成本会计专业题英文版

1.Pet Products Company uses an automated process to manufactureits pet replica products. For June, the company had the followingactivities:Direct materials are placed into production at the beginning of theprocess and conversion costs are incurred evenly throughout theprocess.Required:Prepare a production cost worksheet using the FIFO method.2.The Sunshine Oil Company buys crude vegetable oil. Refining this oilresults in four products at the splitoff point: A, B, C,and D. Product C isfully processed by the splitoff point. Products A, B, and D can individuallybe further refined into Super A, Super B, and Super D. In the mostrecent month (December), the output at the splitoff point was:Computation of gross-margin percentages:3.The Carvelli Company is a manufacturer of housewares anduses standard costing. Manufacturing overhead (both variableand fixed) is allocated to products on the basis of budgetedmachine-hours. The budget for 2007 included:Variable manufacturing overhead $9 per machine-hourFixed manufacturing overhead $72,000,000Denominator level 4,000,000 machine-hoursSuppose that 3,500,000 machine-hours were allowed foractual output produced in 2007, but 3,800,000 actualmachine-hours were used. Actual manufacturing overheadwas $36,100,000, variable, and $72,200,000, fixed.Compute (a) the variable manufacturing overhead spendingand efficiency variances and (b) the fixed manufacturingoverhead spending and production-volume variances45.Madzinga’s Draperies manufactures curtains. A certain window requires the following:Direct materials standard10 square yards at $5 per yard Direct manufacturing labor standard 5 hours at $10 During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. Direct labor totaled 7,600 hours for $79,800. Required:a. Compute the direct materials price and efficiency variances for the quarter.b. Compute the direct manufacturing labor price and efficiency variances for the quarter.。

