Hi
I have test at my menegerial accounting as a part of MBA, see ifyou can help me with thes questions
4. The salary foregone by a person who quits a job tostart a business is an example of a(n) ________.
A. outlay cost
B. opportunity cost
C. sunk cost
D. depreciable cost
5. ________ budgeting is when budgets are formulatedwith the active involvement of all affected employees.
A. Zerominus−based
B. Participative
C. Rolling
D. Team
6. What is the sequenceof steps in preparing the master budget?
A. Output from the financial budget is used to prepare theoperating budget.
B. Output from the financial budget is used to prepare thebudgeted income statement.
C. Output from the operating budget is used to prepare thefinancial budget.
D. Output from the financial budget is used to prepare theoperating expense budget.
7. The total amount of cash collections from customersby month appears on the ________.
A. sales budget
B. operating expense budget
C. budgeted balance sheet
D. cash budget
8. ”The flex in the flexible budget relates solely tovariable costs.” Do you agree? Explain.
A. No. Flexible budgets are prepared for only one expected levelof activity. By definition, fixed costs do not change with thelevel of activity, and therefore fixed costs are the only costsincluded in a flexible budget.
B. Yes. Flexible budgets are flexible only with respect tovariable costs. By definition, fixed costs do not change with thelevel of activity, and therefore there is no “flex” in the fixedcost portion of a flexible budget.
C. No. Fixed costs are also adjusted in a flexible budget toreflect varying levels of activity. Therefore, flexible budgetsare flexible with respect to both variable and fixed costs.
D. Yes. Flexible budgets are flexible only with respect tovariable costs. Although fixed costs change with the level ofactivity, only variable costs are evaluated in a flexiblebudget.
9. Which of the following statements isFALSE?
A. Flexible budgets are based on different assumptions aboutcost behavior than those used for static budgets.
B. A flexible budget is also called a variable budget.
C. Flexible budgets are matched to actual levels ofactivity.
D. Flexible budgets are prepared for a range of activity.
10. If sales are the cost driver, unfavorable flexiblebudget variances result from ________.
A. actual sales exceeding planned sales
B. planned sales exceeding actual sales
C. planned costs exceeding actual costs
D. actual costs exceeding planned costs
11. Rate variances are the same as ________ variances.Efficiency variances are the same as ________variances.
A. price; quantity
B. activity; static
C. spending; effective
D. usage; quantity
12. Which of the following is the first and most basiccomponent in a management control system?
A. managerial effort
B. the stockholders’ goals
C. the organization’s goals
D. the organization’s longminus−range budget
13. To design a management control system that meets anorganization’s needs, managers must identify what motivatesemployees, ________ and ________.
A. develop performance measures based on these employeemotivators; establish a monitoring and reporting structure for theperformance measures
B. develop performance measures to encourage managerial effort;establish a monitoring and reporting structure for productivity
C. develop performance measures that meet organizationalobjectives; establish an accounting system to measureproductivity
D. develop performance measures based on goal congruence;establish an accounting system to measure goal congruence
14. ________ is the drive for some selected goal thatcreates effort and action toward that goal.
A. Personal rewards
B. Managerial effort
C. Goal congruence
D. Motivation
15. Assume you are preparing income statements fordifferent segments. Which of the following is NOT a fixed costcontrollable by a segment manager?
A. training costs for new employees at segment
B. advertising costs in local paper to promote segment
C. salespersons’ salaries for segment
D. segment manager’s salary
16. What is a balanced scorecard and why are morecompanies using one?
What is a balanced scorecard?
A. A performance report that contains measures of all the keyfinancial and nonfinancial variables that are important for acompany to prosper.
B. A characteristic or attribute that must be achieved in orderto drive the organization towards its goals.
C. A measurement technique that focuses on prevention of defectsand on achievement of customer satisfaction.
D. A logical integration of techniques to gather and useinformation to make planning and control decisions, to motivateemployee behavior, and to evaluate performance.
16.A/ Why are more companies using a balancedscorecard?
A. Companies find that it facilitates forecasting and budgetingand communicates results of actions across the organization.
B. Companies find that it compares profit to investment usingmeasures such as return on investment or residual income.
C. Companies find that it is a useful tool to help managersfocus on the multidimensional factors that make an organizationsuccessful.
D. Companies find that it builds on the assumption that anorganization minimizes the cost of quality when it achieves highquality levels.
17. Why is decentralization morepopular in profit-seeking organizations than in nonprofitorganizations?
A. Due to how costly it is to implement, decentralization onlyworks for profit-seeking organizations and not for nonprofitorganizations.
