Acct 202 final

Which of the following would not be reported in the investing section on the statement of cash flows?

. Cash paid to acquire treasury stock

If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then:

A. cost of goods sold should be decreased

. Traditional income statements organize costs by:

A. function.

The higher the operating leverage factor, the:

A. greater the impact of volume on operating income.

The ____________ budget is a major part of the master budget and focuses on the income statement and its supporting schedules.

A. operating

The correct order of the sections on a statement of cash flows is

A. operating, investing, financing.

A company has fixed costs of $75,000 per month. If sales double from 5,000 to 10,000 units during the month, fixed costs will:

A. remain the same.

Managers can quickly forecast the total contribution margin by multiplying the projected

A. sales revenue by the contribution margin ratio.

. Which of the following equations represents total mixed cost?

A. y = vx + f

Mountain Made quilts had a predetermined overhead allocation rate of $5.00 per direct labor hour. If 5 direct laborers worked 1 ½ hours each to make a batch of 10 quilts, how much total overhead would be allocated to the batch of quilts?

B) $37.50

On a whim you purchased a scratch-off lottery ticket at the gas station. It must have been your lucky day because you won $1,000,000. Being logical and rational you decide to invest the money at 3% for 10 years until you are ready to start a family. At the end of 10 years, how much will your investment be worth?

B. $1,344,000

. Konrad Company budgets manufacturing overhead as $.50 per unit produced and $10,000 per month of fixed costs, which includes $2,500 of depreciation per month. The company is preparing its master budget for next year and expects production to total 10,000 units. Assuming all overhead is paid in the period incurred, what amount should Konrad budget for cash paid for total manufacturing overhead in the cash payments budget?

B. $12,500

Thomario's Powder Coatings makes payments on its inventory purchases as follows: 25% in the month of purchase, 60% in the following month, and 15% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $15,000, $19,000 and $24,000, respectively. At what amount are cash payments for inventory in August budgeted?

B. $19,650

Stiller Company expects cash sales for July of $15,000, and a 20% monthly increase during August and September. Credit sales of $10,000 in July should be followed by 25% increases during August and September. What are budgeted cash sales and budgeted credit sales for September respectively?

B. $21,600 and $15,376

Harbor Manufacturing is trying to predict the cost associated with producing its anchors. At a production level of 4,000 anchors, Harbor Manufacturing's average cost per anchor is $50.00. If $20,000 of the costs are fixed, and the plant manager uses the cost equation to predict total costs, her forecast for 5,000 anchors will be:

B. $245,000.

Data below pertains to Garrett Company's most recently completed fiscal year before any adjustments for overallocated or underallocated overhead were made: Estimated manufacturing overhead $ 240,000 Factory utilities $ 29,100 Estimated labor hours 35,000 Indirect labor $ 23,500 Actual direct labor hours 36,000 Sales commissions $ 53,700 Estimated direct labor cost $ 300,000 Factory rent $ 49,200 Actual direct labor cost $ 320,000 Factory property taxes $ 28,100 Factory depreciation $ 67,200 Indirect materials $ 33,000 6) If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs? 7) Actual overhead incurred during the year totaled 8) At the end of the period and before any adjustments are made, overhead would be

B. $256,000 A. $230,100 B. overallocated by $25,900

Latimer Corporation collects 35% of a month's sales in the month of sale, 50% in the month following sale, and 10% in the second month following sale. The company has found that 5% of their sales are uncollectible. Budgeted sales for the upcoming four months are: August budgeted sales $300,000 September budgeted sales $280,000 October budgeted sales $330,000 November budgeted sales $260,000 The amount of cash that will be collected in November is budgeted to be:

B. $284,000

Active Apparel Company reports the following data for its first year of operation (000s omitted). Cost of goods manufactured $500,000 Work in process inventory, beginning 0 Work in process inventory, ending 120,000 Direct materials used 85,000 Manufacturing overhead 100,000 Finished goods inventory, ending 72,000 What is the cost of goods sold?

B. $428,000

You win the lottery and must decide how to take the payout. Use an 8% discount rate. What is the present value of $10,000 a year received at the end of each of the next six years?