Cost Accounting, 13e (Horngren et al.)Chapter 6 Master Budget and Responsibility Accounting1) Few businesses plan to fail, but many of those that don't succeed have failed to plan.Answer: TRUEDiff: 1Terms: master budgetObjective: 1AACSB: Analytical skills2) The master budget reflects the impact of operating decisions, but not financing decisions.Answer: FALSEExplanation: The master budget reflects the impact of operating decisions and financing decisions.Diff: 1Terms: master budgetObjective: 1AACSB: Communication3) Budgeted financial statements are also referred to as pro forma statements.Answer: TRUEDiff: 1Terms: financial budgetObjective: 1AACSB: Reflective thinking4) Budgeting includes only the financial aspects of the plan and not any nonfinancial aspects such as thenumber of physical units manufactured.Answer: FALSEExplanation: Budgeting includes both financial and nonfinancial aspects of the plan.Diff: 2Terms: financial budgetObjective: 1AACSB: Reflective thinking5) Budgeting helps management anticipate and adjust for trouble spots in advance.Answer: TRUEDiff: 1Terms: budgetObjective: 1AACSB: Reflective thinking6) Budgets can play both planning and control roles for management.Answer: TRUEDiff: 1Terms: budgetObjective: 1AACSB: Reflective thinking7) Long-run planning and short-run planning are best performed independently of each other.Answer: FALSEExplanation: Long-run planning and short-run planning are best performed as a part of an overall strategic planning process since they influence each other.Diff: 2Terms: planningObjective: 1AACSB: Reflective thinking8) Operating decisions deal with how to best use the limited resources of an organization.Answer: TRUEDiff: 2Terms: master budgetObjective: 1AACSB: Ethical reasoning9) Investing decisions deal with how to obtain the funds to acquire resources.Answer: FALSEExplanation: Financing decisions deal with obtaining funds.Diff: 2Terms: master budgetObjective: 1AACSB: Ethical reasoning10) Budgeted financial statements are called pro forma statements.Answer: TRUEDiff: 2Terms: pro forma statementsObjective: 1AACSB: Reflective thinking11) After a budget is agreed upon and finalized by the management team, the amounts should not be changedfor any reason.Answer: FALSEExplanation: Budgets should not be administered rigidly, but rather should be adjusted for changing conditions.Diff: 2Terms: master budgetObjective: 2AACSB: Ethical reasoning12) Even in the face of changing conditions, attaining the original budget is critical.Answer: FALSEExplanation: Changing conditions usually call for a change in plans. Attaining the budget should not be an end in itself.Diff: 3Terms: master budgetObjective: 2AACSB: Reflective thinking13) Lower-level managers will not actively participate in the budget process if they perceive upper managementdoes not believe in the process.Answer: TRUEDiff: 3Terms: master budgetObjective: 2AACSB: Communication14) A four-quarter rolling budget encourages management to be thinking about the next 12 months.Answer: TRUEDiff: 2Terms: rolling budgetObjective: 2AACSB: Reflective thinking15) A rolling budget is the same as a continuous budget.Answer: TRUEDiff: 2Terms: rolling budgetObjective: 2AACSB: Reflective thinking16) Research has shown that challenging budgets (rather than budgets that can be easily attained) are energizingand improve performance.Answer: TRUEDiff: 2Terms: master budgetObjective: 2AACSB: Reflective thinking17) The revenue budget and the budgeted income statement are used to prepare the budgeted balance sheet andthe budgeted statement of cash flows.Answer: FALSEExplanation: The cash budget and the budgeted income statement are necessary to prepare the budgeted balance sheet and budgeted statement of cash flows.Diff: 2Terms: master budgetObjective: 3AACSB: Reflective thinking18) It is best to compare this year's performance with last year's actual performance rather than this year'sbudget.Answer: FALSEExplanation: It is best to compare this year's performance with this year's budget because inefficiencies and different conditions may be reflected in last year's actual performance amounts.Diff: 3Terms: master budgetObjective: 2AACSB: Reflective thinking19) When administered wisely, budgets promote communication and coordination among the various subunitsof the organization.Answer: TRUEDiff: 2Terms: budgetObjective: 2AACSB: Communication20) Preparation of the budgeted income statement is the final step in preparing the operating budget.Answer: TRUEDiff: 1Terms: operating budgetObjective: 3AACSB: Reflective thinking21) The sales forecast should primarily be based on statistical analysis with secondary input from sales managersand sales representatives.Answer: FALSEExplanation: The sales forecast should be primarily based on input from sales managers and salesrepresentatives with secondary input from statistical analysis.Diff: 3Terms: operating budgetObjective: 3AACSB: Reflective thinking22) The usual starting point in budgeting is to forecast net income.Answer: FALSEExplanation: The usual starting point in budgeting is to forecast sales demand and revenues.Diff: 2Terms: operating budgetObjective: 3AACSB: Reflective thinking23) The revenues budget should be based on the production budget.Answer: FALSEExplanation: The production budget should be based on the revenues budget.Diff: 1Terms: operating budgetObjective: 3AACSB: Reflective thinking24) The operating budget is that part of the master budget that includes the capital expenditures budget, cashbudget, budgeted balance sheet, and the budgeted statement of cash flows.Answer: FALSEExplanation: Described is the financial budget part of the master budget, not the operating budget.Diff: 1Terms: operating budgetObjective: 3AACSB: Reflective thinking25) Since fixed manufacturing overhead is fixed, it is not normally included in the operating budget.Answer: FALSEExplanation: Fixed manufacturing is normally included in the operating budget.Diff: 2Terms: operating budgetObjective: 3AACSB: Reflective thinking26) The manufacturing labor budget depends on wage rates, production methods, and hiring plans.Answer: TRUEDiff: 2Terms: operating budgetObjective: 3AACSB: Reflective thinking27) The manufacturing labor budget depends on wage rates, production methods, and hiring plans.Answer: TRUEDiff: 2Terms: operating budgetObjective: 3AACSB: Reflective thinking28) If inventoriable costs in the operating budget are going to be in accordance with Generally AcceptedAccounting Principles (GAAP), they include only variable manufacturing costs.Answer: FALSEExplanation: If inventoriable costs in the operating budget are going to be in accordance with Generally Accepted Accounting Principles (GAAP), they include variable and fixed manufacturing costs.Diff: 3Terms: operating budgetObjective: 3AACSB: Reflective thinking29) Activity-based budgeting provides better decision-making information than budgeting based solely onoutput-based cost drivers (units produced, units sold, or revenues).Answer: TRUEDiff: 2Terms: activity-based budgetingObjective: 3AACSB: Communication30) Activity-based costing analysis takes a long-run perspective and treats all activity costs as variable costs.Answer: TRUEDiff: 3Terms: activity-based budgetingObjective: 3AACSB: Reflective thinking31) Activity-based budgeting (ABB) focuses on the budgeting cost of activities necessary to produce and sellproducts and services.Answer: TRUEDiff: 1Terms: activity-based budgetingObjective: 3AACSB: Reflective thinking32) Activity-based budgeting would permit the use of multiple drivers and multiple cost pools in the budgetingprocess.Answer: TRUEDiff: 2Terms: activity-based budgetingObjective: 3AACSB: Reflective thinking33) Activity-based budgeting and kaizen budgeting are really equivalent in meaning.Answer: FALSEExplanation: Activity-based budgeting and kaizen budgeting are not equivalent in meaning.Diff: 2Terms: activity-based budgeting, kaizen budgetingObjective: 3AACSB: Reflective thinking34) If budgeted amounts change, the kaizen approach can be used to examine changes in the budgeted results.Answer: FALSEExplanation: If budgeted amounts change, sensitivity analysis can be used to examine changes in the budgeted results.Diff: 2Terms: kaizen budgeting, sensitivity analysisObjective: 4AACSB: Reflective thinking35) Computer-based financial planning models are mathematical statements of the interrelationships amongoperating activities, financial activities, and other factors that affect the budget.Answer: TRUEDiff: 1Terms: financial planning modelsObjective: 4AACSB: Use of Information Technology36) Most computer-based financial planning models have difficulty incorporating sensitivity (what-if) analysis.Answer: FALSEExplanation: Computer-based financial planning models easily assist management with sensitivity (what-if) analysis.Diff: 2Terms: financial planning models, sensitivity analysisObjective: 4AACSB: Use of Information Technology37) Sensitivity analysis is a "what-if" technique that examines how a result will change if the original predictionor assumptions change.Answer: TRUEDiff: 2Terms: sensitivity analysisObjective: 4AACSB: Reflective thinking38) If we increase the selling price of our product, we should probably expect a decline in the number of theseproducts sold.Answer: TRUEDiff: 2Terms: sensitivity analysisObjective: 4AACSB: Analytical skills39) If we increase the selling price of our product, we can always expect an increase in total revenue.Answer: FALSEExplanation: If we increase the selling price of our product, we may experience either an increase in total revenue or a decrease in total revenue due to the uncertain effect of the price increase on thequantity demanded.Diff: 2Terms: sensitivity analysisObjective: 4AACSB: Analytical skills40) Sensitivity analysis incorporates continuous improvement into budgeted amounts.Answer: FALSEExplanation: Kaizen budgeting incorporates continuous improvement into budgeted amounts.Diff: 1Terms: sensitivity analysis, kaizen budgetingObjective: 5AACSB: Reflective thinking41) Companies implementing kaizen budgeting believe that employees who actually do the job have the bestknowledge of how the job can be done better.Answer: TRUEDiff: 1Terms: kaizen budgetingObjective: 5AACSB: Reflective thinking42) The Japanese use kaizen to mean financing alternatives.Answer: FALSEExplanation: The Japanese use kaizen to mean continuous improvement.Diff: 1Terms: kaizen budgetingObjective: 5AACSB: Multiculturalism and diversity43) Kaizen budgeting does not make sense for profit centers.Answer: FALSEExplanation: Kaizen budgeting can be used in any type of responsibility center.Diff: 2Terms: kaizen budgetingObjective: 5AACSB: Multiculturalism and diversity44) Kaizen budgeting encourages small incremental changes, rather than major improvements.Answer: TRUEDiff: 1Terms: kaizen budgetingObjective: 5AACSB: Multiculturalism and diversity45) Kaizen budgeting allows for budgeting of small incremental increases in costs each budgeting period toallow for the effects of normal inflation.Answer: FALSEExplanation: Kaizen budgeting allows for budgeting of small incremental decreases in costs each budgeting period.Diff: 2Terms: kaizen budgetingObjective: 5AACSB: Multiculturalism and diversity46) A responsibility center is a part, segment, or subunit of an organization, whose manager is accountable for aspecified set of activities.Answer: TRUEDiff: 1Terms: responsibility centerObjective: 6AACSB: Reflective thinking47) Each manager, regardless of level, is in charge of a responsibility center.Answer: TRUEDiff: 2Terms: responsibility centerObjective: 6AACSB: Reflective thinking48) In a profit center, a manager is responsible for investments, revenues, and costs.Answer: FALSEExplanation: In a profit center, a manager is responsible for revenues, and costs, but not investments.Diff: 1Terms: profit centerObjective: 6AACSB: Reflective thinking49) A packaging department is MOST likely a profit center.Answer: FALSEExplanation: A packaging department is most likely a cost center.Diff: 2Terms: profit centerObjective: 6AACSB: Analytical skills50) Variances between actual and budgeted amounts inform management about performance relative to thebudget.Answer: TRUEDiff: 1Terms: responsibility accountingObjective: 651) An organization structure is an arrangement of lines of responsibility within the entity.Answer: TRUEDiff: 1Terms: organization structureObjective: 6AACSB: Communication52) A responsibility center can be structured to promote better alignment of individual and company goals.Answer: TRUEDiff: 2Terms: responsibility centerObjective: 6AACSB: Communication53) Management will most likely behave the same way if a department is structured as a revenue center or if thesame department is structured as a profit center.Answer: FALSEExplanation: Management will most likely behave differently if a department is structured as a revenue center than if the same department is structured as a profit center due to the incentives to control costs aswell as revenues in a profit center.Diff: 2Terms: revenue center, profit centerObjective: 6AACSB: Reflective thinking54) Responsibility accounting focuses on control, not on information and knowledge.Answer: FALSEExplanation: Responsibility accounting focuses on information and knowledge, not on control.Diff: 2Terms: responsibility accountingObjective: 7AACSB: Communication55) The fundamental purpose of responsibility accounting is to fix blame when budgets are not achieved.Answer: FALSEExplanation: The fundamental purpose of responsibility accounting is to gather information when budgets are not achieved.Diff: 2Terms: responsibility accountingObjective: 7AACSB: Communication56) Human factors are crucial parts of budgeting.Answer: TRUEDiff: 2Terms: responsibility accountingObjective: 8AACSB: Reflective thinking57) Budgetary slack provides management with a hedge against unexpected adverse circumstances.Answer: TRUEDiff: 2Terms: responsibility accountingObjective: 858) Most costs can be easily controlled because they are under the sole influence of one manager.Answer: FALSEExplanation: Few costs are clearly under the sole influence of one manager.Diff: 3Terms: controllable costObjective: 8AACSB: Reflective thinking59) Performance reports of responsibility centers may include uncontrollable items to influence behavior that isin alignment with corporate strategy.Answer: TRUEDiff: 2Terms: controllable costObjective: 8AACSB: Reflective thinking60) When the operating budget is used as a control device, managers are more likely to be motivated to budgethigher sales than actually anticipated.Answer: FALSEExplanation: When the operating budget is used as a control device, managers are less likely to be motivated to budget higher sales than actually anticipated.Diff: 3Terms: operating budget, budgetary slackObjective: 8AACSB: Ethical reasoning61) Budgeting slack is most likely to occur when a firm uses the budget only as a planning device and not forcontrol.Answer: FALSEExplanation: Budgeting slack is most likely to occur when a firm uses the budget for control.Diff: 3Terms: controllable cost, budgetary slackObjective: 8AACSB: Reflective thinking62) If a cost is considered controllable, it indicates that all aspects of the cost are under the control of the managerof the responsibility center to which that cost is assigned.Answer: FALSEExplanation: A controllable cost is any cost that is primarily subject to the influence of a given responsibility manager.Diff: 2Terms: controllable costObjective: 8AACSB: Reflective thinking63) To create greater commitment to the budget, top-management should create the budget and then share itwith lower-level managers.Answer: FALSEExplanation: To create greater commitment to the budget, lower-level managers should participate in creating the budget.Diff: 3Terms: responsibility accountingObjective: 8fluctuations.Answer: TRUEDiff: 2Terms: responsibility accountingObjective: 8AACSB: Multiculturalism and diversity65) The possibility of exchange rate fluctuations does not influence the budgeting procedures in a multinationalcorporation.Answer: FALSEExplanation: The possibility of exchange rate fluctuations influences the budgeting procedures in a multinational corporation.Diff: 2Terms: responsibility accountingObjective: 8AACSB: Multiculturalism and diversity66) Because of the possibility of exchange rate fluctuations, managers of multinational corporations shouldignore subjective factors in their performance evaluations.Answer: FALSEExplanation: The possibility of exchange rate fluctuations increases the importance of subjective factors in performance evaluations of multinational corporations.Diff: 2Terms: responsibility accountingObjective: 8AACSB: Multiculturalism and diversity67) A key use of sensitivity analysis is for cash-flow budgeting.Answer: TRUEDiff: 1Terms: sensitivity analysis, cash budgetObjective: AAACSB: Analytical skills68) The self-liquidating cycle is the movement from cash to inventories to receivables and back to cash.Answer: TRUEDiff: 1Terms: cash budgetObjective: AAACSB: Reflective thinking69) A budget:A) is the quantitative expression of a proposed plan of action by managementB) is an aid to coordinate what needs to be doneC) generally includes both financial and nonfinancial aspects of the planD) serves as a blueprint for the company to follow in an upcoming periodE) All of the above are correct.Answer: EDiff: 1Terms: budgetObjective: 1AACSB: Reflective thinkingA) units manufacturedB) cash collections from customersC) units soldD) number of new products introducedAnswer: BDiff: 1Terms: budgetObjective: 1AACSB: Reflective thinking71) Budgeting is used to help companies:A) plan to better satisfy customersB) anticipate potential problemsC) focus on opportunitiesD) All of these answers are correct.Answer: DDiff: 2Terms: master budgetObjective: 1AACSB: Communication72) A master budget:A) includes only financial aspects of a plan and excludes nonfinancial aspectsB) is an aid to coordinating what needs to be done to implement a planC) includes broad expectations and visionary resultsD) should not be altered after it has been agreed uponAnswer: BDiff: 2Terms: master budgetObjective: 1AACSB: Reflective thinking73) Operating decisions PRIMARILY deal with:A) the use of scarce resourcesB) how to obtain funds to acquire resourcesC) acquiring equipment and buildingsD) satisfying stockholdersAnswer: ADiff: 2Terms: operating budgetObjective: 1AACSB: Reflective thinking74) Financing decisions PRIMARILY deal with:A) the use of scarce resourcesB) how to obtain funds to acquire resourcesC) acquiring equipment and buildingsD) preparing financial statements for stockholdersAnswer: BDiff: 2Terms: financial budgetObjective: 175) Budgeting provides all of the following EXCEPT:A) a means to communicate the organization's short-term goals to its membersB) support for the management functions of planning and coordinationC) a means to anticipate problemsD) an ethical framework for decision makingAnswer: DDiff: 2Terms: master budgetObjective: 1AACSB: Communication76) If initial budgets prove unacceptable, planners achieve the MOST benefit from:A) planning again in light of feedback and current conditionsB) deciding not to budget this yearC) accepting an unbalanced budgetD) using last year's budgetAnswer: ADiff: 2Terms: master budgetObjective: 1AACSB: Communication77) Operating budgets and financial budgets:A) combined form the master budgetB) are prepared before the master budgetC) are prepared after the master budgetD) have nothing to do with the master budgetAnswer: ADiff: 1Terms: operating budget, financial budget, master budgetObjective: 1AACSB: Reflective thinking78) A good budgeting system forces managers to examine the business as they plan, so they can:A) detect inaccurate historical recordsB) set specific expectations against which actual results can be comparedC) complete the budgeting task on timeD) get promoted for doing a good jobAnswer: BDiff: 2Terms: master budgetObjective: 1AACSB: Communication79) A budget can do all of the following EXCEPT:A) promote coordination among subunitsB) determine actual profitabilityC) motivate managersD) motivate employeesAnswer: BDiff: 2Terms: budgetObjective: 280) A budget should/can do all of the following EXCEPT:A) be prepared by managers from different functional areas working independently of each otherB) be adjusted if new opportunities become available during the yearC) help management allocate limited resourcesD) become the performance standard against which firms can compare the actual resultsAnswer: ADiff: 3Terms: master budgetObjective: 2AACSB: Reflective thinking81) A limitation of comparing a company's performance against actual results of last year is that:A) it includes adjustments for future conditionsB) feedback is no longer a possibilityC) past results can contain inefficiencies of the past yearD) the budgeting time period is set at one yearAnswer: CDiff: 2Terms: master budgetObjective: 2AACSB: Reflective thinking82) Challenging budgets tend to:A) decrease line-management participation in attaining corporate goalsB) increase failureC) increase anxiety without motivationD) motivate improved performanceAnswer: DDiff: 2Terms: master budgetObjective: 2AACSB: Reflective thinking83) Actual results should NOT be compared against past performance because:A) past results may contain mistakes and substandard performanceB) past results will never happen againC) past performance is an indicator of future performanceD) future conditions will be similar to past conditionsAnswer: ADiff: 2Terms: master budgetObjective: 2AACSB: Reflective thinking84) A company's actual performance should be compared against budgeted amounts for the same accountingperiod so that:A) adjustments for future conditions can be includedB) no feedback is possibleC) inefficiencies of the past year can be includedD) a rolling budget can be implementedAnswer: ADiff: 2Terms: master budgetObjective: 2AACSB: Ethical reasoning85) It is advantageous to coordinate budgets with:A) suppliersB) customersC) the marketing and production departmentsD) All of these answers are correct.Answer: DDiff: 3Terms: master budgetObjective: 2AACSB: Reflective thinking86) A budget can help implement:A) strategic planningB) long-run planningC) short-run planningD) All of these answers are correct.Answer: DDiff: 2Terms: master budgetObjective: 2AACSB: Reflective thinking87) To gain the benefits of budgeting ________ must understand and support the budget.A) management at all levelsB) customersC) suppliersD) All of these answers are correct.Answer: ADiff: 3Terms: master budgetObjective: 2AACSB: Communication88) Participation of line managers in the budgeting process helps to create:A) greater commitmentB) greater anxietyC) more fraudD) better past performanceAnswer: ADiff: 2Terms: master budgetObjective: 2AACSB: Communication89) Line managers who feel that top management does not believe in the budget are MOST likely to:A) pick up the slack and participate in the budgeting processB) be motivated by the budgetC) spend little time on the budgeting processD) convert the budget to a shorter more reasonable time periodAnswer: CDiff: 2Terms: master budgetObjective: 2AACSB: Communication90) The time coverage of a budget should be:A) one yearB) guided by the purpose of the budgetC) cover design through manufacture and sale of the productD) shorter rather than longerAnswer: BDiff: 2Terms: master budgetObjective: 2AACSB: Reflective thinking91) Rolling budgets help management to:A) better review the past calendar yearB) deal with a 5-year time frameC) focus on the upcoming budget periodD) rigidly administer the budgetAnswer: CDiff: 2Terms: rolling budgetObjective: 2AACSB: Reflective thinking92) Budgets should:A) be flexibleB) be administered rigidlyC) only be developed for short periods of timeD) include only variable costsAnswer: ADiff: 2Terms: master budgetObjective: 293) Operating budgets include all of the following EXCEPT:A) the revenues budgetB) the budgeted income statementC) the administrative costs budgetD) the budgeted balance sheetAnswer: DDiff: 1Terms: operating budgetObjective: 3AACSB: Reflective thinking94) Operating budgets include the:A) budgeted balance sheetB) budgeted income statementC) capital expenditures budgetD) budgeted statement of cash flowsAnswer: BDiff: 1Terms: operating budgetObjective: 3AACSB: Reflective thinking95) The operating budget process generally concludes with the preparation of the:A) production budgetB) distribution budgetC) research and development budgetD) budgeted income statementAnswer: DDiff: 1Terms: operating budgetObjective: 3AACSB: Reflective thinking96) Which budget is NOT necessary to prepare the budgeted balance sheet?A) cash budgetB) budgeted statement of cash flowsC) budgeted income statementD) revenues budgetAnswer: BDiff: 1Terms: master budgetObjective: 3AACSB: Reflective thinking97) Financial budgets include the:A) capital expenditures budgetB) production budgetC) marketing costs budgetD) administrative costs budgetAnswer: ADiff: 1Terms: financial budgetObjective: 3。

