All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
managerial accounting
Questions and Answers of
Managerial Accounting
To make a capital investment decision, a manager must a. estimate the quantity and timing of cash flows. b. assess the risk of the investment. c. consider the
Capital investments should a. earn back their original capital outlay. b. only be analyzed using the ARR. c. always produce an increase in market share.
In the sell-or-process-further decision, a. joint costs are always relevant. b. total costs of joint processing and further processing are relevant. c. all costs
In the keep-or-drop decision, the company will find which of the following income statement formats most useful? a. A segmented income statement in the contribution margin format b.
When a company faces a production constraint or scarce resource (e.g., only a certain ] number of machine hours is available), it is important to a. produce the product with the highest
Jennings Hardware Store marks up its merchandise by 80 percent. If a part costs $1.50, which of the following is true? a. The price is $1.20. b. The markup is $2.70. c.
Carroll Company, a manufacturer of vitamins and minerals, has been asked by a large drugstore chain to provide bottles of vitamin E. The bottles would be labeled with the name of the drugstore chain,
In a make-or-buy decision, a. the company must choose between expanding or dropping a product line. b. the company must choose between accepting or rejecting a special
Which of the following is a true statement? a. Fixed costs are always irrelevant. b. Variable costs are always relevant. c. Step costs may be relevant if an
Please refer to the information in Question 13-3. Suppose that the apartment building was within walking distance to campus and the house was five miles away. Sandy does not own a car. How would that
Please refer to the information in Question 13-3. Which of the following is a qualitative factor? a. House rent of $450 per month b. Utilities for the house of $100 per
Sandy is considering moving from her apartment into a small house with a fenced yard. The apartment is noisy, and she has difficulty studying. In addition, the fenced yard would be great for her dog.
Costs that cannot be affected by any future action are called a. differential costs. b. relevant costs. c. inventory costs. d. sunk costs.
Which of the following is not a step in the short-run decision-making model? a. Defining the problem b. Identifying alternatives c. Identifying the costs and
Refer to the Aulman Inc. company information shown in Exercise 12-27. Also, although the Furniture Division has been operating at capacity (50,000 dressers per year), it expects to produce and sell
Refer to the Aulman Inc. company information shown in Exercise 12-27. Also, assume that the company policy is that all transfer prices are negotiated by the divisions involved.Required: 1.
Refer to the Washington Company information in Exercise 12-25. In addition, Washington Company’s top management has set a minimum acceptable rate of return equal to 8 percent.Required: 1.
(Appendix) The number of units of output that can be produced in a given period of time is called a. velocity. b. cycle time. c. manufacturing cycle
(Appendix) Which of the following is not a perspective of the Balanced Scorecard? a. Learning and growth (infrastructure) b. Internal business process c.
Division A, operating at less than full capacity, manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per
Division A, operating at less than full capacity, manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per
Division A, operating at less than full capacity, manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per
Division A, operating at less than full capacity, manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per
Division A, operating at full capacity, manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A incurs shipping costs of $3 per unit for
If return on investment for a division is 15 percent and the company’s minimum required cost of capital is 18 percent, then a. residual income for the division is negative. b.
The key difference between residual income and economic value added is that EVA a. uses the actual cost of capital for the company rather than a minimum required cost of capital.
If sales and average operating assets for year 2 are identical to their values in year 1, yet operating income is higher, year 2 turnover (compared with year 1 turnover) will a.
If sales and average operating assets for year 2 are identical to their values in year 1, yet operating income is higher, year 2 return on investment (compared with year 1 ROI) will a.
A responsibility center in which a manager is responsible for revenues, costs, and investments is a(n) a. cost center. b. profit center. c. revenue center.
A responsibility center in which a manager is responsible for both revenues and costs is a(n) a. cost center. b. profit center. c. revenue center. d.
Which of the following is a reason for decentralizing? a. Training and motivating managers. b. Unmasking inefficiencies in subdivisions of an overall profitable company.
The practice of delegating authority to division-level managers by top management is a. centralization. b. good business practice. c. decentralization. d.
