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Chris M.
Chris M., M.S.W. Social Work
Category: Homework
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Experience:  Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
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1. Prior to World War II, the United States produced about

Customer Question

1. Prior to World War II, the United States produced about seventy-five percent of the world's total goods and services. (Points: 5)
True
False


2. The value chain is the set of value-creating activities that extends from the production of raw materials to the sale and servicing of finished goods. (Points: 5)
True
False


3. A particular accounting system that is adequate for one company may be inadequate for another because of differences in strategies, markets, production and delivery systems, and controls. (Points: 5)
True
False


4. JIT and TQM are not compatible philosophies since JIT relates to inventory and TQM is a management philosophy. (Points: 5)
True
False


5. One shortcoming of traditional managerial accounting systems is that they focus too much on cost drivers and not enough on reducing costs. (Points: 5)
True
False


6. Product costs are the costs of resources consumed as part of administrative and selling activities during a fiscal period. (Points: 5)
True
False


7. The costs of the significant raw materials from which a product is manufactured are classified as direct material costs. (Points: 5)
True
False


8. Markup is the difference between the unit cost and the selling price of a product. (Points: 5)
True
False


9. A differentiated product has some distinguishing characteristic or quality for which consumers are willing to pay a premium. (Points: 5)
True
False


10. Unit price is the difference between the price per unit of a product and the unit cost. (Points: 5)
True
False


11. Normal costing measures unit costs by adding the actual costs of direct materials and direct labor to an estimated overhead cost incurred in producing the units (Points: 5)
True
False


12. A predetermined overhead rate is an estimate of the amount of overhead that management believes should be assigned to a unit of product. (Points: 5)
True
False


13. Process costing assigns the costs associated with a particular job to the units produced in that job. (Points: 5)
True
False


14. Batch processing combines elements of individual-job and continuous-flow processing. (Points: 5)
True
False


15. Equivalent units are the number of units that would have been produced during a period if all of the department's efforts had resulted in completed units. (Points: 5)
True
False


16. In parallel processing the flow of products breaks off at some point so that different units go through different processing departments. (Points: 5)
True
False


17. Cost-volume-profit (CVP) analysis is the use of an understanding of the relationship among costs, volume, and profits to make managerial decisions. (Points: 5)
True
False


18. Target-profit analysis is a technique used to find the volume of sales – in units or dollars – at which a company just covers its total costs. (Points: 5)
True
False


19. A company's margin of safety is the excess of the breakeven point over actual sales. (Points: 5)
True
False


20. GAAP requires that absorption costing be used to prepare internal reports. (Points: 5)
True
False


21. Direct labor, direct labor dollars, and machine hours are examples of activity bases. (Points: 5)
True
False


22. The actual overhead rate is found using estimated overhead costs divided by the estimated activity level. (Points: 5)
True
False


23. If a company produces more than one type of product, some products are likely to be produced in higher volume than others. (Points: 5)
True
False


24. Plant supervision is a unit-level cost. (Points: 5)
True
False


25. The direct materials budget identifies the amount of materials that will be required to support a company's total production needs. (Points: 5)
True
False


26. Foreign currency exchange rates refer to the relative values of the currencies of different countries. (Points: 5)
True
False


27. Low inflation rates are called hyperinflation. (Points: 5)
True
False


28. Top-down budgets involve all levels of an organization working to achieve the organization's goal. (Points: 5)
True
False


29. An unfavorable variance results when the actual price (or quantity) is less than the standard price (or quantity) for materials or labor. (Points: 5)
True
False


30. Failure costs are incurred to identify poor-quality products (or services) before a customer receives the goods or services. (Points: 5)
True
False


31. Quality costs are limited to companies that manufacture tangible products. (Points: 5)
True
False


32. Operating assets is Sales - (cost of goods sold + other operating expenses). (Points: 5)
True
False


33. The balanced scorecard has key performance criteria in four categories: financial, customer satisfaction, innovation and learning, and internal business. (Points: 5)
True
False


34. Transfer pricing involves setting appropriate selling prices for goods or services when the seller is external to the company. (Points: 5)
True
False


35. A market-based transfer pricing policy requires buyers and sellers to transfer goods based on externally verifiable prices. (Points: 5)
True
False


36. Investment center managers are only held accountable for costs. (Points: 5)
True
False


37. Cycle time is the number of minutes that pass between units leaving the final assembly area. (Points: 5)
True
False


38. Bottlenecks represents the number of units completed by a process in a given period of time. (Points: 5)
True
False


39. A manufacturing cell is a group of related machines, typically arranged in a straight line. (Points: 5)
True
False


40. The theory of constraints states that by identifying a constraint, such as a bottleneck, that exists in the processing of a good or service and taking corrective steps, the process will be improved. (Points: 5)
True
False


41. Processes within service organizations do not contain bottlenecks that affect lead time and throughput. (Points: 5)
True
False


42. Operational capital investment decisions affect all or a considerable part of a company's operations, have uncertain lives, and require large investments. (Points: 5)
True
False


43. The cost of capital is the interest rate that results in the present value of cash inflows from an investment. (Points: 5)
True
False


