ACCT-346 Managerial Accounting - Week 8 Final Exam

1.

Question :

(TCO 1) The principle managers follow when they only investigate significant departures from the plan is commonly known as

Points Received:

4 of 4

2.

Question :

(TCO 1) Which of the following is not likely to be a fixed cost?

Points Received:

4 of 4

3.

Question :

(TCO 2) Which of the following is not a manufacturing cost?

Points Received:

4 of 4

4.

Question :

(TCO 2) An allocation base is

Points Received:

4 of 4

5.

Question :

(TCO 3) Equivalent units are calculated by

Points Received:

4 of 4

6.

Question :

(TCO 3) In the assembly department, all the direct materials are added at the beginning of the processing. Beginning Work in Process inventory consists of 2,000 units with a direct materials cost of $31,860. During the period, 15,000 units are started and direct materials costing $250,000 are charged to the department. If there are 1,000 units in ending inventory, what is the cost per equivalent unit?

Points Received:

4 of 4

7.

Question :

(TCO 4) Regression analysis

Points Received:

4 of 4

8.

Question :

(TCO 4) The number of units that must be sold to exactly cover its fixed and variable costs is the

Points Received:

4 of 4

9.

Question :

(TCO 5) Which of the following is treated as a product cost in variable costing?

Points Received:

4 of 4

10.

Question :

(TCO 5) If the number of units sold is less than the number of units produced

Points Received:

4 of 4

11.

Question :

(TCO 6) A contract which specifies that the suppler will be paid for the cost of production as well as some fixed amount or percentage of cost is called a(n)

Points Received:

4 of 4

12.

Question :

(TCO 6) Which of the following is not generally true when a company compares ABC and traditional costing?

Points Received:

4 of 4

13.

Question :

(TCO 7) Fixed costs that will be eliminated if a particular course of action is undertaken are called

Points Received:

4 of 4

Page:

1.

Question :

(TCO 7) Common costs

Points Received:

4 of 4

2.

Question :

(TCO 8) Target costing

Points Received:

4 of 4

3.

Question :

(TCO 8) Which of the following are relevant in deciding whether to accept or reject a special order?

Points Received:

4 of 4

4.

Question :

(TCO 9) Present value techniques

Points Received:

4 of 4

5.

Question :

(TCO 9) The internal rate of return

Points Received:

4 of 4

6.

Question :

(TCO 10) A method of budget preparation that requires all budgeted amounts to be justified by the department, even if the amounts were supported in prior periods, is called

Points Received:

4 of 4

7.

Question :

(TCO 10) Which budget is prepared first?

Points Received:

4 of 4

8.

Question :

(TCO 10) The standard cost is

Points Received:

4 of 4

9.

Question :

(TCO 10) In general, an unfavorable material variance arises from

Points Received:

4 of 4

10.

Question :

(TCO 10) The type of center that has responsibility for generating revenue as well as controlling costs is a(n)

Points Received:

4 of 4

11.

Question :

(TCO 10) Responsibility accounting holds managers responsible for

Points Received:

4 of 4

12.

Question :

(TCO 10) Which ratio measures the rate earned on total capital provided by the owners?

Points Received:

4 of 4

Page:

1.

Question :

(TCO 1) Distinguish managerial accounting from financial accounting. Include a brief discussion of the differences in the types of information provided to users as well as the differences of the users of the accounting information.

Points Received:

20 of 20

2.

Question :

(TCO 6) Booth Financial Services, LLC has two revenue producing departments, Financial Planning and Business Consulting. The accounting department is trying to determine the best method to allocate $1,000,000 of common costs (secretarial staff, reception personnel, etc), either by salary or number of employees. Information on the revenue departments are as follows:

Department

Employees

Salaries

Financial Planning

150 employees

$10,000,000

Business Consulting

50 employees

$5,000,000

(a) Allocate the $1,000,000 common costs to the two revenue departments using both methods.
(b) Why are allocations called arbitrary?

Points Received:

25 of 25

3.

Question :

(TCO 10) Charlie Corp sells it products on both credit and cash basis. Monthly sales are sold 20% for cash, 80% for credit. Credit sales are collected 40% in the month of sale and 60% the following month. Sales for the first quarter are as follows:


January $100,000
February $150,000
March $125,000


Compute cash collections for February.

Points Received:

25 of 25

4.

Question :

(TCO 2) Acme Fireworks uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $1,000,000 and direct labor hours are budgeted at 200,000 hours. Actual hours worked were 195,000 and actual overhead was $978,000.


(a) Compute the predetermined manufacturing overhead rate.
(b) Compute the applied manufacturing overhead.
(c) Compute the amount of over/under applied manufacturing overhead.

Points Received:

25 of 25