B. $46,230

Assume the following amounts: Total fixed costs $24,000 Selling price per unit $20 Variable costs per unit $15 If sales revenue per unit increases to $22 and 12,000 units are sold, what is the operating income?

B. $60,000

Brackett Corporation is adding a new product line that will require an investment of $120,000. The product line is estimated to generate cash inflows of $25,000 the first year, $23,000 the second year, and $18,000 each year thereafter for ten more years. What is the payback period?

B. 6.00 years

A manufacturer of wood patio furniture would classify all of the following as manufacturing overhead except

C. Wood used to make the furniture

Rent on a factory building would be considered to be

C. a product cost.

To compute the unit contribution margin, __________ should be subtracted from the sales price per unit.

C. all variable costs

The study of percentage changes in comparative financial statements is an example of:

C. horizontal analysis

The requisition of direct and indirect materials into production

C. reduces raw materials inventory

The maintenance department at Continental Airlines is likely to be classified as a(n)

A) cost center

Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). Sales revenue $ 4,000 Purchases of raw materials $ 500 Direct labor $ 450 Manufacturing overhead $ 620 Operating expenses $ 700 Beginning raw materials inventory $ 150 Ending raw materials inventory $ 170 Beginning work in process inventory $ 320 Ending work in process inventory $ 310 Beginning finished goods inventory $ 250 Ending finished goods inventory $ 200 What was cost of goods manufactured?

A. $1,560

Before the year began, Johnson Manufacturing estimated that manufacturing overhead for the year would be $160,000 and that 12,000 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $175,000 Actual direct labor hours 15,000 4) The predetermined manufacturing overhead rate per direct labor hour is closest to: 5) The amount of manufacturing overhead allocated for the year based on direct labor hours would have been:

A. $13.33. D. $200,000.

Fischer Corporation is building its master budget and expects to produce 31,000 units in order to sell 30,000 units and increase inventory levels by 1,000 units. The company sells each unit for $40 and pays sales commissions of 8% of sales. Other selling expenses consist of delivery costs of $2 per unit and advertising of $30,000 per year. How much should Fischer Corporation budget for total selling costs in the coming year?

A. $186,000

Use the following to answer the next two questions: The Schmidt Corporation has in its inventory 4,000 damaged radios that cost $50,000. The radios can be sold in their present condition for $32,000, or repaired at a cost of $43,000 and sold for $66,000. 8. What is the opportunity cost of selling the radios in their present condition? 9. Which of the following should Schmidt Corporation do to maximize profits?

A. $23,000 B. Sell as is for a benefit of $9,000 over repairing the radios

Newton Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $12,000. Budgeted cash receipts are $84,000, while budgeted cash disbursements are $72,000. Newton Company wants to have an ending cash balance of $40,000. The excess (deficiency) of cash available over disbursements for the month would be:

A. $24,000

Job 2301 requires $12,000 of direct materials, $5,000 of direct labor, 500 direct labor hours, and 300 machine hours. Manufacturing overhead is computed at $15 per direct labor hour used and $12 per machine hour used. The total cost of Job 1547 is:

A. $28,100.

Platz Company makes chairs and planned to sell 3,200 chairs in its master budget for the coming year. The budgeted selling price is $45 per chair, variable costs are $15 per chair and budgeted fixed costs are $40,000 per month. At the end of the year it was determined that Platz actually sold 3,100 chairs for $145,700. Total variable costs were $50,375 and fixed costs were $38,000. 4. The volume variance for sales revenue was 5. The flexible budget variance for sales revenue was 6. The volume variance for fixed costs is

A. $4,500 unfavorable B. $6,200 favorable B. $ 0

YouCall offers a calling plan that charges $2.00 per month plus $0.05 per minute of call time. Under this plan, what is your monthly cost if you talk for a total of 100 minutes?

A. $7.00

Use the following information to answer the next two questions. Hartville Kitchens has prepared the following budgeted monthly contribution margin income statement: Sales $34,000 Variable Expenses 4,000 Contribution Margin 30,000 Fixed Expenses 18,000 Operating Income $12,000 17. What is Hartville Kitchens' operating leverage factor at the budgeted level of operating income? 18. If sales are 10% more than anticipated, how much would operating income increase?