44. The payback period is the average accounting income a project generates per period divided by the amount of the investment in the project. (Points: 5)
True
False


45. Service companies also make capital investment decisions. (Points: 5)
True
False


46. Internal control systems are based on the theory that workers do not always behave in ways that are in the best interests of their company or its owners. (Points: 5)
True
False


47. Payroll and other expenses are susceptible to manipulation. (Points: 5)
True
False


48. Which of the following trends in the new business environment is concerned with the length of time it takes to develop, manufacture, and deliver a product? (Points: 5)
TQM
just-in-time (JIT)
time-based competition
flexible manufacturing


49. Traditional management accounting information (Points: 5)
focuses entirely on cost drivers
never focuses on cost drivers
does not focus enough on cost drivers
is useless in decision making.


50. Internal auditors may have educational backgrounds or experience in which of the following fields? (Points: 5)
accounting
finance
information systems
all of the above


51. Which of the following would be considered part of manufacturing overhead? (Points: 5)
hourly wages for employees in the accounting department
monthly salary expense for factory maintenance personnel
monthly salary expense for finished good warehouse personnel
sales commissions paid to sales personnel directly related to product sales


52. When an employee circumvents an internal control procedure, which of the following is likely to take place? (Points: 5)
management should be glad
(s)he almost always rationalizes the action
the employee should be fired immediately, regardless of the nature of the problem
all of the above


53. Which costs are sometimes found on the income statement and sometimes found on the balance sheet? (Points: 5)
period costs
product costs
both period and product costs
neither period nor product costs


54. Which costs are always found on the income statement, but never on the balance sheet? (Points: 5)
period costs
product costs
both period and product costs
neither period nor product costs


55. In some cases, managers may invest in long-term projects even though they may reduce ROI in the short run. Reasons a manager might make such an investment include (Points: 5)
legal/regulatory requirements
good strategic fit
improved public relations
all of the above


56. Companies using a just-in-time production system (Points: 5)
produce products based on sales forecasts
produce products based on customer demand
have mostly foreign customers
generally are small companies


57. A company with department names like fabrication, painting, and finishing is likely to use what type of costing to reflect its production operation? (Points: 5)
job order
process
actual
normal


58. An artist creates original works on commission. She is likely to use what type of costing? (Points: 5)
job order
process
actual
normal


59. XXXXX XXXXX is a cash receipts clerk for Boro Company. He receives payments from customers and records the payments to the customers' accounts. John receives a payment from Bobbie Jones for merchandise purchased on account. But, instead of recording the payment to Jones' account and depositing the cash, he pockets the cash. Later, John receives a payment from Shorty Cobb. Instead of recording the payment to Cobb's account, he records it to Jones' account. This is an example of (Points: 5)
misstating inventory
floating
lapping
understating accounts receivables


60. A potential capital investment will be depreciated $5,000 per year for five years. Which of the following pieces of information would a manager need to calculate the cash flow associated with depreciation? (Points: 5)
the asset's residual value
the discount rate
the tax rate
none of the above, since there is no cash flow associated with depreciation


61. Capital investment decisions typically involve several kinds of cash flows. Which kind best describes an asset's residual value? (Points: 5)
annuity due
lump sum
ordinary annuity
none of the above


62. Choosing the proper method of allocating costs to products and services can have a major impact on what? (Points: 5)
the selling price of the product or service if selling price is based on competition
arriving at a proper cost for the product or service
total manufacturing costs
the method used doesn't matter


63. In large firms where different divisions compete for limited investment capital, managers are tempted to make liberal cash flow assumptions that show positive Net Present Values (NPV) to obtain approval for their projects. What can senior management do to offset this tendency? (Points: 5)
senior management should stipulate a discount rate much higher than the company's cost of capital to reduce the present value of projects
senior management should stipulate a discount rate slightly higher than the company's cost of capital to reduce the present value of projects
senior management should stipulate a discount rate much lower than the company's cost of capital to reduce the present value of projects
senior management should stipulate a discount rate slightly lower than the company's cost of capital to reduce the present value of projects


64. It is estimated that the cost of electricity to run a machine for an entire 8-hour shift is $16. The machine can produce 200 units of product for each hour of operation. How much electricity cost is allocated to each unit of product? (Points: 5)
$0.01
$0.10
$1.00
cannot calculate from the information given


65. Fast Delivery Company delivers packages and business documents for local businesses located in the Houston metropolitan area. If the company decided to adopt an ABC costing system to accumulate costs for its service, what would be an appropriate cost driver to use for the cost of the packaging envelopes provided to customers? (Points: 5)
number of miles to be driven in the delivery
number of drivers on the truck
number of packages
number of orders


66. Which of the following elements of Cooper's cost hierarchy is most difficult to allocate because they cannot be associated directly with a product? (Points: 5)
unit-level costs
batch-level costs
product-level costs
facility-level costs


67. All of the following are strategic decisions except (Points: 5)
the types of products a company should manufacture
how products should be distributed
whether to enter new markets
improving machine setup times


68. Sebastian, an investment center manager in RKH Corporation, is trying to boost the current period's return on investment. Which of the following actions will achieve that goal? (Points: 5)
purchasing a new piece of equipment on the last day of the fiscal year
raising commission rates for salespeople from 3% to 4%
delaying preventive maintenance on existing equipment until next year
all of the above will increase the current period's ROI


69. Research has shown that managers perform best when (Points: 5)
there is no budget to worry about
there is a moderately difficult but achievable budget
the budget is obviously unachievable, but presents a tremendous challenge
budgets contain a maximum of slack


70. Kirland Company collected the following information to prepare its cash budget for the first quarter of a recent fiscal period. Beginning cash balance $4,250
Capital Expenditures 3,000
Collections on account 23,000
Depreciation on factory equipment 1,000
Dividends 1,000
Period costs 11,100
Product costs (excludes depreciation) 20,150
If Kirkland wants an ending cash balance of $4,000, how much will it have to borrow in the first quarter?



(Points: 5)
$0
$12,000
$13,000
some other amount


71. The cost of customer ill will caused by a defective product is an example of a(n) (Points: 5)
prevention cost
appraisal cost
internal failure cost
external failure cost


72. Control charts may be used for each of the following except (Points: 5)
provide a warning for an unexpected change
return the system to an "in-control" status
decrease inspection costs
identify errors in the process and determine basic causes


73. All of the above are key elements of just-in-time except (Points: 5)
cycle times are longer
high quality output is required
inventory levels are reduced
suppliers become partners rather than adversaries


74. If a materials quantity variance is based on the amount of material used in a period, who should be held accountable for managing the variance? (Points: 5)
production manager
purchasing manager
accounting manager
cannot be determined from the information given


75. Which of the following statements is TRUE? (Points: 5)
marketing managers never contribute to production variances
unfavorable materials quantity variances are always the responsibility of the production manager
both 1 and 2 are true
neither 1 nor 2 is true


76. All of the following are elements of a statistical process control chart except for: (Points: 5)
a characteristic's expected value (such as expected weight of material)
three lines indicating control limits for the characteristic
time observations of the characteristic
values of the characteristic


77. Product variability has what effect on costs and customer satisfaction? (Points: 5)
increases costs and increases customer dissatisfaction
decreases costs and increases customer dissatisfaction
increases costs and decreases customer dissatisfaction
decreases costs and decreases customer dissatisfaction


78. Holding all other factors equal, if net income increases, what will be the effect on return on investment (ROI)? (Points: 5)
it will increase proportionately
it will decrease proportionately
it will remain the same
ROI will increase at twice the rate of the increase in net income


79. All of the following are disadvantages of the just-in-time manufacturing philosophy except (Points: 5)
producing in small batches increases the number of machine setups
having lower inventory levels decreases carrying costs
maintaining low levels of inventory can cause the company to miss a sales opportunity
receiving raw materials in small batches increases shipping costs


80. Bottlenecks are generally caused by (Points: 5)
inefficient machine operators
poor management
a machine that produces at a slower rate than other machines in the process
none of the above will generally produce bottlenecks
Submitted: 4 years ago.
Category: Homework
Expert:  Chris M. replied 4 years ago.
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Chris M., M.S.W. Social Work
Category: Homework
Satisfied Customers: 2481
Experience: Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
Chris M. and 9 other Homework Specialists are ready to help you
Customer: replied 4 years ago.
Hello and thank you so much for help with my question. I was wondering (and i mean no offense what so ever), how confident are you with the answers you provided? i only ask because i noticed you didnt have a degree in finance or accounting. I have brought the question from you and i am grateful, i was just wondering are you very confident with the answers you provided
Expert:  Chris M. replied 4 years ago.

Hello Jenny,

 

I've had some business classes and, in fact, I've done this answer set before with no complaints. I used that same answer set here. After I posted the answers, I notice a slight discrepancy between your question set and my answers. You have one question that I don't have and vice-versa. Here is the correction:

You have as question #62. Choosing the proper method of allocating costs to products and services can have a major impact on what? (Points: 5)

the selling price of the product or service if selling price is based on competition

This throws the numbering of my answers (62-68) off by one. No. 68 on my answers is the question that is not on your list. From #69-80 the question order again becomes identical. I double-checked the order of the T/F questions and they are all the same. Sorry for this oversight, and I hope this explanation is clear. And yes, I am confident of the answers. I think you can get an 'A'. Let me know if you have any other questions.

 

-Chris M.



Edited by Chris M. on 3/12/2010 at 4:56 AM EST
Customer: replied 4 years ago.
chris i think your answers are off. ISnt number 13 and 14 true? im so confused and this has to be handed in today, im very worried
Expert:  Chris M. replied 4 years ago.

Hello Jenny,

 

Thanks for the reply. After re-checking these two questions, I still think #13 is false (isn't this job-order costing?), but #14 is true. Any other questions? Let me know how you do!

 

-Chris M.

 

 

 

Customer: replied 4 years ago.
Hello chris. I recieved the results of the exam and i recieved an 82%

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