Question 1

Match between columns
                        Premises: Cost center
Profit center
Responsibility accounting system
Investment center
Departmental contribution to overhead
Cost driver
Performance report
Indirect expenses

Accepted Answer

The Answer of Compares actual and budgeted costs and expenses is...

Question 2

Wait time is the time:

Accepted Answer

A) Spent producing the product. 
B) Spent inspecting raw materials received, goods in process while in production, and finished goods prior to shipment. 
C) Spent moving raw materials from storage to production and goods in process from one factory location to another factory location 
D) That an order or job sits with no production applied to it. 
E) That is considered value-added time. 
A) Spent producing the product. 
B) Spent inspecting raw materials received, goods in process while in production, and finished goods prior to shipment. 
C) Spent moving raw materials from storage to production and goods in process from one factory location to another factory location 
D) That an order or job sits with no production applied to it. 
E) That is considered value-added time.

Question 3

A company's electronics division had sales of $25 billion, net income of $4 billion, and average invested assets of $5 billion.What is this division's return on investment?

Accepted Answer

A) 16% 
B) 5 
C) 80% 
D) 20% 
E) 1.25 
A) 16% 
B) 5 
C) 80% 
D) 20% 
E) 1.25

Question 4

The ________________________________ is a system of performance measures, including nonfinancial measures, used to assess company and division manager performance.

Accepted Answer

The answer of The ________________________________ is a system of performance...

Question 5

Direct expenses must be allocated across departments.

Accepted Answer

A) True 
 B)False

Question 6

___________________ are costs incurred to produce or purchase two or more products at the same time.

Accepted Answer

The answer of ___________________ are costs incurred to produce or...

Question 7

A report that specifies the expected and actual costs under the control of a manager is a:

Accepted Answer

A) Segmental accounting report. 
B) Managerial cost report. 
C) Controllable expense report. 
D) Departmental accounting report. 
E) Responsibility accounting report. 
A) Segmental accounting report. 
B) Managerial cost report. 
C) Controllable expense report. 
D) Departmental accounting report. 
E) Responsibility accounting report.

Question 8

Responsibility accounting performance reports:

Accepted Answer

A) Become more detailed at higher levels of management. 
B) Become less detailed at higher levels of management. 
C) Are equally detailed at all levels of management. 
D) Are useful in any format. 
E) Are irrelevant. 
A) Become more detailed at higher levels of management. 
B) Become less detailed at higher levels of management. 
C) Are equally detailed at all levels of management. 
D) Are useful in any format. 
E) Are irrelevant.

Question 9

The first three steps in preparing a departmental income statement are: (1)accumulate __________________ of the department, (2)allocate __________________ to the department, and (3)allocate _____________________ to the operating departments.

Accepted Answer

direct expenses; ind

Question 10

An expense that does not require allocation between departments is a(n):

Accepted Answer

A) Common expense. 
B) Indirect expense. 
C) Direct expense. 
D) Administrative expense. 
E) Overhead expense. 
A) Common expense. 
B) Indirect expense. 
C) Direct expense. 
D) Administrative expense. 
E) Overhead expense.

Question 11

Generally, it does not matter how cost allocations are designed and explained, because most employees do not care whether the allocations appear to be fair or not.

Accepted Answer

A) True 
 B)False

Question 12

Cycle time is the sum of _____________ plus ____________ plus __________ plus ______________.

Accepted Answer

process time; inspec

Question 13

Data pertaining to a company's joint manufacturing process for the current period follows: $\begin{array}{lcc}
&\text { Product }&\text { Product }\
& \underline {   A  }& \underline {   B  }\
\text { Quantities produced } & 200 \mathrm{lbs} . & 100 \mathrm{lbs} . \
\begin{array}{c}
\text { Processing cost after } \
\text { products are separated }
\end{array} & \$ 1,100 & \$ 400 \
\begin{array}{l}
\text { Market value at point } \
\text { of separation }
\end{array} & \$ 8 / 1 \mathrm{~b} & \$ 16 / 1 \mathrm{~b} .
\end{array}$ What cost amount should be allocated to Product A for this period's $660 of joint costs on the basis of market value at the point of separation?

