【单选题】_______________ refers to accountinginformation developed for managers within an organization.
【单选题】theprimary users of management accounting information are:
【单选题】theacronym gaap is most closely connected with:
【单选题】_______________is the field of accounting that develops information for external decision makers such as stockholders,suppliers, banks, and government regulatory agencies.
【单选题】budgets:
【单选题】performance reports:
【单选题】variances:
【单选题】management by exception:
【单选题】one advantage of themanagement-by-exception approach is that it:
【单选题】department performance reports can be usedto help department heads determine:
【单选题】launchinga new product line is an example of:
【单选题】organizing workers into departmentsand assigning activities to those departments is an example of:
【单选题】reviewing the output of the department isan example of:
【单选题】the gotcha company held a christmasparty. the company expected attendanceof 200 persons and prepared the following budget: hotelroom rental $600 food 500 entertainment 800 decorations 300 totals $2,200 afterall bills for the party were paid, the total came to $2,315. details are: $575 for hotel room rental; $640for food; $750 for entertainment; and $350 for decorations. two hundred persons attended the party. whatis the total budget variance?
【单选题】the gotcha company held a christmasparty. the company expected attendanceof 200 persons and prepared the following budget: hotelroom rental $600 food 500 entertainment 800 decorations 300 totals $2,200 after all bills for the party were paid, thetotal came to $2,315. details are: $575for hotel room rental; $640 for food; $750 for entertainment; and $350 fordecorations. two hundred personsattended the party. whatis the main reason for the unfavorable total budget variance?
【单选题】the alpha beta gamma fraternity held a christmasparty. the fraternity expectedattendance of 200 persons and prepared the following budget: hotelroom rental $600 food 500 entertainment 800 decorations 300 totals $2,200 afterall bills for the party were paid, the total came to $2,315. details are: $575 for hotel room rental; $640for food; $750 for entertainment; and $350 for decorations. two hundred persons attended the party. whatis the variance in hotel room rental?
【单选题】the findlay company held an independenceday party. the company expected attendanceof 200 persons and prepared the following budget: hotelroom rental $600 food 400 entertainment 800 decorations 300 totals $2,100 afterall bills for the party were paid, the total came to $2,315. details are: $575 for hotel room rental; $640for food; $750 for entertainment; and $350 for decorations. two hundred persons attended the party. whatis the variance in food?
【单选题】the findley company held a groundhog dayparty. the company expected attendanceof 200 persons and prepared the following budget: hotelroom rental $600 food 500 entertainment 800 decorations 300 totals $2,200 afterall bills for the party were paid, the total came to $2,315. details are: $575 for hotel room rental; $640for food; $750 for entertainment; and $350 for decorations. two hundred persons attended the party. whichof the following costs deserves further examination assuming the findleycompany uses the management-by-exception rule?
【单选题】the animal house fraternity held ahomecoming party. the fraternityprepared the following budget for 50 expected attendees: roomrental $150 food 250 entertainment 150 decorations 75 totals $625 after all bills for the party were paid, thetotal came to $660. details are: $140for room rental; $320 for food; $125 for entertainment; and $75 fordecorations. fifty persons attended theparty. whatis the total budget variance?
【单选题】the animal house fraternity held ahomecoming party. the fraternityprepared the following budget for 50 expected attendees: roomrental $150 food 250 entertainment 150 decorations 75 totals $625 after all bills for the party were paid, thetotal came to $760. details are: $140for room rental; $320 for food; $125 for entertainment; and $175 fordecorations. fifty persons attended theparty. whatis the main reason for the unfavorable total budget variance?
【单选题】the delta delta delta sorority held a homecoming party. the sorority prepared the following budget for 50 expected attendees: room rental $170 food 250 entertainment 150 decorations 75 totals $645 afterall bills for the party were paid, the total came to $660. details are: $140 for room rental; $320 forfood; $125 for entertainment; and $75 for decorations. fifty persons attended the party. whatis the variance in hotel room rental?
【单选题】the delta delta delta sorority held ahomecoming party. the sorority preparedthe following budget for 50 expected attendees: roomrental $150 food 290 entertainment 150 decorations 75 totals $665 afterall bills for the party were paid, the total came to $660. details are: $140 for room rental; $320 forfood; $125 for entertainment; and $75 for decorations. fifty persons attended the party. whatis the variance in food?
【单选题】the slamma jamma sorority held a party. the sorority prepared the following budgetfor 50 expected attendees: roomrental $150 food 310 entertainment 150 decorations 75 totals $685 afterall bills for the party were paid, the total came to $760. details are: $240 for room rental; $320 forfood; $145 for entertainment; and $75 for decorations. fifty persons attended the party. whichof the following costs deserves further examination assuming the sorority usesthe management-by-exception rule?
