accounting question

Much of managerial accounting information is based on:
A. a cost-benefit theme.
B. profit maximization.
C. cost minimization.
D. the generation of external information.
E. effectiveness but not efficiency.

2. Managerial accounting has changed in recent years because of:
A. a growing service economy in the United States.
B. the growing popularity of cross-functional teams.
C. an increase in global competition.
D. time-based competition.
E. All of these factors.

3. The value chain of a manufacturer would tend to include activities related to:
A. manufacturing.
B. research and development.
C. product design.
D. marketing.
E. All of these.

4. The accounting records of Bronco Company revealed the following information:

Bronco's cost of goods manufactured is:
A. $519,000.
B. $522,000.
C. $568,000.
D. $571,000.
E. some other amount.

5. Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have been:
A. $130,000.
B. $10,000.
C. $66,000.
D. $390,000.
E. some other amount.

6. When 5,000 units are produced variable costs are $35 per unit and total costs are $200,000. What are the total costs when 8,000 units are produced?
A. $200,000.
B. $305,000.
C. $240,000.
D. Some other amount.
E. Total costs cannot be calculated based on the information presented.

Wee Care is a nursery school for pre-kindergarten children. The school has determined that the following biweekly revenues and costs occur at different levels of enrollment:

7. The marginal cost when the twenty-first student enrolls in the school is:
A. $55.
B. $155.
C. $300.
D. $3,045.
E. $3,255.

8. Throughout the accounting period, the credit side of the Manufacturing Overhead account is used to accumulate:
A. actual manufacturing overhead costs.
B. overhead applied to Work-in-Process Inventory.
C. overapplied overhead.
D. underapplied overhead.
E. predetermined overhead.

9. Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was:
A. $0.04 per machine hour.
B. $0.05 per machine hour.
C. $20 per machine hour.
D. $21 per machine hour.
E. $25 per machine hour

10. Armada Company applies manufacturing overhead by using a predetermined rate of 150% of direct labor cost. The data that follow pertain to job no. 831:



If Armada adds a 30% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the credit sale of job no. 831?


A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E

11. Which of the following is the proper sequence of events in an activity-based costing system?
A. Identification of cost drivers, identification of cost pools, calculation of pool rates, assignment of cost to products.
B. Identification of cost pools, identification of cost drivers, calculation of pool rates, assignment of cost to products.
C. Assignment of cost to products, identification of cost pools, identification of cost drivers, calculation of pool rates.
D. Calculation of pool rates, identification of cost drivers, identification of cost pools, assignment of cost to products.
E. Some other sequence of the four activities listed above.

12. Which of the following choices correctly depicts the proper classification of direct materials used and management salaries?


A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E

St. James, Inc., currently uses traditional costing procedures, applying $800,000 of overhead to products Beta and Zeta on the basis of direct labor hours. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow.

13. The overhead cost allocated to Beta by using traditional costing procedures would be:
A. $240,000.
B. $356,000.
C. $444,000.
D. $560,000.
E. some other amount.

14. The overhead cost allocated to Zeta by using traditional costing procedures would be:
A. $240,000.
B. $356,000.
C. $444,000.
D. $560,000.
E. some other amount

15. The overhead cost allocated to Beta by using activity-based costing procedures would be:
A. $240,000.
B. $356,000.
C. $444,000.
D. $560,000.
E. some other amount.

16. The overhead cost allocated to Zeta by using activity-based costing procedures would be:
A. $240,000.
B. $356,000.
C. $444,000.
D. $560,000.
E. some other amount.

17. A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true?
A. The company is studying a variable cost, and total volume has increased.
B. The company is studying a variable cost, and total volume has decreased.
C. The company is studying a fixed cost, and total volume has increased.
D. The company is studying a fixed cost, and total volume has decreased.
E. The company is studying a fixed cost, and total volume has remained constant.

Swanson and Associates presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. Swanson made 7,000 copies and paid a total of $360 in March; in May, the firm paid $280 for 5,000 copies. The company uses the high-low method to analyze costs.

18. Swanson's variable cost per copy is:
A. $0.040.
B. $0.051.
C. $0.053.
D. $0.056.
E. an amount other than those given above.

19. Swanson's monthly fixed fee is:
A. $80.
B. $102.
C. $106.
D. $112.
E. an amount other than those given above.

20. Grime-X is studying the profitability of a change in operation and has gathered the following information:

Should Grime-X make the change?
A. Yes, the company will be better off by $6,000.
B. No, because sales will drop by 3,000 units.
C. No, because the company will be worse off by $4,000.
D. No, because the company will be worse off by $22,000.
E. It is impossible to judge because additional information is needed.

21. Yellow Dot, Inc. sells a single product for $10. Variable costs are $4 per unit and fixed costs total $120,000 at a volume level of 10,000 units. What dollar sales level would Yellow Dot have to achieve to earn a target profit of $240,000?
A. $400,000.
B. $500,000.
C. $600,000.
D. $750,000.
E. $900,000.

22. Brooklyn sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Brooklyn's unit sales are 200 units less than anticipated, its breakeven point will:
A. increase by $12 per unit sold.
B. decrease by $12 per unit sold.
C. increase by $8 per unit sold.
D. decrease by $8 per unit sold.
E. not change.

23. S'Round Sound, Inc. reported the following results from the sale of 24,000 units of IT-54:



Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. Sound has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost" of production is $17. Which of the following correctly notes the change in income if the special order is accepted?
A. $3,000 decrease.
B. $3,000 increase.
C. $12,000 decrease.
D. $12,000 increase.
E. None of these.

24. Song, a division of Carolina Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems. Song's costs follow.



If Song were to discontinue production, fixed manufacturing costs would be reduced by 70%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is:
A. $540,000.
B. $594,000.
C. $666,000.
D. $720,000.
E. $726,000.

25. When deciding whether to sell a product at the split-off point or process it further, joint costs are not usually relevant because:
A. such amounts do not help to increase sales revenue.
B. such amounts only slightly increase a company's sales margin.
C. such amounts are sunk and do not change with the decision.
D. the sales revenue does not decrease to the extent that it should, if compared with separable processing.
E. such amounts reflect opportunity costs.