A. 2.50 C. 25%

Which of the following will decrease the breakeven point in units assuming no other changes in the cost-volume-profit relationship?

A. An increase in the sale price per unit

Which of the following represents a variable cost of manufacturing a product?

A. Direct materials

On the statement of cash flows, which of the following sections includes the issuance of stock and the payment of dividends?

A. Financing section

Using account analysis, what type of cost is the rental of a space at $2,000 per month?

A. Fixed

All of the following would be relevant when analyzing whether to replace your car with a newer, more fuel efficient model except

A. How much you paid for the car 5 years ago

Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following information relates to current production: Sale price per unit $250 Variable costs per unit: Manufacturing $165 Marketing and administrative $50 Total fixed costs: Manufacturing $750,000 Marketing and administrative $200,000 If a special sales order is accepted for 2,500 sails at a price of $205 per unit, fixed costs increase by $14,000, and variable marketing and administrative costs for that order are $25 per unit, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

A. Increase by $23,500

. Prince Paper has budgeted the following amounts for its next fiscal year: Total fixed expenses $500,000 Selling price per unit $75 Variable expenses per unit $25 If Price Paper spends an additional $12,500 on advertising, sales volume should increase by 2,300 units. What effect will this have on operating income?

A. Increase of $102,500

A company's purchasing department negotiates all of the purchasing contracts for raw materials. Which variance is most useful in assessing the performance of the purchasing department?

A. Materials price variance

3) Ferrero Company reported the following information for the current year: Account Current year Percentage Prior year Net sales revenue $360,000 100% $300,000 COGS $223,200 ? $240,000 Gross Profit $136,800 38.00% $60,000 Selling/General Exp. $64,800 18.00% $12,000 Net income before tax $72,000 ? $48,000 Income Tax $3,600 1.00% $3,000 Net Income $68,400 ? $45,000 What would a vertical analysis report with respect to current year net income before income tax and income tax expense?

A. Net income before tax of 20% and income tax of 1.00% of net sales revenue

Which of the following describes how, in ABC, the activity allocation rate is computed?

A. The total estimated activity cost pool is divided by the total estimated activity allocation base.

Which of the following would be considered a direct cost of manufacturing a product?

A. Wages of assembly line workers

Four basic steps are used in an ABC system. List the proper order of these steps, which are currently scrambled below: a. Identify the primary activities and estimate a total cost pool for each. b. Allocate the costs to the cost object using the activity cost allocation rates. c. Select an allocation base for each activity. d. Calculate an activity cost allocation rate for each activity.

A. a, c, d, b

Use the following to answer the next two questions: The Jiffy Corporation data for the current year: Account Current year Prior year Current assets $72,000 $60,000 A/R $49,500 $45,000 Mdse. Inventory $56,000 $40,000 Current liabilities $63,250 $55,000 Long-term liabilities $31,500 $30,000 Common stock (5,000 shares) $54,000 $40,000 Retained earnings $28,750 $20,000 Net sales revenue $565,600 $505,000 COGS $454,250 $395,000 Gross Profit $111,350 $110,000 Selling/General expenses $46,800 $52,000 Net income before taxes $64,550 $58,000 Income tax expense $19,250 $17,500 Net Income $45,300 $40,500 1. What would a horizontal analysis report with respect to current assets? 2) What would a horizontal analysis report with respect to net income before income tax expense and net income?

B. A 20% increase in current assets C. There was an increase in net income before income tax expense of 11.29% and and increase in net income of 11.85%.

Which of the following is most likely NOT to use process costing?

B. Ashley Custom Furnishings

. Which of following budgets is part of the financial budgets?

B. Budgeted balance sheet

Which of the following statement is true?

B. If a company reported a net loss on their income statement, cash flows from operating activities could be a positive amount.

Which of the following sections from the statement of cash flows includes purchases and sales of long-term assets?

B. Investing section

Which of the following is TRUE?

B. Managerial accounting reports provide detailed internal information.

If a worker drops the raw material during production and the raw material must be discarded, which variance is directly impacted?

