Question 1

Which of the following items used to measure customer response time would not be used to measure manufacturing cycle time?

Accepted Answer

A)  Time it takes to process raw materials into a completed product. 
B)  Time spent waiting for a machine's availability. 
C)  Time spent inspecting the materials for quality control. 
D)  Time spent delivering the product to the customer. 
A)  Time it takes to process raw materials into a completed product. 
B)  Time spent waiting for a machine's availability. 
C)  Time spent inspecting the materials for quality control. 
D)  Time spent delivering the product to the customer.

Question 2

What is a "stock option" and does it always have value?

Accepted Answer

A stock option is given to managers or e

Question 3

Perk Inc. manufactures and sells coffee makers. A popular consumer magazine has recently evaluated coffee makers and has ranked Perk's coffee makers as being of "poor quality". As a result, Perk's management team has begun to analyze all costs associated with their coffee makers in more detail, and has compiled the following data:
   Required:

Accepted Answer

The answer of Perk Inc. manufactures and sells coffee makers....

Question 4

Duncan Ltd. has the following information available for one its divisions in the current year:   Duncan requires each of its divisions to generate a minimum return of 20%. What is this division's residual income?

Accepted Answer

A)  $200,000 
B)  $450,000 
C)  $700,000 
D)  $1,250,000 
A)  $200,000 
B)  $450,000 
C)  $700,000 
D)  $1,250,000

Question 5

"Responsibility accounting" is the concept that says:

Accepted Answer

A)  managers should be held entirely responsible for all investment decisions that impact the particular segment in which they are in charge. 
B)  managers should be held responsible for only those things under their control. 
C)  managers should never be held entirely responsible for things that happen within the particular segment in which they are in charge. 
D)  managers should be responsible for both revenues and costs of their particular segment. 
A)  managers should be held entirely responsible for all investment decisions that impact the particular segment in which they are in charge. 
B)  managers should be held responsible for only those things under their control. 
C)  managers should never be held entirely responsible for things that happen within the particular segment in which they are in charge. 
D)  managers should be responsible for both revenues and costs of their particular segment.

Question 6

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles:
  Refer to the Picture Puzzle Company information above. The total non-value-added time is:

Accepted Answer

A)  11 days and 1 hour. 
B)  11 days. 
C)  1 day. 
D)  10 days. 
A)  11 days and 1 hour. 
B)  11 days. 
C)  1 day. 
D)  10 days.

Question 7

Which of the following is a disadvantage of decentralization?

Accepted Answer

A)  Less timely decisions are able to be made on a day-to-day basis. 
B)  Decreased job satisfaction for lower-level managers. 
C)  Lack of coordination and communication between segments. 
D)  Lower training costs for lower-level managers. 
A)  Less timely decisions are able to be made on a day-to-day basis. 
B)  Decreased job satisfaction for lower-level managers. 
C)  Lack of coordination and communication between segments. 
D)  Lower training costs for lower-level managers.

Question 8

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles:
  Refer to the Picture Puzzle Company information above. The total value-added time is:

Accepted Answer

A)  14 days and 1 hour. 
B)  13 days. 
C)  3 days. 
D)  4 days. 
A)  14 days and 1 hour. 
B)  13 days. 
C)  3 days. 
D)  4 days.

Question 9

WSR Inc. WSR Inc. sells a variety of drink and food products including potato chips and sodas. The segmented income statements for these two products are as follows:
  WSR's management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30,000 and only one product can be featured. In-house marketing studies show that the campaign could increase sales of the soda division by $200,000 or increase sales of the chips division by $275,000.
Refer to the WSR Inc. information above. Which of the following statements is true regarding which product the advertising campaign should feature?

Accepted Answer

A)  Overall company profits will be higher by $45,000 if the campaign features chips rather than soda. 
B)  Overall company profits will be higher by $28,750 if the campaign features chips rather than soda. 
C)  Overall company profits will be higher by $13,750 if the campaign features chips rather than soda. 
D)  Overall company profits will be higher by $26,250 if the campaign features soda rather than chips. 
A)  Overall company profits will be higher by $45,000 if the campaign features chips rather than soda. 
B)  Overall company profits will be higher by $28,750 if the campaign features chips rather than soda. 
C)  Overall company profits will be higher by $13,750 if the campaign features chips rather than soda. 
D)  Overall company profits will be higher by $26,250 if the campaign features soda rather than chips.

