Question 1

What was the return on investment?

Accepted Answer

A)  15%. 
B)  16%. 
C)  20%. 
D)  40%. 
A)  15%. 
B)  16%. 
C)  20%. 
D)  40%.

Question 2

(Appendix 11A)Which of the following would be classified as an internal failure cost on a quality cost report?

Accepted Answer

A)  Supplies used in testing and inspection. 
B)  Final product testing and inspection. 
C)  Net cost of scrap. 
D)  Amortization of test equipment. 
A)  Supplies used in testing and inspection. 
B)  Final product testing and inspection. 
C)  Net cost of scrap. 
D)  Amortization of test equipment.

Question 3

(Appendix 11A)What will be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $99,000. 
B)  $102,000. 
C)  $158,000. 
D)  $211,000. 
A)  $99,000. 
B)  $102,000. 
C)  $158,000. 
D)  $211,000.

Question 4

(Appendix 11A)Galati Company's quality cost report is to be based on the following data:   
Required:
Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of (Appendix 11A)Galati Company's quality cost report is...

Question 5

(Appendix 11A)Godunov Company's quality cost report is to be based on the following data:   
Required:
Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of (Appendix 11A)Godunov Company's quality cost report is...

Question 6

(Appendix 11A)Parker Company has two service departments-cafeteria and engineering-and two operating departments.The number of employees in each department is given below:  
The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments.If these costs are budgeted at $69,375,what would be the amount of cost allocated to Engineering under the direct method?

Accepted Answer

A)  $0. 
B)  $3,700. 
C)  $3,750. 
D)  $17,344. 
A)  $0. 
B)  $3,700. 
C)  $3,750. 
D)  $17,344.

Question 7

(Appendix 11A)What will be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $64,000. 
B)  $73,000. 
C)  $78,000. 
D)  $93,000. 
A)  $64,000. 
B)  $73,000. 
C)  $78,000. 
D)  $93,000.

Question 8

(Appendix 11A)Harui Company's quality cost report is to be based on the following data:   
Required:
a)Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.
b)If Harui's efforts to ensure quality conformance are working,how would you expect the Quality Cost Report next year to compare with this one?

Accepted Answer

a. @#IMG-DLM& b.In the next year Harui should see

Question 9

(Appendix 11A)Ordinarily,managers are NOT aware of the magnitude of their quality costs since these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

Accepted Answer

A) True 
 B)False

Question 10

(Appendix 11A)To minimize its total quality costs,a company should usually try to redistribute its quality costs more toward prevention and appraisal.

Accepted Answer

A) True 
 B)False

Question 11

In computing the margin in a ROI analysis,which of the following is used?

Accepted Answer

A)  Sales in the denominator. 
B)  Operating income in the denominator. 
C)  Average operating assets in the denominator. 
D)  Residual income in the denominator. 
A)  Sales in the denominator. 
B)  Operating income in the denominator. 
C)  Average operating assets in the denominator. 
D)  Residual income in the denominator.

Question 12

(Appendix 11A)Suppose Division A is currently operating at capacity and can sell all of the units it produces on the outside market for its usual selling price.From the point of view of Division A,any sales to Division B should be priced no lower than which of the following?

Accepted Answer

A)  $20. 
B)  $27. 
C)  $28. 
D)  $29. 
A)  $20. 
B)  $27. 
C)  $28. 
D)  $29.

Question 13

(Appendix 11A)Assume that the company uses the step-down method of allocating Service Department costs to Operating Departments,and Building and Grounds costs are allocated first.How much Personnel Department cost would be allocated to Operating Department B?

Accepted Answer

A)  $0. 
B)  $107,368. 
C)  $107,590. 
D)  $112,970. 
A)  $0. 
B)  $107,368. 
C)  $107,590. 
D)  $112,970.

Question 14

(Appendix 11A)Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A)  Lost sales arising from a reputation for poor quality. 
B)  Final product testing and inspection. 
C)  Net cost of spoilage. 
D)  Quality data gathering,analysis,and reporting. 
A)  Lost sales arising from a reputation for poor quality. 
B)  Final product testing and inspection. 
C)  Net cost of spoilage. 
D)  Quality data gathering,analysis,and reporting.

Question 15

Allocations of corporate headquarters expenses to divisions used in return on investment calculations should be limited to the cost of those actual services provided by central headquarters,which the divisions otherwise would have to provide for themselves.

Accepted Answer

A) True 
 B)False

Question 16

What were the total fixed costs (traceable and common)for Canon Company for the year?

