50multiplechoicequestions

please assign to asma

1.

(Points: 16.0)     Identify each of the following cash flows in 1-8 and their association with (a) initial, (b) periodic, or (c)

terminal cash flows

for an investment project.

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The project asset cost	terminal cash flows
Expenditures for fixed and variable production costs	initial cash flows
Tax on gain (loss) on disposal of the investment	periodic cash flows
Loss in tax savings from lost depreciation
Receipts from sales
Freight and installation costs
Proceeds of salvage of equipment
Opportunity costs of undertaking this particular project

Matching pairs

(Match options are: terminal cash flows, initial cash flows, periodic cash flows)

1. The project asset cost

2. Expenditures for fixed and variable production costs

3.

Tax on gain (loss) on disposal of the investment

4.

Loss in tax savings from lost depreciation

5. Receipts from sales

6. Freight and installation costs

7. Proceeds of salvage of equipment

8. Opportunity costs of undertaking this particular project

2.

(Points:

16.

0)     Select the appropriate cost hierarchy level for each of the following questions.

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Human Resource Department	Product-level activity
Top Management	Unit-level activity
Machine set-ups	Facility-level activity
Direct Material costs	Batch-level activity
Customer service	Customer-level activity
Customer files
Design work
Advertising

Matching pairs

1. Human Resource Department

2. Top Management

3. Machine set-ups

4. Direct Material costs

5. Customer service

6. Customer files

7. Design work

8. Advertising

(Match options are: Product-level activity, unit-level activity, Facility-level activity, Batch-level activity, Customer-level activity)

3.

(Points: 2.0)     Activity-based costing is commonly used with standard costing. Using activity-based costing, a company has

1. multiple cost drivers.
2. a single cost driver
3. the same cost drivers as standard costing.
4. no cost drivers.

4.

(Points: 2.0)     What is the result of substituting computerized equipment for direct labor?

1. Less direct labor and more manufacturing overhead.
2. Less direct material and more manufacturing overhead.
3. Less manufacturing overhead and more direct materials.
4. Less direct labor and more direct material.

5.

(Points: 2.0)     ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.

Cost

Standard

Actual

Materials

2 lbs. @ $5.00 per pound

7,000 pounds purchased for $34,650

Labor

0.50 hours @ $8.00 per hour

1,400 hours @ $7.95 per hour

Refer to ABC Company. Calculate the direct materials efficiency variance.

1. $7,150 U
2. $7,150 F
3. $7,500 U
4. $7,500 F

6.

(Points: 2.0)     ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.

Cost

Standard

Actual

Materials

2 lbs. @ $5.00 per pound

7,000 pounds purchased for $34,650

Labor

0.50 hours @ $8.00 per hour

1,400 hours @ $7.95 per hour

Refer to ABC Company. Calculate the direct materials price variance.

1. $350 F
2. $7,150 U
3. $-0-
4. $350 U

7.

(Points: 2.0)     ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.

Cost

Standard

Actual

Materials

2 lbs. @ $5.00 per pound

7,000 pounds purchased for $34,650

Labor

0.50 hours @ $8.00 per hour

1,400 hours @ $7.95 per hour

Refer to ABC Company. Calculate the total direct materials variance.

1. $7,850 U
2. $7,000 U
3. $7,150 U
4. $7,500 U

8.

(Points: 2.0)     ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.

Cost

Standard

Actual

Materials

2 lbs. @ $5.00 per pound

7,000 pounds purchased for $34,650

Labor

0.50 hours @ $8.00 per hour

1,400 hours @ $7.95 per hour

Refer to ABC Company. Calculate the direct labor price variance.

1. $270 U
2. $130 U
3. $70 F
4. $200 U

9.

(Points: 2.0)     ABC Company
ABC Company reports the following information for the most recent period when 2,750 units were produced.

Cost

Standard

Actual

Materials

2 lbs. @ $5.00 per pound

7,000 pounds purchased for $34,650

Labor

0.50 hours @ $8.00 per hour

1,400 hours @ $7.95 per hour

Refer to ABC Company. Calculate the direct labor efficiency variance.

1. $270 U
2. $70 F
3. $200 U
4. $130 U

10.

(Points: 2.0)     Which of the following is management’s challenge when setting transfer prices?

1. Ensuring both the buyer and seller have goal congruence with respect to the organization’s goals.
2. Ensuring the seller has goal congruence with respect to the organization’s goals.
3. Ensuring the buyer has goal congruence with respect to the organization’s goals.
4. Ensuring either the buyer or the seller, but not both, has goal congruence with respect to the organization’s goals.

11.

(Points: 2.0)     What is generally considered the best transfer pricing basis when there is a competitive market for the product and market prices are readily available?

1. Market price-based transfer pricing
2. Fixed cost-based transfer pricing
3. Variable cost-based transfer pricing
4. Fixed price-based transfer pricing

12.

(Points: 2.0)     Transfer prices are the prices charged

1. for the goods produced by one division to another division that needs those goods.
2. for distributing goods from one warehouse to another.
3. when delivering goods to the customer.
4. when transferring goods to international divisions.

