Question 1

Short-term objectives

Accepted Answer

A)  are typically measured with non-financial performance measures. 
B)  cannot be measured for cost centers. 
C)  are commonly measured with traditional financial performance measures. 
D)  focus on actions and efforts that will enhance market position and customer satisfaction. 
E)  are measured by comparing an organization's products against those of organizations who have been proven to be "best in class." 
A)  are typically measured with non-financial performance measures. 
B)  cannot be measured for cost centers. 
C)  are commonly measured with traditional financial performance measures. 
D)  focus on actions and efforts that will enhance market position and customer satisfaction. 
E)  are measured by comparing an organization's products against those of organizations who have been proven to be "best in class."

Question 2

Balanced scorecards

Accepted Answer

A)  should indicate specific measurements to assess the organization's progress only toward its long-run objectives. 
B)  generally include categories that focus on customers, internal processes, financial, and learning and growth. 
C)  focus exclusively on internal processes and do not consider customer satisfaction. 
D)  should contain the most statistically reliable measurements that can be developed for every category. 
E)  contain financial, rather than nonfinancial, measurements at lower levels of an organization. 
A)  should indicate specific measurements to assess the organization's progress only toward its long-run objectives. 
B)  generally include categories that focus on customers, internal processes, financial, and learning and growth. 
C)  focus exclusively on internal processes and do not consider customer satisfaction. 
D)  should contain the most statistically reliable measurements that can be developed for every category. 
E)  contain financial, rather than nonfinancial, measurements at lower levels of an organization.

Question 3

A balanced scorecard

Accepted Answer

A)  is only concerned about short-run, financial performance measures. 
B)  emphasizes the need for constant assessment of an organization's process toward its long-run goals and objectives. 
C)  focuses on financial, non-quantitative, and qualitative measures. 
D)  provides a numerical score for benchmarking purposes after each evaluation process. 
E)  both b and c 
A)  is only concerned about short-run, financial performance measures. 
B)  emphasizes the need for constant assessment of an organization's process toward its long-run goals and objectives. 
C)  focuses on financial, non-quantitative, and qualitative measures. 
D)  provides a numerical score for benchmarking purposes after each evaluation process. 
E)  both b and c

Question 4

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 quality control cost would be assigned to laptop 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 5

Use the following information to answer questions 
Seguin Corp. just invested $3,750,000 in new blu-ray technology. Revenues realized from the investment during the period were $3,125,000 and expenses were $2,500,000.
-What is Seguin Corp's return on investment in the blu-ray technology (round to the nearest whole percentage)?

Accepted Answer

A)  17% 
B)  20% 
C)  67% 
D)  83% 
E)  600% 
A)  17% 
B)  20% 
C)  67% 
D)  83% 
E)  600%

Question 6

Use the following information to answer questions 
Woller Meat Packing produces frozen hamburgers and sausages. During 2010, the company incurred $600,000 of overhead. Overhead costs and their related cost drivers are as follows:
  
-If Woller uses activity-based costing, what are the overhead rates for each type of overhead cost?

Accepted Answer

The answer of Use the following information to answer questions...

Question 7

Chesser Corp. manufactures dog food and cat food. The following information is available for 2010 for Chesser Corp. 
‪   
Required:
a.	Calculate the overhead rates for each of the overhead cost pools.
b.	Calculate the total amount of overhead to assign to dog food and cat food.
c.	Calculate the per-unit amount of overhead to assign to dog food and cat food. (Round to the nearest cent.)
d.	Calculate profit per-unit for dog food and cat food.
e.	Calculate profit as a percentage of selling price for dog food and cat food. Which product is more profitable?
f.	Assume that Chesser applies overhead on the basis of direct material cost. Determine the (1) overhead cost per unit for dog food and cat food and (2) the profit as a percentage of selling price for dog food and cat food. Which product is more profitable?

Accepted Answer

‪ @#IMG-DLM& 
OH cost per dollar of DM = $1,194,49

Question 8

Identifying valued-added and non-value-added business activities is a key part of

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 9

Wilson's Catering budgeted total variable costs of $19,800 for six people working 40 hours per week over a five-week period. At the end of the five weeks, Wilson's had incurred $21,000 of actual expenses and employees had worked 1,300 hours. In determining performance in controlling costs for the period, the company was

Accepted Answer

A)  $450 under budget. 
B)  $450 over budget. 
C)  $1,200 under budget. 
D)  $1,200 over budget. 
E)  none of the above. 
A)  $450 under budget. 
B)  $450 over budget. 
C)  $1,200 under budget. 
D)  $1,200 over budget. 
E)  none of the above.

Question 10

Indirect costs cannot be incurred at the unit level.

Accepted Answer

A) True 
 B)False

Question 11

Activity-based costing is an overhead allocation method.