DECISION MAKING AND RELEVANT INFORMATIONTRUE/FALSE1. A decision model is a formal method for making a choice, frequently involving bothquantitative and qualitative analyses.Answer: True Difficulty: 1 Objective: 12. Feedback from previous decisions uses historical information and, therefore, isirrelevant for making future predictions.Answer: False Difficulty: 2 Objective: 1Historical costs may be helpful in making future predictions, but are not relevant costs for decision making.3. The amount paid to purchase tools last month is an example of a sunk cost.Answer: True Difficulty: 2 Objective: 24. For decision making, differential costs assist in choosing between alternatives.Answer: True Difficulty: 1 Objective: 25. For a particular decision, differential revenues and differential costs are always relevant.Answer: True Difficulty: 1 Objective: 26. A cost may be relevant for one decision, but not relevant for a different decision.Answer: True Difficulty: 2 Objective: 27. Revenues that remain the same for two alternatives being examined are relevantrevenues.Answer: False Difficulty: 1 Objective: 2Revenues that remain the same between two alternatives are irrelevant for that decision since they do not differ between alternatives.8. Sunk costs are past costs that are unavoidable.Answer: True Difficulty: 1 Objective: 29. Quantitative factors are always expressed in numerical terms.Answer: True Difficulty: 2 Objective: 310. Qualitative factors are outcomes that are measured in numerical terms, such as the costsof direct labor.Answer: False Difficulty: 1 Objective: 3Quantitative factors are outcomes that are measured in numerical terms, such as thecosts of direct labor.11. If a manufacturer chooses to continue purchasing direct materials from a supplierbecause of the ongoing relationship that has developed over the years, the decision is based on qualitative factors.Answer: True Difficulty: 2 Objective: 312. Relevant revenues and relevant costs are the only information managers need to selectamong alternatives.Answer: False Difficulty: 3 Objective: 3Qualitative factors, as well as relevant revenues and relevant costs need to beconsidered when selecting among alternatives.13. Full costs of a product are relevant for one-time-only special order pricing decisions.Answer: False Difficulty: 2 Objective: 3Incremental costs of a product are relevant for one-time-only special order pricingdecisions.14. Full costs of a product include variable costs, but not fixed costs.Answer: False Difficulty: 1 Objective: 3Full costs of a product include variable and fixed costs for all business functions in the value chain.15. For one-time-only special orders, variable costs may be relevant but not fixed costs.Answer: True Difficulty: 2 Objective: 316. The price quoted for a one-time-only special order may be less than the price for along-term customer.Answer: True Difficulty: 2 Objective: 317. Bid prices and costs that are relevant for regular orders are the same costs that arerelevant for one-time-only special orders.Answer: False Difficulty: 2 Objective: 3Since long-term costs are relevant for regular orders and short-term costs are relevant for one-time-only special orders, the relevant costs differ.18. An incremental product cost is generally a fixed cost.Answer: False Difficulty: 1 Objective: 4An incremental product cost is generally a variable cost.19. If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $180.Answer: False Difficulty: 1 Objective: 4If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $20.20. Producing another 10,000 units may increase the fixed cost of rent.Answer: True Difficulty: 3 Objective: 4True, if additional capacity must be added to accommodate the additional production needs.21. Absorption cost per unit is the best product cost to use for one-time-only special orderdecisions.Answer: False Difficulty: 2 Objective: 4Variable cost per unit is the best cost to use for one-time-only special order decisions.22. Sometimes qualitative factors are the most important factors in make-or-buy decisions.Answer: True Difficulty: 2 Objective: 423. If a company is deciding whether to outsource a part, the reliability of the supplier is animportant factor to consider.Answer: True Difficulty: 2 Objective: 424. Outsourcing is risk free to the manufacturer because the supplier now has theresponsibility of producing the part.Answer: False Difficulty: 2 Objective: 4Outsourcing has risks since the manufacturer is dependent on the supplier for a quality product, delivered in a timely manner, for a reasonable price.25. When a firm maximizes profits it will simultaneously minimize opportunity costs.Answer: True Difficulty: 3 Objective: 526. In a make-or-buy decision when there are alternative uses for capacity, the opportunitycost of idle capacity is relevant.Answer: True Difficulty: 3 Objective: 527. When opportunity costs exist, they are always relevant.Answer: True Difficulty: 3 Objective: 528. When capacity is constrained, relevant costs equal incremental costs plus opportunitycosts.Answer: True Difficulty: 2 Objective: 529. If the $17,000 spent to purchase inventory could be invested and earn interest of $1,000,then the opportunity cost of holding inventory is $17,000.Answer: False Difficulty: 2 Objective: 5The opportunity cost of holding inventory is $1,000.30. The choice is not really whether to make or buy, but rather how to best utilize availableproduction capacity.Answer: True Difficulty: 1 Objective: 531. For short-run product-mix decisions, managers should focus on minimizing total fixedcosts.Answer: False Difficulty: 2 Objective: 6For short-run product mix decisions, managers should focus on maximizing totalcontribution margin.32. For short-run product-mix decisions, maximizing contribution margin will also result inmaximizing operating income.Answer: True Difficulty: 2 Objective: 633. Regardless of the restraining resource, to maximize profits managers should producemore of the product with the greatest contribution margin per unit.Answer: False Difficulty: 2 Objective: 6To maximize profits, managers should produce more of the product with the greatest contribution margin per unit of the constraining resource.34. Management should focus on per unit costs when deciding whether to discontinue aproduct or not.Answer: False Difficulty: 2 Objective: 7Management should focus on total costs when deciding whether to discontinue aproduct or not.35. Avoidable variable and fixed costs should be evaluated when deciding whether todiscontinue a product, product line, business segment, or customer.Answer: True Difficulty: 2 Objective: 736. Depreciation allocated to a product line is a relevant cost when deciding to discontinuethat product.Answer: False Difficulty: 2 Objective: 7Depreciation is a sunk cost and never relevant.37. A company is considering adding a fourth product to use available capacity. A relevantfactor to consider is that corporate costs can now be allocated over four products rather than only three.Answer: False Difficulty: 3 Objective: 7It appears that corporate costs will not change in total, and therefore are not relevant costs for deciding whether to add a fourth product.38. When replacing an old machine with a new machine, the purchase price of the newmachine is a relevant cost.Answer: True Difficulty: 1 Objective: 839. When replacing an old machine with a new machine, the book value of the old machineis a relevant cost.Answer: False Difficulty: 1 Objective: 8The original price of the old machine is a past cost and therefore an irrelevant cost. 40. Replacing an old machine will increase operating income in the long run, but not forthis year. A manager may choose not to replace the machine if performance evaluations are based on performance over a single year.Answer: True Difficulty: 2 Objective: 941. Linear programming is a tool that maximizes total contribution margin of a mix ofproducts with multiple constraints.Answer: True Difficulty: 1 Objective: AMULTIPLE CHOICE42. Feedback regarding previous actions may affecta. future predictions.b. implementation of the decision.c. the decision model.d. all of the above.Answer: d Difficulty: 2 Objective: 143. Place the following steps from the five-step decision process in order:A = Make predictions about future costsB = Evaluate performance to provide feedbackC = Implement the decisionD = Choose an alternativea. D C A Bb. C D A Bc. A D C Bd. D C B AAnswer: c Difficulty: 2 Objective: 144. The formal process of choosing between alternatives is known asa. a relevant model.b. a decision model.c. an alternative model.d. a prediction model.Answer: b Difficulty: 1 Objective: 145. Ruggles Circuit Company manufactures circuit boards for other firms. Management isattempting to search for ways to reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the production floor next year. Using the information below regarding current operations and the new proposal, which of the following decisions should management accept?Currently Proposed Required machine operators 5 4.5Materials-handling workers 1.25 1.25Employee average pay $8 per hour $9 per hourHours worked per employee 2,100 2,000a. Do not change the production floor.b. Rearrange the production floor.c. Either, because it makes no difference to the employees.d. It doesn't matter because the costs incurred will remain the same.Answer: b Difficulty: 2 Objective: 1Current operations: 5 workers x 2,100 hours x $8.00 = $84,000Proposal: 4.5 workers x 2,000 hours x $9.00 = $81,000THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 46 AND 47.LeBlanc Lighting manufactures small flashlights and is considering raising the price by 50 cents a unit for the coming year. With a 50-cent price increase, demand is expected to fall by 3,000 units.Currently Projected Demand 20,000 units 17,000 unitsSelling price $4.50 $5.00Incremental cost per unit $3.00 $3.0046. If the price increase is implemented, operating profit is projected toa. increase by $4,000.b. decrease by $4,000.c. increase by $6,000.d. decrease by $4,500.Answer: a Difficulty: 2 Objective: 1[17,000 x ($5 - $3)] – [20,000 x ($4.50 - $3.00)] = increase of $4,00047. Would you recommend the 50-cent price increase?a. No, because demand decreased.b. No, because the selling price increases.c Yes, because contribution margin per unit increases.d. Yes, because operating profits increase.Answer: d Difficulty: 2 Objective: 148. For decision making, a listing of the relevant costsa. will help the decision maker concentrate on the pertinent data.b. will only include future costs.c. will only include costs that differ among alternatives.d. should include all of the above.Answer: d Difficulty: 2 Objective: 249. Sunk costsa. are relevant.b. are differential.c. have future implications.d. are ignored when evaluating alternatives.Answer: d Difficulty: 1 Objective: 250. A computer system installed last year is an example ofa. a sunk cost.b. a relevant cost.c. a differential cost.d. an avoidable cost.Answer: a Difficulty: 1 Objective: 251. Costs that CANNOT be changed by any decision made now or in the future area. fixed costs.b. indirect costs.c. avoidable costs.d. sunk costs.Answer: d Difficulty: 1 Objective: 252. In evaluating different alternatives, it is useful to concentrate ona. variable costs.b. fixed costs.c. total costs.d. relevant costs.Answer: d Difficulty: 1 Objective: 253. Which of the following costs always differ among future alternatives?a. Fixed costsb. Historical costsc. Relevant costsd. Variable costsAnswer: c Difficulty: 1 Objective: 254. Which of the following costs are never relevant in the decision-making process?a. Fixed costsb. Historical costsc. Relevant costsd. Variable costsAnswer: b Difficulty: 1 Objective: 2THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 55 AND 56.Jim’s 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda Civic instead for $3,000 cash. Julie estimated the following costs for the two cars:Geo Prizm Honda Civic Acquisition cost $15,000 $3,000Repairs $ 3,000 ---Annual operating costs(Gas, maintenance, insurance) $ 2,280 $2,10055. The cost NOT relevant for this decision is(are)a. the acquisition cost of the Geo Prizm.b. the acquisition cost of the Honda Civic.c. the repairs to the Geo Prizm.d. the annual operating costs of the Honda Civic.Answer: a Difficulty: 2 Objective: 256. What should Jim do? What are his savings in the first year?a. Buy the Honda Civic; $9,780b. Fix the Geo Prizm; $5,518c. Buy the Honda Civic; $180d. Fix the Geo Prizm; $5,280Answer: c Difficulty: 2 Objective: 2Geo ($3,000 + $2,280) - Honda ($3,000 + $2,100) = $180 