Question 1

What was the turnover for Year 1?

Accepted Answer

A)  1.2. 
B)  1.5. 
C)  3.0. 
D)  4.0. 
A)  1.2. 
B)  1.5. 
C)  3.0. 
D)  4.0.

Question 2

During April,Division D of Carney Company had a segment margin ratio of 15%,a variable expense ratio of 60% of sales,and traceable fixed expenses of $15,000.Division D's sales were closest to which of the following?

Accepted Answer

A)  $22,500. 
B)  $33,333. 
C)  $60,000. 
D)  $100,000. 
A)  $22,500. 
B)  $33,333. 
C)  $60,000. 
D)  $100,000.

Question 3

Which of the following statements provide(s)an argument in favour of including only a plant's net book value rather than gross book value as part of operating assets in the ROI computation?
I.Net book value is consistent with how plant and equipment items are reported on a balance sheet.
II.Net book value is consistent with the computation of operating income,which includes amortization as an operating expense.
III.Net book value allows ROI to decrease over time as assets get older.

Accepted Answer

A)  I only. 
B)  III only. 
C)  I and II only. 
D)  I and III only. 
A)  I only. 
B)  III only. 
C)  I and II only. 
D)  I and III only.

Question 4

The use of return on investment as a performance measure may lead managers to make decisions that are NOT in the best interests of the company as a whole.

Accepted Answer

A) True 
 B)False

Question 5

What was the residual income?

Accepted Answer

A)  $10,000. 
B)  $40,000. 
C)  $50,000. 
D)  $80,000. 
A)  $10,000. 
B)  $40,000. 
C)  $50,000. 
D)  $80,000.

Question 6

What were the total variable expenses in Store K?

Accepted Answer

A)  $70,000. 
B)  $110,000. 
C)  $130,000. 
D)  $200,000. 
A)  $70,000. 
B)  $110,000. 
C)  $130,000. 
D)  $200,000.

Question 7

(Appendix 11A)What will be the total internal failure cost appearing on the quality cost report?

Accepted Answer

A)  $54,000. 
B)  $75,000. 
C)  $80,000. 
D)  $121,000. 
A)  $54,000. 
B)  $75,000. 
C)  $80,000. 
D)  $121,000.

Question 8

(Appendix 11A)What will be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $99,000. 
B)  $155,000. 
C)  $170,000. 
D)  $197,000. 
A)  $99,000. 
B)  $155,000. 
C)  $170,000. 
D)  $197,000.

Question 9

What was the operating income for Year 1?

Accepted Answer

A)  $240,000. 
B)  $256,000. 
C)  $384,000. 
D)  $768,000. 
A)  $240,000. 
B)  $256,000. 
C)  $384,000. 
D)  $768,000.

Question 10

Since the sales figure is neutral in the return on investment (ROI)formula,ROI = Margin x Turnover,a change in total sales will NOT affect ROI.

Accepted Answer

A) True 
 B)False

Question 11

(Appendix 11A)Rigoletto Company's quality cost report is to be based on the following data:   
Required:
Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

Accepted Answer

The answer of (Appendix 11A)Rigoletto Company's quality cost report is...

Question 12

How is a company's return on investment calculated?

Accepted Answer

A)  Dividing the margin by the turnover. 
B)  Multiplying the margin by the turnover. 
C)  Dividing the turnover by the average operating assets. 
D)  Multiplying the turnover by the average operating assets. 
A)  Dividing the margin by the turnover. 
B)  Multiplying the margin by the turnover. 
C)  Dividing the turnover by the average operating assets. 
D)  Multiplying the turnover by the average operating assets.

Question 13

(Appendix 11A)Suppose Cafeteria Department costs are allocated on the basis of number of employees and that the step-down method is used with costs of the Cafeteria Department allocated first.What would be the amount of cost allocated from the Cafeteria Department to Maintenance Department?

Accepted Answer

A)  $0. 
B)  $625. 
C)  $698. 
D)  $750. 
A)  $0. 
B)  $625. 
C)  $698. 
D)  $750.

Question 14

(Appendix 11A)An increase in appraisal costs will usually result in an increase in which of the following?

Accepted Answer

A)  Prevention costs. 
B)  Internal failure costs. 
C)  External failure costs. 
D)  Opportunity costs. 
A)  Prevention costs. 
B)  Internal failure costs. 
C)  External failure costs. 
D)  Opportunity costs.

Question 15

The Northern Division of the Smith Company had average total operating assets of $150,000 last year.Its minimum required rate of return was 12%.The division reported operating income of $20,000.What was the residual income for the Northern Division last year?

Accepted Answer

A)  $2,000. 
B)  $5,000. 
C)  $18,000. 
D)  $20,000. 
A)  $2,000. 
B)  $5,000. 
C)  $18,000. 
D)  $20,000.

Question 16

(Appendix 11A)Which of the following statements about quality costs is correct?

Accepted Answer

A)  They relate only to the manufacturing process. 
B)  They should be focused on appraisal activities. 
C)  They are minimized by having a team of well-trained quality control inspectors. 
D)  They cut across departmental lines and often are not accumulated and reported to management. 
A)  They relate only to the manufacturing process. 
B)  They should be focused on appraisal activities. 
C)  They are minimized by having a team of well-trained quality control inspectors. 
D)  They cut across departmental lines and often are not accumulated and reported to management.

