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Question 33 United Insurance Company specializes in term

Resolved Question:

Question 33

United Insurance Company specializes in term life insurance contracts. Cash collection experience shows that 30 percent of billed premiums are collected in the month before they are due, 60 percent are collected in the month they are due, and 6 percent are collected in the month following their due date. Four percent of the billed premiums are collected late (in the second month following their due date). Total billing notices in January were $50,000; in February, $60,000; in March, $66,000; in April, $65,000; in May, $60,000; and in June, $70,000. How much cash does the company expect to collect in May?

a. $56,000
b. $63,540
c. $66,750
d. $60,000

Question 34

The projections of direct materials purchases that follow are for the Sombo Corporation.


Purchases on Account
Cash Purchases
December
$40,000
$30,000
January
60,000
33,000
February
50,000
35,000
March
70,000
25,000

The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase. What is the expected cash payment for direct materials for the month of January?

a. $102,000
b. $108,000
c. $85,000
d. $33,000

Question 35

Hang 12 manufactures surfboards. During the upcoming quarter, it expects to sell 3,800 surfboards, after which it plans to have 500 surfboards remaining in inventory. If it currently has 200 surfboards on hand, how many surfboards will Hang 12 have to produce for the upcoming quarter?

a. 3,500
b. 3,800
c. 4,100
d. 3,100

Question 36

A performance management and evaluation system is a set of procedures that account for and report on

a. employee performance.
b. qualitative performance.
c. quantitative and qualitative performance.
d. quantitative performance.

Question 37

The manager of Center A is responsible for generating cash inflows and incurring costs with the goal of making money for the company. The manager has no responsibility for assets. What type of responsibility center is Center A?

a. Cost center
b. Discretionary cost center
c. Profit center
d. Revenue center

Question 38

A good example of a profit center would be

a. Avis Car Rental's national reservation center.
b. a car manufacturer's assembly line.
c. a local Home Depot store.
d. a manufacturer's human resources department.

Question 39

How is the contribution margin calculated when utilizing variable costing?

a. Sales less variable cost of goods sold, less variable selling and administrative expenses
b. Sales less cost of goods sold
c. Sales less variable cost of goods sold
d. Sales less variable cost of goods sold, less variable selling and administrative expenses, less fixed cost of goods sold, less fixed selling and administrative expenses

Question 40

The effectiveness of a performance management and evaluation system depends on how well it coordinates the goals of

a. the entire company.
b. responsibility centers.
c. managers.
d. all of these choices.
Submitted: 5 years ago.
Category: Homework
Expert:  atluriram replied 5 years ago.

atluriram :

Sir/madam

atluriram :

I undertook the assignment and will submit the answer within 24hours

atluriram :

with regards

atluriram :

atluri ramesh

atluriram :

Sir/madam

atluriram :

I herewith submit the answer. You can download here

atluriram :

You can download here

atluriram :

With regards

atluriram :

atluri ramesh

atluriram and 2 other Homework Specialists are ready to help you

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