Question 1

An issue to consider when designing a performance reward system is that it

Accepted Answer

A)  reflect performance measurements that have been used in the past. 
B)  be tied to individual and, if appropriate, group performance. 
C)  encourage only a short-term perspective about the organization. 
D)  focus exclusively on financial incentives. 
E)  focus exclusively on nonfinancial incentives. 
A)  reflect performance measurements that have been used in the past. 
B)  be tied to individual and, if appropriate, group performance. 
C)  encourage only a short-term perspective about the organization. 
D)  focus exclusively on financial incentives. 
E)  focus exclusively on nonfinancial incentives. B

Question 2

Proper implementation of activity-based costing will cause the total amount of overhead to be reduced.

Accepted Answer

A) True 
 B)False  False

Question 3

Because Atkinson Corp. did not receive the raw material it ordered on a timely basis, management was forced to close its production facility for one week. This time is Idle time &emsp; Non-value-added time &emsp; Business-value-added time

Accepted Answer

A)  yes &emsp; no&emsp; no 
B)  No &emsp; no &emsp; no 
C)  yes &emsp; yes &emsp; yes 
D)  no &emsp; yes &emsp; yes 
E)  Yes &emsp; yes &emsp; no 
A)  yes &emsp; no&emsp; no 
B)  No &emsp; no &emsp; no 
C)  yes &emsp; yes &emsp; yes 
D)  no &emsp; yes &emsp; yes 
E)  Yes &emsp; yes &emsp; no E

Question 4

Sanchez Broadcasting is comprised of two investment centers: Music and News. Each division's performance is evaluated on the basis of return on investment. Expected operations for 2011 follow:
?  
A new project costing $500,000 is being considered. It would generate $70,000 in 2011. The project is an investment that is available to both the Music and News managers. Which of the following individuals would be in favor of investing in the new project?

Accepted Answer

The answer of Sanchez Broadcasting is comprised of two investment...

Question 5

Which of the following would not be a cost driver for workers' compensation insurance?

Accepted Answer

A)  Number of accidents in previous years 
B)  Quality of health, safety, and environmental training programs 
C)  Employees' years of experience 
D)  Amount of required overtime hours for a twelve-month period 
E)  Employees' marital status 
A)  Number of accidents in previous years 
B)  Quality of health, safety, and environmental training programs 
C)  Employees' years of experience 
D)  Amount of required overtime hours for a twelve-month period 
E)  Employees' marital status

Question 6

Use the following information to answer questions 
Rather Corp. produces two types of computers: laptops and netbooks. Overhead cost pools and activity information for the year are as follows:
  
-Assume overhead is assigned using direct labor hours (DLHs). DLHs for laptop and netbook computers were, respectively, 11,450 DLHs and 10,050 DLHs. What amount of overhead cost assigned to netbook computers?

Accepted Answer

A)  $113,000 
B)  $175,000 
C)  $225,000 
D)  $402,000 
E)  $458,000 
A)  $113,000 
B)  $175,000 
C)  $225,000 
D)  $402,000 
E)  $458,000

Question 7

Theoretically, which of the following levels of costs should be used to assign costs to products?

Accepted Answer

The answer of Theoretically, which of the following levels of...

Question 8

Budget and actual costs should only be compared if the budget is restated to reflect the actual quantity generating the actual costs.

Accepted Answer

A) True 
 B)False

Question 9

Use the following information to answer questions 
Rather Corp. produces two types of computers: laptops and netbooks. Overhead cost pools and activity information for the year are as follows:
  
-Assume that activity-based costing is used to assign overhead costs to computers. What amount of setup cost would be assigned to netbook computers if laptops generally have one-fourth as many defects as netbooks?