Accepted Answer

A) True 
 B)False

Question 12

Magill Corporation manufactures Products A and B. Each equipment setup costs $2,000. During 2010, Magill had 15 equipment setups during the year: four to make Product A and 11 to make Product B. Magill produced 1,000,000 and 500,000 units of Products A and B, respectively. 
	
Required:
a.	Assume Magill treats setup as a unit-level cost. How much total setup cost is assigned to Products A and B? How much cost is assigned on a per-unit basis for Product A and Product B?
b.	Assume Magill treats setup as a batch-level cost. How much per-unit setup cost is assigned to Product A and to Product B?

Accepted Answer

a. $2,000 x 15 = $30,000
 $30,000 ÷ 1,50

Question 13

Using profitability to measure performance reflects a short-run perspective.

Accepted Answer

A) True 
 B)False

Question 14

Activity-based costing would be most useful in a company that

Accepted Answer

A)  manufactures standardized products, such as bricks. 
B)  has recently implemented a responsibility accounting system. 
C)  makes many kinds of products in significantly different volumes. 
D)  is showing profits for high-volume, easy-to-make products. 
E)  has relatively low overhead costs. 
A)  manufactures standardized products, such as bricks. 
B)  has recently implemented a responsibility accounting system. 
C)  makes many kinds of products in significantly different volumes. 
D)  is showing profits for high-volume, easy-to-make products. 
E)  has relatively low overhead costs.

Question 15

A sales volume variance is calculated as actual revenues minus budgeted revenues.

Accepted Answer

A) True 
 B)False

Question 16

Use the following information to answer questions 
Faust Corporation manufactures cleaning fluid. During 2010, Faust's salespeople sold 1,700,000 bottles of cleaning fluid at $1.80 per bottle. Faust budgeted that salespeople would sell 1,600,000 bottles of cleaning fluid at $1.90 per bottle.
-What is Faust's sales price variance?

Accepted Answer

A)  $ 20,000 favorable 
B)  $170,000 favorable 
C)  $170,000 unfavorable 
D)  $190,000 favorable 
E)  $190,000 unfavorable 
A)  $ 20,000 favorable 
B)  $170,000 favorable 
C)  $170,000 unfavorable 
D)  $190,000 favorable 
E)  $190,000 unfavorable

Question 17

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 utility cost would be assigned to laptop computers?

Accepted Answer

A)  $184,800 
B)  $196,326 
C)  $223,674 
D)  $235,200 
E)  none of the above 
A)  $184,800 
B)  $196,326 
C)  $223,674 
D)  $235,200 
E)  none of the above

Question 18

Cost drivers for the purchasing activity would usually include which of the following?

Accepted Answer

The answer of Cost drivers for the purchasing activity would...

Question 19

Zama Inc. manufactures shampoo. The following activities are performed weekly as a part of operations:  
In a week, how many hours are spent on each of the following types of activities?
Value-added activities &emsp; Non-value-added activities

Accepted Answer

A)  12 hours &emsp; 109 hours 
B)  48 hours &emsp; 73 hours 
C)  51 hours &emsp; 70 hours 
D)  58 hours &emsp; 63 hours 
E)  88 hours &emsp; 33 hours 
A)  12 hours &emsp; 109 hours 
B)  48 hours &emsp; 73 hours 
C)  51 hours &emsp; 70 hours 
D)  58 hours &emsp; 63 hours 
E)  88 hours &emsp; 33 hours

Question 20

The Du Pont model calculates return on investment as profit margin ratio multiplied by inventory turnover.

Accepted Answer

A) True 
 B)False

Short-term objectives

Balanced scorecards

A balanced scorecard

Identifying valued-added and non-value-added business activities is a key part of

Indirect costs cannot be incurred at the unit level.

Activity-based costing is an overhead allocation method.

Using profitability to measure performance reflects a short-run perspective.

Activity-based costing would be most useful in a company that

A sales volume variance is calculated as actual revenues minus budgeted revenues.

Cost drivers for the purchasing activity would usually include which of the following?

Zama Inc. manufactures shampoo. The following activities are performed weekly as a part of operations: In a week, how many hours are spent on each of the following types of activities? Value-added activities Non-value-added activities

The Du Pont model calculates return on investment as profit margin ratio multiplied by inventory turnover.

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

Short-term objectives

Balanced scorecards

A balanced scorecard

Identifying valued-added and non-value-added business activities is a key part of

Indirect costs cannot be incurred at the unit level.

Activity-based costing is an overhead allocation method.

Using profitability to measure performance reflects a short-run perspective.

Activity-based costing would be most useful in a company that

A sales volume variance is calculated as actual revenues minus budgeted revenues.

Cost drivers for the purchasing activity would usually include which of the following?

Zama Inc. manufactures shampoo. The following activities are performed weekly as a part of operations: In a week, how many hours are spent on each of the following types of activities? Value-added activities Non-value-added activities

The Du Pont model calculates return on investment as profit margin ratio multiplied by inventory turnover.

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