Accounting final

A company is deciding whether or not to replace some old equipment with the new equipment. Which of the following is a relevant cost for incremental analysis? A. cost of the new equipment. B. book value of the old equipment. C. estimated annual depreciation of the new equipment. D. annual depreciation charge on the old equipment.

A. cost of the new equipment

Changes in activity have a(n)________ effect on fixed costs per unit. A. inverse. B. positive. C. negative. D. neutral

A. inverse

All of the following are correct statements about the cost-based transfer price approach except that it. A. provides incentive for the selling division to control costs. B. can reduce a division manager's control over the division's performance. C. can understate the actual contribution to profit by the selling division. D. bases the transfer price on standard costs instead of actual cost.

A. provides incentive for the selling division to control costs

Which of the following would NOT be an acceptable way to express contribution margin? A. sales minus unit costs. B. unit selling price minus unit variable costs. C. unit contribution margin divided by unit selling price. D. sales minus variable costs.

A. sales minus unit costs

Each of the following is an example of a significant noncash activity except. A. stock Dividends. B. conversion of bonds into common stock. C. exchanges of plant assets. D. issuance of debt to purchase assets.

A. stock Dividends.

Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts? A. manufacturing overhead. B. cost of goods sold. C. factory labor. D. raw materials inventory.

B. cost of goods sold

Which cost is not charged to the product under variable costing? A. variable manufacturing overhead. B. fixed manufacturing overhead. C. direct materials. D. direct labor.

B. fixed manufacturing overhead

A company assigned overhead to work in process. at year end, what does the amount of overapplied overhead mean? A. the overhead assigned to work in process is less than the actual overhead. B. the overhead assigned to work in process is greater than the overhead incurred. C. the overhead assigned to work in process is greater than the estimated overhead costs. D. the overhead assigned to work in process is less than the estimated overhead costs.

B. the overhead assigned to work in process is greater than the overhead incurred.

Which one of the following should be equal to the balance of the work in process inventory account at the end of the period? A. The total of the amounts transferred from raw materials for the current period. B. the sum of the costs shown on the job cost sheets of unfinished jobs. C. the total manufacturing costs for the period. D. the total of manufacturing overhead applied to work in process for the period.

B. the sum of the costs shown on the job cost sheets of unfinished jobs

A company is deciding whether or not to replace some old equipment with the new equipment. Which of the following is NOT considered in the incremental analysis? A. annual operating cost of the old equipment. B. annual operating cost of the new equipment. C. book value of the old equipment. D. cost of the new equipment.

C. book value of the old equipment

The focus of a sell or process further decision is. A. incremental revenue. B. incremental cost. C. both incremental revenue and incremental cost. D. Neither incremental revenue nor incremental cost.

C. both incremental revenue and incremental cost

A manager that is establishing objectives is performing which management function? A. Directing. B. controlling. C. planning. D. constraining

C. planning

All of the following are correct statements about the market-based approach except that it. A. provides a fairer allocation of the company's contribution margin to each division. B. assumes that the transfer price should be based on the most objective inputs possible. C. produces a higher company contribution margin than the cost-based approach. D. ensures that each division manager is properly motivated and rewarded

C. produces a higher company contribution margin than the cost-based approach

The third (final) step in preparing the statement of cash flows is to. A. analyze changes in noncurrent asset and liability accounts. B. determine net cash provided by operating activities. C. list the noncash activities. D. compare the net change in cash with the change in the cash account reported on the balance sheet.

D. compare the net change in cash with the change in the cash account reported on the balance sheet.

Which of the following is not an internal user? A. department manager. B. controller. C. treasurer. D. creditor

D. creditor

Which of the following would NOT be classified as manufacturing overhead? A. indirect labor. B. insurance on factory building. C. indirect materials. D. direct materials

D. direct materials

In an analogous sense, external user is to internal user as generally accepted accounting principles are to. A. timely. B. SEC. C. special- purpose. D. relevance to decision.

D. relevance to decision

Within the relevant range, the variable cost per unit. A. differs at each activity level. B. increases as production increases. C. decreases as production increases. D. remains constant at each activity level.

D. remains constant at each activity level.