I Need Help ASAP With 2 Assignments.

Question 1. Which of the following is considered to be an advantage of using both nonfinancial and financial information in the balanced scorecard? (Points : 2)

Nonfinancial information is most helpful in analyzing a company’s past performance, while financial information is most useful in evaluating potential future performance. Nonfinancial information provides the short-term perspective while financial information provides the long-term perspective of performance. Nonfinancial information reflects the company’s current and potential competitive advantage, while financial information tends to focus on a firm’s achieved financial performance. Nonfinancial information should be included with financial information because it is more reliable than financial information.

Question 2. Over the past several years it has become increasingly important for firms to improve achievement towards their social and environmental responsibilities. What is the best way the management accountant can help the firm improve on sustainability? (Points : 2)

Participate in programs of environmental organizations. Develop and implement a legal staff and public relations staff for dealing with sustainability issues that may affect the firm. Develop and implement a sustainability scorecard. Risk management.

Question 3. The range of the cost driver in which the actual value of the driver is expected to fall is the: (Points : 2)

Actual cost range. Driver range. Activity range. Relevant range.

Question 4. The difference between wholesalers and retailers is: (Points : 2)

Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell to other merchandisers. Wholesalers are merchandisers that sell to other merchandisers whereas retailers are merchandisers that sell directly to consumers. Wholesalers are merchandisers that sell directly to the government whereas retailers are merchandisers that sell to other merchandisers. Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell directly to the government.

Question 5. In a local factory, employees are rewarded for finding new and better ways of changing the way they work. This company is motivating its employees to use what management technique? (Points : 2)

Benchmarking. Activity-Based Costing. Theory of Constraints. Continuous Improvement. Total Quality Management.

Question 6. Assume the following information pertaining to Moonbeam Company: Beginning Finished Goods Inventory = $130,000 Ending Finished Goods Inventory = $124,000 Beginning WIP Inventory = $85,000 Ending WIP Inventory = $104,000 Beginning Direct Materials = $117,000 Ending Direct Materials = $130,000 Costs incurred during the period are as follows: Total Manufacturing Costs = $896,000 Factory Overhead = $199,000 Direct Materials Used = $156.000 Materials purchases are calculated to be: (Points : 2)

$143,000. $156,000. $91,000. $169,000. $140,000.

Question 7. Assume the following information pertaining to a Company: Prime costs = $195,000 Conversion Costs = $221,000 Direct Materials used = $85,000 Beginning Work-in-Process = $98,000 Ending Work-in-Process = $81,000 Cost of goods manufactured is calculated to be: (Points : 2)

$289,000. $348,000. $314,000. $297,000. $323,000.

Question 8. Which of the following activities is a facility-level activity? (Points : 2)

Plant management salaries. Depreciation on a highly specialized piece of production equipment. Direct labor. Product design.

Question 9. Abnormal spoilage: (Points : 2)

Is considered part of good production. Arises under efficient operating conditions. Is controllable in the short run. Is unacceptable spoilage that should not occur under efficient operating conditions. Is part of inventory product cost.

Question 10. Process cost systems are used in all of the following industries except: (Points : 2)

Chemicals. Ship building. Oil refining. Textiles. Steel.

Question 11. When completed units are sold: (Points : 2)

Cost of Goods Sold account is credited. Cost of Goods Manufactured account is credited. Finished Goods Inventory account is credited. Work-in-Process Inventory account is credited. Finished Goods Inventory account is debited.

Question 12. Multistage ABC is used when: (Points : 2)

There are many departments in the organization. Management wants a higher level of accuracy from the ABC calculations. There are complex relationships among the activities. To simplify the ABC calculations.

Question 13. East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2013 are provided below: Tons of Percent Completed King Salmon Materials Conversion Work-in-Process Inventory – June 1 1,500 90 80 Work-in-Process Inventory – June 1 2,800 60 40 Started processing during June 7,800 Total equivalent units for materials under the weighted-average method are calculated to be: (Points : 2)

6,830 equivalent units. 8,180 equivalent units. 6,980 equivalent units. 7,140 equivalent units. 7,620 equivalent units.

