budgeted at $204,000, of which 30 percent is fixed.  The 26,200 hours worked.
15 Views
View Answer
46. A man-made system that generally consists of an integrated set of computer-based components and manual components established to collect, store, and manage data and to provide output information to users. A. information system B. output system C. business event system D. database system 47. The ____ suggests that technology improves information available for.
5 Views
View Answer
5-5:  Performance Measures for Cost Centers A soft drink company has three bottling plants throughout the country.  Bottling occurs at the regional level because of the high cost of transporting bottled soft drinks.  The parent company supplies each plant with the syrup.  The bottling plants combine the syrup with carbonated soda.
4 Views
View Answer
12-8:Differences Between Lean Manufacturing  and Standard Costing Lean Manufacturing and standard cost accounting systems are not necessarily substitutes.  However, very few firms use both lean manufacturing and standard costs.  In fact, some management consultants who advocate lean manufacturing argue that firms should abandon their standard cost systems. Required: a.Concisely describe lean manufacturing . b.Concisely.
5 Views
View Answer
1. The three themes of the text are operating systems, e-business, and internal control. 2. In an assurance service the accountant will provide the original information used for decision making. 3. Information systems reliability and electronic commerce have been identified by the AICPA as potential assurance services. 4. E-business is.
19 Views
View Answer
8-6: Allocating joint costs Sonimad Sawmill manufactures two lumber products from a joint milling process.  The two products developed are mine support braces (MSBs) and unseasoned commercial building lumber (CBL).  A standard production run incurs joint costs of $300,000 and results in 60,000 units of MSB and 90,000 units of CBL. .
8 Views
View Answer
36. The three themes of the text book include all of the following except: A. enterprise systems B. risk assessment C. e-business D. internal control 37. Efficiency and effectiveness of operations are goals of: A. enterprise systems B. risk assessment C. e-business D. internal control 38. A set of interdependent elements that together accomplish specific objectives is a.
3 Views
View Answer
6-1:Flexible Budgets A chair manufacturer has established the following flexible budget for the month. Units Produced and Sold 1,0001,5002,000 Sales              $10,000              $15,000              $20,000 Variable Costs              (5,000)              (7,500)              (10,000) Fixed Costs                (2,000)                (2,000)                 (2,000) Profit              $  3,000              $  5,500              $  8,000 Required: a.  What is the sales price per chair? b.  What is the expected profit if 1,600.
11 Views
View Answer
5-3:Transfer Prices and Capacity Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice.  Jefferson Bottles makes glass containers, which it sells to Jefferson Juice and other companies.  Jefferson Bottles has a capacity of 10 million bottles a year. Jefferson Juice currently has a capacity of 3 million bottles of juice.
8 Views
View Answer
66. Which of the following is NOT one of the three steps in decision making as described in the text A. action B. intelligence C. design D. choice 67. Regarding management problem structure and information requirements, which of the following represents the vertical information flows from lowest to highest? A. strategic management, tactical management,.
4 Views
View Answer
8-5:Beware of Unit Costs, Costs Beyond the Split-off Point are not Necessarily all Variable Table 8-12 in the text allocates joint costs using net realizable value as the allocation base.  What critical assumptions underlie the analysis in Table 8-12?  That is, under what circumstances can the data in this table be.
8 Views
View Answer
7-7:Allocating Computer Costs The Independent Underwriters Insurance Co. (IUI) established a systems department two years ago to implement and operate its information technology system.  IUI believed that its own system would be more cost-effective than the service bureau it had been using. IUI's three departments −claims, records, and finance − have different.
13 Views
View Answer
7-1:Cost Allocation and Contingency Fees A lawyer allocates overhead costs based on his hours working with different clients.  The lawyer expects to have $200,000 in overhead during the year and expects to work on clients' cases 2,000 hours during the year.  In addition he wants to pay himself $50 per hour.
10 Views
View Answer
9-8:Product Profitability and Mix — Calculating Variable Overhead Sportway Inc. is a wholesale distributor supplying a wide range of moderately priced sporting equipment to large chain stores.  About 60 percent of Sportway's products are purchased from other companies and the remainder are manufactured by Sportway.  The company has a plastics department.
7 Views
View Answer
21. The management process includes marketing and sales. 22. Information that is capable of making a difference in a decision-making situation, by reducing uncertainty or increasing knowledge for that particular decision, has the quality of relevance. 23. Information about a customer's credit history that is received after the decision to.
3 Views
View Answer
5–7:Decision Rights Assignments and EVA At a Stern-Stewart conference, one of the topics discussed was “taking EVA to the shop floor.”  This session described “driving EVA analysis, decision making and incentives down through every level of an organization.”                If you were attending this session, what questions would you ask the.
4 Views
View Answer
5-1:ROI and Residual Income The following investment opportunities are available to an investment center manager: Project          Initial Investment        Annual Earnings               A              $800,000              $90,000               B              100,000              20,000               C              300,000              25,000               D              400,000              60,000 Required: a.If the investment manager is currently making a return on investment of 16 percent, which project(s) would the manager want to pursue? b. If.
