ACC Final exam

.Which one of the following items is not a management accounting function?
a) Financial Management b) Marketing c) Cost Accounting d) Auditing

b) Marketing

Which one may not be considered as the type of managerial accounting report?
a) Budget and Performance Reports b) Cost Reports c) Inventory and Manufacturing Reports d) Cash Flow Statement

d) Cash Flow Statement

Management accountant would not be concerned with:
a) Preparing plans and forecasts for the future activities of the business b) Focus on the segments of organization c) Must to follow IFRS reporting formats and principles d) Prepare the reports for the i

c) Must to follow IFRS reporting formats and principles

Direct costs:
a) are incurred to benefit a particular accounting period. b) are incurred due to a specific decision. c) can be easily traced to a particular cost object. d) are the variable costs of producing a product.

c) can be easily traced to a particular cost object

A factory supervisor's wages are classified as: Indirect labor.................................. Fixed manufacturing overhead
A) No No B) Yes Yes C) Yes No D) No Yes A) Choice A B) Choice B C) Choice C D) Choice D

B) Yes Yes

9. Depreciation on a personal computer used in the marketing department of a manufacturing company would be classified as:
A) a product cost that is fixed with respect to the company's output. B) a period cost that is fixed with respect to the company's o

B) a period cost that is fixed with respect to the company's output.

10. A cost incurred in the past that is not relevant to any current decision is classified as a(n):
A) period cost. B) opportunity cost. C) sunk cost. D) differential cost.

C) sunk cost.

Which of the following approaches to preparing an income statement includes a calculation of the gross margin? Traditional Approach................................. Contribution Approach
A) Yes Yes B) Yes No C) No Yes D) No No

B) Yes, No

13. Norred Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.50 Direct labor $ 3.70 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 121,500 Sales commissions $ 1.50 Variable admini

B) $134,300

14. The following costs were incurred in May: Direct materials $ 41,000 Direct labor $ 13,000 Manufacturing overhead $ 46,000 Selling expenses $ 18,000 Administrative expenses $ 15,000 Conversion costs during the month totaled:
A) $54,000 B) $133,000 C) $

C) $59,000

16. Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Direct materials $ 6,000 Direct labor $ 20,000 R

$2.50 per direct labor-hour

20. During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record

A) debit to Work in Process of $79,000

26. Weyant Corporation has provided the following data concerning last month's operations. Direct materials $ 18,000 Direct labor $ 58,000 Manufacturing overhead applied to Work in Process $ 75,000 Overapplied overhead $ 6,000 Beginning Ending 13 Raw mate

B) $127,000

27. If a company increases its selling price by $2 per unit due to an increase in its variable labor cost of $2 per unit, the break-even point in units will:
A) decrease. B) increase. C) not change. D) change but direction cannot be determined.

C) not change

29. Carver Corporation produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A s

D) $16

31. Mullee Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Variable costs per unit: Direct materials $ 51 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and admin

D) $128 per unit

32. J Corporation has two divisions. Division A has a contribution margin of $79,300 and Division B has a contribution margin of $126,200. If total traceable fixed expenses are $72,400 and total common fixed expenses are $34,900, what is J Corporation's n

D) $98,200

34. Corvi Corporation produces and sells one product. The budgeted selling price per unit is $126. Budgeted unit sales are shown below: July August September October Budgeted unit sales 7,300 11,500 14,200 12,100 - All sales are on credit with 40% collect

D) $1,131,480

37. Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month

B) $30 F

39. Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 28.0 Process time 1.0 Inspection time 0.4 Move time 3.2 Queue time 5.1 The delivery cycle time was:
A) 8.3 ho

C) 37.7 hours

40. Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customer's home averages 90 days. This 90 days is spent as follows: Wait time 40days Inspection time 2day

B) 36.0%

41. Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:
A) sunk costs. B) opportunity costs. C) avoidable costs. D) irrelevant costs.

C) avoidable costs

42. A joint product is:
A) any product which consists of several parts. B) any product produced by a company with more than one product line. C) any product involved in a make or buy decision. D) one of several products produced from a common input.

D) one of several products produced from a common input.

43. Which of the following costs are always irrelevant in decision making?
A) avoidable costs B) sunk costs C) opportunity costs D) fixed costs

B) sunk costs

44. Accepting a special order will improve overall net operating income if the revenue from the special order exceeds:
A) the contribution margin on the order. B) the incremental costs associated with the order. C) the variable costs associated with the o

B) the incremental costs associated with the order

44. Which of the following would be considered a cash inflow in the financing activities section of the statement of cash flows?
A) Issuing bonds payable. B) Receiving cash from customers. C) Sale of equipment. D) Collection of a loan made to another comp

A) Issuing bonds payable.

45. A company's current ratio is greater than 1. Purchasing raw materials on credit would:
A) increase the current ratio. B) decrease the current ratio. C) increase working capital. D) decrease working capital

B) decrease the current ratio