What will be the difference in net income between variable costing and absorption costing if the number of units in finished goods inventories increase?

1. Income computed by the absorption costing method will tend to exceed income computed by the variable costing method if: Select one: a. Fixed manufacturing costs decrease. b. Units sold exceed units produced. c. Variable manufacturing costs decrease. d. Units produced exceed units sold.

2. Moore Company reported sales of $175,000 (25,000 units). Fixed costs amounted to $30,000 and income for the period was $80,000. Determine the per-unit variable cost. Select one: a. $2.75 b. $2.60 c. $2.50 d. $5.50 Question text The appropriate journal entry to record the application of factory utilities cost in a job costing system involves a debit to Work in Process and a credit to: Select one:

a. Utilities expense b. Factory overhead c. Finished goods inventory d. Raw materials inventory

1. Of the following manufacturing operations, which is best suited to the utilization of a job order system? Select one: a. Cruise ship manufacturing. b. Automobile tire manufacturing operation. c. Crude oil refining. d. Plastic molding operation. Answer Question text

The basic difference between a static budget and a flexible budget is that: Select one: a. A flexible budget considers only variable costs, but a static budget considers all costs . b. Flexible budgets allow management latitude in meeting goals, whereas a static budget is based on a fixed standard. c. A static budget is for an entire production facility, but a flexible budget is applicable only to a single department. d. A static budget is based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range.

1. Magic Corporation paid $100,000 in dividends. The corporation had 10,000 shares of common stock outstanding and 5,000 shares of $100 par value 4% preferred stock. The preferred stock was two years in arrears prior to the current year. How much was paid to the common stockholders? Select one: a. $100,000 b. $40,000 c. $60,000 d. $80,00 Which of the following

5.statements regarding relevant costs and sunk costs is incorrect? Select one: a. A serious drawback associated with the incremental approach of relevant cost study is that the incremental approach is cumbersome if more than two alternatives are considered. b. The type of cost presented to management for an equipment replacement decision should be limited to relevant costs. c. A sunk cost is a cost which cannot be avoided because it already has been incurred. d. Relevant costs can be studied using an incremental approach but should not be considered with a full project approach.

1. Which of the following is not one of the objectives in utilizing standard costs? Select one: a. To simplify costing procedures and expedite cost reports. b. To allow management to readily determine and focus attention on special problem areas. c. To allow a measure of cost assuming ideal or perfect operating conditions. d. To provide a measure of budgeted cost for a single unit of activity. How much will $1.00 invested at 10% (compounded annually) grow to by the end of 3 years? Select one: a. $1.46 b. $1.21 c. $1.30 d. $1.331 Question 18 Answer saved Marked out of 1.00 Flag question Question text

2. Michaels, Inc., purchased a machine for $75,000. The machine has a useful life of five years and no salvage value. Straight-line depreciation is to be used. The machine is expected to generate cash flow from operations, net of income taxes, of $30,000 in each of the five years. Michaels' expected rate of return is 10%. Information on present value factors is as follows: Period Present value of $1 at 10% Present value of ordinary annuity of $1 at 10% 1 0.90909 0.90909 2 0.82645 1.73554 3 0.75132 2.48685 4 0.68301 3.16986 5 0.62092 3.79079 What would be the net present value? Select one: a. $113,724 b. $38,724 c. $284,318 d. $93,138 An equivalent unit of material is equal to: Select one: a. The amount of material necessary to complete one unit of production. b. The amount of material necessary to start a unit of production into work in process. c. Half of the material necessary to complete one unit of finished goods. d. An equivalent unit of conversion cost Question text

3. For a retail outlet chain with multiple stores, which of the following statements would be correct? Select one: a. Stores which have a net loss should be discontinued. b. Stores with a negative contribution margin should be discontinued. c. Stores with a negative contribution margin should be discontinued provided such discontinuation will not cause an increase in sales at other stores. d. Stores with a negative contribution margin should not be discontinued if such discontinuation will cause profitable stores to bear a portion of the unprofitable store's overhead.

8.Qu Answer saved Marked out of 1.00 Flag question Question text Analyze the following statements regarding capital budgeting decisions and determine which is correct. Select one: a. The net present value of decision making and capital budgeting is superior to the payback method in that it considers the time value of money . b. Assuming a 6% interest rate, the factor 0.94340 would be taken from a compound interest (future value) table of factors. c. The internal rate of return capital budgeting technique does not consider the time value of money. d. All capital budgeting techniques will produce the same decision in selecting among alternatives. Question text

1. Jeske Company issued $1,000,000 of 8% bonds at a time when the market rate of interest was 10%. If the bonds were issued at a $50,000 discount and interest was paid annually, how much was interest expense for the first full year of the bond issue (utilize the effective-interest amortization technique)? Select one: a. $76,000 b. $80,000 c. $95,000 d. $100,000 Question text The Environmental Filter Company is planning to sell air filter systems for $3,000 per unit. Variable costs are $1,200 per unit and total fixed costs are $1,200,000. What is the dollar value of sales necessary to break even? Select one: a. $1,000,000 b. $2,000,000 c. $2,500,000 d. $5,000,000 Question 29 Answer saved Marked out of 1.00 Flag question Question text Strickland Company prepared segment information relative to its office furniture manufacturing division. The controllable contribution margin differed from the segment margin by $100,000. This amount corresponds to the: Select one: a. Total variable costs. b. Controllable fixed costs. c. Uncontrollable fixed costs. d. Non-traceable costs.

