Accounting Final

CMR=

CM/Sales

Managerial accounting reports must be prepared according to generally accepted accounting principles.

False

Break Even Sales

Fixed Costs / CMR

Break Even Units=

Fixed costs/ UCM

How to calculate desired profit

Invested Assets* % return

Metrics that are later in the value chain are normally considered to be -------- indicators.

Lagging

True or False: In variable costing, the cost of products manufactured is composed of only those manufacturing costs that increase or decrease as the volume of production rises or falls.

True

True or False: The philosophy of focusing on "unexpected" good or bad performance is called management by exception.

True

A Manager is responsible for costs but not revenues in a(n) ___________center.

cost

The percentage analysis of increases and decreases in individual items in comparative financial statements is called a.dsolvency analysis b.profitability analysis c.vertical analysis d.horizontal analysis

horizontal analysis

Which of the following is most useful in analyzing companies of different sizes?

common-sized financial statements

An important consideration in establishing a measure map includes determining the?

leading and lagging indicators

Cash dividends of $76,685 were declared during the year. Cash dividends payable were $11,220 at the beginning of the year and $16,936 at the end of the year. The amount of cash paid for dividends during the year is a.$65,465 b.$76,685 c.$93,621 d.$70,969

$70,969

Quick Ratio=

(Current Assets - Inventory) / Current Liabilities

Differential revenue is the amount of profit that would result from the best available alternative proposed use of cash

False

True or False: Direct materials cost that varies with the number of units produced is an example of fixed cost of production.

False

Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $34 per pound and costs $28 per pound to produce. Product C would sell for $60 per pound and would require an additional cost of $23 per pound to produce. The differential cost of producing Product C is: a.$60 per pound b.$28 per pound c.$23 per pound d.$34 per pound

$23 per pound

Operating income for Division L is $250,000, total support department allocations are $400,000, and operating expenses are $2,750,000. The revenues for Division L are

$3,400,000

Question Content Area A customer service department has the following resolution response time data: First contact: 0.25 hr. Service scheduling: 0.50 hr. Wait for service: 24.00 hrs. Service: 1.50 hr. Total resolution time: 26.25 hrs. What is the value-added ratio (rounded to one decimal place) in this process? a.28.6% b.5.7% c.91.4% d.8.6%

8.6%

CM=

Sales - Variable Costs

Unit Contribution Margin (UCM)=

Sales Price Per Unit - Variable Cost Per Unit

Businesses that are separated into two or more manageable units in which managers have authority and responsibility for operations are said to be?

decentralized

Question Content Area Division A reported operating income of $975,000 and total support department allocations of $675,000. As a result: a.operating income before support department allocations was $1,650,000 b.net income was $300,000 c.the gross profit was $300,000 d.consolidated net income was $300,000

operating income before support department allocations was $1,650,000

A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n) _____ center.

profit

A strategic performance measurement system defines and links strategic objectives to?

the performance metrics of the company

The percent of fixed assets to total assets is an example of

vertical analysis