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31.The costs of the two service departments, maintenance and quality control, that                                           provide support for the production departments are classed as: a.factory overhead. b.selling expenses. c.administrative expenses. d.finance expenses. 32.If the overhead application rate is $10 per direct labour hour and 120 direct labour                             hours are used in printing a.
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21.Which of these is not a principle of internal control? a.Separation of record keeping and custody of assets b.Division of responsibility for related transactions c.Establishing clear lines of responsibility d.Placing excess cash on fixed deposit to earn interest 22.The cornerstone of the internal control of cash is: a.the bank reconciliation. b.a strong safe. c.a petty cash system. d.the.
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51.The use of computers has been a breakthrough for the perpetual inventory system.                             Many retail businesses use optical-scan cash registers to read ____________. The                                           scanners record the sale and, at the same time, update the inventory records with the cost                             of the sale. a.price.
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11.Which of these is an example of a product cost? a.Telephone expense b.Assembly line worker’s wages c.Depreciation of office furniture d.Interest expense 12.How many of these inventory accounts are maintained by a manufacturer? •?Stock of raw materials •?Stock of work in process •?Stock of finished goods a.0 b.1 c.2 d.3 13.Raw materials inventory is: a.stock of materials purchased for conversion into saleable goods. b.stock of.
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Multiple-choice questions 1.Which of these does not normally provide an input into an accounting system? a.Bank deposit slip b.Sales invoice c.Invoice d.Managerial report 2.Which of these is not one of the three phases in the development of an accounting               system? a.Systems analysis b.Systems design c.Systems implementation and review d.Systems plan 3.How many of these are important considerations when developing a.
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31.The information below is provided by the Talbot Cleaning Supply Company. Sales $200 000 Operating profit 14 000 Average operating assets 80 000 Equity 50 000 Minimum required rate of return 12% Calculate residual profit. a.$8000 b.$4400 c.$5000 d.$4000 32.Return on investment equals: a.profit margin x return on equity. b.asset turnover x residual profit. c.selling price x cost of investment. d.profit margin x asset turnover. 33.If.
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21.Direct material costs plus direct labour costs are known as: a.prime costs. b.conversion costs. c.fixed costs. d.period costs. 22.Applying overhead to products means: a.passing on the overhead costs to customers in the price charged. b.assigning the overhead on a basis that closely relates it to the work performed. c.directly tracing the overhead to products. d.calculating the total overhead cost. 23.If.
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41.Hall & Associates’ data are: Selling price per unit $12 Variable cost per unit $5 Fixed cost of operations per year $24 500 What is the break-even point in units? a.2042 b.3500 c.1140 d.171 500 42.Unit sales price $40 Variable production costs 15 Fixed production costs $8000 Selling and Administrative costs $4000 + 10% of sales Given the above information the break-even point.
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21.Which of these is not an example of a service department for a university? a.Personnel b.Marketing c.German department d.University library 22.How many of the following could not be cost objects? •A product •A specialised item of equipment •An activity •A department a.0 b.1 c.2 d.3 23.Which of these departments would not be considered a service department for a tyre retailer? a.Accounting b.Workshop c.Advertising d.Human resources 24.A basis for the.
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21.Which of these is not an assumption of cost-volume-profit analysis? a.The behaviour of income and expenses is regarded as linear over the relevant range. b.Costs can be classified into variable and fixed categories. c.The time value of money is incorporated into the analysis. d.The sales mix will remain constant. 22.Costs which, in total, vary directly.
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Multiple-choice questions 1.Which of these most accurately explains the behaviour of costs? a.The majority of costs are variable per unit of production. b.There is no norm; costs can be fixed, variable or a combination of both. c.Costs can be fixed or variable but not a combination of both. d.The majority of costs are fixed per.