B. Materials efficiency variance

The inventory accounts of a manufacturer include all of the following except:

B. Merchandise Inventory

What type of product costing system would a manufacturer of plywood use?

B. Process costing

Which of the following represents the flow of costs in a manufacturing firm?

B. Raw materials inventory, work in process inventory, finished goods inventory

All of the following would be a direct cost of running the Morgantown Applebee's Restaurant except

B. The cost of national advertising

. Smith Industries is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement Machine Original cost $45,000 $35,000 Remaining useful life in years 5 5 Current age in years 5 0 Book value $25,000 Current disposal value in cash $8,000 Future disposal value in cash (in 5 years) $0 $0 Annual cash operating costs $7,000 $4,000 Which of the information provided in the table is irrelevant to the replacement decision?

B. The original cost of the old machine

Which of the following statements is true regarding the salary of the manager of a fast food hamburger restaurant?

B. The salary is a fixed cost that is directly traceable to the cost of operating a specific restaurant.

Which of the following is an example of overhead in a factory?

B. Wages of factory maintenance personnel

Manufacturing overhead would include:

B. all manufacturing costs except direct materials and direct labor.

A flexible budget variance is the difference between:

B. amounts in the flexible budget and the actual results.

The internal financial statements of Pierce Solutions show that their product, LX90, incurred an operating loss in the most recent year. There were 20,000 units of LX90 sold in that year. Selected financial information about product LX90 follows. Total sales revenue $ 160,000 Variable costs $ 100,000 Contribution margin $ 60,000 Fixed costs $ 70,000 Net operating loss $ (10,000) If product LX90 were to be dropped, the company would avoid $16,000 in fixed costs per year. If Pierce Solutions were to drop product LX90, the change in annual operating income would be a(n):

B. decrease in total operating income of $44,000.

Howard Lumber Company mistakenly treated a $20,000 product cost as a period cost. The company produced 2,000 units of product and sold 1,000 of them during the year. In the year in which the mistake was made

B. net income will be too low.

The contribution margin is equal to:

B. sales minus variable expenses

. The primary purpose of classifying costs as variable or fixed costs is _____.

B. to allow management to better assess performance given a level of activity that differed from budget

Assume that the total cost for the batch of 10 quilts made above in #10 was $400. If Mountain Made wants to earn a gross profit of 40% on each quilt, what price should be charged for each quilt?

C) $56

Cardinal Company makes chairs. The budgeted selling price is $45 per chair, the variable rate is $15 per chair and budgeted fixed costs are $40,000 per month. What is the budgeted operating income for 3,200 chairs sold in a month?

C) $56,000

Which type of variance causes operating income to be lower than budgeted?

C) Unfavorable variance

Sunny Dayz sells bottles of sunscreen lotion for $8.00 each. Variable costs are $4.50 per bottle, while fixed costs are $42,000 per month for volumes up to 20,000 bottles of lotion and $52,000 per month for volumes above 20,000 bottles of lotion. The flexible budget would reflect monthly operating income for 18,000 bottles of lotion and 23,000 bottles of lotion of what dollar amounts?

C. $21,000 and $28,500, respectively

. Kayla's Toys budgeted sales of $300,000 for the month of November and cost of goods sold to equal of 70% of sales. Beginning inventory for November was $50,000 and ending inventory for November is estimated at $55,000. How much are the budgeted purchases for November?

C. $215,000

A capital asset has which of the following characteristics?

C. $35,000

A cash flow statement shows $25,000 from financing, ($9,200) from investing and $21,000 from operations. The cash balance must have increased or decreased by

C. $36,800.

Webber Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $30,000. Budgeted cash receipts are $101,000, while budgeted cash disbursements are $123,000. Webber Company wants to have an ending cash balance of $45,000. How much would Webber Company need to borrow to achieve its desired ending cash balance?