13.

(Points: 2.0)     What transfer pricing mechanism generally applies a normal markup to costs as a surrogate for market prices when intermediate market prices are not available?

1. Activity-based costing
2. Cost-plus transfer pricing
3. Full-absorption costing
4. Fixed price-based transfer pricing

14.

(Points: 2.0)     The following is a measure for assessing how effectively management used the funds invested and is the ratio of divisional sales to the investment in divisional assets.

1. profit margin percentage.
2. investment realization ratio.
3. return on investment.
4. investment turnover ratio.

15.

(Points: 2.0)     Which of the following best indicates how much shareholder wealth is being created by company managers?

1. Return on investment divided by retained earnings.
2.

Economic value added

(EVA).
3. Return on investment divided by total liabilities.
4. Return on investment divided by total assets.

16.

(Points: 2.0)     Why would the calculation of economic value added (EVA) alleviate the shortcoming of the return on investment measurement?

1. Because it is required by generally accepted accounting principles.
2. Because it assures compliance with Internal Revenue Service Code requirements.
3. Because it is required for Securities and Exchange Commission reporting.
4. Because managers many not accept good investment opportunities if the ROI of the investment is lower than the present ROI of the division.

17.

(Points: 2.0)     What is economic value added (EVA)?

1. The same as the rate of return on shareholders equity.
2. The same as the rate of return on total assets.
3. The amount of earnings generated above the cost of funds invested to generate those earnings.
4. The same as the rate of return on liabilities.

18.

(Points:

24.

0)     Marrs Company is implementing a balanced scorecard approach to improve performance.  Match each of the following  perspectives of the balanced scorecard with the performance measures from Marrs Company listed in to numbers one through twelve below.
(Keep in mind that a performance measure could be associated with more than one balanced scorecard perspective.)

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Employee productivity	Internal business perspective
Employee satisfaction	Financial perspective
Return on Investment	Customer perspective
Customer satisfaction	Both internal business perspective and customer perspective
Employee turnover	Learning and growth perspective
On-time delivery performance from suppliers
Percent of customers who are repeat customers
On-time delivery performance to customers
Product quality
Economic value added
Throughput time
Percent of sales dollars invested in employee training

Matching pairs

1. Employee productivity

2. Employee satisfaction

3. Return on Investment

4. Customer satisfaction

5. Employee turnover

6. On-time delivery performance from suppliers

7. Percent of customers who are repeat customers

8. On-time delivery performance to customers

9. Product quality

10. Economic value added

11. Throughput time

12. Percent of sales dollars invested in employee training

(Match options are: Internal business perspective, Financial perspective, Customer perspective, Both internal business perspective and customer perspectiveLearning and growth perspective)

19.

(Points: 2.0)     How can a department manager’s salary be characterized?

1. direct cost of the department, but indirect to the units the department produces.
2. variable cost of the department, but direct to the units the department produces.
3. indirect cost of the department, but direct to the units the department produces.
4. process cost of the department, but indirect to the units the department produces.

20.

(Points: 2.0)     Costs of operating the human resources, accounting, computer support, and maintenance departments are allocated to other departments. All are examples of which of the following?

1. common departments.
2. direct departments.
3. producing departments.
4. service departments.

21.

(Points: 2.0)     What is the proper sequence of steps in allocating costs to production departments?

1. Assign direct costs to departments, allocate indirect costs to departments, and allocate service department costs to production departments.
2. Assign indirect costs to departments, allocate service department costs to departments, and allocate direct costs to production departments.
3. Assign indirect costs to departments, allocate direct costs to departments, and allocate service department costs to production departments.
4. Assign service department costs to production departments, allocate direct costs to departments, and allocate indirect costs to production departments.

22.

(Points: 2.0)     Which of the following statements best describes cost allocation?

1. A company can maximize or minimize total company income by selecting different bases on which to allocate indirect costs.
2. A company should select an allocation base to raise or lower reported income on given products.
3. A company’s total income will remain unchanged no matter how indirect costs are allocated.
4. A company, as a general rule, should allocate indirect costs randomly or based on an “ability-to-bear” criterion.

23.

(Points: 2.0)     Marketing and administrative costs are allocated to departments for purposes of performance evaluation using techniques

1. different than those employed in allocating common department costs.
2. similar to those employed in allocating production department costs.
3. similar to those employed in allocating service department costs.
4. different than those employed in allocating service department costs.

24.

(Points: 2.0)     Joint-process cost allocations arise from the need to assign joint-process costs to

1. a single product manufactured from two or more common inputs.
2. two or more products manufactured from two or more common inputs.
3. a single product manufactured from a common input.
4. two or more products manufactured from a common input.

25.

(Points: 2.0)     The method of allocating joint costs used when product prices are not set by the market (for example with heavily regulated companies) is called the

1. physical quantities method.
2. absolute quantities method.
3. regulation method.
4. physical qualities method.