【判断题】the primary purpose of accountinginformation is to help managers make decisions.
【判断题】decisionswithin an organization are often ided into two types: (1) planning decisionsand (2) control decisions.
【判断题】variancesare deviations from plans.
【判断题】management by exception is the practice ofconcentrating on areas that deviate from the plan andignoring areas that are presumed to be running oothly.
【判断题】feedbackis usually not crucial in controlling.
【判断题】settingobjectives deals with controlling.
【判断题】a budget is a qualitative expression of aplan of action.
【判断题】performancereports are the main device for disciplining management planning.
【判断题】abudget uses predicted or estimated revenues and costs.
【单选题】output measures of bothresources and activities are:
【单选题】as the cost-driver activitylevel increases within the relevant range:
【单选题】themargin of safety:
【单选题】days of our lives hospital hastotal variable costs of 90% of total revenues and fixed costs of $50 millionper year. there are 50,000 patient-daysestimated for next year. what is thebreak-even point expressed in total revenue?
【单选题】if fixed expenses were thesame and contribution margin per unit was cut in half, then the break‑evenpoint would:
【判断题】costdrivers are output measures of both resources and activities.
【判断题】afixed cost changes in direct proportion to changes in a cost driver.
【判断题】thebreak-even point is the level of sales at which revenue equals fixed costs.
【判断题】grossprofit margin is the sales price minus the variable cost per unit.
【判断题】thebreak even point is located at the intersection of the total revenue line andthe total expenses line on a cost volume profit graph.
【单选题】the cost of using the telephone, which involves a flat rate per monthplus a fee for extra usage, would be considered a:
【单选题】a mortgage payment would most likely be identified as a:
【单选题】a costfunction:
【单选题】anactivity ysis is used to:
【单选题】the process of identifying appropriate cost drivers and their effects onthe costs of making a product or providing a service is called:
【判断题】volume-drivencosts can be easily traced to products or services.
【判断题】bytheir decisions, managers influence cost behavior throughout the entire valuechain.
【判断题】inthe mixed cost equation, y = f vx, the x is the cost driver.
【判断题】activityysis is used to identify appropriate cost drivers and their effects on thecosts of making a product or providing a service.
【判断题】identifyingthe appropriate cost driver(s) is the most critical aspect of any method formeasuring cost behavior.
【单选题】__________________is an example of the external financial reporting purpose of the costmanagement systems.
【单选题】a _______________ is an activity for which aseparate measurement is desired.
【单选题】______________ is a factorin determining how a cost will be classified.
【单选题】one of the importantdifferences between traditional and activity-based costing systems is:
【单选题】the first step of anactivity-based costing study determines all of the following except:
【判断题】a cost management system is the set ofprocedures used by managers to control costs.
【判断题】a cost accounting system typically includestwo processes: cost allocation and cost determination.
【判断题】a cost object is anything for which aseparate measurement of costs is desired.
【判断题】productcosts include direct labor and conversion costs.
【判断题】an example of an unallocated cost isresearch and development.
【单选题】in a decision making process, theaccountant‘s primary role is:
【单选题】if perfectly accurate and relevantinformation is not available for decision making, the accountant shouldconsider using information that is:
【单选题】a one-time-only special order decision:
【单选题】_______________will not continue if an ongoing operation is changed or deleted.
【单选题】___________ is the average number of timesthe inventory is sold per year.
【判断题】relevantinformation is the historical costs and revenues that differ as a result ofalternative courses of actions.
【判断题】adecision model is any method used for making a choice, sometimes requiring elaboratequalitative procedures.
【判断题】fixed cost per unit of product = totalfixed manufacturing costs / some selected volume level.
【判断题】heating and air conditioning are examplesof common costs of all departments in a retail store.
【判断题】the marginal cost often increases asproduction increases up to a point because of efficiencies created by largeramounts.
【判断题】relevantinformation is the historical costs and revenues that differ as a result ofalternative courses of actions.
【判断题】precisebut irrelevant information may still be useful for decision making.
【判断题】informationmay be relevant for one decision and the same information may be irrelevant foranother decision.
【判断题】relevantinformation might have an element of difference among alternatives.
【判断题】historicaldata might have a direct bearing on a decision.
【判断题】decisionight affect the past.
【判断题】accountantsare sometimes forced to trade relevant information for accurate information.
【判断题】imprecisebut relevant information can be useful.
【判断题】the cost of inventory is relevant when deciding whether to dispose of the inventoryin cases of obsolescence.