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11.Costs that a manager can influence in the short term are called: a.direct costs. b.traceable costs. c.controllable costs. d.departmental costs. 12.Match the following costs with their descriptions. I. Controllable expenses a. Carefully predetermined costs II. Standard costs b. Costs which are eliminated if a department is closed III. Avoidable costs c.  Expenses that cannot be directly traced to.
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11._________________are internal controls established to provide               general operational efficiency and adherence to prescribed policies, e.g. procedure                             manuals. a.Division of responsibility b.Accounting controls c.Administrative controls d.Programming controls 12.The limitation of internal control includes all of the following except: a.collusion. b.the size of the entity. c.human nature. d.separation of record keeping and custodianship. 13.Which of these is not a.
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Multiple-choice questions 1.Top managers of Arctic Cruises are alarmed at the firm's latest income statement which shows a continuing decline in profits. In approaching this situation what is the first step management should take? a.Make key personnel changes in the marketing department. b.Do a better job of scheduling entertainment on the ships. c.Train the.
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31.Berkshire Ltd distributes overhead based on direct labour dollars. The estimated               manufacturing overhead for the year was $520 000 and the estimated direct labour               dollars for the year were $130 000. Indicate the amount of underapplied or               overapplied overhead if actual direct labour was $118 000 and.
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51.Which of these is not a common problem of a computerised accounting system? a.Computer fraud b.Power failure c.Computer viruses d.Lack of keyboard skills 52.How many of these are disadvantages sometimes encountered with the use of computers               in accounting? •Faster response time •Viruses •Reduction in processing costs •Automatic posting a.One b.Two c.Three d.Four 53.Computerised accounting packages offer a selection of _________________ covering                            .
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41.A fixed cost is one that: a.is the same per unit of production regardless of volume. b.remains constant in total within the relevant production range. c.increases on a per unit basis as volume increases. d.does not rise as inflation changes. 42.What type of business would calculate cost of sales in the income statement as stock.
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11.Which of these is not necessarily one of the benefits of effective internal control? a.More accurate accounting data b.Safeguarding assets c.A sound liquidity position d.A more efficient accounting system 12.Internal controls that apply to computerised accounting systems include which of the               following? I Programming controls IIPasswords IIIBack ups IV Computer viruses a.I, II, and III b.I, II and IV c.I, III.
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61.It is incorrect concerning Activity-Based Costing [ABC] that: a.cost drivers are used to assign costs between activities. b.it is now used by firms much more commonly than traditional costing. c.the use of cost drivers allows management to apply overhead more accurately to products with different production requirements. d.production processes are broken down into activities. 62.Which.
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51.Which of the following is not an advantage of cash budgeting? a.Idle funds are kept to a minimum. b.Cash shortages can be predicted. c.Future planning is facilitated. d.Cash is safeguarded. 52.A cash budget measures: a.estimated future cash position. b.estimated financial position. c.estimated profitability. d.working capital. 53.Tang Inc makes all of its purchases on credit; 50% are paid in the month.
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41.How does depreciation affect net cash flows? a.Increases taxation payable b.Reduces taxation payable c.Reduces cash inflows d. Increases cash outflows 42.Which of the following is not a component of the cost of capital? a.Preference shares b.Retained earnings c.Debt d.Cost of sales 43.Always Rite Corporation is considering a project with annual after-tax cash flows of                             $8000 per year for.
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21.All the details of transactions between the firm and individual suppliers are found in                             the: a.accounts receivable subsidiary ledger. b.accounts payable control account. c.accounts payable subsidiary ledger. d.sales journal. 22.A general ledger account that summarises the detail maintained in subsidiary records                             is called a: a.master account. b.special account. c.key account. d.control account. 23.Individual stock records for.
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11.CVP analysis is based on a number of assumptions, which of these is not one of those               assumptions? a.Fixed costs remain constant over the relevant range b.Variable costs change proportionately with volume c.Efficiency remains relatively unchanged d.There are no mixed costs 12.As production increases what would you expect to happen to total fixed costs? a.Remain.
