accounting 2 final

which of the following is a measure of a cost center manager's performance?

budget performance report

the production budget is used to prepare which of the following budgets

direct materials purchases, direct labor cost, and factory overhead cost

direct materials cost that varies with the units produced is an example. of a fixed cost of production

false

in horizontal analysis, the current year is normally used as the base year

false

the lean philosophy views inventory as a necessary buffer to protect against process problems

false

using vertical analysis of the income statement, a company's net income as a percentage of sales is 15% ; therefore, the cost of goods sold as a percentage of sales must be 85% t/f

false

inventory reduction is a principle

lean

one reason that a common-sized statement is a useful tool in financial analysis is that it enables the user to

make a better comparison of two companies of different sizes in the same industry

under a lean environment, employees have the responsibility and authority to

make decisions about operations, rather than waiting management

horizontal analysis is a technique for evaluating financial statement data

over a period of time

the operating budgets of a company include the

production budget

in job order costing, when goods that have been ordered are received, the receiving department personnel count the goods, inspect the goods, and complete a

receiving report

the first budget customarily prepared as part of an entity's master budget is the

sales budget

the ability of a business to pay its debts as they come due and to earn a reasonable net income is

solvency and profitability

cost systems meause, record, and report product costs

true

lead time includes both value-added time and non-value-added time

true

lean manufacturing focuses on reducing time, cost, and poor quality in processes

true

managerial accounting information includes both historical and estimated data

true

perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing

true

the fixed cost per unit varies with changes in the level of activity

true

compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290

384,200

which of the following budgets is directly associated with the production budget -direct materials purchases budget -sales budget -direct labor cost budget -all of these

all of these choices

A variant of fiscal-year budgeting whereby a 12-month projection into the future is maintained at all times is termed

continuous budgeting