cost savings with the Honda option57. Quantitative factorsa. include financial information, but not nonfinancial information.b. can be expressed in monetary terms.c. are always relevant when making decisions.d. include employee morale.Answer: b Difficulty: 2 Objective: 358. Qualitative factorsa. generally are easily measured in quantitative terms.b. are generally irrelevant for decision making.c. may include either financial or nonfinancial information.d. include customer satisfaction.Answer: d Difficulty: 2 Objective: 359. Historical costs are helpfula. for making future predictions.b. for decision making.c. because they are quantitative.d. with none of the above.Answer: a Difficulty: 2 Objective: 360. When making decisionsa. quantitative factors are the most important.b. qualitative factors are the most important.c. appropriate weight must be given to both quantitative and qualitative factors.d. both quantitative and qualitative factors are unimportant.Answer: c Difficulty: 2 Objective: 361. Employee morale at Dos Santos, Inc., is very high. This type of information is knownasa. a qualitative factor.b. a quantitative factor.c. a nonmeasurable factor.d. a financial factor.Answer: a Difficulty: 1 Objective: 362. Roberto owns a small body shop. His major costs include labor, parts, and rent. In thedecision-making process, these costs are considered to bea. fixed.b. qualitative factors.c. quantitative factors.d. variable.Answer: c Difficulty: 1 Objective: 363. One-time-only special orders should only be accepted ifa. incremental revenues exceed incremental costs.b. differential revenues exceed variable costs.c. incremental revenues exceed fixed costs.d. total revenues exceed total costs.Answer: a Difficulty: 3 Objective: 364. When deciding to accept a one-time-only special order from a wholesaler, managementshould do all EXCEPTa. analyze product costs.b. consider the special order’s impact on future prices of their products.c. determine whether excess capacity is available.d. verify past design costs for the product.Answer: d Difficulty: 3 Objective: 365. When there is excess capacity, it makes sense to accept a one-time-only special orderfor less than the current selling price whena. incremental revenues exceed incremental costs.b. additional fixed costs must be incurred to accommodate the order.c. the company placing the order is in the same market segment as your currentcustomers.d. it never makes sense.Answer: a Difficulty: 3 Objective: 3THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 66 THROUGH 69. Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity. The following per unit data apply for sales to regular customers:Variable costs:Direct materials $40Direct labor 20Manufacturing support 35Marketing costs 15Fixed costs:Manufacturing support 45Marketing costs 15Total costs 170Markup (50%) 85Targeted selling price $25566. What is the full cost of the product per unit?a. $110b. $170c. $255d. $85Answer: b Difficulty: 3 Objective: 3$40 + $20 + $35 + $15 + $45 + $15 = $17067. What is the contribution margin per unit?a. $85b. $110c. $145d. $255Answer: c Difficulty: 3 Objective: 3$255 – ($40 + $20 + $35 + $15) = $14568. For Welch Manufacturing, what is the minimum acceptable price of this special order?a. $110b. $145c. $170d. $255Answer: a Difficulty: 3 Objective: 3$40 + $20 + $35 + $15 = $11069. What is the change in operating profits if the 1,000 unit one-time-only special order isaccepted for $180 a unit by Welch?a. $70,000 increase in operating profitsb. $10,000 increase in operating profitsc. $10,000 decrease in operating profitsd. $75,000 decrease in operating profitsAnswer: a Difficulty: 3 Objective: 3$180 – ($40 + $20 + $35 + $15) = $70; 1,000 x $70 = $70,000 increase70. Ratzlaff Company has a current production level of 20,000 units per month. Unit costsat this level are:Direct materials $0.25Direct labor 0.40Variable overhead 0.15Fixed overhead 0.20Marketing - fixed 0.20Marketing/distribution - variable 0.40Current monthly sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not beincurred on the special order. What is Ratzlaff Company’s change in operating profits if the special order is accepted?a. $400 increase in operating profitsb. $400 decrease in operating profitsc. $1,800 increase in operating profitsd. $1,800 decrease in operating profitsAnswer: c Difficulty: 3 Objective: 3Manufacturing cost per unit = $0.25 + $0.40 + $0.15 = $0.801,500 x ($2.00 - $0.80) = $1,800 increase71. Black Tool Company has a production capacity is 1,500 units per month, but currentproduction is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are available?a. Yes, good customer relations are essential.b. No, the company will only break even.c. No, since only the employees will benefit.d. Yes, since operating profits will most likely increase.Answer: d Difficulty: 3 Objective: 3Since the $60 absorption cost per unit is most likely not all variable costs and since the entire $16 per unit of marketing costs may not be incurred, operating profits will most likely increase.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 THROUGH 75. Grant’s Kitchens is approached by Ms. Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:Direct materials $455Direct labor 300Variable manufacturing support 45Fixed manufacturing support 100Total manufacturing costs 900Markup (60%) 540Targeted selling price $1440Grant’s Kitchens has excess capacity. Ms. Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.72. For Grant’s Kitchens, what is the minimum acceptable price of this one-time-onlyspecial order?a. $830b. $930c. $785d. $1440Answer: a Difficulty: 2 Objective: 3$455 + $300 + $45 + $30 = $83073. Other than price, what other items should Grant’s Kitchens consider before acceptingthis one-time-only special order?a. Reaction of shareholdersb. Reaction of existing customers to the lower price offered to Ms. Wangc. Demand for cherry cabinetsd. Price is the only consideration.Answer: b Difficulty: 2 Objective: 374. If Ms. Wang wanted a long-term commitment for supplying this product, this analysisa. would definitely be different.b. may be different.c. would not be different.d. does not contain enough information to determine if there would be a difference.Answer: a Difficulty: 2 Objective: 375. If there was limited capacity, all of the following amounts would change EXCEPTa. opportunity costs.b. differential costs.c. variable costs.d. the minimum acceptable price.Answer: c Difficulty: 3 Objective: 5THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 76 AND 77. Northwoods manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods’ policy to add a 50% markup to full costs.76. Northwoods is invited to bid on a one-time-only special order to supply 100 rustictables. What is the lowest price Northwoods should bid on this special order?a. $6,300b. $7,200c. $9,000d. $13,500Answer: b Difficulty: 2 Objective: 3$90 x 80% x 100 tables = $7,20077. A large hotel chain is currently expanding and has decided to decorate all new hotelsusing the rustic style. Northwoods Incorporated is invited to submit a bid to the hotel chain. What is the lowest price per unit Northwoods should bid on this long-term order?a. $63b. $72c. $90d. $135Answer: d Difficulty: 2 Objective: 3$90 + ($90 x 50%) = $13578. Cochran Corporation has a plant capacity of 100,000 units per month. Unit costs atcapacity are:Direct materials $4.00Direct labor 6.00Variable overhead 3.00Fixed overhead 1.00Marketing - fixed 7.00Marketing/distribution - variable 3.60Current monthly sales are 95,000 units at $30.00 each. Suzie, Inc., has contactedCochran Corporation about purchasing 2,000 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Cochran’s change inoperating profits if the one-time-only special order is accepted?a. $14,800 increaseb. $17,200 increasec. $22,000 increased. $33,200 increaseAnswer: a Difficulty: 3 Objective: 3($4.00 + 6.00 + 3.00 + 3.60) = $16.60($24.00 – 16.60) x 2,000 = $14,800 increase79. The sum of all the costs incurred in a particular business function (for example,marketing) is called thea. business function cost.b. full product cost.c. gross product cost.d. multiproduct cost.Answer: a Difficulty: 1 Objective: 380. The sum of all costs incurred in all business functions in the value chain (productdesign, manufacturing, marketing, and customer service, for example) is known as thea. business cost.b. full product cost.c. gross product cost.d. multiproduct cost.Answer: b Difficulty: 1 Objective: 381. Problems that should be avoided when identifying relevant costs include all EXCEPTa. assuming all variable costs are relevant.b. assuming all fixed costs are irrelevant.c. using unit costs that do not separate variable and fixed components.d. using total costs that separate variable and fixed components.Answer: d Difficulty: 2 Objective: 482. The BEST way to avoid misidentification of relevant costs is to focus ona. expected future costs that differ among the alternatives.b. historical costs.c. unit fixed costs.d. total unit costs.Answer: a Difficulty: 2 Objective: 483. Factors used to decide whether to outsource a part includea. the supplier’s cost of direct materials.b. if the supplier is reliable.c. the original cost of equipment currently used for production of that part.d. past design costs used to develop the current composition of the part.Answer: b Difficulty: 2 Objective: 484. Relevant costs of a make-or-buy decision include all EXCEPTa. fixed salaries that will not be incurred if the part is outsourced.b. current direct material costs of the part.c. special machinery for the part that has no resale value.d. material-handling costs that can be eliminated.Answer: c Difficulty: 3 Objective: 485. Which of following are risks of outsourcing the production of a part?a. Unpredictable qualityb. Unreliable deliveryc. Unscheduled price increasesd. All of the above are risks of outsourcing.Answer: d Difficulty: 1 Objective: 486. Which of the following minimize the risks of outsourcing?a. The use of short-term contracts that specify priceb. The responsibility for on-time delivery is now the responsibility of the supplierc. Building close relationships with the supplierd. All of the above minimize the risks of outsourcing.Answer: c Difficulty: 3 Objective: 487. The cost to produce Part A was $10 per unit in 20x3 and in 20x4 has increased to $11per unit. In 20x4, Supplier XYZ has offered to supply Part A for $9 per unit. For the make-or-buy decision,a. incremental revenues are $2 per unit.b. incremental costs are $1 per unit.c. net relevant costs are $1 per unit.d. differential costs are $2 per unit.Answer: d Difficulty: 2 Objective: 488. When evaluating a make-or-buy decision, which of the following does NOT need to beconsidered?a. Alternative uses of the production capacityb. The original cost of the production equipmentc. The quality of the supplier's productd. The reliability of the supplier's delivery scheduleAnswer: b Difficulty: 2 Objective: 489. For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis isconsidereda. a qualitative factor.b. a relevant cost.c. a differential factor.d. an opportunity cost.Answer: a Difficulty: 1 Objective: 490. The incremental costs of producing one more unit of product include all of thefollowing EXCEPTa. direct materials.b. direct labor.c. variable overhead costs.d. fixed overhead costs.Answer: d Difficulty: 2 Objective: 491. Direct materials $40, direct labor $10, variable overhead costs $30, and fixed overheadcosts $20. In the short term, the incremental cost of one unit isa. $30.b. $50.c. $80.d. $100.Answer: c Difficulty: 2 Objective: 492. Unit cost data can MOST mislead decisions bya. not computing fixed overhead costs.b. computing labor and materials costs only.c. computing administrative costs.d. not computing unit costs at the same output level.Answer: d Difficulty: 1 Objective: 493. Schmidt Sewing Company incorporates the services of Deb's Sewing. Schmidtpurchases pre-cut dresses from Deb's. This is primarily known asa. insourcing.b. outsourcing.c. relevant costing.d. sunk costing.Answer: b Difficulty: 1 Objective: 494. Pearce Sign Company manufactures signs from direct materials to the finished product.This is considereda. insourcing.b. outsourcing.c. relevant costing.d. sunk costing.Answer: a Difficulty: 1 Objective: 495. Which of the following would NOT be considered in a make-or-buy decision?a. Fixed costs that will no longer be incurredb. Variable costs of productionc. Potential rental income from space occupied by the production aread. Unchanged supervisory costsAnswer: d Difficulty: 2 Objective: 4。

