Acct Final

A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n) _____ center. a.cost b.volume c.profit d.investment

C. profit

The percent of fixed assets to total assets is an example of a.profitability analysis b.horizontal analysis c.vertical analysis d.solvency analysis

C. vertical analysis

Which of the following is the most useful in analyzing companies of different sizes? a.comparative statements b.price-level accounting c.common-sized financial statements d.audit report

c.common-sized financial statements

A manager is responsible for costs but not revenues in a(n) _____ center. a.profit b.volume c.cost d.investment

C. cost

Which of the following is the most useful in analyzing companies of different sizes? a.common-sized financial statements b.comparative statements c.price-level accounting d.audit report

a. common-sized financial statements

Businesses that are separated into two or more manageable units in which managers have authority and responsibility for operations are said to be a.decentralized b.centralized c.diversified d.consolidated

a. decentralized

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

a. horizontal analysis

Metrics that are later in the value chain are normally considered to be _____ indicators. a.lagging b.leading c.value chain d.balanced

a. lagging

Identify the following costs as a product cost or a period cost for a magazine publisher: a. sales salaries b. paper used in machines c. depreciation expense--co. headquarters d. maintenance on machines

a. period b. product c. period d. product

In a profit center, the manager has responsibility and authority for making decisions that affect a.revenues b.assets c.long-term liabilities d.investments

a. revenues

In a profit center, the manager has responsibility and authority for making decisions that affect a.revenues b.investments c.assets d.long-term liabilities

a. revenues

period costs are associated with a. selling and administrative expenses b. costs for the production/product

a. selling and administrative

The percent of fixed assets to total assets is an example of a.vertical analysis b.profitability analysis c.horizontal analysis d.solvency analysis

a. vertical analysis

Cash dividends of $89,136 were declared during the year. Cash dividends payable were $10,196 at the beginning of the year and $12,640 at the end of the year. The amount of cash paid for dividends during the year is a.$86,692 b.$101,776 c.$89,136 d.$78,940

a.$86,692

Which of the following best describes a strategic performance measurement system? a.A strategic performance measurement system defines and links strategic objectives to the performance metrics of a company. b.A strategic performance measurement system defines and links strategic objectives to the bond rating of the company. c.A strategic performance measurement system defines and links strategic objectives to the stock price of a company. d.A strategic performance measurement system defines and links strategic objectives to the standard cost system of a company.

a.A strategic performance measurement system defines and links strategic objectives to the performance metrics of a company.

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates to only one customer's lean cell for the coming year. For the year, projected labor and overhead was $5,820,000 and materials costs were $31 per unit. Planned production included 6,208 hours to produce 19,400 motor drives. Actual production for August was 1,880 units, and motor drives shipped amounted to 1,310 units. Conversion costs are applied based on units of production From the foregoing information, determine the manufacturing cost per unit. a.$300.00 b.$331.00 c.$269.00 d.$968.50

b. $331.00

Which of the following is an example of a strategic performance measurement system? a.product costing system b.balanced scorecard c.standard cost system d.lean management system

b. balanced scorecard

Metrics that are later in the value chain are normally considered to be _____ indicators. a.value chain b.lagging c.leading d.balanced

b. lagging

Metrics that are early in the value chain are normally considered to be _____ indicators. a.value chain b.leading c.lagging d.reciprocal

b. leading

Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 57,700 units of its sole product. Magpie desires a profit equal to a 18% return on invested assets of $582,000. Line Item DescriptionAmountFixed factory overhead cost$36,700Fixed selling and administrative costs7,800Variable direct materials cost per unit5.06Variable direct labor cost per unit1.88Variable factory overhead cost per unit1.13Variable selling and administrative cost per unit4.50 The cost per unit for the production and sale of Magpie's product is a.$12.57 b.$13.34 c.$1.90 d.$0.77

b.$13.34

Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 64,000 units of its sole product. Magpie desires a profit equal to a 24% return on invested assets of $639,000. Line Item DescriptionAmountFixed factory overhead cost$39,500Fixed selling and administrative costs7,000Variable direct materials cost per unit4.83Variable direct labor cost per unit1.88Variable factory overhead cost per unit1.13Variable selling and administrative cost per unit4.50 The dollar amount of desired profit from the production and sale of Magpie's product is a.$306,720 b.$153,360 c.$122,688 d.$639,000

b.$153,360

Cash dividends of $81,151 were declared during the year. Cash dividends payable were $9,277 at the beginning of the year and $16,724 at the end of the year. The amount of cash paid for dividends during the year is a.$71,874 b.$73,704 c.$97,875 d.$81,151

b.$73,704

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

b.8.6%

Which of the following best describes a strategic performance measurement system? a.A strategic performance measurement system defines and links strategic objectives to the stock price of a company. b.A strategic performance measurement system defines and links strategic objectives to the performance metrics of a company. c.A strategic performance measurement system defines and links strategic objectives to the bond rating of the company. d.A strategic performance measurement system defines and links strategic objectives to the standard cost system of a company.

b.A strategic performance measurement system defines and links strategic objectives to the performance metrics of a company.

Which of the following is one of the elements of the balanced scorecard? a.performance targets b.strategic initiatives c.strategy maps d.all of these choices

d. all of these choices

Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $34 per pound and costs $27 per pound to produce. Product C would sell for $58 per pound and would require an additional cost of $23 per pound to produce. The differential cost of producing Product C is a.$27 per pound b.$34 per pound c.$58 per pound d.$23 per pound

d.$23 per pound

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

d.horizontal analysis

Cost behavior refers to the methods used to estimate costs for use in managerial decision making. True False

false

Hill Co. can further process Product O to produce Product P. Product O is currently selling for $60 per pound and costs $42 per pound to produce. Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce. The differential revenue of producing Product P is $82 per pound. True False

false

In horizontal analysis, the current year is normally used as the base year. True False

false

Performance measurement systems are used to assess how well a company is performing relative to the goals the FASB sets for the company. True False

false

Although finance and accounting professionals often work within verticals and other horizontals, they do not normally report directly to the heads of those units or departments. True False

true

Evaluating employee performance and making strategic decisions are two examples of how managerial accounting information is used. True False

true

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 False

true

Lean manufacturing focuses on reducing time, cost, and poor quality in processes. True False

true

Separation of businesses into more manageable operating units is termed decentralization. True False

true

The analysis of increases and decreases in the amount and percentage of comparative financial statement items is referred to as horizontal analysis. True False

true