16 Views
View Answer
7–8:Cost Allocations Can Distort Pricing Decisions Eastman Kodak used to sponsor a car in the NASCAR races.  Like other major corporations that sponsor sports events, Kodak believes that the public’s awareness of its products is enhanced by sponsoring a NASCAR.  For the right to have the car painted yellow with “Kodak”.
12 Views
View Answer
4-1:Choosing Performance Measures Jen and Barry opened an ice cream shop in Eugene.  It was a big success, so they decide to open a ice cream shops in many cities including Portland.  They hire Dante to manage the shop in Portland.  Jen and Barry are considering two different sets of performance.
19 Views
View Answer
7-4:Outsourcing and Overhead Peluso Company, a manufacturer of snowmobiles, is operating at 70 percent of plant capacity.  Peluso's plant manager is considering manufacturing headlights, which are now being purchased for $11 each (a price that is not expected to change in the near future).  The Peluso plant has the equipment and.
6 Views
View Answer
5-10:Comparing ROA and EVA General Motors’s CFO, Michael Losh, converted GM’s performance measure for compensation from net income to ROA.  In explaining the move in CFO (August 1996), he said, “ROA was a logical next step because all those other measures generally have focused on the income statement.  Moving to ROA.
7 Views
View Answer
10-1:Variable and Absorption Costing Varilux manufactures a single product and sells it for $10 per unit.  At the beginning of the year there were 1,000 units in inventory.  Upon further investigation, you discover that units produced last year had $3.00 of fixed manufacturing cost and $2.00 of variable manufacturing cost.  During.
14 Views
View Answer
5-9:Transfer Prices and External Sourcing Lewis is a large manufacturer of office equipment, including copiers.  Its electronics division is a cost center.  Currently, electronics sells circuit boards to other divisions exclusively.  Lewis has a policy that internal transfers are to be priced at full cost (fixed + variable).  Thirty percent of.
6 Views
View Answer
14-5:JIT and Stock-Out Costs James Industries is considering a shift to JIT.  The president feels that considerable costs can be saved by reducing inventory.  The marketing manager is worried, however.  She recognizes that the inventory holding costs such as storage and the opportunity cost of cash used to hold inventory are.
13 Views
View Answer
8-1:Processing Further Walters Company produces 15,000 pounds of Product A and 30,000 pounds of Product B each week by incurring a joint cost of $400,000.  These two products can be sold as is or processed further.  Further processing of either product does not delay the production of subsequent batches of the.
13 Views
View Answer
12-7: Assignment of Decision Rights for Setting Standards Associated Media Graphics (AMG) is a rapidly expanding company involved in the mass reproduction of instructional materials.  AMG is organized into a number of production departments, each  of which is responsible for a particular stage of the production process, such as copyediting, typesetting,.
5 Views
View Answer
4-3:Monitoring Computer Use Samson Company is an engineering firm.  Many of the employees are engineers who are working individually on different projects.  Most of the design work takes place on computers.  The computers are connected by a network and employees can also "surf" the internet through their desk top computers. The president.
14 Views
View Answer
8-3:Joint Cost versus Common Costs What is the difference between joint costs and common costs?   8-4: Evaluating Decision Alternatives Involving Common Costs Cosmo Inc. operates two retail novelty stores: the Mall Store and the Town Store.  Condensed monthly operating income data for Cosmo Inc. for November are presented in the accompanying table. .
6 Views
View Answer
12-5:Basic Price and Quantity Variances for Labor and Materials Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost.  Arrow has established the following standards for the direct costs of one unit of product. Standard Quantity Standard Price Standard Cost Direct materials 8 pounds $1.80 per pound $14.40 Direct labor 0.25 hour $8.00 per.
7 Views
View Answer
56. All of the following are components of reliability except: A. validity B. accuracy C. verifiability D. feedback value 57. The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it A. expanded the scope of the audit beyond financial information B. required that organizations work with their auditors.
5 Views
View Answer
5-11:Transfer Pricing in the Presence of Divisional Interdependencies Prior to 1997, PepsiCo, a major soft drink company, had a restaurant division consisting of Kentucky Fried Chicken, Taco Bell, and Pizza Hut.  The only cola beverage these restaurants served was Pepsi.  Assume that the major reason PepsiCo owned fast food restaurants is.
8 Views
View Answer
6-6: Appendix Pro-Forma Financial Statements The Gold Bay Hotel is in the process of developing a master budget and pro-forma financial statements for 1999.  The beginning balance sheet for the fiscal year 1999 is estimated to be: Gold Bay Hotel Estimated Balance Sheet 1/1/99 Cash              $    20,000              Accounts Payable              $     20,000 Accounts Receivable              30,000Notes Payable              500,000 Facilities             .
7 Views
View Answer
9-3:Over/Underabsorbed Overhead The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours.  At the beginning of the year the company expects fixed overhead costs to be $600,000 and variable costs to be $800,000.  The expected machine hours are 6,000 and the expected direct.
17 Views
View Answer
76. Which of the following statements is false? A. Strategic planning is relatively unstructured. B. Strategic planning uses much information from outside the firm. C. Tactical management focuses on relevant operations units and uses some external information. D. Tactical management uses the most detailed and accurate information. 77. Generally, which of the following is.
9 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16463 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!