Question 17

Suppose a manager's performance is to be evaluated by residual income.Which of the following will NOT result in an increase in the residual income figure for this manager,assuming other factors remain constant?

Accepted Answer

A)  An increase in sales. 
B)  An increase in the minimum required rate of return. 
C)  A decrease in expenses. 
D)  A decrease in operating assets. 
A)  An increase in sales. 
B)  An increase in the minimum required rate of return. 
C)  A decrease in expenses. 
D)  A decrease in operating assets.

Question 18

Effective decentralization is essential for which of the following management accounting practices in organizations?

Accepted Answer

A)  Break-even analysis. 
B)  Product costing. 
C)  Segment reporting. 
D)  Activity-based costing. 
A)  Break-even analysis. 
B)  Product costing. 
C)  Segment reporting. 
D)  Activity-based costing.

Question 19

(Appendix 11A)What will be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $43,000. 
B)  $45,000. 
C)  $47,000. 
D)  $51,000. 
A)  $43,000. 
B)  $45,000. 
C)  $47,000. 
D)  $51,000.

Question 20

(Appendix 11A)Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A)  Cost of field servicing and handling complaints. 
B)  Warranty repairs and replacements. 
C)  Systems development. 
D)  Rework labour and overheaD. 
A)  Cost of field servicing and handling complaints. 
B)  Warranty repairs and replacements. 
C)  Systems development. 
D)  Rework labour and overheaD.

What was the turnover for Year 1?

During April,Division D of Carney Company had a segment margin ratio of 15%,a variable expense ratio of 60% of sales,and traceable fixed expenses of $15,000.Division D's sales were closest to which of the following?

The use of return on investment as a performance measure may lead managers to make decisions that are NOT in the best interests of the company as a whole.

What was the residual income?

What were the total variable expenses in Store K?

(Appendix 11A)What will be the total internal failure cost appearing on the quality cost report?

(Appendix 11A)What will be the total appraisal cost appearing on the quality cost report?

What was the operating income for Year 1?

Since the sales figure is neutral in the return on investment (ROI)formula,ROI = Margin x Turnover,a change in total sales will NOT affect ROI.

(Appendix 11A)Rigoletto Company's quality cost report is to be based on the following data: Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

How is a company's return on investment calculated?

(Appendix 11A)Suppose Cafeteria Department costs are allocated on the basis of number of employees and that the step-down method is used with costs of the Cafeteria Department allocated first.What would be the amount of cost allocated from the Cafeteria Department to Maintenance Department?

(Appendix 11A)An increase in appraisal costs will usually result in an increase in which of the following?

The Northern Division of the Smith Company had average total operating assets of $150,000 last year.Its minimum required rate of return was 12%.The division reported operating income of $20,000.What was the residual income for the Northern Division last year?

(Appendix 11A)Which of the following statements about quality costs is correct?

Suppose a manager's performance is to be evaluated by residual income.Which of the following will NOT result in an increase in the residual income figure for this manager,assuming other factors remain constant?

Effective decentralization is essential for which of the following management accounting practices in organizations?

(Appendix 11A)What will be the total prevention cost appearing on the quality cost report?

(Appendix 11A)Which of the following would be classified as a prevention cost on a quality cost report?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters

Exam 11: Reporting for Control

What was the turnover for Year 1?

During April,Division D of Carney Company had a segment margin ratio of 15%,a variable expense ratio of 60% of sales,and traceable fixed expenses of $15,000.Division D's sales were closest to which of the following?

The use of return on investment as a performance measure may lead managers to make decisions that are NOT in the best interests of the company as a whole.

What was the residual income?

What were the total variable expenses in Store K?

(Appendix 11A)What will be the total internal failure cost appearing on the quality cost report?

(Appendix 11A)What will be the total appraisal cost appearing on the quality cost report?

What was the operating income for Year 1?

Since the sales figure is neutral in the return on investment (ROI)formula,ROI = Margin x Turnover,a change in total sales will NOT affect ROI.

(Appendix 11A)Rigoletto Company's quality cost report is to be based on the following data: Required: Prepare a quality cost report in good form with separate sections for prevention costs,appraisal costs,internal failure costs,and external failure costs.

How is a company's return on investment calculated?

(Appendix 11A)Suppose Cafeteria Department costs are allocated on the basis of number of employees and that the step-down method is used with costs of the Cafeteria Department allocated first.What would be the amount of cost allocated from the Cafeteria Department to Maintenance Department?

(Appendix 11A)An increase in appraisal costs will usually result in an increase in which of the following?

The Northern Division of the Smith Company had average total operating assets of $150,000 last year.Its minimum required rate of return was 12%.The division reported operating income of $20,000.What was the residual income for the Northern Division last year?

(Appendix 11A)Which of the following statements about quality costs is correct?

Suppose a manager's performance is to be evaluated by residual income.Which of the following will NOT result in an increase in the residual income figure for this manager,assuming other factors remain constant?

Effective decentralization is essential for which of the following management accounting practices in organizations?

(Appendix 11A)What will be the total prevention cost appearing on the quality cost report?

(Appendix 11A)Which of the following would be classified as a prevention cost on a quality cost report?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters