Question 1

Which of the following reports provides key financial and nonfinancial measures of performance?

Accepted Answer

A)  Flexible budget variance report 
B)  Performance report 
C)  Production report 
D)  Common costs report 
A)  Flexible budget variance report 
B)  Performance report 
C)  Production report 
D)  Common costs report

Question 2

In the decision-making process, which of the following situations would be best addressed by managers using a segmented income statement rather than a contribution margin format income statement?

Accepted Answer

A)  The decision on whether or not a one-time special order for a customer should be accepted. 
B)  The calculation of the break-even point for the upcoming month. 
C)  The decision on whether or not an entire product line should be discontinued. 
D)  The decision on whether or not to process a product further or sell "as is." 
A)  The decision on whether or not a one-time special order for a customer should be accepted. 
B)  The calculation of the break-even point for the upcoming month. 
C)  The decision on whether or not an entire product line should be discontinued. 
D)  The decision on whether or not to process a product further or sell "as is."

Question 3

Grandma's Jellies Inc. Grandma's Jellies Inc. produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch:
  Refer to the Grandma's Jellies Inc. information above. The manufacturing cycle time per batch is:

Accepted Answer

A)  7 hours. 
B)  14 hours. 
C)  10 hours. 
D)  24 hours. 
A)  7 hours. 
B)  14 hours. 
C)  10 hours. 
D)  24 hours.

Question 4

Hardcastle Ltd. had sales of $3,600,000 and net operating income of $900,000. Operating assets during the year averaged $1,500,000. The manager of Hardcastle is considering the purchase of a new machine which is expected to increase average operating assets by 20%. If the new machine is purchased, the company's new return on investment (ROI) would be:

Accepted Answer

A)  190.5% 
B)  60.0% 
C)  200.0% 
D)  50.0% 
A)  190.5% 
B)  60.0% 
C)  200.0% 
D)  50.0%

Question 5

Bradford Inc. Bradford Inc. manufactures and sells digital cameras. Bradford's management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year:
  Refer to the Bradford Inc. information above. What are Bradford's total prevention costs?

Accepted Answer

A)  $60,000 
B)  $170,000 
C)  $75,000 
D)  $110,000 
A)  $60,000 
B)  $170,000 
C)  $75,000 
D)  $110,000

Question 6

Kenny Inc. manufactures and sells laminate flooring. Recently, management has noticed more customer complaints about product defects and, as a consequence, warranty claims have significantly increased. Kenny's management has asked their managerial accountant for a breakdown in quality costs for the past six months. The following data has been compiled:
   Required:

Accepted Answer

The answer of Kenny Inc. manufactures and sells laminate flooring....

Question 7

Which of the following statements about quality costs is true?

Accepted Answer

A)  Both external and internal failure costs can be reduced (theoretically to zero) by paying more attention to quality issues early in the value chain. 
B)  Increasing expenditures related to prevention and appraisal can result in significant overall cost savings in the long run. 
C)  It may be prudent to increase expenditures in one or more areas in order to decrease other costs. 
D)  All of these are true. 
A)  Both external and internal failure costs can be reduced (theoretically to zero) by paying more attention to quality issues early in the value chain. 
B)  Increasing expenditures related to prevention and appraisal can result in significant overall cost savings in the long run. 
C)  It may be prudent to increase expenditures in one or more areas in order to decrease other costs. 
D)  All of these are true.

Question 8

What are two advantages of decentralization?

Accepted Answer

Advantages of decent

Question 9

Carson Inc. Carson Inc. had the following information available at the end of its current year:
  Refer to the Carson Inc. information above. What was Carson's margin for the year?

Accepted Answer

A)  2.4% 
B)  41.7% 
C)  25.0% 
D)  166.7% 
A)  2.4% 
B)  41.7% 
C)  25.0% 
D)  166.7%

Question 10

Residual income would be a measure of performance under which perspective of the balanced scorecard?

Accepted Answer

A)  Internal business 
B)  Customer 
C)  Financial 
D)  Learning and growth 
A)  Internal business 
B)  Customer 
C)  Financial 
D)  Learning and growth

Question 11

Describe the learning and growth perspective of the balanced scorecard and provide an example of a critical success factor for this perspective.

Accepted Answer

The learning and growth perspective serv

Question 12

Which of the following forms of manager compensation most likely encourages managers to take a long-term view of how their performance ties in with the long-term goals of a company?

Accepted Answer

A)  Year-end cash bonus 
B)  Base salary 
C)  Stock options 
D)  Use of a company car 
A)  Year-end cash bonus 
B)  Base salary 
C)  Stock options 
D)  Use of a company car

Question 13

All else being equal, which of the following items would increase a company's return on investment (ROI)?

Accepted Answer

A)  A decrease in net income. 
B)  An increase in fixed costs. 
C)  A decrease in average operating assets. 
D)  A decrease in sales volume. 
A)  A decrease in net income. 
B)  An increase in fixed costs. 
C)  A decrease in average operating assets. 
D)  A decrease in sales volume.

Question 14

Bryan Manufacturing had sales of $4,000,000 and net operating income of $700,000. Operating assets during the year averaged $600,000. The manager of Bryan is considering the purchase of a new machine which is expected to increase average operating assets by 8%. If the new machine is purchased, the company's new return on investment (ROI) would be:

Accepted Answer

A)  126.0% 
B)  16.2% 
C)  108.0% 
D)  92.6% 
A)  126.0% 
B)  16.2% 
C)  108.0% 
D)  92.6%

Question 15

What is the main idea underlying responsibility accounting?