Refer to the information provided in Problem 11-43.Required: 1. Calculate the direct labor hours required for production that is 10 percent higher than expected. Calculate the direct
Refer to the information provided in Problem 11-43.Required: 1. Calculate the direct labor hours required for production that is 10 percent higher than expected. Calculate the direct
Refer to the information provided in Exercise 11-32. Assume that CHC’s actual production required 156,000 direct labor hours at standard. The actual overhead costs incurred were as follows:
Cohlmia Company produced 32,000 units last year. The information on the actual costs and budgeted costs at actual production of four activities is provided below.Required:Prepare an activity-based
In activity-based budgeting, flexible budget formulas are created a. using only unit-level drivers. b. using only nonunit-level drivers. c. using both unit-level
Activity flexible budgeting makes it possible to a. predict what activity costs will be as activity output changes. b. improve traditional budgetary performance
In activity-based budgeting, costs are classified as variable or fixed with respect to a. the activity driver. b. only the units produced. c. only the units
Responsibility for the volume variance usually is assigned to a. the purchasing department. b. the receiving department. c. the shipping department. d.
An unfavorable volume variance can occur because a. too much finished goods inventory was held. b. the company overproduced. c. the actual output was less than
Because of the nature of fixed overhead items, the difference between the actual fixed overhead cost and the budgeted fixed overhead is a. likely to be small. b. likely to be
The total fixed overhead variance can be expressed as the sum of a. the spending and efficiency variances. b. the spending and volume variances. c. the efficiency
The total fixed overhead variance is a. the difference between actual and budgeted fixed overhead costs. b. the difference between budgeted and applied fixed overhead
In a performance report that details the spending and efficiency variances,which of the following columns will be found? a. A cost formula for each item b. A budget for actual
The total variable overhead variance can be expressed as the sum of a. the underapplied variable overhead and the spending variance. b. the efficiency variance and the
Because the calculation of both variances is based on direct labor hours, an unfavorable labor efficiency variance implies that a. the variable overhead efficiency variance will also be
A variable overhead spending variance can occur because a. prices for individual overhead items have increased. b. prices for individual overhead items have decreased.
The total variable overhead variance is the difference between a. the budgeted variable overhead and the actual variable overhead. b. the actual variable overhead and the
A firm comparing the actual variable costs of producing 10,000 units with the total variable costs of a static budget based on 9,000 units would probably see a. no variances. b.
To help assess performance, managers should use a. a static budget. b. a master budget. c. an after-the-fact flexible budget. d. a before-the-fact
To help deal with uncertainty, managers should use a. a static budget. b. a master budget. c. an after-the-fact flexible budget. d. a before-the-fact
To create a meaningful performance report, actual costs and expected costs should be compared a. at the budgeted level of activity. b. weekly. c. at the actual
For performance reporting, it is best to compare actual costs with budgeted costs using a. flexible budgets. b. static budgets. c. master budgets. d.
Pat James, the purchasing agent for a local plant of the Oakden Electronics Division, was considering the possible purchase of a component from a new supplier. The component’s purchase price,
Goodsmell Company produces a well-known cologne. The standard manufacturing cost of the cologne is described by the following standard cost sheet:Management has decided to investigate only those
The maternity wing of the city hospital has two types of patients: normal and cesarean. The standard quantities of labor and materials per delivery for 2009 are:The standard price paid per pound of
Refer to the data provided in Exercise 10-35.Required: 1. Prepare a journal entry for the purchase of raw materials. 2. Prepare a journal entry for the issuance of raw
Refer to the data provided in Exercise 10-28.Required:Break down the total variance for materials into a price variance and a usage variance using the columnar and formula approaches.Data From
(Appendix) Which of the following is true concerning significantly large labor variances? a. They are prorated among Work in Process, Finished Goods, and Cost of Goods Sold.
Which of the following items describes practices surrounding the recording of variances? a. All inventories are typically carried at standard. b. Unfavorable variances appear
Responsibility for the labor efficiency variance typically is assigned to a. labor unions. b. personnel. c. production. d. engineering. e.
Responsibility for the labor rate variance typically is assigned to a. labor unions. b. labor markets. c. personnel. d. production. e.
Responsibility for the materials usage variance is usually assigned to a. production. b. marketing. c. purchasing. d. personnel. e. the CEO.
The materials price variance is usually computed a. when materials are purchased. b. when materials are issued to production. c. when goods are finished.
Responsibility for the materials price variance typically belongs to a. production. b. marketing. c. purchasing. d. personnel. e. the chief executive officer (CEO).
