How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Manal Elkhoshkhany Your Own Question

Manal Elkhoshkhany
Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9476
Experience:  More than 5000 online tutoring sessions.
3708793
Type Your Homework Question Here...
Manal Elkhoshkhany is online now
A new question is answered every 9 seconds

MANAGERIAL ACCOUNTING MULTIPLE CHOICE QUESTIONS

Resolved Question:

_____ budgeting is when budgets are formulated with the active participation of all affected employees


A. Financial

B. Team

C. Participative

D. Shared

Question 3
Important factors considered by sales forecasters include all of the following except _____.


A. past pattern of sales

B. marketing research studies

C. competitors' activities

D. the desired level of sales

Question 4
A major drawback of using historical results for judging current performance is that _____.


A. past results may be incorrect

B. results may refer to a different manager

C. inefficiences may be concealed in the past performance

D. all of these answers are correct

Question 5
_____ is generally prepared as the first step in preparing the operating budgets.


A. A sales budget

B. An operating expense budget

C. A purchases budget

D. A budgeted income statement

Question 6
Cheating may take the form of _____.:


A. making short-run decisions to increase profits that are not in the company's best long-run interests

B. creating budgetary slack

C. decreasing profits when actual profits are significantly exceeding the profit target

D. all of these answers are correct

Question 7
An example of a favorable variance is _____.


A. actual revenues are less than expected

B. actual expenses are less than expected

C. material prices are greater than expected

D. expected labor costs are less than actual costs

Question 8
Differences between the static budget and the flexible budget are due to _____.


A. problems of cost control

B. poor usage of material and labor

C. a combination of price and material variances

D. actual activity differing from expected activity levels

Question 9
The type of budget that serves as the original benchmark for evaluating performance is called a _____ budget.


A. balanced

B. cost

C. flexible

D. static

Question 10
Activity-level variances plus flexible-budget variances equals _____.


A. total static-budget variances

B. total standard variances

C. total actual variances

D. none of these answers is correct

Question 11
Efficiency is indicated by _____.


A. sales-activity variances

B. static-budget variances

C. flexible-budget variances

D. all of these answers are correct

Question 12
Effectiveness is indicated by _____.


A. sales-activity variances

B. static-budget variances

C. flexible-budget variances

D. all of these answers are correct

Question 13
Green Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. _____ is the static-budget variance for processing.


A. $39,000 favorable

B. $39,000 unfavorable

C. $42,000 favorable

D. $42,000 unfavorable

Question 14
Roger Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. _____ is the activity-level variance for processing.


A. $39,000 favorable

B. $39,000 unfavorable

C. $42,000 favorable

D. $42,000 unfavorable

Question 15
Identify which statement below would not be a possible reason for a variance between a flexible budget and actual results.


A. Material prices were different than expected

B. Labor prices were different than expected

C. The actual volume of activity was different than expected

D. The amount of labor used per unit of output was different than expected

Question 16
Flexible budgets help to measure the _____.


A. differences between projected and actual activity levels

B. efficiency of operations at the actual activity level

C. amount by which standard quantity and expected prices differ

D. reasons why projected activity levels were not attained

Question 17
A standard cost is a unit cost that _____.


A. should never be revised

B. is the average cost for the industry

C. the company attained for the most recently completed period

D. should be attained

Question 18
The following information is for Brooklyn Corporation:
Direct
Material
Standard price per unit of input $29
Actual price per unit of input $27
Standard inputs allowed per unit of output 3 pounds
Actual units of input used 9,000 pounds
Actual units of output 3,000 units
* Direct material is measured in pounds
_____ is the direct-material price variance.


A. $6,000 favorable

B. $6,000 unfavorable

C. $18,000 unfavorable

D. $18,000 favorable

Question 19
The following information is for Euclid Corporation:
Direct
Material
Standard price per unit of input $25
Actual price per unit of input $24
Standard inputs allowed per unit of output 3 pounds
Actual units of input used 8,300 pounds
Actual units of output 2,770 units
* Direct material is measured in pounds
_____ is the direct-material quantity (usage) variance.


A. $250 unfavorable

B. $250 favorable

C. $8,300 unfavorable

D. $8,300 favorable

Question 20
The following information is for Pepper Pike Corporation:
Direct
Material
Standard price per unit of input $20
Actual price per unit of input $18
Standard inputs allowed per unit of output 3 pounds
Actual units of input used 8,300 pounds
Actual units of output 2,770 units
* Direct material is measured in pounds
_____ is the total direct-material flexible-budget variance.