Question 10

Which of the following is not an advantage of decentralization?

Accepted Answer

A)  It often creates higher job satisfaction for managers. 
B)  It allows top-level managers more time to devote to long-range strategic planning. 
C)  It allows lower-level managers to focus on their own particular goals and objectives without having to consider the overall company's goals and objectives. 
D)  It permits lower-level managers to gain valuable on-the-job training in order to become better managers. 
A)  It often creates higher job satisfaction for managers. 
B)  It allows top-level managers more time to devote to long-range strategic planning. 
C)  It allows lower-level managers to focus on their own particular goals and objectives without having to consider the overall company's goals and objectives. 
D)  It permits lower-level managers to gain valuable on-the-job training in order to become better managers.

Question 11

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 prevention costs?

Accepted Answer

A)  $30,000 
B)  $165,000 
C)  $105,000 
D)  $75,000 
A)  $30,000 
B)  $165,000 
C)  $105,000 
D)  $75,000

Question 12

Which of the following statements is true regarding more traditional measures of financial performance?

Accepted Answer

A)  They often look at a company's performance from four different but related perspectives: financial, customer, internal business, and learning and growth. 
B)  They are often superior to measuring a company's performance than the balanced scorecard approach. 
C)  Performance problems are often not captured in as timely a fashion as with the balanced scorecard approach. 
D)  They tend to focus on nonfinancial rather than financial measures of performance. 
A)  They often look at a company's performance from four different but related perspectives: financial, customer, internal business, and learning and growth. 
B)  They are often superior to measuring a company's performance than the balanced scorecard approach. 
C)  Performance problems are often not captured in as timely a fashion as with the balanced scorecard approach. 
D)  They tend to focus on nonfinancial rather than financial measures of performance.

Question 13

Barksdale Manufacturing Inc. produces its products in batches containing 100 units. Barksdale randomly samples 15 of the units in each batch for quality control. The costs of performing these random sample tests would most likely be which type of quality cost?

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 14

Boone Manufacturing Boone Manufacturing produces a variety of lamp shades which it sells to retail stores throughout the country. The following data is available for the year:
  Refer to the Boone Manufacturing information above. What is the manufacturing cycle efficiency for the year?

Accepted Answer

A)  66.7% 
B)  15.0% 
C)  92.5% 
D)  75.0% 
A)  66.7% 
B)  15.0% 
C)  92.5% 
D)  75.0%

Question 15

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 appraisal (detection) costs?

Accepted Answer

A)  $170,000 
B)  $110,000 
C)  $150,000 
D)  $64,000 
A)  $170,000 
B)  $110,000 
C)  $150,000 
D)  $64,000

Question 16

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 external failure costs?

Accepted Answer

A)  $70,000 
B)  $60,000 
C)  $140,000 
D)  $100,000 
A)  $70,000 
B)  $60,000 
C)  $140,000 
D)  $100,000

Question 17

A company has computed that their "asset turnover" is 3. Which of the following statements is the best interpretation of these results?

Accepted Answer

A)  For every $3 of sales, $1 of net profit is generated. 
B)  For every $3 invested in assets, $1 in net profit is generated. 
C)  For every $1 invested in assets, $3 in sales are generated. 
D)  For every $3 invested in assets, $1 in sales are generated. 
A)  For every $3 of sales, $1 of net profit is generated. 
B)  For every $3 invested in assets, $1 in net profit is generated. 
C)  For every $1 invested in assets, $3 in sales are generated. 
D)  For every $3 invested in assets, $1 in sales are generated.

Question 18

Which of the following statements regarding "quality" is true?

Accepted Answer

A)  Over the past 20 years or so, the demand by customers for quality products and services at an affordable price has drastically changed the way companies do business. 
B)  Improving quality increases sales through higher customer satisfaction and demand, reduces costs, and increases the long-term profitability of companies. 
C)  Companies have focused on improving the quality of the products or the services they sell through a variety of initiatives, such as total quality management (TQM), market-driven quality, and strategic quality management. 
D)  All of these are true. 
A)  Over the past 20 years or so, the demand by customers for quality products and services at an affordable price has drastically changed the way companies do business. 
B)  Improving quality increases sales through higher customer satisfaction and demand, reduces costs, and increases the long-term profitability of companies. 
C)  Companies have focused on improving the quality of the products or the services they sell through a variety of initiatives, such as total quality management (TQM), market-driven quality, and strategic quality management. 
D)  All of these are true.