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51.Calculate product cost per unit. Direct materials per unit $50 Direct labour per unit $30 Factory overhead applied at 50% of direct labour cost a.$50 b.$80 c.$95 d.$105 52.When preparing a cost of goods manufactured statement from the following               information, what is the total cost of goods manufactured? Direct materials$6 Advertising expenses 3 Indirect labour 1 Indirect materials 5 Direct labour 2 Other.
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21.Which account would be adjusted for the disposal of an immaterial amount of                                           overapplied manufacturing overhead? a.Finished goods inventory b.The overapplied overhead account c.Cost of sales d.Work in process inventory 22.When direct materials are issued from inventory to production under a job order                                           costing system an increase is recorded.
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51.Which of these are similar for job order and process costing? a.Record keeping b.Measures of output c.Cost flows, i.e. raw materials to work in process to finished goods to cost of sales d.Focal point of costs 52.Which of these is not a cost object? a.A product b.A service c.An activity d.Cash at bank 53.The correct statement concerning process costing is: a.the.
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31.Which of the following statements is not true? a.Preparing operating budgets for service businesses is normally simpler than preparing them for retailers or manufacturers. b.A service business does not need to prepare a cash budget. c.GST estimates need to be included in a cash budget. d.The emphasis in budgeting for not-for-profit organisations tends to.
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Multiple-choice questions 1.Which of these is not included in the definition of cash? a.Cheque b.EFTPOS transactions c.Bills receivable d.Petty cash 2.The asset most commonly subject to misappropriation is: a.furniture and fittings. b.investments. c.land and buildings. d.cash. 3.Which of these does not represent proper internal control of cash receipts? a.Daily banking of receipts. b.Two people opening the mail. c.Paying accounts directly out of the cash.
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11.Sunk costs are omitted from decision analysis: a.sometimes. b.only if immaterial. c.always. d.never. 12.If a firm has limited production capacity in one part of a sequential production                             operation, it can maximise profits by producing those items having the highest: a.selling price. b.profit. c.contribution margin per unit of the scarce resource. d.gross profit. 13.A sunk cost is a: a.cost that.
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51.Budgeted direct materials purchases in units equals: a.budgeted direct materials usage plus beginning direct materials less desired ending direct materials. b.budgeted direct materials usage less beginning direct materials plus desired ending direct materials. c.budgeted direct materials in stock plus beginning direct materials inventory less desired ending direct materials. d.budgeted direct materials in stock less.
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31.In a decision relating to the possible elimination of a department consideration would                             need to be given to how many of the following factors? •Alternative uses of the space currently occupied by the department •Adverse effect of the elimination of sales of other departments •Whether all of the direct operating expenses.
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31.In a cost–volume–profit graph the break-even point will be found: a.where the predetermined overhead rate equals the contribution margin rate. b.at the point where total income equals total fixed costs. c.at the point where total income equals total fixed plus total variable costs. d.where the total income line crosses the fixed costs line. 32.A small.
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11.For a budget to be most effective it is best approached from a: a.top down approach. b.middle up approach. c.bottom up approach. d.middle out approach. 12.Which statement is untrue? a.A properly prepared budget is a motivating device. b.An improperly prepared budget can have a negative effect on motivation. c.Managers should be given sole responsibility for setting their own.
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51.Rank these investments in order payback period showing the best project first. • Investment A — 4.7 years • Investment B — 3.8 years • Investment C — 4 years • Investment D — 3.2 years a.D, C, A, B b.D, B, C, A c.B, A, C, D d.A, C, B, D 52.Darwin Limited is considering purchasing a new.
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11.Carlo Limited supplied the following information and advised that manufacturing                                           overhead is applied on the basis of direct labour hours. Estimated manufacturing overhead costs $2 295 000 Estimated direct labour hours 340 000 Actual direct labour hours 348 000 Actual manufacturing overhead costs $2 357 000 What is the predetermined overhead rate? a.$6.50 b.$6.25 c.$6.75 d.$7.00 12.Which.