Question 14. Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool – Budgeted O/H $ – Budgeted Level for Cost Driver – O/H Cost Driver Materials Handling $160,000 3,200 lbs. Material Weight Machine Setup 13,200 390 S/U’s # of S/Us Machine Repair 1,380 30,000 Mach. Hrs Machine Hrs. Inspections 10,560 160 Inspections # of Inspections Requirements for Job #971 which included 4 Units of Production: D/L Hours = 20 Hours D/Mat’ls = 130 lbs. Machine S/U = 30 Set-ups Machine Hrs. = 15,000 Machine Hours Inspections = 15 Inspections. Using ABC, the materials handling overhead cost assigned to Job #971 is: (Points : 2)

$2,300. $990. $6,500. $690. $1,020.

Question 15. Firm X has a production process that has a total joint cost of $15,000. At the split-off point, there are 2,000 pounds of Product 1 and 3,000 pounds of Product 2. What is the cost per pound of Product 1 using the physical measure method? (Points : 2)

$2.50. $3.00. $3.50. $4.00.

Question 16. Which of the following is required for multiple regression? (Points : 2)

The use of dummy variables. The use of more than one cost driver. The use of more than one dependent variable. The use of a trend variable. The use of multiple sets of data.

Question 17. An overhead cost that can be traced directly to either a service or production department: (Points : 2)

Is called a “flow through” cost. Requires less allocation effort. Is charged directly to that department. Must be variable. Must be fixed.

Question 18. The CVP profit-planning model assumes that over the relevant range of activity: (Points : 2)

Only revenues are linear. Only revenues and fixed costs are linear. Only revenues and variable costs are linear. Variable cost per unit decreases because of increases in productivity. Both revenues and total costs are linear.

Question 19. Joint products are products that: (Points : 2)

Have minor total sales value. Have substantial sales value. Come from different production processes. Are marketed in a joint marketing program.

Question 20. Variable costs will generally be relevant for decision making because they: (Points : 2)

Differ between options. Are volume-based. Have not been committed and differ between options. Differ between options and have been committed. Measure opportunity cost.

Question 21. Jackson, Inc. is preparing a budget for the coming year and requires a breakdown of the cost of electrical power used in its factory into the fixed and variable elements. The following data on the cost of power used and direct labor hours worked are available for the last six months of this year: Month $ for Power DL Hours July $ 15,850 3,000 Aug 13,400 2,050 Sept 16,370 2,900 Oct 19,800 3,650 Nov 17,600 2,670 Dec 18,500 2,650 Total $101,520 16,920 Assuming that Jackson uses the high-low method of analysis, the estimated variable cost of steam per direct labor hour is: (Points : 2)

$4.00. $5.42. $5.82. $6.00.

Question 22. The decision to keep or drop products or services involves strategic consideration of all the following except: (Points : 2)

Potential impact on remaining products or services. Impact on employee morale. Impact on organizational effectiveness. Growth potential of the firm. The desired inventory levels of the product.

Question 23. Which of the following is not true regarding the appropriate discount rate to be used in conjunction with discounted cash flow (DCF) decision models? (Points : 2)

For projects of “above average” risk, the appropriate discount rate is the weighted-average cost of capital (WACC) It includes an estimate of the after-tax cost of debt. It can differ across investment projects, according to perceived risk. It is also sometimes referred to as the “hurdle rate” for capital budgeting purposes.

Question 24. One of the key management functions is to perform a regular review of product profitability. Which question(s) below would not be asked when performing the analysis? (Points : 2)

Are the products priced properly? Which products are the most profitable? Which products should be advertised more aggressively? Should any product manager be rewarded? What was the product manager paid last year?

Question 25. You just bought a new car for $125,000. Before you had time to get insurance, the car was wrecked. Weird Wally offers to take it off your hands for $10,000. You can then purchase a similar model for $128,000. A body-shop with an excellent reputation offers to rebuild it for $90,000 and loan you a similar model while the vehicle is being rebuilt. Once rebuilt, the body-shop claiams, it will run like a new car and nobody will be able to tell the difference. What would you do from a financial point of view? (Points : 2)

Rebuild to save $13,000. Rebuild to save $28,000. Rebuild to save $38,000. Sell to Weird Wally and save $7,000.

Question 26. Which of the following statements regarding “opportunity costs” is TRUE? (Points : 2)

These costs are recorded routinely by cost accounting systems. These costs relate to the benefit lost or foregone when a chosen option (course of action) precludes the benefits from an alternative option. These costs are generally deductible for federal income tax purposes. In terms of most short-run decisions, they are irrelevant.

Question 27. Throughput margin is defined as sales less: (Points : 2)

Direct labor costs. Direct material costs. Direct labor and material costs. Processing costs. Manufacturing costs.

Question 28. Pique Corporation wants to purchase a new machine for $300,000. Management predicts that the machine can produce sales of $200,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $80,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets. Pique’s combined income tax rate is 40%. Management requires a minimum after-tax rate of return of 10% on all investments. What is the approximate internal rate of return (IRR) of the investment? (NOTE: To answer this question, students must have access to Table 2 from Appendix C, Chapter 12.) (Points : 2)

Less than 12%. Somewhere between 12% and 14%. Somewhere between 15% and 20%. Somewhere between 20% and 25%. Over 25%.

Question 29. The theory of constraints (TOC) emphasizes which of the following? (Points : 2)

Developing competitive constraints. Finding and eliminating design constraints. Removing bottlenecks from the production process. Improving overall production efficiency.

Question 30. For internal reporting purposes, it is recommended that fixed overhead allocation rates in a standard costing system be based on: (Points : 2)

Budgeted capacity usage. Theoretical capacity since this is the level required under generally accepted accounting principles. Actual capacity utilization. Expected capacity usage. Practical capacity.

Question 31. A “standard cost” is a predetermined amount (e.g., cost) that: (Points : 2)

Should be incurred under relatively efficient operating conditions. Will be incurred for an operation or a specific objective. Must occur for an operation or a specific objective. Cannot be changed once it is established by management.

Question 32. The difference between the total actual sales revenue of a period and the total flexible-budget sales revenue for the units sold during the period is the: (Points : 2)

Total flexible-budget variance. Sales volume variance. Selling price variance. Operating income flexible-budget variance.

Question 33. Which of the following benefits is not typically associated with a move to a just-in-time (JIT) manufacturing system? (Points : 2)

Raw materials are delivered as close as possible to time of production. Existence of long-term contracts with selected suppliers. Reduction in employee training and education costs. Decreases in manufacturing lead time. Improved customer-response time (CRT).

Question 34. A company’s flexible budget for 15,000 units of production showed sales of $48,000; variable costs of $18,000; and fixed costs of $12,000. The operating income in the master budget for 20,000 units is: (Points : 2)

$8,000. $13,500. $24,000. $28,000. $30,000.

Question 35. In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 is fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U The actual amount of operating income earned in September was: (Points : 2)

$15,000. $40,000. $63,000. $78,000. $105,000.

Question 36.. SBU is the acronym for: (Points : 2)

Small Business Unit. Sustainable Business Unit. Standard Business Unit. Strategic Business Unit.

Question 37. The common factor among control systems in hiring practices, promotion policies, and strategic performance measurement is: (Points : 2)

Management sets expectations for desired employee performance. Employee-determined expectations for desired employee performance. Coordination of activities. Communication of results.

Question 38. The balanced scorecard measures the SBU’s performance in all of the following areas except: (Points : 2)

Learning and growth. Managerial performance. Customer satisfaction. Internal business processes. Accounting and tax compliance.

Question 39. The need for coordination between the production and the selling function will impact the choice of: (Points : 2)

Profit, cost or revenue center. Manager for the firm. Formal or informal control systems. Profitability goal for the firm. Control measures to prevent fraud.

Question 40. Of most relevance in deciding how or which costs should be assigned to an SBU is the degree of: (Points : 2)

Avoidability. Causality. Controllability. Reliability.

Question 41. The “risk-averse” manager will be improperly biased to: (Points : 2)

Seek out decisions with uncertain outcomes. Make risky decisions. Avoid decisions with uncertain outcomes. Maximize his or her own risk and minimize the company’s risk. Use resources beyond his/her control.

Question 42. A method for determining a bonus based upon the performance of the unit is a(n): (Points : 2)

Segment-based pool. Unit-based pool. Firm-based pool. Activity-based pool. Function-based pool.

Question 43. Jackson Supply Company has a 2 to 1 current ratio. This ratio would increase to more than 2 to 1 if the company: (Points : 2)

Purchased a marketable security for cash. Wrote off an uncollectible receivable. Sold merchandise on account that earned a normal gross margin. Purchased inventory on account.

Question 44. The stock option form of bonus payments to managers usually: (Points : 2)

Motivates well even in extended market downturns. Can lose some motivation because of the delay in reward. Focuses on the short-term. Is not consistent with shareholder interests. Has less risk than other types of bonus payment plans.