成本会计英语1、构成产品理论成本是（）。

A、已耗费的⽣产资料转移的价值B、劳动者为⾃⼰劳动所创造的价值C、劳动者为社会劳动所创造的价值D、A和B2、企业为筹集⽣产经营所需资⾦⽽发⽣的各项费⽤，属于（）。

A、管理费⽤B、制造费⽤C、财务费⽤D、⽣产费⽤3、成本项⽬是（）。

A、⽣产费⽤按经济⽤途的分类B、⽣产费⽤按经济内容的分类C、⽣产费⽤按经济性质的分类D、⽣产费⽤按计⼊成本的⽅式分类4、停⼯损失不包括（）期间发⽣的损失。

A、⼤修理停⼯B、⾃然灾害停⼯C、季节性停⼯D、原材料供应不⾜5、制造费⽤( )。

A、都是间接⽣产费⽤B、都是间接计⼊费⽤C、既包括间接⽣产费⽤，⼜包括直接⽣产费⽤D、都是直接计⼊费⽤6、不通过“应交税⾦”科⽬核算的有( )。

A、房产税B、车船使⽤税C、⼟地使⽤税D、印花税7、某⼚⽣产的甲产品顺序经过第⼀、第⼆两道⼯序加⼯，原材料在第⼀⼯序⽣产开始时投⼊90％，第⼆⼯序⽣产开始时投⼊10％，则第⼆⼯序⽉末在产品的投料率为（）。

A、10％B、90％C、5％D、100％8、采⽤不计在产品成本法的使⽤范围是（）。

A、⽉末在产品数量变化⼤B、⽉末在产品数量很少C、⽉末在产品数量多D、⽉末在产品数量均衡9、与⽣产的特点没有直接关系，不涉及成本计算对象，可以与基本成本计算⽅法结合使⽤的成本计算⽅法是( )。

A、品种法B、分批法C、分步法D、分类法10、品种法的成本计算对象是（）。

A、产品品种B、产品类别C、产品批别D、产品的⽣产步骤11、成本还原的对象是（）。

A、完⼯产品成本B、完⼯产品所耗各步骤半成品的综合成本C、最后步骤的完⼯产品成本D、各步骤半成品成本12、采⽤平⾏结转分步法时，完⼯产品与在产品之间分配费⽤，是指（）之间的费⽤分配。

A、产成品与⽉末在产品B、产成品与⼴义在产品C、产成品的“份额”与⼴义在产品D、完⼯半成品与⽉末加⼯中的在产品13、下列辅助⽣产费⽤分配⽅法中,分配结果最为准确的是( )。