Question 19

The manager of a profit center should not be responsible for which of the following types of decisions?

Accepted Answer

A)  Deciding which supplier should be used for the purchase of direct materials. 
B)  Establishing the number of employees that will need to work each day. 
C)  Deciding whether or not their segment should purchase additional machinery. 
D)  Deciding whether or not to accept a special order from a customer. 
A)  Deciding which supplier should be used for the purchase of direct materials. 
B)  Establishing the number of employees that will need to work each day. 
C)  Deciding whether or not their segment should purchase additional machinery. 
D)  Deciding whether or not to accept a special order from a customer.

Question 20

Match the following critical success factors with the appropriate perspective of the balanced scorecard. Use the following key: F = Financial, C = Customer, IB = Internal business, and LG = Learning and growth.

Accepted Answer

The answer of Match the following critical success factors with...

Which of the following items used to measure customer response time would not be used to measure manufacturing cycle time?

What is a "stock option" and does it always have value?

Duncan Ltd. has the following information available for one its divisions in the current year: Duncan requires each of its divisions to generate a minimum return of 20%. What is this division's residual income?

"Responsibility accounting" is the concept that says:

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles: Refer to the Picture Puzzle Company information above. The total non-value-added time is:

Which of the following is a disadvantage of decentralization?

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles: Refer to the Picture Puzzle Company information above. The total value-added time is:

Which of the following is not an advantage of decentralization?

Which of the following statements is true regarding more traditional measures of financial performance?

Barksdale Manufacturing Inc. produces its products in batches containing 100 units. Barksdale randomly samples 15 of the units in each batch for quality control. The costs of performing these random sample tests would most likely be which type of quality cost?

Boone Manufacturing Boone Manufacturing produces a variety of lamp shades which it sells to retail stores throughout the country. The following data is available for the year: Refer to the Boone Manufacturing information above. What is the manufacturing cycle efficiency for the year?

A company has computed that their "asset turnover" is 3. Which of the following statements is the best interpretation of these results?

Which of the following statements regarding "quality" is true?

The manager of a profit center should not be responsible for which of the following types of decisions?

Match the following critical success factors with the appropriate perspective of the balanced scorecard. Use the following key: F = Financial, C = Customer, IB = Internal business, and LG = Learning and growth.

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

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

Which of the following items used to measure customer response time would not be used to measure manufacturing cycle time?

What is a "stock option" and does it always have value?

Duncan Ltd. has the following information available for one its divisions in the current year: Duncan requires each of its divisions to generate a minimum return of 20%. What is this division's residual income?

"Responsibility accounting" is the concept that says:

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles: Refer to the Picture Puzzle Company information above. The total non-value-added time is:

Which of the following is a disadvantage of decentralization?

Picture Puzzle Company The Picture Puzzle Company has the following estimates for producing a single batch of 500 custom-made puzzles: Refer to the Picture Puzzle Company information above. The total value-added time is:

Which of the following is not an advantage of decentralization?

Which of the following statements is true regarding more traditional measures of financial performance?

Barksdale Manufacturing Inc. produces its products in batches containing 100 units. Barksdale randomly samples 15 of the units in each batch for quality control. The costs of performing these random sample tests would most likely be which type of quality cost?

Boone Manufacturing Boone Manufacturing produces a variety of lamp shades which it sells to retail stores throughout the country. The following data is available for the year: Refer to the Boone Manufacturing information above. What is the manufacturing cycle efficiency for the year?

A company has computed that their "asset turnover" is 3. Which of the following statements is the best interpretation of these results?

Which of the following statements regarding "quality" is true?

The manager of a profit center should not be responsible for which of the following types of decisions?

Match the following critical success factors with the appropriate perspective of the balanced scorecard. Use the following key: F = Financial, C = Customer, IB = Internal business, and LG = Learning and growth.

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