Question 45. An increase in the market price of a company’s common stock will immediately affect its: (Points : 2)

Stock return. Debt to equity ratio. Earnings per share. Economic value added. Return on equity.

Question 46. Which one of the following refers to the firm’s ability to pay its current operating expenses and maturing debt? (Points : 2)

Discounted cash flow. Liquidity. Earnings base. Profitability. Purchasing power.

Question 47. Economic value added is calculated from: (Points : 2)

Average total assets, current liabilities, net income, and the cost of capital. EVA net income and EVA invested capital. Net income, cost of capital, and net assets. Net income and the cost of capital. EVA net income, the cost of capital, and EVA invested capital.

Question 48. The King Mattress Company had the following operating results for 2012-2013. In addition, the company paid dividends in both 2012 and 2013 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company’s stock price in 2012 was $8 and $7 in 2013. The industry average earnings multiple for the mattress industry was 9 in 2013 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2013. Balance Sheet, December 31 2013 2012 Cash $ 340,000 $ 100,000 Accounts Receivable 350,000 400,000 Inventory 250,000 300,000 Total Current Assets $ 940,000 $ 800,000 Long Lived Assets 1,080,000 1,100,000 Total Assets $ 2,020,000 $ 1,900,000 Current Liabilities $ 200,000 $ 300,000 Long-Term Liabilities 600,000 500,000 Stockholder’s Equity 1,220,000 1,100,000 Total Liabilities & Equity $ 2,020,000 $ 1,900,000 Income Statement for the Year Ended December 31 Sales $ 4,750,000 $ 4,500,000 Cost of Sales 4,100,000 4,000,000 Gross Margin $ 650,000 $ 500,000 Operating Expenses 350,000 400,000 Operating Income $ 300,000 $ 100,000 Taxes 120,000 40,000 Net Income $ 180,000 $ 60,000 Cash Flow from Operations Net Income $ 180,000 $ 60,000 Plus Depreciation Expense 50,000 50,000 +Decrease (-Inc) in A/T and Inventory 100,000 – 0 – +Increase (-Dec) in Current Liabilities (100,000) – 0 – Cash Flow from Operations $ 230,000 $ 110,000 The inventory turnover ratio for 2013 is (rounded): (Points : 2)

11.2 12.7 13.7 14.9

Question 49. During October, Rover Industries produced 35,000 units of product with costs as follows: DM = $ 84,000 DL = 43,000 Variable O/H = 13,000 Fixed O/H = 147,000 Total =$ 287,000 What is Rover’s unit cost for October, calculated on the variable costing basis? (Points : 2)

$3.25. $3.75. $4.00. $4.50. $5.00.

Question 50. The King Mattress Company had the following operating results for 2012-2013. In addition, the company paid dividends in both 2012 and 2013 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company’s stock price in 2012 was $8 and $7 in 2013. The industry average earnings multiple for the mattress industry was 9 in 2013 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2013. Balance Sheet, December 31 2013 2012 Cash $ 340,000 $ 100,000 Accounts Receivable 350,000 400,000 Inventory 250,000 300,000 Total Current Assets $ 940,000 $ 800,000 Long Lived Assets 1,080,000 1,100,000 Total Assets $ 2,020,000 $ 1,900,000 Current Liabilities $ 200,000 $ 300,000 Long-Term Liabilities 600,000 500,000 Stockholder’s Equity 1,220,000 1,100,000 Total Liabilities & Equity $ 2,020,000 $ 1,900,000 Income Statement for the Year Ended December 31 Sales $ 4,750,000 $ 4,500,000 Cost of Sales 4,100,000 4,000,000 Gross Margin $ 650,000 $ 500,000 Operating Expenses 350,000 400,000 Operating Income $ 300,000 $ 100,000 Taxes 120,000 40,000 Net Income $ 180,000 $ 60,000 Cash Flow from Operations Net Income $ 180,000 $ 60,000 Plus Depreciation Expense 50,000 50,000 +Decrease (-Inc) in A/T and Inventory 100,000 – 0 – +Increase (-Dec) in Current Liabilities (100,000) – 0 – Cash Flow from Operations $ 230,000 $ 110,000 The current ratio for 2013 is: (Points : 2)

1.8 2.0 3.9 4.7

 

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