Accepted Answer

A)  $24,000. 
B)  $25,000. 
C)  $49,000. 
D)  $50,000. 
A)  $24,000. 
B)  $25,000. 
C)  $49,000. 
D)  $50,000.

Question 17

What was the turnover for the past year?

Accepted Answer

A)  1.40. 
B)  2.50. 
C)  2.98. 
D)  6.94. 
A)  1.40. 
B)  2.50. 
C)  2.98. 
D)  6.94.

Question 18

Financial data for Beaker Company for last year appear below:   
   
The company paid dividends of $2,100 last year.The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company.
Required:
a)Compute the company's margin,turnover,and return on investment for last year.
b)The Board of Directors of Beaker Company have set a minimum required return of 20%.What was the company's residual income last year?

Accepted Answer

a)Operating assets d

Question 19

What were the average operating assets for Year 2?

Accepted Answer

A)  $1,000,000. 
B)  $1,080,000. 
C)  $1,200,000. 
D)  $1,388,889. 
A)  $1,000,000. 
B)  $1,080,000. 
C)  $1,200,000. 
D)  $1,388,889.

Question 20

What was the return on investment for the past year?

Accepted Answer

A)  8%. 
B)  20%. 
C)  28%. 
D)  36%. 
A)  8%. 
B)  20%. 
C)  28%. 
D)  36%.

What was the return on investment?

(Appendix 11A)Which of the following would be classified as an internal failure cost on a quality cost report?

(Appendix 11A)What will be the total internal failure cost appearing on the quality cost report?

(Appendix 11A)Galati Company's quality cost report is to be based on the following data: Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

(Appendix 11A)Godunov Company's quality cost report is to be based on the following data: Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

(Appendix 11A)What will be the total prevention cost appearing on the quality cost report?

(Appendix 11A)Ordinarily,managers are NOT aware of the magnitude of their quality costs since these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

(Appendix 11A)To minimize its total quality costs,a company should usually try to redistribute its quality costs more toward prevention and appraisal.

In computing the margin in a ROI analysis,which of the following is used?

(Appendix 11A)Suppose Division A is currently operating at capacity and can sell all of the units it produces on the outside market for its usual selling price.From the point of view of Division A,any sales to Division B should be priced no lower than which of the following?

(Appendix 11A)Assume that the company uses the step-down method of allocating Service Department costs to Operating Departments,and Building and Grounds costs are allocated first.How much Personnel Department cost would be allocated to Operating Department B?

(Appendix 11A)Which of the following would be classified as a prevention cost on a quality cost report?

Allocations of corporate headquarters expenses to divisions used in return on investment calculations should be limited to the cost of those actual services provided by central headquarters,which the divisions otherwise would have to provide for themselves.

What were the total fixed costs (traceable and common)for Canon Company for the year?

What was the turnover for the past year?

What were the average operating assets for Year 2?

What was the return on investment for the past year?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

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Exam 11: Reporting for Control

What was the return on investment?

(Appendix 11A)Which of the following would be classified as an internal failure cost on a quality cost report?

(Appendix 11A)What will be the total internal failure cost appearing on the quality cost report?

(Appendix 11A)Galati Company's quality cost report is to be based on the following data: Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

(Appendix 11A)Godunov Company's quality cost report is to be based on the following data: Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

(Appendix 11A)What will be the total prevention cost appearing on the quality cost report?

(Appendix 11A)Ordinarily,managers are NOT aware of the magnitude of their quality costs since these costs cut across departmental lines and are not normally tracked and accumulated by the cost system.

(Appendix 11A)To minimize its total quality costs,a company should usually try to redistribute its quality costs more toward prevention and appraisal.

In computing the margin in a ROI analysis,which of the following is used?

(Appendix 11A)Suppose Division A is currently operating at capacity and can sell all of the units it produces on the outside market for its usual selling price.From the point of view of Division A,any sales to Division B should be priced no lower than which of the following?

(Appendix 11A)Assume that the company uses the step-down method of allocating Service Department costs to Operating Departments,and Building and Grounds costs are allocated first.How much Personnel Department cost would be allocated to Operating Department B?

(Appendix 11A)Which of the following would be classified as a prevention cost on a quality cost report?

Allocations of corporate headquarters expenses to divisions used in return on investment calculations should be limited to the cost of those actual services provided by central headquarters,which the divisions otherwise would have to provide for themselves.

What were the total fixed costs (traceable and common)for Canon Company for the year?

What was the turnover for the past year?

What were the average operating assets for Year 2?

What was the return on investment for the past year?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters