Old-Fashion Flavors is a local ice cream shop.The company currently is showing an operating loss,as evidenced by the income statement below: \[\begin{array} { | c | r | } \hline \text { Sales } & \$ 75,000 \\ \hline \text { Costs: } & \\ \hline \text { Food supplies } & 20,000 \\ \hline \text { Labor } & 16,000 \\ \hline \text { Utilities } & 4,000 \\ \hline \text { Rent } & 12,000 \\ \hline \text { Other } & 4,000 \\ \hline \text { Manager's salary } & \underline{25,000} \\ \hline \text { Total Costs } & 81,000 \\ \hline \text { Operating Profits (Losses) } & \underline { ( \$ 6,000 ) } \\ \hline \end{array}\] The President of the company is considering adding sandwiches to the menu.Sales will be expected to increase by $60,000.The cost of sandwich supplies would be $30,000.Labor costs would increase 40% and other costs 10%.The current manager will continue to manage the operation. a.Prepare a quantitative analysis of the decision to add sandwiches to the menu. b.What qualitative considerations should the company consider in this decision?

@#IMG-DLM& a. b.Qualitative considerations should

Two alternatives,identified X and Y,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below. \[\begin{array} { | l | r | r | } \hline & \text { Altemative } \times & \text { Altemative } \mathrm { Y } \\ \hline \text { Material costs } & \$ 44,000 & \$ 56,000 \\ \hline \text { Processing costs } & 37,000 & 59,000 \\ \hline \text { Building costs } & 14,000 & 14,000 \\ \hline \text { Equipment rental } & 11,000 & 11,000 \\ \hline \end{array}\] What is the differential cost of Alternative Y over Alternative X?

A) $140,000 B) $123,000 C) $34,000 D) $106,000 A) $140,000 B) $123,000 C) $34,000 D) $106,000

Snuggle Toys,Inc.had the following summarized results for the month ending July 31: \[\begin{array} { | l | r | r | } \hline & \text { Actual } & \text { Budget } \\ \hline \text { Revenues } & \$ 60,000 & \$ 52,000 \\ \hline \text { Costs } & 53,600 & 45,600 \\ \hline \text { Operating profits } & \$ 6,400 & \$ 6,400 \\ \hline \end{array}\] As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

A) The departmental manager is performing to expectations because budgeted income equals actual income. B) Revenues are above budget and a bonus based on this increase should be considered. C) Costs as a percentage of revenues are above budget and a further scrutiny of the results might be appropriate. D) Costs are 17.5% above budget and the department manager's position should be critically evaluated by senior management. A) The departmental manager is performing to expectations because budgeted income equals actual income. B) Revenues are above budget and a bonus based on this increase should be considered. C) Costs as a percentage of revenues are above budget and a further scrutiny of the results might be appropriate. D) Costs are 17.5% above budget and the department manager's position should be critically evaluated by senior management.

Exam 1: Cost Accounting: Information for Decision Making

The IMA Code of Ethics describes three basic steps a cost accountant should take when faced with an ethical conflict: Discuss,clarify,and consult.Describe each of these three steps.

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Question 61

Old-Fashion Flavors is a local ice cream shop.The company currently is showing an operating loss,as evidenced by the income statement below: Sales \ 75,000 Costs: Food supplies 20,000 Labor 16,000 Utilities 4,000 Rent 12,000 Other 4,000 Manager's salary Total Costs 81,000 Operating Profits (Losses) The President of the company is considering adding sandwiches to the menu.Sales will be expected to increase by $60,000.The cost of sandwich supplies would be $30,000.Labor costs would increase 40% and other costs 10%.The current manager will continue to manage the operation. a.Prepare a quantitative analysis of the decision to add sandwiches to the menu. b.What qualitative considerations should the company consider in this decision?

(Essay)

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Question 62

All of the following are examples of total quality management practices except:

(Multiple Choice)

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Question 63

Examples of the controller's functions include all except:

(Multiple Choice)

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Question 64

Systems that allow firms to target profitable customers by assessing customer revenue and costs are called

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Question 65

In general,if activities that do not add value to the company can be eliminated,then costs associated with them will also be eliminated.

(True/False)

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Question 66

The owner of a small retail business asks,"Why do I need cost accountants? My CPA produces financial statements,which are sufficient for me to discover my costs.Look at my Income Statement.I expect sales to increase by 10% next year,so I am planning on a 10% increase in profits.I don't need a cost accountant to tell me that." Income Statement for the Year Ending December 31 Sales Revenue Cost of Goods Sold Gross Margin Selling Costs Administrative Costs Profit betore Taxes \ 457,234 160,886 (76,234) Use your knowledge of the concept of differential costs and explain why a cost accountant would question the conclusion that a 10% increase in sales would yield a 10% increase in profit.

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Question 67

A cost driver is a factor that causes costs.

(True/False)

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Question 68

The management of Parachute Corporation is considering dropping product ABC123.Data from the company's accounting system appear below: Sales \ 260,000 Cost of goods sold 125,000 Building expenses 88,000 Selling and administrative expenses 75,000 All building expenses of the company are fully allocated to products in the company's accounting system.Further investigation has revealed that $42,000 of the building expenses and $48,000 of the selling and administrative expenses will not be incurred if product ABC123 is discontinued. a.According to the company's accounting system,what are the operating profits earned by product ABC123? b.What would be the impact on the company's overall operating profits if product ABC123 is dropped? Should the product be dropped?

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Question 69

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

(Multiple Choice)

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Question 70

Which of the following could be considered part of the value chain in a service firm?

(Multiple Choice)

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Question 71

During 2016,the Beach Restaurant had sales revenues and food costs of $800,000 and $600,000,respectively.During 2017,Beach plans to introduce a new menu item that is expected to increase sales revenues by $100,000 and food costs by $40,000.Assuming no changes are expected for the other food items,operating profits for 2017 are expected to increase by

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Question 72

In 2016,the TransUnion Company had consulting revenues of $1,000,000 while costs were $750,000.In 2017,TransUnion will be introducing a new service that will generate $150,000 in sales revenues and $60,000 in costs.Assuming no changes are expected for the other services,operating profits are expected to increase between 2016 and 2017 by:

(Multiple Choice)

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Question 73

Two alternatives,identified X and Y,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below. Altemative \times Altemative Material costs \ 44,000 \ 56,000 Processing costs 37,000 59,000 Building costs 14,000 14,000 Equipment rental 11,000 11,000 What is the differential cost of Alternative Y over Alternative X?

(Multiple Choice)

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Question 74

Snuggle Toys,Inc.had the following summarized results for the month ending July 31: Actual Budget Revenues \ 60,000 \ 52,000 Costs 53,600 45,600 Operating profits \ 6,400 \ 6,400 As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

(Multiple Choice)

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Question 75

Where there is a lack of good performance measures,it is difficult to motivate managers by using

(Multiple Choice)

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Question 76

The boundary between what is cost accounting and what belongs in another discipline is often blurred.

(True/False)

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Question 77

Managerial decisions using cost accounting are more appropriate for which types of costs?

(Multiple Choice)

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Question 78

Having one or more of the firms' activities performed by another firm or individual in the supply or distribution chain is called

(Multiple Choice)

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Question 79

With the enactment of the Sarbanes-Oxley Act of 2002,all public companies are now required by the SEC to disclose whether or not the company has

(Multiple Choice)

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Question 80

Showing 61 - 80 of 144

The IMA Code of Ethics describes three basic steps a cost accountant should take when faced with an ethical conflict: Discuss,clarify,and consult.Describe each of these three steps.

All of the following are examples of total quality management practices except:

Examples of the controller's functions include all except:

Systems that allow firms to target profitable customers by assessing customer revenue and costs are called

In general,if activities that do not add value to the company can be eliminated,then costs associated with them will also be eliminated.

A cost driver is a factor that causes costs.

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

Which of the following could be considered part of the value chain in a service firm?

Snuggle Toys,Inc.had the following summarized results for the month ending July 31: Actual Budget Revenues \ 60,000 \ 52,000 Costs 53,600 45,600 Operating profits \ 6,400 \ 6,400 As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

Where there is a lack of good performance measures,it is difficult to motivate managers by using

The boundary between what is cost accounting and what belongs in another discipline is often blurred.

Managerial decisions using cost accounting are more appropriate for which types of costs?

Having one or more of the firms' activities performed by another firm or individual in the supply or distribution chain is called

With the enactment of the Sarbanes-Oxley Act of 2002,all public companies are now required by the SEC to disclose whether or not the company has

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

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