会计专业英文笔试题及答案一、选择题（每题2分，共20分）1. What is the primary purpose of financial statements?A. To provide information for decision-makingB. To promote the company's imageC. To comply with tax regulationsD. To attract investors答案：A2. Which of the following is not a fundamental accounting principle?A. Going concernB. Historical costC. Accrual basis of accountingD. Cash basis of accounting答案：D3. The matching principle is used to:A. Match expenses with the revenues they generateB. Match assets with the liabilities they generateC. Match revenues with the assets they generateD. Match liabilities with the expenses they generate答案：A4. What is the formula for calculating return on investment (ROI)?A. ROI = Net Income / Total AssetsB. ROI = (Net Income / Sales) * 100C. ROI = (Return on Sales + Return on Assets) / 2D. ROI = (Net Income / Average Investment) * 100答案：D5. Which of the following is not a type of depreciation method?A. Straight-lineB. Double-declining balanceC. Units of productionD. FIFO (First-In, First-Out)答案：D二、简答题（每题5分，共30分）6. Define "Double-Entry Accounting" and explain its importance in maintaining the integrity of financial records.答案：Double-entry accounting is a system of accounting where every transaction is recorded twice, once as a debit and once as a credit. This system ensures that the accounting equation remains balanced and helps in maintaining the integrity of financial records by providing a check and balance mechanism to prevent errors and fraud.7. Explain the difference between "Liabilities" and "Equity".答案：Liabilities are obligations of a company to pay cash, provide services, or give up assets to other entities in the future. They represent the company's debts and are a source of funds that the company is obligated to repay. Equity, on the other hand, represents the ownership interest of the shareholders in the company. It is the residual interest in the assets of the company after deducting liabilities.8. What is the purpose of "Financial Statement Analysis"?答案：The purpose of financial statement analysis is to assess the financial health and performance of a company. It involves evaluating the company's liquidity, profitability, solvency, and efficiency. This analysis helps investors, creditors, and other stakeholders make informed decisions about the company.9. Describe the "Balance Sheet" and its components.答案：The balance sheet is a financial statement that presents the financial position of a company at a specific point in time. It includes assets, liabilities, and equity. Assets are what the company owns, liabilities are what the company owes, and equity is the net worth of the company, calculated as assets minus liabilities.10. What is "Cash Flow Statement" and why is it important?答案：The cash flow statement is a financial statement that provides information about the cash inflows and outflows of a company over a period of time. It is important because it shows the company's ability to generate cash and meet its financial obligations, which is crucial for the survival and growth of the business.三、案例分析题（每题25分，共50分）11. Assume you are a financial analyst for a company. The company has reported the following financial data for the current year:- Sales: $500,000- Cost of Goods Sold: $300,000- Operating Expenses: $100,000- Depreciation: $20,000- Interest Expense: $10,000- Taxes: $30,000Calculate the company's net income.答案：Net Income = Sales - Cost of Goods Sold - Operating Expenses - Depreciation - Interest Expense - TaxesNet Income = $500,000 - $300,000 - $100,000 - $20,000 - $10,000 - $30,000Net Income = $50,00012. A company is considering purchasing a new machine for $100,000. The machine is expected to generate additional annual revenue of $30,000 and will have annual operating costs of $15,000. The machine is expected to last for 5 years and will have no residual value. Calculate the payback period for the machine.答案：Payback Period = Initial Investment / Annual Cash Inflow Annual Cash Inflow = Additional Revenue。

