baker ACC122 Final exam MCq

• Question 1

4 out of 4 points

Financial budgets include

• Question 2

4 out of 4 points

Which of the following budgets is prepared before the preparation of production budget?

• Question 3

4 out of 4 points

Which of the following is not a guideline for budget preparation?

• Question 4

4 out of 4 points

Which of the following budgets must managers prepare before they can prepare a direct materials purchases budget?

• Question 5

4 out of 4 points

J. J. Johnson has decided to supplement his income by selling beehives. He expects to sell 25,000 hives in 2014. He ended 2013 with 2,500 completed hives in inventory and would like to complete operations in 2014 with at least 2,800 completed hives in inventory. There is no ending work in process inventory. One beehive holds about 250 bees. The bees are purchased for $4.00 per 1,000 bees. The hives sell for $15.00 each.

How many beehives would the 2014 production budget, of Johnson, identify as needing to be produced?

• Question 6

4 out of 4 points

A performance management and evaluation system is a set of procedures that account for and report on

• Question 7

0 out of 4 points

Which of the following is a performance measure?

• Question 8

4 out of 4 points

The manager of Center A of Harry International is responsible for generating cash inflows and incurring costs with the goal of generating returns for the company. The manager has no responsibility for assets. What type of responsibility center is Center A?

• Question 9

0 out of 4 points

The performance of Steve, the manager of Center B, is evaluated the end of every month, by comparing the amount spent on manufacturing overhead with the budgets prepared at the beginning of the month. What type of responsibility center is Center B?

• Question 10

4 out of 4 points

How is the contribution margin calculated when utilizing variable costing?

• Question 11

0 out of 4 points

A standard costing system

• Question 12

4 out of 4 points

Standard costs for company products are typically used for all except

.

• Question 13

4 out of 4 points

An expression of the hourly labor pay cost per function or job classification that is expected to exist during the next accounting period is the definition of a

• Question 14

0 out of 4 points

Blue Bull Inc. uses direct labor hours to allocate variable and fixed overhead costs. Under which of the following circumstances would the base used to calculate the variable overhead rate be the same as that used for the fixed overhead rate?

• Question 15

4 out of 4 points

Gunnie Inc. produces and sells dog food. Each bag contains 20 pounds of dog food.

Following additional information is provided by the company:

Direct materials quantity standard 20 pounds per unit

Direct materials price standard $0.02 per pound

Direct labor time standard 0.1 hour per unit

Direct labor rate standard $11.50 per hour

Variable overhead rate standard $2.50 per machine hour

Fixed overhead rate standard $1.50 per machine hour

Machine hour standard 0.25 hours per unit

Compute the standard unit cost for each bag.

• Question 16

4 out of 4 points

Capital investment analysis involves all of the following except

• Question 17

4 out of 4 points

Which of the following is not an appropriate method used in evaluating proposed capital investments?

• Question 18

4 out of 4 points

Depreciation expense influences cash flows because it directly affects

• Question 19

4 out of 4 points

Projected disposal or residual values of replacement equipment are relevant to capital investment analysis because

• Question 20

4 out of 4 points

Sabrina Company has a tax rate of 30 percent and is considering a capital project that will make the following annual contribution to operating income:

Cash revenues $100,000

Noncash revenues 40,000

Cash expenses (40,000)

Depreciation (45,000)

Operating income before income taxes $55,000

Income taxes (16,500)

Operating income $38,500

Using the income adjustment procedure, net cash inflows are

• Question 21

0 out of 4 points

A change from FIFO to LIFO in a period of rising prices will

• Question 22

4 out of 4 points

Materials and supplies that cannot be traced conveniently to specific products are called

• Question 23

4 out of 4 points

Costs assigned to the building of a ship should appear on the income statement when

• Question 24

4 out of 4 points

Which of the following statements most accurately explains the behavior of costs?

• Question 25

4 out of 4 points

The high-low method