Accepted Answer

The main idea underlying respo

Question 16

HNW Ltd. HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW's processors as being of "poor quality". As a result, HNW's management team has begun to analyze all costs associated with their food processors in more detail, and the following data has been compiled:
  Refer to the HNW Ltd. information above. What are HNW's total internal failure costs?

Accepted Answer

A)  $50,000 
B)  $130,000 
C)  $230,000 
D)  $170,000 
A)  $50,000 
B)  $130,000 
C)  $230,000 
D)  $170,000

Question 17

Newman Co. provides training and technical support to its suppliers in order to increase the quality of purchased raw materials. Which type of quality cost would this most likely be?

Accepted Answer

A)  External failure cost 
B)  Prevention cost 
C)  Internal failure cost 
D)  Appraisal (detection) cost 
A)  External failure cost 
B)  Prevention cost 
C)  Internal failure cost 
D)  Appraisal (detection) cost

Question 18

Carson Inc. Carson Inc. had the following information available at the end of its current year:
  Refer to the Carson Inc. information above. What was Carson's return on investment (ROI) for the year?

Accepted Answer

A)  2.4% 
B)  41.7% 
C)  25.0% 
D)  166.7% 
A)  2.4% 
B)  41.7% 
C)  25.0% 
D)  166.7%

Question 19

Which of the following questions would the learning and growth perspective of the balanced scorecard attempt to answer?

Accepted Answer

A)  How does the company continue to improve and learn? 
B)  How do customers view the company? 
C)  Which business processes must the company excel in? 
D)  How does the company create value for its stakeholders? 
A)  How does the company continue to improve and learn? 
B)  How do customers view the company? 
C)  Which business processes must the company excel in? 
D)  How does the company create value for its stakeholders?

Question 20

B & B Inc. B & B Inc. manufactures and produces widgets and has the following data available for the year:
  Refer to the B & B Inc. information above. What is the manufacturing cycle efficiency for the year?

Accepted Answer

A)  82.4% 
B)  70.6% 
C)  56.0% 
D)  87.5% 
A)  82.4% 
B)  70.6% 
C)  56.0% 
D)  87.5%

Which of the following reports provides key financial and nonfinancial measures of performance?

In the decision-making process, which of the following situations would be best addressed by managers using a segmented income statement rather than a contribution margin format income statement?

Grandma's Jellies Inc. Grandma's Jellies Inc. produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch: Refer to the Grandma's Jellies Inc. information above. The manufacturing cycle time per batch is:

Which of the following statements about quality costs is true?

What are two advantages of decentralization?

Carson Inc. Carson Inc. had the following information available at the end of its current year: Refer to the Carson Inc. information above. What was Carson's margin for the year?

Residual income would be a measure of performance under which perspective of the balanced scorecard?

Describe the learning and growth perspective of the balanced scorecard and provide an example of a critical success factor for this perspective.

Which of the following forms of manager compensation most likely encourages managers to take a long-term view of how their performance ties in with the long-term goals of a company?

All else being equal, which of the following items would increase a company's return on investment (ROI)?

What is the main idea underlying responsibility accounting?

Newman Co. provides training and technical support to its suppliers in order to increase the quality of purchased raw materials. Which type of quality cost would this most likely be?

Carson Inc. Carson Inc. had the following information available at the end of its current year: Refer to the Carson Inc. information above. What was Carson's return on investment (ROI) for the year?

Which of the following questions would the learning and growth perspective of the balanced scorecard attempt to answer?

B & B Inc. B & B Inc. manufactures and produces widgets and has the following data available for the year: Refer to the B & B Inc. information above. What is the manufacturing cycle efficiency for the year?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Financial Statement Analysis

The Statement of Cash Flows

Filters

Exam 11: Decentralization, Performance Evaluation, and the Balanced Scorecard

Which of the following reports provides key financial and nonfinancial measures of performance?

In the decision-making process, which of the following situations would be best addressed by managers using a segmented income statement rather than a contribution margin format income statement?

Grandma's Jellies Inc. Grandma's Jellies Inc. produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch: Refer to the Grandma's Jellies Inc. information above. The manufacturing cycle time per batch is:

Which of the following statements about quality costs is true?

What are two advantages of decentralization?

Carson Inc. Carson Inc. had the following information available at the end of its current year: Refer to the Carson Inc. information above. What was Carson's margin for the year?

Residual income would be a measure of performance under which perspective of the balanced scorecard?

Describe the learning and growth perspective of the balanced scorecard and provide an example of a critical success factor for this perspective.

Which of the following forms of manager compensation most likely encourages managers to take a long-term view of how their performance ties in with the long-term goals of a company?

All else being equal, which of the following items would increase a company's return on investment (ROI)?

What is the main idea underlying responsibility accounting?

Newman Co. provides training and technical support to its suppliers in order to increase the quality of purchased raw materials. Which type of quality cost would this most likely be?

Carson Inc. Carson Inc. had the following information available at the end of its current year: Refer to the Carson Inc. information above. What was Carson's return on investment (ROI) for the year?

Which of the following questions would the learning and growth perspective of the balanced scorecard attempt to answer?

B & B Inc. B & B Inc. manufactures and produces widgets and has the following data available for the year: Refer to the B & B Inc. information above. What is the manufacturing cycle efficiency for the year?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Financial Statement Analysis

The Statement of Cash Flows

Filters