A. $16,400 unfavorable

B. $16,400 favorable

C. $16,800 favorable

D. $16,800 unfavorable

Question 21
Berea Company produces 2,500 units. Each unit was expected to require 2 labor hours at a cost of $10 per hour. Total labor cost was $55,250 for 4,750 hours worked. Direct labor is measured in hours. _____ is the direct-labor price variance.


A. $5,250 favorable

B. $5,250 unfavorable

C. $7,750 favorable

D. $7,750 unfavorable

Question 22
Berea Company produces 2,500 units. Each unit was expected to require 2 labor hours at a cost of $10 per hour. Total labor cost was $55,250 for 4,750 hours worked. Direct labor is measured in hours. _____ is the direct-labor quantity variance.


A. $2,750 favorable

B. $2,750 unfavorable

C. $2,500 favorable

D. $2,500 unfavorable

Question 23
Berea Company produces 2,500 units. Each unit was expected to require 2 labor hours at a cost of $10 per hour. Total labor cost was $55,250 for 4,750 hours worked. Direct labor is measured in hours. _____ is the total flexible-budget variance for direct labor.


A. $5,250 favorable

B. $5,250 unfavorable

C. $7,500 favorable

D. None of these answers is correct

Question 24
The following data for the Safety Company pertain to the produc¬tion of 3,000 clay pigeons during July:
Standard variable-overhead cost was $5.00 per pound of clay.
Total actual variable-overhead cost was $11,340.
Standard variable-overhead cost allowed for units produced was $12,000.
Variable-overhead efficiency variance was $340 unfavorable.
_____ is the variable-overhead rate variance.


A. $560 unfavorable

B. $800 favorable

C. $800 unfavorable

D. $1,000 favorable

Question 25
The following data for the Fragile Company pertain to the produc¬tion of 1,000 bottles during July:
Standard variable-overhead cost: $26.00 per pound of glass.
Total actual variable-overhead cost: $25,000.
Standard variable-overhead cost allowed for units produced was $26,000.
Variable-overhead efficiency variance was $540 unfavorable.
_____ is the variable-overhead flexible-budget variance.


A. $1,000 favorable

B. $540 unfavorable

C. $2,280 favorable

D. $1,000 unfavorable

Question 26
To achieve maximum benefits at minimum cost, a management control system must foster _____.


A. goal congruence and employee motivation

B. motivation and responsibility accounting

C. responsibility accounting and managerial effort

D. managerial effort and goal congruence

Question 27
The following information is available for Paperback Inc. and its two divisions, Books and Periodicals:
Company Books Periodicals
as a whole Division Division
Net sales $100,000 $60,000 $40,000
Fixed costs:
Controllable by
division manager 26,500 22,500 4,000
Controllable by others 18,000 15,000 3,000
Variable costs:
Cost of merchandise sold 24,500 17,500 7,000
Operating expenses 16,400 10,000 6,400
Unallocated costs 7,000
_____ is the contribution margin for the Books Division.


A. $32,500

B. $42,500

C. $20,000

D. $15,000

Question 28
The following information is available for Writers Inc. and its two divisions, Pen and Ink:
Company Pen Ink
as a whole Division Division
Net sales $100,000 $50,000 $50,000
Fixed costs:
Controllable by
division manager 16,500 12,500 4,000
Controllable by others 8,000 5,000 3,000
Variable costs:
Cost of merchandise sold 24,500 17,500 7,000
Operating expenses 16,400 10,000 6,400
Unallocated costs 1,000
_____ is the contribution controllable by the manager of the Ink Division.


A. $29,600

B. $36,600

C. $36,000

D. $32,600

Question 29
The following information is available for Sandwich Inc. and its two divisions, Ham and Cheese:
Company Ham Cheese
as a whole Division Division
Net sales $100,000 $60,000 $40,000
Fixed costs:
Controllable by
division manager 16,500 12,500 4,000
Controllable by others 8,000 5,000 3,000
Variable costs:
Cost of merchandise sold 24,500 17,500 7,000
Operating expenses 16,400 10,000 6,400
Unallocated costs 8,000
_____ is the contribution by segment for the Ham Division.


A. $32,500

B. $20,000

C. $15,000

D. $42,500

Question 30
The following information is available for Cartoon Inc. and its two divisions, Spiderman and Superman:
Company Spiderman Superman
as a whole Division Division
Net sales $100,000 $60,000 $40,000
Fixed costs:
Controllable by
division manager 16,500 12,500 4,000
Controllable by others 8,000 5,000 3,000
Variable costs:
Cost of merchandise sold 24,500 17,500 7,000
Operating expenses 16,400 10,000 6,400
Unallocated costs 1,000
_____ is the net income for the Cartoon Inc.