B. It is more difficult to hold managers of nonprofitorganizations responsible for performance because inputs andoutputs are generally more difficult to measure. Without reliableperformance measures, granting managerial freedom is morerisky.
C. In a nonprofit, the local managers do not make decisionsthat are in the organization’s best interests. Only because theywant to improve their own segment’s performance at the expense ofthe organization.
D. Due to the lack of qualified personnel, it is easier forprofit-seeking organizations to keep all the decision-makingauthority only at the highest levels of the organization than it isfor nonprofit organizations.
18. In designing management control systems, topmanagers should consider the system’s impact on the behavior ofemployees.
True
False
19. What is the major benefit of the ROI technique formeasuring performance?
A. Its attention to the required asset investment in relation tooperating income.
B. Decision-making is the responsibility of those local managerswho often have the best information concerning localconditions.
C. The manager is rewarded based on his or her individualperformance rather than no controllable factors.
D. The fact that managers who make decisions to improve theirsegment’s performance also increase the performance of theorganization as a whole.
20. Service departments in organizations exist tosupport ________.
A. producing departments and suppliers only
B. producing departments and customers only
C. other service departments, producing departments andcustomers
D. other service departments and customers only
21. Which of the following formulasshould be used to allocate variable costs from service departmentsto user departments?
A. budgeted unit rate times × total budgeted units planned to beused
B. actual unit rate times × total budgeted units planned to beused
C. budgeted unit rate times × actual units used
D. actual unit rate times × actual units used
22. The phrase “cost application” refers to theallocation of the total departmental costs to________.
A. revenueminus−producing departments
B. service departments
C. revenueminus−producing products
D. service departments and producing departments
23. The budgeted factory overhead rate is computed as________.
A. actual factory overhead costs divided by actual cost driveractivity
B. actual factory overhead costs divided by actual production inunits
C. budgeted factory overhead costs divided by budgetedcostminus−allocation base level
D. budgeted factory overhead costs divided by actual cost driveractivity
24. If a department identifies more than one cost driverfor overhead costs, the department ideally should________.
A. select a single cost driver
B. put 80 percent of the costs into one pool and 20 percent intoa second pool
C. allocate 80 percent of the costs with 20 percent of the costdrivers
D. create as many cost pools as there are cost drivers
25. ________ is used for externalreporting.
A. Direct costing
B. Variable costing
C. The contribution margin approach
D. Absorption costing
26. Is the comparison of actual overhead costs tobudgeted overhead costs part of the product-costing process orpart of the control process? Explain.
The comparison of actual overhead costs to budgetedoverhead costs is part of the
Control Process
Product costing Process
26. A/ It is part of this process because
A. it tells managers how to improve the process.
B. it tells managers when the actual results differ from whatwas expected.
C. it tells managers how to control actual overhead costs.
D. it tells managers how to control inventory costs.
27. The fixed overhead spending variance is also calledthe ________ variance.
A. fixed overhead usage
B. fixed overhead flexible budget
C. fixed overhead efficiency
D. production volume
28. The ________ system is better suited for a singlephysical unit or a few similar units.
A. jobminus−order costing
B. activityminus−based management
C. activityminus−based costing
D. processminus−costing
29. Conoco Company has an actual factory overhead costof Depreciation Expenselong dash—Equipment of $5,000.Jobminus−order costing is used. The journal entry to record thisactual cost would include ________.
A. Debit Workminus−Inminus−Process Inventory $5,000 and Creditto Factory Department Overhead Control $5,000
B. Debit to Factory Department Overhead Control $5,000 andCredit to Accumulated Depreciationlong dash—Equipment $5,000
C. Debit to Depreciation Expenselong dash—Equipment $5,000 andCredit to Accumulated Depreciationlong dash—Equipment $5,000
D. Debit to Workminus−Inminus−Process Inventory $5,000 andCredit to Factory Department Overhead Applied $5,000
30. Rozman Company produces calendars in a oneminus−department process. The following data is available for thepast month:
Work-in- process inventory,beginning 0
Units started 15,000
Units completed andtransferred 12,000
Work- in- process inventory,ending 3,000
Direct materials added $30,000
Direct labor$20,700
Factory overhead costs $10,350
The units in process at the end of the month are 100percent complete with respect to direct materials and 50 percentcomplete with respect to conversion costs. What are the equivalentunits for conversion costs for the month?
A. 13,500
B. 3,000
C. 12,000
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."