【判断题】the disposal value of old equipment is relevant.
【判断题】sunkcost is another term for historical cost or past cost.
【判断题】whenmaking a decision to replace some old equipment with new, the depreciationtaken on both the old or new equipment is irrelevant information.
【判断题】in practice, sunk costs often influence important decisions, especially when adecision maker does not want to admit that a previous decision was a baddecision.
【判断题】future costs are relevant if they are the same under all feasible alternatives.
【判断题】equipment’s book value is the original cost plus depreciation.
【判断题】past costs may affect future payments for income taxes.
【判断题】gainor loss on disposal of equipment is relevant in deciding whether to keep orreplace equipment.
【判断题】depreciationon new equipment is relevant in deciding whether to keep or replace equipment.
【判断题】indeciding whether to add or drop new products, services, or departments,managers should emphasize the option thatmakes the greatest contribution possible to pay unavoidable costs.
【判断题】theprofit maximizing volume is the quantities at which marginal cost equals price.
【判断题】variableexpenses are ided into avoidable and unavoidable costs.
【判断题】unavoidable costs are neverrelevant in deciding whether to eliminate a product or department.
【判断题】unavoidable costs do not include commoncosts.
【判断题】heating and air conditioning are examplesof common costs of all departments in a retail store.
【判断题】relevant costs are only variable.
【判断题】relevantcosts may include fixed avoidable costs.
【判断题】nonfinancialinformation can influence decisions to add or delete products.
【判断题】operating at capacity indicates that thecompany does not want to produce more products.
【判断题】a scarceresource limits the production or sale of a product or service.
【判断题】scarce resources include labor hours.
【判断题】in deciding whether to add or drop newproducts, services, or departments, managers should emphasize the option that makes the greatest contributionpossible to pay unavoidable costs.
【判断题】variableexpenses are ided into avoidable and unavoidable costs.
【判断题】unavoidablecosts are never relevant in deciding whether to eliminate a product or department.
【判断题】unavoidablecosts do not include common costs.
【判断题】heating and air conditioning are examplesof common costs of all departments in a retail store.
【判断题】relevant costs are only variable.
【判断题】relevantcosts may include fixed avoidable costs.
【判断题】nonfinancialinformation can influence decisions to add or delete products.
【判断题】operating at capacity indicates that thecompany does not want to produce more products.
【判断题】ascarce resource limits the production or sale of a product or service.
【判断题】scarceresources include labor hours.
【判断题】if the limiting factor is demand (i.e., unit of sales), the more profitableproduct is the one with the higher contribution per unit.
【判断题】in retail sales, the limiting resource is often floor space.
【判断题】in ventory turnover is the average number of times a consumer buys a particular productper year.
【判断题】the financial budgets of a nonmanufacturingcompany include the capital budget, thecash budget, and the budgeted balance sheet.
【判断题】budgets are a manager’stool to plan, understand, and control operations.
【判断题】a capital budget is aperiodic business plan that includes a coordinated set of detailed operatingschedules and financial statements.
【判断题】an operating budgetis the major part of a master budget that focuses on the income statement andits supporting schedules.
【判断题】the major drawback ofusing historical results for judging current performance is that inefficiencieay be concealed in the past performance.
【判断题】a budget is a qualitative expression of a plan ofaction.
【判断题】a budget is anexample of an informal business plan.
【判断题】budgeting may usenonfinancial terms.
【判断题】the master budgeting process summarizes the keydecisions regarding all aspects of the company’s value chain.
【判断题】cash collections from customers include thecurrent month’s cash sales plus collections on credit sales.
【判断题】the first step inpreparing the master budget is generally the preparation of the budgeted incomestatement.
【判断题】accurate sales forecasting is essential to effectivebudgeting.
【判断题】budgeted purchases =beginning inventory cost of goods sold – desired ending inventory.
【判断题】examples of expenses driven by sales volume includerent and insurance.
【判断题】depreciation expenseis usually subtracted as an operating expense to calculate budgeted ending cashon hand.
【判断题】the beginningavailable cash balance equals the beginning cash balance the minimum cashbalance desired.
【判断题】if cash availableplus net cash receipts minus diursements is negative, then borrowing isnecessary.
【判断题】the working capitalcycle moves from cash to inventory to receivables and back to cash.
【判断题】managers want a very large cash balance possible atall times.
【判断题】the cash budgetbegins with the ending cash balance from the previous period.
【判断题】line operatingmanagers usually prepare and use the operating budget.
【判断题】the operating budgetis a better measure of a company’s overall performance than is the financialbudget.
【判断题】a sales budget is aprediction of sales under a given set of conditions.
【判断题】the sales budget isthe responsibility of line management.
【判断题】sales forecasts areusually prepared under the direction of the top sales executive.
【单选题】tyson company’s revenues are $300 and investedcapital is $240. expenses are currently80% of sales. tyson company’s currentreturn on investment is:
【单选题】foreman company’s revenues are $300 on investedcapital of $240. expenses are currently84% of sales. if foreman company canreduce its expenses to 75% of sales, return on investment will be:
【单选题】angelo company’s revenues are $300 on investedcapital of $240. expenses are currently85% of sales. if angelo company canreduce its invested capital by 20%, return on investment will be:
【单选题】identify which of the followingadjustments to after-tax operating income is used to approximate cash income.
【单选题】lincoln company paid $8 million cash for research anddevelopment. eva capital was computed as$20 million. lincoln company cost ofcapital was 15%. to add economic valueto the firm, lincoln company must generate revenues less operating costs of atleast:
【单选题】gonzalez company’s after-tax operating incomewas $882 million. total assets were$4,900 million and stockholder’s equity was $2,050 million. gonzalez company’s cost of capital was10%. gonzalez company’s eva was:
【单选题】the following information is available for the soupy company: sales $1,000,000 investedcapital 350,000 roi 10% the capital turnoverratio is:
【单选题】the followinginformation is available for the copeland company: sales $1,000,000 investedcapital 312,500 roi 10% the return on sales is:
【单选题】the following information is available for the sting company: sales $250,000 investedcapital 156,250 roi 10% the capital turnoverratio is:
【单选题】the followinginformation is available for the bumbling company: sales $250,000 investedcapital 156,250 roi 10% the net income is:
【单选题】the followinginformation is available for the hodge podge company: sales $250,000 investedcapital 156,250 roi 10% the return on sales is:
【单选题】______________ is a measure of incomeor profit ided by the investment required to obtain that income or profit.
【单选题】roi is computed as:
【单选题】an improvement in eithercapital turnover or return on sales, without changing the other, will alsoimprove the:
【单选题】_______________ is the result of the calculation which ides income by revenue.
【单选题】____________________would not increase return on investment.
【单选题】residual incomeis defined as:
【单选题】the followinginformation pertains to caravan company: totalassets $150,000 totalcurrent liabilities 110,000 totalexpenses 60,000 totalliabilities 115,000 totalrevenues 80,000 the income percentage ofrevenue is:
【单选题】the followinginformation pertains to saturn company: totalassets $50,000 totalcurrent liabilities 30,000 totalexpenses 60,000 totalliabilities 45,000 totalrevenues 80,000 if invested capital isdefined as total assets, the capital turnover is:
【单选题】invested capitalcan mean any of the following, except:
【单选题】identify which ofthe following definitions of invested capital is not recommended for measuringthe performance of ision managers.
【单选题】_______________is the original cost of an asset less any accumulated depreciation.
【单选题】the followinginformation pertains to bundy company: totalassets $50,000 totalcurrent liabilities 30,000 totalexpenses 60,000 totalliabilities 35,000 totalrevenues 80,000 if invested capital isdefined as total assets, the return on investment is:
【单选题】the followinginformation pertains to moore company: totalassets $50,000 totalcurrent liabilities 30,000 totalexpenses 60,000 totalliabilities 35,000 totalrevenues 80,000 if invested capital is defined as totalassets, and the imputed interest rate is 8%, the residual income is:
【单选题】26. the followinginformation pertains to tyler company: totalassets $150,000 totalcurrent liabilities 110,000 totalexpenses 160,000 totalliabilities 115,000 totalrevenues 180,000 if invested capital is defined as totalassets, a project earning an roi of 12% should be:
【单选题】the followinginformation pertains to newhart company: totalassets $50,000 totalcurrent liabilities 10,000 totalexpenses 60,000 totalliabilities 15,000 totalrevenues 80,000 if invested capital is defined as totalassets minus current liabilities, the residual income at an imputed interestrate of 10% is:
【单选题】the followinginformation pertains to milton company: totalassets $150,000 totalcurrent liabilities 110,000 totalexpenses 160,000 totalliabilities 115,000 totalrevenues 180,000 if invested capital is defined as totalassets minus current liabilities, a project earning an roi of 30% should be:
【单选题】the assetsection of the january 1, 20x9, balance sheet of big valley company includes amachine which was acquired on january 1, 20x5. the machine's original cost was $500,000, and the estimated life wasdetermined to be 10 years. the estimatedresidual value was zero, and the straight-line method of depreciation waschosen. the book value of the machine asof january 1, 20x9, is:
【单选题】the asset section of the january 1, 20x9, balance sheet of big valley company includes a machine which was acquired on january 1, 20x5. the machine's original cost was $500,000, and the estimated life was determined to be 10 years. the estimated residual value was zero, and the straight-line method of depreciation was chosen. the book value of the machine as of january 1, 20x9, is:
【单选题】the assetsection of the january 1, 20x7, balance sheet of petticoat company includes amachine which was acquired on january 1, 20x3. the machine's original cost was $500,000, and the estimated life wasdetermined to be 10 years. the estimatedresidual value was zero, and the straight-line method of depreciation waschosen. if operating income before depreciation is$90,000, the rate of return on average net book value for 20x7 is:
【单选题】the following information pertains to gloria company: currentassets $200,000 current liabilities $100,000 property, plant and equipment 400,000 long-term liabilities 200,000 construction in progress 50,000 stockholders' equity 350,000 total assets $650,000 total equities $650,000 investedcapital is ___________ if it is defined as total assets employed.