A. $29,600

B. $34,600

C. $15,000

D. $33,600

Question 31
Improvements in the production process are examples of ____________ cost.


A. prevention

B. internal failure

C. appraisal

D. external failure

Question 32
Groucho Corporation and Harpo Company are movie companies. Comparative data for 20X4 and 20X5 are given below.
Groucho Harpo
Corporation Company
Sales revenue 20X4 $8,400,000 $4,400,000
20X5 9,600,000 6,200,000
Number of employees 20X4 8,000 5,500
20X5 9,000 7,000
Assume that each 20X4 dollar is equivalent to 1.30 of the 20X5 dollars, due to inflation. _____ is Harpo Company’s 20X4 revenue per employee in terms of 20X5 dollars.


A. $1,040.00

B. $885.71

C. $1,328.57

D. $800.00

Question 33
Rework costs are a form of _____cost.


A. prevention

B. appraisal

C. internal failure

D. external failure

Question 34
________ costs would not be appraisal costs.


A. Inspection

B. Testing

C. Warranty

D. Product quality audit

Question 35
Identify which of the following statements is a benefit of decentralization.


A. Top-level managers have the best information concerning local conditions.

B. Managers acquire decision-making ability and other management skills that help them mover upward in the organization, assuring continuity of leadership.

C. Managers save time dealing with managers from other segments regarding transfer pricing.

D. Managers make decisions that enhance their segment's performance.

Question 36 Save
Jewel Company’s revenues are $300 and invested capital is $240. Expenses are currently 60% of sales. Jewel Company’s current return on investment is


A. 50 %

B. 100 %

C. 80 %

D. None of these answers is correct

Question 37 Save
Kitchen Company’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Kitchen Company can reduce its invested capital by 20%, return on investment will be _____.


A. 75%

B. 93.75%

C. 18.75%

D. 46.88%

Question 38 Save
Trevor Company paid $8 million cash for research and development. EVA invested capital was computed as $20 million. Trevor Company cost of capital was 20%. To add economic value to the firm, Trevor Company must generate revenues less operating costs of at least _____.


A. $4.2 million

B. $9.2 million

C. $12 million

D. $28 million

Question 39 Save
The following information is available for the Super Company:
Sales $1,000,000
Invested capital 312,500
ROI 20%
The net income is _____.


A. $687,000

B. $312,500

C. $62,500

D. $100,000

Question 40
Economic profit is defined as _____.


A. net income less a capital charge

B. sales less expenses

C. income divided by revenue

D. the same as ROI

Question 41
The joint formulation by a manager and his or her superior of a set of goals and plans for achieving the goals for a forthcoming period is known as _____.


A. capital budgeting

B. managerial effort

C. management by opinion

D. management by objectives

Question 42
The following information pertains to Mary Company:
Total assets $50,000
Total current liabilities 30,000
Total expenses 60,000
Total liabilities 35,000
Total revenues 80,000
If invested capital is defined as total assets, and their cost of capital is 10%, the economic profit (residual income) is _____.


A. $4,000

B. $15,000

C. $20,000

D. $1,600

Question 43
Identify which of the following statements about cost centers and decentralization is true.


A. Accountability for revenues and expenses exitst independently of the ability to make decisions.

B. Accountability for revenues and expenses requires the ability to make decisions.

C. Decentralized organizations are organized into profit centers.

D. Cost centers are centralized, but profit centers are decentralized.

Question 44
The following information pertains to Moore Company:
Total assets $150,000
Total current liabilities 110,000
Total expenses 160,000
Total liabilities 115,000
Total revenues 180,000
If invested capital is defined as total assets, a project earning an ROI of 12% should be _____.



A. accepted

B. rejected

C. rejected if the cost of capital is greater than 12%

D. rejected if the desired rate of return is less than 12%

Question 45
The following information pertains to Robert Company:
Total assets $50,000
Total current liabilities 10,000
Total expenses 60,000
Total liabilities 15,000
Total revenues 80,000
If invested capital is defined as total assets minus current liabilities, the economic profit (residual income) at an imputed interest rate of 20% is _____.


A. $12,000

B. $20,000

C. $4,000

D. $2,600

Question 46 Save
Transfer prices are _____.


A. costs of the segment producing the product or service

B. revenues of the segment acquiring the product or service

C. revenues of the segment producing the product or service

D. none of these answers is correct

Question 47 Save
Lou Company records reveal the following:
Division X
Market price of finished component to outsiders $32
Variable costs per component 24
Contribution margin per component $8
Total contribution for 20,000 components $160,000
Division Y
Sales price of finished product $42
Variable costs:
Division X (1 component @ $24) $24
Division Y
Assembly $9
Packaging 4 13 - 37
Contribution margin per unit $5
Total contribution for 20,000 units $100,000
The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X wants to transfer the components to Division Y for $34 each, the manager of Division Y would _____.