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31.A column for discount received could be found in which journal? a.General b.Cash payments c.Cash receipts d.Sales 32.The transaction that could not result in a credit balance in a debtor's account is: a.receipt of a deposit for work ordered. b.return of faulty goods by a customer after payment had been made. c.payment by a customer after the debt.
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21.Which of these is part of the financial set of budgets? a.Production budget b.Sales budget c.Expense budget d.Cash budget 22.Budgets that give details of the income and costs of projected activities needed to                                           achieve satisfactory profit results are known as: a.financial budgets. b.master budgets. c.operating budgets. d.cash budgets. 23.Virtually every phase of the master budget for a.
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51.Which statement relating to standard costs is not true? a.The approach is not suitable for a service business. b.An unfavourable variance occurs when actual costs exceed standard costs. c.They are predetermined costs. d.They serve as benchmarks against which actual performance can be evaluated. 52.The method not employed in the establishment of standard costs is: a.analysis of.
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41.Kylie is both a debtor and a creditor of Tiger Balm. At the end of the period she owes                             Tiger Balm $200 while Tiger Balm owes her $1500. After offsetting the amounts                             how much is still owing to or from Kylie in Tiger Balm’s books? a.Kylie (creditor).
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31.Which statement relating to dishonoured cheques is true? a.They appear as credits on the bank statement. b.They are cheques from debtors deposited into the firm's bank account but not paid by the drawer's bank due to lack of funds or for other reasons. c.They must be listed in the bank reconciliation. d.They can be.
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41.Which of the following is a typical example of a variable cost? a.Sales commission b.Depreciation c.Rent d.Cleaning 42.An example of a fixed factory overhead cost is: a.indirect materials. b.council rates and taxes. c.direct labour. d.light and power. 43.If estimated direct raw materials and direct labour costs are $50 000 in total, what is                             the direct cost per unit.
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41.Which department is typically responsible for direct materials price variances? a.Production b.Purchasing c.Engineering d.Sales 42.Redoing the budget to actual output is most useful: a.to calculate profitability accurately. b.for planning purposes. c.when actual output equals budgeted output. d.as a tool to help evaluate performance. 43.A flexible is a budget where: a.the budget estimates are prepared for a range of activities. b.fixed costs are.
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Multiple-choice questions 1.Which statement concerning budgeting is correct? a.A budget prepared by an individual is more detailed than one used by a business. b.All budgets must be prepared in dollar values. c.A budget is an essential step in managing a business efficiently. d.Budgeting and performance evaluation are not closely related. 2.The primary purpose of a budget.
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Multiple-choice questions 1. The costing system used when entities provide goods or services in response to customer orders and specifications is known as: a.process costing. b.conversion costing. c.just-in-time processing. d.job costing. 2.Match the business with the most likely type of costing system. 1. Oil refinery 2. Automotive brake repairer 3. Bathroom renovator 4. Commercial printer 5. Management consultant IJob costing IIProcess costing a.1 and.
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Multiple-choice questions 1.Which of these statements is not correct? a.An expense is the consumption or loss of resources that will result in a decrease in equity. b.A cost that provides future economic benefits is treated as an asset. c.To accountants the terms cost and expense always mean the same thing. d.Many costs eventually become expenses. 2.For.
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Multiple-choice questions 1.A variance is the difference between: a.a standard cost and a budgeted cost. b.an actual cost and a budgeted cost. c.budgeted costs at two different points of time. d.actual costs at two different points of time. 2.A deviation from a financial plan is called a(n): a.departure. b.variance. c.allocation. d.uncontrollable cost. 3.A projected cost for the future is called a: a.budgeted.
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41.The number of full units that could have been completely produced with the effort                             expended are known as: a.work-in-process. b.equivalent units. c.conversion units. d.completed units. 42.Equivalent units are: a.the number of whole units represented by the finished units plus the partly completed units. b.the number of whole units represented by the finished units. c.the units represented.
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