2. Which of the following statements regarding capital budgeting decisions is incorrect? Select one: a. Capital budgeting analysis techniques are applicable to equipment replacement decisions. b. The amount and timing of cash flows is critical to the calculation of the net present value of an investment. c. The cost of capital is equal to a company's maximum desired rate of return. d. In a capital budgeting decision, the amount of the initial investment required is critical to the analysis; it is not treated as a sunk cost. Question 32 Answer saved Marked out of 1.00 Flag question Question text

3. Fleming Company is considering the purchase of a new machine. The machine cost $200,000 and will generate yearly cash inflow of $30,000. What is the payback period? Select one: a. 4 years and 8 months . b. 6 years and 8 months. c. 6 years and 9 months. d. 15 years. Question text

4. Which of the following factors would be subject to evaluation in a balanced scorecard approach to performance evaluation? Select one: a. Financial outcomes b. Customer outcomes c. Business process outcomes d. All of the above Question 39 Answer saved Marked out of 1.00 Flag question Question text

5. The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, and for five periods is 0.68058. The future value factors for the same rate and periods are: one period: 1.08, two periods: 1.1664, three periods: 1.944, four periods: 2.099, and five periods: 2.267. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now? Select one: a. $125.97 b. $92.60 c. $85.73 d. $79.38 Question 40 Answer saved Marked out of 1.00 Flag question Question text An accounting system wherein the operations are broken down into cost centers controllable by a foreman, sales manager, or supervisor, is known as: Select one: a. Control accounting b. Budgetary accounting c. Responsibility accounting d. Allocated cost accounting Beginning work in process was 1,800 units, 3,800 additional units were put into production, and ending work in process was 750 units. How many units were completed? Select one: a. 750 b. 4,850 c. 3,800 d. 3,500 Question 42 Answer saved Marked out of 1.00 Flag question Question text

6. Which of the following methods of evaluating capital budgeting proposals rests on the assumption that income is uniform over the life of an investment? Select one: a. Internal rate of return b. Payback method c. Net present value d. Accounting rate of return Question 43 Answer saved Marked out of 1.00 Flag question Question text

7. Scanlon Corporation has estimated its activity for April as follows: Sales: $900,000 Gross profit (based on sales): 30% Increase in accounts receivable during month: 15,000 Increase in finished goods inventory during month: 25,000 Total selling and administrative costs: 80,000 Depreciation included in selling and administrative costs: 15,000 Scanlon has no raw material or work in process inventory at the beginning or end of April. On the basis of the above, what are estimated cash disbursements for April? Select one: a. $510,000 b. $655,000 c. $565,000 d. $720,000 Question 44 Answer saved Marked out of 1.00 Flag question Question text In general, the presence of taxes: Select one : a. Will cause the net present value of an investment to increase. b. Will cause the internal rate of return to decrease. c. Does not change the accounting rate of return. d. All of these. Question 45 Answer saved Marked out of 1.00 Flag question Question text

16 Depreciation is incorporated into the discounted cash flow analysis of an investment proposal because it: Select one: a. Is a cost of operations which cannot be avoided. . b. Results in an annual cash outflow. c. Is a cash inflow. d. Reduces the cash outlay for income taxes. Question 46 Answer saved Marked out of 1.00 Flag question Question text

1. Which of the following statements about process cost accounting systems is false? Select one:. a. Beginning units of work in process plus the units put into production should equal ending work in process units plus units completed. b. The cost flows in journal entries for process cost accounting systems and job order cost accounting systems are similar. c. Process cost accounting is well suited for those production processes where similar units are produced in a continuous flow . d. The equivalent units of production for materials and conversion costs are the same. Question 47 Answer saved Marked out of 1.00 Flag question Question text

2. Which of the following statements is incorrect? Select one: a. Absorption costing is also known as product costing. b. Variable costing is not GAAP. c. Only variable manufacturing costs are assigned to products under the variable costing approach. d. When using a variable costing system, the contribution margin discloses the excess of revenues over variable costs. Question 48 Answer saved Marked out of 1.00 Flag question Question text

3. Manson Company produces fishing boats. From the production supervisor's perspective, depreciation on the factory is: Select one: a. Uncontrollable and fixed. b. Uncontrollable and variable . c. Controllable and fixed. d. Controllable and variable. Question 49 Answer saved Marked out of 1.00 Flag question Question text

4. A business unit is known as a profit center: Select one: a. if its management is held accountable for both revenues and expenses, and has the authority to make decisions regarding its products, markets, and sources of supply. b. if its management is compensated based on the level of profitability. c. if its management is evaluated not only on revenues and expenses but also on asset investment. d. if its operations or departments are not directly involved in reveue generating activities, but instead focus on elements of cost control (including choosing the source of supply)