acct

A 15% change in sales will result in a 15% change in net income. True False

False

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

False

Question Content Area Managerial accounting reports must be prepared according to generally accepted accounting principles. True False

False

Question Content Area Under absorption costing, the cost of finished goods includes only direct materials, direct labor, and variable factory overhead. True False

False

The lean philosophy views inventory as a necessary buffer to protect against process problems. True False

False

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

Horizontal Analysis

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

Leading

Job order costing provides for a separate record of the cost of each particular quantity of product that passes through the factory. True False

True

Question Content Area Differential revenue is the amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative. True False

True

Question Content Area The lean manufacturing philosophy views inventory as an unnecessary waste of resources. True False

True

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

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

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

Balanced scorecard

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

Revenues

Question Content Area 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.diversified c.centralized d.consolidated

decentralized

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

vertical analysis