C. $37,000

Use the following information for the next two questions: (Present value tables are needed.) Miami Marine Enterprises is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair. The company has narrowed their choices down to two—the B14 Model and the F54 Model. Financial data about the two choices follows. B14 Model F54 Model Investment $ 320,000 $ 240,000 Useful life (years) 8 8 Estimated annual net cash inflows for useful life $ 75,000 $ 40,000 Residual value $ 30,000 $ 10,000 Depreciation method Straight-line Straight-line Required rate of return 14% 10% 11. What is the net present value of the B14 Model? What is the net present value of the F54 Model?

C. $38,455 positive A. $21,930 negative

Total costs for Watson & Company at 100,000 units are $350,000, while total fixed costs are $150,000. The total variable costs at a level of 200,000 units would be:

C. $400,000.

Toby's Farm Store buys portable generators for $500 and sells them for $800. He pays a sales commission of 5% of sales revenue to his sales staff. Toby pays $2,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Toby sold 200 generators in June. If Toby prepares a contribution margin income statement for the month of June, what would be his contribution margin?

C. $52,000

The Teddy Bear Company manufactures stuffed bears. The number of bears to be produced in the upcoming three months follows: Number of teddy bears to be produced in July 12,000 Number of teddy bears to be produced in August 15,000 Number of teddy bears to be produced in September 10,000 Each bear requires 2 pounds of the plastic pellets used as stuffing. The company has a policy that the ending inventory of plastic pellets each month must be equal to 20% of the following month's expected production needs. How many pounds of plastic pellets does The Teddy Bear Company need to purchase in August?

C. 28,000

Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000. The monthly target operating income is $50,000. What is Southwest Electric Co-op's operating leverage factor at the target level of operating income?

C. 4.00

Which of the following describes a sunk cost?

C. A historical cost that is always irrelevant

Which of the following would appear on a statement of cash flows prepared using the direct method?

C. Collections from customers

A budget performance report would most likely be used in

C. Controlling

When manufacturing products, which of the following is an example of an inventoriable product cost?

C. Depreciation on factory equipment

On a cash flow statement prepared using the indirect method, which is not reported as an operating activity?

C. Proceeds from the sale of equipment

If the discount rate is decreased from 9% to 7%, what will happen to the internal rate of return (IRR) of a project?

C. The discount rate change will not affect IRR.

Which of the following statements is TRUE with respect to total variable costs?

C. They will decrease as production decreases within the relevant range.

What standard(s) do(es) direct materials and direct labor have when calculating standard costs? A) Quantity/Efficiency standard B) Price standard C) Flexible standard D) Both A and B

D) Both A and B

The regional sales department for Xerox copiers is most likely treated as a(n)

D) revenue center

Healthy Greetings Corporation produces and sells fruit baskets for special events. The unit selling price is $60, unit variable costs are $45, and total fixed costs are $2,670. What are breakeven sales in dollars?

D. $ 10,680

Comfy Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office $ 11,000 Depreciation on factory equipment $ 16,000 Factory supervisor salary $ 52,500 Sales commissions $ 23,000 Lubricants used in factory equipment $ 3,000 Insurance costs for factory $ 21,000 Wages paid to maintenance workers $ 115,000 Fabric used to upholster furniture $ 7,000 Costs of delivery to customers $ 9,000 Wages paid to assembly-line workers $ 132,500 Lumber used to build product $ 72,000 Utilities in factory $ 44,500 Utilities in sales office $ 26,500 5) Manufacturing overhead costs for Comfy Furniture Company totaled:

D. $ 252,000

If the sale price per unit is $64, total fixed expenses are $90,000, and the breakeven sales in dollars is $360,000, what is variable expense per unit?

D. $ 48.00

USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT TWO QUESTIONS: Pittinger Company manufactures cuckoo clocks and uses an activity-based costing system to allocate overhead to its products. Each cuckoo clock consists of 10 separate parts totaling $80 in direct materials, $40 in direct labor and requires 2.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.25 per part Machining Machine hours $2.50 per machine hour Assembling Number of parts $0.50 per part Packaging Number of finished units $1.50 per finished unit 4. What is the cost of materials handling per cuckoo clock? 5. What is the total manufacturing cost per cuckoo clock?