Investigating variances from standard is a. always done. b. done if the variance is outside of an acceptable range. c. not done if the variance is expected to
The total (budget) variance is given by the equation a. (AP × AQ) - (SP × SQ)P. b. (SP × AQ) - (AP × SQ)P. c. (SP × AQ) - (SP × SQ)P. d. (AP ×
The standard direct labor hours allowed is given by the equation a. Unit labor standard × Normal output. b. Unit labor standard × Practical output. c. Unit labor
The standard quantity of materials allowed is computed by the equation a. Unit quantity standard × Standard output. b. Unit quantity standard × Actual output. c.
The underlying details for the standard cost per unit are provided in a. the balance sheet. b. the standard production budget. c. the standard cost sheet.
Standard costs are developed for a. direct materials. b. direct labor. c. variable overhead. d. fixed overhead. e. All of the above.
Reasons for adopting a standard cost system include a. to enhance operational control. b. to imitate most other firms. c. to encourage purchasing managers to
An ideal standard is one that a. relies on maximum efficiency. b. uses only historical experience. c. can be achieved under efficient operating conditions.
A currently attainable standard is one that a. relies on maximum efficiency. b. uses only historical experience. c. can be achieved under efficient operating
The standard cost per unit of output for a particular input is calculated using the equation a. Actual input price per unit × Actual input used per unit. b. Standard input
Standards set by engineering studies a. can determine the most efficient way of operating. b. can provide rigorous guidelines. c. may not be achievable by
Historical experience should be used with caution in setting standards because a. most companies keep poor records. b. ideal standards are always better than historical
In a similar sense as companies, the U.S. government must prepare a budget each year. However, unlike private, for-profit companies, the budget and its details are available to the public. The entire
Which of the following items is not a possible example of myopic behavior? a. Promotion of deserving employees b. Reducing expenditures on preventive maintenance c.
Which of the following is not an advantage of participative budgeting? a. It fosters a sense of creativity in managers. b. It encourages budgetary slack. c. It
Some key budgetary features that tend to promote positive managerial behavior are a. frequent feedback on performance. b. participative budgeting. c. realistic
An ideal budgetary system is one that a. encourages dysfunctional behavior. b. encourages myopic behavior. c. encourages goal-congruent behavior. d.
The percentage of accounts receivable uncollectible can be ignored for cash budgeting because a. for most companies, it is not a material amount. b. it is included in cash
Assume that a company has the following accounts receivable collection pattern: Month of sale
The cash budget serves which of the following purposes? a. Documents the need for liberal inventory policies b. Provides information about the ability to repay loans
Select the one budget below that is not a financial budget. a. The cost of goods sold budget b. The cash budget c. The budgeted balance sheet d. The
Which of the following is needed to prepare a budgeted income statement? a. The production budget b. The budgeted balance sheet c. Budgeted selling and
A company plans on selling 200 units. The selling price per unit is $12. There are 20 units in beginning inventory, and the company would like to have 50 units in ending inventory. How many units
A company requires 100 pounds of plastic to meet the production needs of a small toy. It currently has 10 pounds of plastic inventory. The desired ending inventory of plastic is 30 pounds. How many
Which of the following is needed to prepare the production budget? a. Direct materials needed for production b. Expected unit sales c. Direct labor needed for
The first step in preparing the sales budget is to a. talk with past customers. b. review the production budget carefully. c. assess the desired ending inventory
Before a direct materials purchases budget can be prepared, you should first a. prepare a sales budget. b. prepare a production budget. c. decide on the desired
Which of the following is not part of the operating budget? a. The capital budget b. The cost of goods sold budget c. The production budget d. The
A moving, 12-month budget that is updated monthly is a. a waste of time and effort. b. a continuous budget. c. a master budget. d. not used by
The budget committee a. reviews the budget. b. resolves differences that arise as the budget is prepared. c. approves the final budget. d. is directed
Which of the following is not an advantage of budgeting? a. It forces managers to plan. b. It provides information for decision making. c. It guarantees an
Which of the following is not part of the control process? a. Monitoring of actual activity b. Comparison of actual with planned activity c. Investigating d.
A budget a. is a long-term plan. b. covers at least two years. c. is only a control tool. d. is necessary only for large firms. e. is a
Refer to the information in Multiple-Choice Exercise 8-10. What is the total inventory-related cost at the EOQ? (HINT: Round the number of setups to the nearest whole number.) a.
Showing 3900 - 4000
of 5910
First
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Last