A. not want to buy from Division X, as the same component could be purchased at the market price of $32

B. buy from Division X, as this would be in the best interest of the company as a whole

C. buy from Division X as long as Division X could supply a large enough quantity to make it profitable to Division Y

D. probably ask Division X's manager to split the difference between the $34 and the market price of $32 to arrive at a transfer price of $36

Question 48 Save
Frances Company records reveal the following:
Division X
Market price of finished component to outsiders $32
Variable costs per component 24 Contribution margin per component $8
Total contribution for 20,000 components $160,000
Division Y
Sales price of finished product $45
Variable costs:
Division X (1 component @ $24) $24
Division Y
Assembly $9
Packaging 4 13 - 37
Contribution margin per unit $5
Total contribution for 20,000 units $100,000
The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is not at full capacity, the lowest transfer price at which it would be willing to sell to Division Y would be _____.



A. $32

B. $24

C. $8

D. $22

Question 49 Save
The Table and Chair Divisions are part of the same company. Currently the Chair Division buys a part from Table for $384. The Table Division wants to increase the price of the part it sells to Chair by $96 to $480. The manager of Chair has stated that it cannot afford to go that high, as it will decrease the division's profit to near zero. Chair can buy the part from an outside supplier for $448. The cost data for the Table Division is as follows:
Direct materials $136
Direct labor 200
Variable overhead 40
Fixed overhead 42
If Table ceases to produce the parts for Chair, it will be able to avoid one third of the fixed manufacturing overhead. The Table Division has excess capacity but no alternative uses for its facilities. From the standpoint of the company as a whole, should Chair continue to buy from Table or start to buy from the outside supplier?


A. Chair should buy from Table Division because the company's profit would be $58.00 per unit larger

B. Chair should buy from Table Division because the company's profit would be $32.00 per unit larger

C. Chair should buy from an outside supplier

D. None of these answers is correct

Question 50
A division of Sarge Company is located in a country that places restrictions on the amount of funds that may be paid as dividends to foreign owners. If Sarge Company wishes to maximize the amount of cash received from the foreign division, Sarge Company should establish a _____.


A. high transfer price of goods transferred out of the country

B. high transfer price of goods transferred into the country

C. low transfer price of goods transferred out of the country

D. low transfer price of goods transferred into the country
Submitted: 4 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 4 years ago.

Hello

 

Thank you for requesting me, but please advise your deadline as well as the name of the book you are using: Title, author's name, and edition

 

Thank you

Customer: replied 4 years ago.

Introduction to Management Accounting

chapters 1-17 14th edition

authors: horngren, sundem, stratton, burgstahler, schatzberg

deadline: 10/22-Thursday

 

Thanks

 

Expert:  Manal Elkhoshkhany replied 4 years ago.

Great we have time :) The problem is that I will be very busy until Tuesday, but I wil post the answers before the deadline. Thanks a million for your trust

 

P.S. For future posts, please type "For BusinessTutor" at the beginning of your post so that you ensure I am the one who answers your questions (that is of course after you get a promised 100% correct answers)

 

Regards,

Expert:  Manal Elkhoshkhany replied 4 years ago.
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
If you've already paid for this answer, simply Login.
Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9476
Experience: More than 5000 online tutoring sessions.
Manal Elkhoshkhany and 4 other Homework Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4520
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4520
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda_us's Avatar

    Linda_us

    Finance, Accounts & Homework Tutor

    Satisfied Customers:

    3121
    Post Graduate Diploma in Management (MBA)
  • http://ww2.justanswer.com/uploads/ComputersGuru/2010-02-13_051118_Photo41.JPG LogicPro's Avatar

    LogicPro

    Engineer

    Satisfied Customers:

    3035
    Expert in Java C++ C C# VB Javascript Design SQL HTML
  • http://ww2.justanswer.com/uploads/lanis/2009-4-1_233717_phput9xef_c1pm.jpg Lani S.'s Avatar

    Lani S.

    Tutor

    Satisfied Customers:

    2457
    Registered Nurse, Internet Researcher, Private Tutor
  • http://ww2.justanswer.com/uploads/chooser77/2009-08-18_162025_Chris.jpg Chris M.'s Avatar

    Chris M.

    M.S.W. Social Work

    Satisfied Customers:

    2341
    Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1975
    Experience with chartered accountancy
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    1873
    Bachelors Degree and CPA with Accounting work experience
 
 
 

Related Homework Questions