【单选题】the following information pertains to gable company: current assets $200,000 current liabilities $100,000 property,plant and equipment 400,000 long-term liabilities 200,000 construction in progress 50,000 stockholders' equity 350,000 total assets $650,000 total equities $650,000 investedcapital is _______________ if it is defined as total assets less currentliabilities.
【单选题】the following information pertains to clark company: currentassets $200,000 current liabilities $100,000 property, plant and equipment 400,000 long-term liabilities 200,000 construction in progress 50,000 stockholders' equity 350,000 total assets $650,000 total equities $650,000 invested capital is ________________ if it is defined asstockholders' equity.
【单选题】the followinginformation pertains to stewart company: current assets $100,000 currentliabilities $75,000 property, plantand equipment 150,000 long-term liabilities 100,000 construction in progress 50,000 stockholders' equity 125,000 total assets $300,000 total equities $300,000 invested capital is________________ if it is defined as total assets.
【单选题】the followinginformation pertains to calhoun company: current assets $100,000 currentliabilities $75,000 property, plantand equipment 150,000 long-term liabilities 100,000 construction in progress 50,000 stockholders' equity 125,000 total assets $300,000 total equities $300,000 investedcapital is _________________ if it is defined as total assets employed.
【单选题】the followinginformation pertains to webster company: current assets $100,000 currentliabilities $75,000 property, plantand equipment 150,000 long-term liabilities 100,000 construction in progress 50,000 stockholders' equity 125,000 total assets $300,000 total equities $300,000 invested capital is______________ if it is defined as total assets less current liabilities.
【单选题】the followinginformation pertains to polk company: current assets $100,000 currentliabilities $75,000 property, plantand equipment 150,000 long-term liabilities 100,000 construction in progress 50,000 stockholders' equity 125,000 total assets $300,000 total equities $300,000 invested capital is______________ if it is defined as stockholders' equity.
【判断题】the amount of income generated by the investment is a better test of profitability than the return on investment.
【判断题】the income percentage of revenue is determined by multiplying return on investment by the capital turnover.
【判断题】roi = income (orprofit) / investment.
【判断题】in all roicalculations, invested capital should be measured as an average for the periodunder review.
【判断题】roi= return on sales / capital turnover.
【判断题】return on sales =revenue / income.
【判断题】capital turnover =revenue / invested capital
【判断题】return on sales canbe increased by increasing expenses.
【判断题】capital turnover can beincreased by decreasing investment.
【判断题】increasing capitalturnover is one of the advantages of implementing the jit philosophy.
【判断题】cost of capital isthe company’s cost of capital multiplied by the amount of the investment.
【判断题】roi tells us how much acompany’s after-tax operating income exceeds what it is paying for capital.
【判断题】eva = adjustedafter-tax operating income – (cost of invested capital – a percentage xadjusted average invested capital).
【判断题】when a companymeasures performance using residual income, managers tend to invest in anyproject earning more than the cost of capital and thus raise the firm’s totalprofits.
【判断题】when companies maximizeresidual income, they are maximizing their rate of return, a percentage.
【判断题】in general, forcompanies using roi, the most profitable isions have more incentive toinvest in new projects than do the least profitable isions.
【判断题】in general, use ofresidual income or eva will promote goal congruence and lead to betterdecisions than using roi.
【判断题】most companies useresidual income in evaluating projects, not roi.
【判断题】in measuring the performance of a isionmanager, stockholders' equity should not be used as the amount of investedcapital.
【判断题】in measuring income,either the net book value or the gross book value can be used.
【判断题】possible definitionsof invested capital include total assets employed and stockholders’ equity.