D. $12.50 C. $144.00

General Products Company manufactures toaster ovens and uses an activity-based costing system. The following information is provided for the month of May: Activity Estimated Indirect Activity Costs Allocation Base Estimated Quantity of Allocation Base Materials handling $5,400 Number of parts 3,000 parts Assembling $9,600 Number of parts 3,000 parts Packaging $2,500 Number of toaster ovens 1,000 toaster ovens Each toaster oven consists of 3 parts. What is the cost of materials handling and assembling per toaster oven?

D. $15.00

A company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit. If the sales price of a unit is $20.00 and they sell 8,000 units, the company's total variable costs will be:

D. $40,000.

Kent Convenience Store total sales revenue is $850,000, its total expenses are $625,000, of which $250,000 are variable. Since the store sells hundreds of products, they prefer to calculate the breakeven point in sales dollars. What is Kent's breakeven level of sales?

D. $528,169

. If you invest $1,000 at the end of every year for five years at an interest rate of 10%, the balance of your investment in 5 years will be closest to:

D. $6,105.

Spahr Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 5,000 units, are as follows: Direct materials $2.00 Direct labor $4.00 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $1.00 Total cost $10.00 80% of the fixed overhead costs are unavoidable. Assuming no other use for its facilities, what is the highest price per unit that Spahr Company should be willing to pay for the part?

D. $9.20

. Brawny Corporation manufactures benches. Each bench requires .50 direct labor hours in its production. Brawny Corporation has a direct labor rate of $15 per direct labor hour. The production budget shows that Brawny Corporation plans to produce 1,000 benches in March and 1,200 benches in April. What is the total combined direct labor cost that should be budgeted for March and April?

D. 16,500

13. Williams Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,800,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,400,000. The following information is available: Indiana proposal Kentucky proposal Required investment $1,800,000 $2,400,000 Estimated life 10 years 10 years Estimated annual cash inflows over the next 10 years $400,000 $500,000 Required rate of return 10% 10% The internal rate of return for the Indiana Proposal is closest to

D. 18%

Anthony Office Supplies sells refills on printer ink cartridges for $16 per refill. Variable costs are $4 per refill. Fixed costs are $2,000 per month. What is the contribution margin ratio for the printer ink cartridge refills?

D. 75%

Which of the following affects the present value of an investment A. The interest rate B. The number of time periods (length of the investment) C. The type of investment (annuity versus lump sum) D. All of the above

D. All of the above

Which of the following groups are external users of financial information? A. Customers of the company B. Vendors of the company C. Potential investors of the company D. All of the above

D. All of the above

Which would be a consideration for making special orders? A. Available capacity to fill the order B. If price will cover incremental costs of filling the order C. If the order will affect regular sales in the long run D. All of the above

D. All of the above

Which of the following costs would appear on the income statements for both a merchandiser and manufacturer?

D. Cost of goods sold

. An unfavorable direct labor price variance and a favorable direct labor efficiency variance might indicate which of the following?

D. Skilled workers using less actual hours than standard, paid at a higher rate per hour than the standard rate.

Which of the following statements is TRUE if the fixed costs increase while the sales price per unit and variable costs per unit remain constant?

D. The contribution margin stays the same and the breakeven point increases.

Which of the following statements regarding static budgets is TRUE?

D. They are prepared for one level of sales volume.

The primary goal of financial accounting is to provide information for: A. potential investors. B. creditors. C. governmental regulators. D. all of the above.

D. all of the above.

Manufacturing overhead is underallocated if the amount:

D. allocated during the period is less than the actual amount incurred

. The production department for XYZ Manufacturing would most likely be considered a

D. cost center

The benefit foregone by not choosing an alternative course of action is referred to as a(n):

D. opportunity cost

Preparing budgets is an example of the management function of:

D. planning.

When manufacturing products, direct labor and direct materials are classified as:

D. product costs and expensed when the goods are sold.

All of the following are examples of cash outflows from an investing activity except

D. purchase of treasury stock

If the NPV is of an investment is greater than zero,

D. the internal rate of return is greater than the discount rate.

An analysis of a financial statement that reveals the relationship of each statement item to a specific base defines:

D. vertical analysis

) Only the ________ section differs in a statement of cash flows using the direct method rather than the indirect method.

operating activities