Accepted Answer

A)  $ 48,000 
B)  $ 75,000 
C)  $165,000 
D)  $192,000 
E)  none of the above 
A)  $ 48,000 
B)  $ 75,000 
C)  $165,000 
D)  $192,000 
E)  none of the above

Question 10

Comparing an organization's products, processes, or services against those of organizations who have been proven "best in class" is called

Accepted Answer

A)  illegal access. 
B)  benchmarking. 
C)  insider trading. 
D)  activity-based management. 
E)  strategic management. 
A)  illegal access. 
B)  benchmarking. 
C)  insider trading. 
D)  activity-based management. 
E)  strategic management.

Question 11

D. Smart is the manager of a cost center at Bobcat Enterprises. The June budget at a production level of 10,000 units was as follows:

Required:
	Prepare an evaluation of Smart's performance for June and comment on that performance.

Accepted Answer

@#IMG-DLM& 
Although Smart's performance overall i

Question 12

Two of the most important current performance measurements are customer satisfaction and minimization of cost variances.

Accepted Answer

A) True 
 B)False

Question 13

When traditional means of allocating overhead do not generate reasonable products or services cost, companies can use

Accepted Answer

A)  budgeting. 
B)  activity-based management. 
C)  strategic management. 
D)  productions and operations management. 
E)  activity-based costing. 
A)  budgeting. 
B)  activity-based management. 
C)  strategic management. 
D)  productions and operations management. 
E)  activity-based costing.

Question 14

Use the following information to answer questions 
Donnelly Corp. manufactures two products. The company's budgeted total overhead for 2011 is $350,000; of this amount, $276,000 relates to utilities and depreciation on automated equipment. In 2011, Donnelly expects to produce 200,000 of X and 300,000 units of Y. It takes 3.0 and 1.5 direct labor hours to produce one unit of X and Y, respectively. However, relative to the automated equipment, Product X requires 10 minutes per unit and Product Y requires 1 minute per unit. Product X and Y have unit contribution margins of $5 and $4, respectively.
-If overhead is applied on a direct labor hour basis, what is Donnelly's predetermined overhead rate for 2011 (rounded to the nearest cent)?

Accepted Answer

A)  $0.15 per DLH 
B)  $0.33 per DLH 
C)  $0.26 per DLH 
D)  $0.55 per DLH 
E)  $0.70 per DLH 
A)  $0.15 per DLH 
B)  $0.33 per DLH 
C)  $0.26 per DLH 
D)  $0.55 per DLH 
E)  $0.70 per DLH

Question 15

Activity-based costing

Accepted Answer

A)  reduces overhead costs. 
B)  provides more accurate product costs. 
C)  streamlines production activities. 
D)  increases profit margin per unit. 
E)  all of the above. 
A)  reduces overhead costs. 
B)  provides more accurate product costs. 
C)  streamlines production activities. 
D)  increases profit margin per unit. 
E)  all of the above.

Question 16

The time it takes Giang Corp. to move raw material from its storage facility to its production facility is

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 17

Quality control is generally viewed as a non-value-added activity.

Accepted Answer

A) True 
 B)False

Question 18

The time spent in an organization can be classified in one of four ways. Which types of time are generally classified as value-added (VA) and which are generally classified as non-value-added (NVA)?

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 19

In a profit center, managers have control over

Accepted Answer

The answer of In a profit center, managers have control...

Question 20

Use the following information to answer questions 
Dexter PC estimates sales of 20,000 tool kits at $35 per tool kit in June. During June, 15,000 tool kits were sold for total revenue of $705,000.
-What is the sales price variance?

Accepted Answer

A)  $5,000 favorable 
B)  $5,000 unfavorable 
C)  $180,000 favorable 
D)  $180,000 unfavorable 
E)  cannot be determined because the selling price per unit is not known 
A)  $5,000 favorable 
B)  $5,000 unfavorable 
C)  $180,000 favorable 
D)  $180,000 unfavorable 
E)  cannot be determined because the selling price per unit is not known

An issue to consider when designing a performance reward system is that it

Proper implementation of activity-based costing will cause the total amount of overhead to be reduced.

Because Atkinson Corp. did not receive the raw material it ordered on a timely basis, management was forced to close its production facility for one week. This time is Idle time Non-value-added time Business-value-added time

Which of the following would not be a cost driver for workers' compensation insurance?

Theoretically, which of the following levels of costs should be used to assign costs to products?

Budget and actual costs should only be compared if the budget is restated to reflect the actual quantity generating the actual costs.

Comparing an organization's products, processes, or services against those of organizations who have been proven "best in class" is called

D. Smart is the manager of a cost center at Bobcat Enterprises. The June budget at a production level of 10,000 units was as follows: Required: Prepare an evaluation of Smart's performance for June and comment on that performance.

Two of the most important current performance measurements are customer satisfaction and minimization of cost variances.

When traditional means of allocating overhead do not generate reasonable products or services cost, companies can use

Activity-based costing

The time it takes Giang Corp. to move raw material from its storage facility to its production facility is

Quality control is generally viewed as a non-value-added activity.

The time spent in an organization can be classified in one of four ways. Which types of time are generally classified as value-added (VA) and which are generally classified as non-value-added (NVA)?

In a profit center, managers have control over

Use the following information to answer questions Dexter PC estimates sales of 20,000 tool kits at $35 per tool kit in June. During June, 15,000 tool kits were sold for total revenue of $705,000. -What is the sales price variance?

An Introduction to the Role of Accounting in the Business World

Concepts and Elements Underlying Accounting

The Mechanics of Double-Entry Bookkeeping

Cash, Short-Term Investments and Accounts Receivable

Inventory

Long-Term Assets: Property, Plant Equipment and Intangibles

Liabilities

Stockholders Equity

The Corporate Income Statement and Financial Analysis

Statement of Cash Flows

Managerial Accounting

Cost-Volume-Profit Analysis

The Master Budget

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Exam 14: Activity-Based Management and Performance Measurementreward

An issue to consider when designing a performance reward system is that it

Proper implementation of activity-based costing will cause the total amount of overhead to be reduced.

Because Atkinson Corp. did not receive the raw material it ordered on a timely basis, management was forced to close its production facility for one week. This time is Idle time Non-value-added time Business-value-added time

Which of the following would not be a cost driver for workers' compensation insurance?

Theoretically, which of the following levels of costs should be used to assign costs to products?

Budget and actual costs should only be compared if the budget is restated to reflect the actual quantity generating the actual costs.

Comparing an organization's products, processes, or services against those of organizations who have been proven "best in class" is called

D. Smart is the manager of a cost center at Bobcat Enterprises. The June budget at a production level of 10,000 units was as follows: Required: Prepare an evaluation of Smart's performance for June and comment on that performance.

Two of the most important current performance measurements are customer satisfaction and minimization of cost variances.

When traditional means of allocating overhead do not generate reasonable products or services cost, companies can use

Activity-based costing

The time it takes Giang Corp. to move raw material from its storage facility to its production facility is

Quality control is generally viewed as a non-value-added activity.

The time spent in an organization can be classified in one of four ways. Which types of time are generally classified as value-added (VA) and which are generally classified as non-value-added (NVA)?

In a profit center, managers have control over

Use the following information to answer questions Dexter PC estimates sales of 20,000 tool kits at $35 per tool kit in June. During June, 15,000 tool kits were sold for total revenue of $705,000. -What is the sales price variance?

An Introduction to the Role of Accounting in the Business World

Concepts and Elements Underlying Accounting

The Mechanics of Double-Entry Bookkeeping

Cash, Short-Term Investments and Accounts Receivable

Inventory

Long-Term Assets: Property, Plant Equipment and Intangibles

Liabilities

Stockholders Equity

The Corporate Income Statement and Financial Analysis

Statement of Cash Flows

Managerial Accounting

Cost-Volume-Profit Analysis

The Master Budget

Filters