Accepted Answer

A) $330.00 
B) $440.00 
C) $220.00 
D) $194.12 
E) $484.00 
A) $330.00 
B) $440.00 
C) $220.00 
D) $194.12 
E) $484.00

Question 14

________________________________ measures how efficiently an investment center generates sales from its invested assets.

Accepted Answer

The answer of ________________________________ measures how efficiently an investment center...

Question 15

Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:

Accepted Answer

A) Direct expenses 
B) Indirect expenses 
C) Controllable expenses 
D) Uncontrollable expenses 
E) Fixed expenses 
A) Direct expenses 
B) Indirect expenses 
C) Controllable expenses 
D) Uncontrollable expenses 
E) Fixed expenses

Question 16

Departmental information is important and always disclosed to the public as part of the company's annual report and footnotes.

Accepted Answer

A) True 
 B)False

Question 17

Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 5,000 employees and occupies 15,000 square feet. Assembling has 4,000 employees and occupies 12,000 square feet. Finishing has 1,000 employees and occupies 23,000 square feet. Indirect factory costs for the current period were Administrative $170,000 and Maintenance $212,000. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied. 
-Based on the preceding data, determine the administrative cost allocated to each operating department of Bridgestreet, Inc.
A Cutting: $\$ 56,666$$ \quad $ Assembling: $\$ 56,666$ $ \quad $Firnishing: $\$ 56,666$
B. Cutting: $\$ 5,000$ $ \quad $Assembling: $\$ 4,000$ $ \quad $Firishirg: $\$ 1,000$
C. Cutting: $\$ 127,333$ $ \quad $Assembling: $\$ 127,333$$ \quad $ Finishing: $\$ 127,333$
D. Cutting: $\$ 85,000$ $ \quad $Assernbling: $\$ 68,000$$ \quad $ Finishing: $\$ 17,000$
E Cutting: $\$ 191,000$$ \quad $ Assembling: $\$ 152,800$ $ \quad $Firnishire: $\$ 38,200$

Accepted Answer

The answer of Bridgestreet, Inc. has three operating departments: Cutting,...

Wait time is the time:

A company's electronics division had sales of $25 billion, net income of $4 billion, and average invested assets of $5 billion.What is this division's return on investment?

The ________________________________ is a system of performance measures, including nonfinancial measures, used to assess company and division manager performance.

Direct expenses must be allocated across departments.

___________________ are costs incurred to produce or purchase two or more products at the same time.

A report that specifies the expected and actual costs under the control of a manager is a:

Responsibility accounting performance reports:

The first three steps in preparing a departmental income statement are: (1)accumulate of the department, (2)allocate to the department, and (3)allocate _____ to the operating departments.

An expense that does not require allocation between departments is a(n):

Generally, it does not matter how cost allocations are designed and explained, because most employees do not care whether the allocations appear to be fair or not.

Cycle time is the sum of _ plus plus plus ____.

________________________________ measures how efficiently an investment center generates sales from its invested assets.

Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:

Departmental information is important and always disclosed to the public as part of the company's annual report and footnotes.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

Exam 9: Performance Measurement and Responsibility Accounting

Wait time is the time:

A company's electronics division had sales of $25 billion, net income of $4 billion, and average invested assets of $5 billion.What is this division's return on investment?

The ________________________________ is a system of performance measures, including nonfinancial measures, used to assess company and division manager performance.

Direct expenses must be allocated across departments.

___________________ are costs incurred to produce or purchase two or more products at the same time.

A report that specifies the expected and actual costs under the control of a manager is a:

Responsibility accounting performance reports:

The first three steps in preparing a departmental income statement are: (1)accumulate __________________ of the department, (2)allocate __________________ to the department, and (3)allocate _____________________ to the operating departments.

An expense that does not require allocation between departments is a(n):

Generally, it does not matter how cost allocations are designed and explained, because most employees do not care whether the allocations appear to be fair or not.

Cycle time is the sum of _____________ plus ____________ plus __________ plus ______________.

________________________________ measures how efficiently an investment center generates sales from its invested assets.

Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:

Departmental information is important and always disclosed to the public as part of the company's annual report and footnotes.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

The first three steps in preparing a departmental income statement are: (1)accumulate of the department, (2)allocate to the department, and (3)allocate _____ to the operating departments.

Cycle time is the sum of _ plus plus plus ____.