Cost Accounting, 13e (Horngren et al.)Chapter 20 Inventory Management, Just-in-Time, and Simplified Costing Methods1) Retailers generally have a high percentage of net income to revenues.Answer: FALSEExplanation: Retailers have a low percentage of net income to revenues.Diff: 2Terms: inventory managementObjective: 1AACSB: Analytical skills2) Inventory management is the planning, organizing, and controlling activities that focus on the flow ofmaterials into, through, and from the organization.Answer: TRUEDiff: 2Terms: inventory managementObjective: 1AACSB: Analytical skills3) Purchasing costs generally include the freight and transportation costs on goods acquired from suppliers.Answer: TRUEDiff: 2Terms: purchasing costsObjective: 1AACSB: Analytical skills4) Expediting costs of a stockout include the additional ordering costs, plus any associated transportation costs.Answer: TRUEExplanation: Expediting costs include the associated transportation costs.Diff: 2Terms: stockout costsObjective: 1AACSB: Analytical skills5) Carrying costs arise when an organization experiences an ability to deliver its goods to its customers.Answer: FALSEExplanation: Carrying costs arise when an organization holds its goods for sale.Diff: 2Terms: carrying costsObjective: 1AACSB: Analytical skills6) Shrinkage costs result from water damage to clothing and other soft goods.Answer: FALSEExplanation: Shrinkage costs result from theft by outsiders, embezzlement by employees, misclassifications, and clerical errors.Diff: 2Terms: shrinkageObjective: 1AACSB: Analytical skillscounted.Answer: TRUEDiff: 2Terms: shrinkageObjective: 1AACSB: Analytical skills8) All inventory costs are available in financial accounting systems.Answer: FALSEExplanation: Opportunity costs are rarely recorded in formal accounting systems and they are often a very significant cost component.Diff: 2Terms: shrinkageObjective: 1AACSB: Analytical skills9) Sharing inventory data throughout the supply chain leads to more "rush" orders occurring.Answer: FALSEExplanation: Sharing inventory data throughout the supply chain leads to fewer "rush" orders occurring.Diff: 2Terms: inventory managementObjective: 1AACSB: Analytical skills10) The simplest version of the Economic Order Quantity model incorporates only ordering costs, carrying costs,and purchasing costs into the calculation.Answer: FALSEExplanation: Purchasing costs are ignored in the Economic Order Quantity.Diff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills11) To determine the Economic Order Quantity, the relevant ordering costs are minimized and the relevantcarrying costs are maximized.Answer: FALSEExplanation: We minimize both the relevant ordering costs and the relevant carrying costs.Diff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills12) The Economic Order Quantity increases with demand and ordering costs and decreases with carrying costs.Answer: TRUEDiff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skillscosts are equal.Answer: TRUEDiff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills14) When retailers are uncertain about demand for their products or availability of their products from thesuppliers, they often hold a fixed level of safety stock to make sure they will be able to fulfill the customers' needs.Answer: TRUEDiff: 2Terms: safety stockObjective: 2AACSB: Ethical reasoning15) The annual relevant carrying costs of inventory consist of incremental costs plus the opportunity cost ofcapital.Answer: TRUEDiff: 3Terms: carrying costsObjective: 3AACSB: Analytical skills16) Just-in-time purchasing requires organizations to place smaller purchase orders with their suppliers.Answer: TRUEDiff: 2Terms: just-in-time (JIT) purchasingObjective: 3AACSB: Analytical skills17) Just-in-time purchasing is guided solely by the economic order quantity.Answer: FALSEExplanation: Inventory management also includes purchasing costs, stockout costs, and quality costs.Diff: 2Terms: just-in-time (JIT) purchasing, economic order quantity (EOQ)Objective: 3AACSB: Analytical skills18) The higher level of variability at manufacturers rather than suppliers, and at retailers rather thanmanufacturers is called the "bullwhip effect."Answer: FALSEExplanation: The higher level of variability is at suppliers rather than manufacturers, and at manufacturers rather than at suppliers.Diff: 3Terms: inventory managementObjective: 3AACSB: Reflective thinking19) Just-in-time purchasing describes the flow of goods, services, and information from the initial sources ofmaterials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations.Answer: FALSEExplanation: Supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether thoseactivities occur in the same organization or in other organizations.Diff: 3Terms: supply chainObjective: 4AACSB: Reflective thinking20) A "push-through" system, often described as a just-in-time system, emphasizes simplicity and closecoordination among work centers.Answer: FALSEExplanation: The narrative describes a Materials Requirement Planning system.Diff: 2Terms: just-in-time (JIT) productionObjective: 5AACSB: Communication21) Costs of setting up a production run are analogous to ordering costs in the Economic Order Quantity (EOQ)model.Answer: TRUEDiff: 2Terms: ordering costsObjective: 5AACSB: Analytical skills22) A "demand-pull" system, often described as a materials requirement planning system, focuses first on theforecasted amount and timing of finished goods and then determines the demand for materials components and subassemblies at each of the prior stages of production.Answer: FALSEExplanation: The narrative describes a push-through system.Diff: 2Terms: material requirements planning (MRP)Objective: 5AACSB: Reflective thinking23) In a just-in-time inventory system, there is less emphasis on the need to eliminate scrap and rework problems.Answer: FALSEExplanation: There is more emphasis on the need to eliminate scrap and rework problems.Diff: 2Terms: just-in-time (JIT) productionObjective: 5AACSB: Reflective thinking24) Just-in-time systems are similar to materials requirement planning systems in that both systems aredemand-pull systems.Answer: FALSEExplanation: Just-in-time systems are not similar to materials requirement planning systems in that just-in-time production is a demand-pull system and materials requirements planning is a push-throughapproach.Diff: 2Terms: just-in-time (JIT) production, materials requirements planning (MRP)Objective: 5, 6AACSB: Analytical skills25) A financial benefit of a just-in-time system is that inventory carrying costs are reduced.Answer: TRUEDiff: 2Terms: just-in-time (JIT) production, just-in-time (JIT) purchasingObjective: 6AACSB: Reflective thinking26) In a just-in-time system, suppliers are selected primarily on the basis of their ability to provide materials andproducts at the lowest possible price.Answer: FALSEExplanation: In a just-in-time system, suppliers are selected on the basis of their ability to deliver quality materials in a timely manner.Diff: 2Terms: just-in-time (JIT) production, just-in-time (JIT) purchasingObjective: 6AACSB: Reflective thinking27) An Enterprise Resource Planning (ERP) System comprises a single database that collects data and feeds itinto software applications supporting all of a company's business activities.Answer: TRUEDiff: 2Terms: enterprise resource planning (ERP) systemObjective: 6AACSB: Use of Information Technology28) In a backflush-costing system, no record of work in process appears in the accounting records.Answer: TRUEDiff: 3Terms: backflush costingObjective: 7AACSB: Reflective thinking29) Backflush costing is a costing system that omits recording some or all of the journal entries relating to thestages from purchase of direct materials to the sales of finished goods.Answer: TRUEDiff: 2Terms: backflush costingObjective: 7AACSB: Reflective thinking30) A trigger point refers to the inventory level at which a reorder is generated.Answer: FALSEExplanation: A trigger point refers to the point at which a journal entry is made.Diff: 2Terms: trigger pointObjective: 7AACSB: Reflective thinking31) A firm using a backflush costing system will always use actual costs rather than standard costs.Answer: FALSEExplanation: A firm using a backflush costing system can use standard costs as well as actual costs.Diff: 2Terms: backflush costingObjective: 7AACSB: Reflective thinking32) The "flush" in backflush refers to the fact that there are no variances in a backflush costing system usingstandard costs.Answer: FALSEExplanation: The "flush" in backflush refers to the fact that costs are "flushed" out of the system after the product has been produced or sold.Diff: 2Terms: backflush costingObjective: 7AACSB: Reflective thinking33) Companies that have fast manufacturing lead times usually find that a version of backflush costing willreport cost numbers similar to what a sequential costing approach would report.Answer: TRUEDiff: 3Terms: backflush costingObjective: 8AACSB: Analytical skills34) Backflush costing is usually restricted to companies adopting JIT production methods.Answer: FALSEExplanation: Backflush costing is also helpful in companies that have fast manufacturing times, and that have very stable inventory.Diff: 3Terms: backflush costing, just-in-time (JIT) productionObjective: 8AACSB: Reflective thinking35) A positive aspect of backflush costing is the presence of the visible audit trail.Answer: FALSEExplanation: In backflush costing, the visible audit trail diminishes.Diff: 3Terms: backflush costingObjective: 8AACSB: Reflective thinking36) Lean accounting is a costing method that supports creating value for the customer by costing the entire valuestream, not individual products or departments, thereby eliminating waste in the accounting process.Answer: TRUEDiff: 3Terms: lean accountingObjective: 9AACSB: Reflective thinking37) Which of the following industries would have the highest cost of goods sold percentage relative to sales?A) computer manufacturersB) retail organizationsC) drug manufacturersD) The percentage will usually depend on the success of a particular company.Answer: BDiff: 2Terms: inventory managementObjective: 1AACSB: Reflective thinking38) The costs of goods acquired from suppliers including incoming freight or transportation costs are:A) purchasing costsB) ordering costsC) stockout costsD) carrying costsAnswer: ADiff: 2Terms: purchasing costsObjective: 1AACSB: Reflective thinking39) The costs of preparing, issuing, and paying purchase orders, plus receiving and inspecting the itemsincluded in orders is:A) purchasing costsB) ordering costsC) stockout costsD) carrying costsAnswer: BDiff: 2Terms: ordering costsObjective: 1AACSB: Reflective thinking40) The costs that result from theft of inventory are:A) shrinkage costsB) external failure costsC) stockout costsD) costs of qualityAnswer: ADiff: 2Terms: shrinkageObjective: 1AACSB: Reflective thinking41) The costs that result when a company runs out of a particular item for which there is a customer demand are:A) shrinkage costsB) shortage costsC) stockout costsD) EOQ estimation costsAnswer: CDiff: 2Terms: stockout costsObjective: 1AACSB: Reflective thinking42) The costs that result when features and characteristics of a product or service are not in conformance withthe specifications are:A) inspection costsB) costs of qualityC) purchasing costsD) design costsAnswer: BDiff: 2Terms: stockout costsObjective: 1AACSB: Reflective thinking43) The costs that result when a company holds an inventory of goods for sale:A) purchasing costsB) carrying costsC) opportunity costsD) interest costsAnswer: BDiff: 2Terms: stockout costsObjective: 1AACSB: Reflective thinking44) Quality costs include:A) purchasing costsB) ordering costsC) stockout costsD) prevention costsAnswer: DDiff: 2Terms: quality costsObjective: 1AACSB: Reflective thinking45) Obsolescence is an example of which cost category?A) carrying costsB) labor costsC) ordering costsD) quality costsAnswer: ADiff: 2Terms: carrying costsObjective: 2AACSB: Reflective thinking46) The costs associated with storage are an example of which cost category?A) quality costsB) labor costsC) ordering costsD) carrying costsAnswer: DDiff: 2Terms: carrying costsObjective: 2AACSB: Reflective thinking47) Which of the following is an assumption of the economic-order-quantity decision model?A) The quantity ordered can vary at each reorder point.B) Demand ordering costs and carrying costs fluctuate.C) There will be timely labor costs.D) No stockouts occur.Answer: DDiff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Reflective thinking48) The economic order quantity ignores:A) purchasing costsB) relevant ordering costsC) stockout costsD) Both A and C are correct.Answer: DDiff: 3Terms: economic order quantity (EOQ)Objective: 2AACSB: Reflective thinking49) The purchase-order lead time is the:A) difference between the times an order is placed and deliveredB) difference between the products ordered and the products receivedC) discrepancies in purchase ordersD) time required to correct errors in the products receivedAnswer: ADiff: 2Terms: purchase-order lead timeObjective: 2AACSB: Reflective thinking50) Which of the following statements about the economic-order-quantity decision model is FALSE?A) It assumes purchasing costs are relevant when the cost per unit changes due to the quantity ordered.B) It assumes quality costs are irrelevant if quality is unaffected by the number of units purchased.C) It assumes stockout costs are irrelevant if no stockouts occur.D) It assumes ordering costs and carrying costs are relevant.Answer: ADiff: 3Terms: economic order quantity (EOQ)Objective: 2AACSB: Reflective thinking51) Relevant total costs in the economic-order-quantity decision model equal relevant ordering costs plusrelevant:A) carrying costsB) stockout costsC) quality costsD) purchasing costsAnswer: ADiff: 2Terms: economic order quantity (EOQ), ordering costs, carrying costsObjective: 2AACSB: Reflective thinking52) Phonic Goods is a distributor of videotapes. Tape-Disk Mart is a local retail outlet which sells blank andrecorded videos. Tape-Disk Mart purchases tapes from Phonic Goods at $3.00 per tape; tapes are shipped in packages of 20. Phonic Goods pays all incoming freight, and Tape-Disk Mart does not inspect the tapes due to Phonic Goods' reputation for high quality. Annual demand is 104,000 tapes at a rate of 4,000 tapes per week. Tape-Disk Mart earns 20% on its cash investments. The purchase-order lead time is two weeks. The following cost data are available:Relevant ordering costs per purchase order $90.50Carrying costs per package per year:Relevant insurance, materials handling,breakage, etc., per year $ 4.50What is the required annual return on investment per package?A) $60.00B) $2.50C) $12.00D) $0.60Answer: CExplanation: C) 20 tapes × $3.00 =$60.00$60.00 × 0.2 =$12.00Diff: 3Terms: ordering costs, carrying costsObjective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Stereo Goods is a distributor of videotapes. Video Mart is a local retail outlet which sells blank and recorded videos.Video Mart purchases tapes from Stereo Goods at $5.00 per tape; tapes are shipped in packages of 25. Stereo Goods pays all incoming freight, and Video Mart does not inspect the tapes due to Stereo Goods' reputation for high quality. Annual demand is 104,000 tapes at a rate of 2,000 tapes per week. Video Mart earns 15% on its cash investments. Thepurchase -order lead time is one week. The following cost data are available:Relevant ordering costs per purchase order $94.50Carrying costs per package per year:Relevant insurance, materials handling,breakage, etc., per year $ 3.5053) What is the economic order quantity?A) 874 packagesB) 652 packagesC) 200 packagesD) 188 packagesAnswer:D Explanation: D) EOQ = The square root of [(2 × (104,000/25) × $94.50) / ($18.75 + $3.50)]EOQ = 188 packagesDiff: 2Terms:economic order quantity (EOQ) Objective:3 AACSB:Analytical skills 54) What are the relevant total costs?A) $6,150.50B) $4,182.56C) $2,560.20D) $1,951.70Answer:B Explanation: B) EOQ = The square root of [(2 × (104,000/25) × $94.50) / ($18.75 + $3.50)]EOQ = 188 packagesRTC = 2)]50.3$75.18($188[188]50.94$)25/000,104[(+⨯+⨯= $4,182.56 188 Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:3 AACSB:Analytical skills55) How many deliveries will be made during each time period?A) 22.1 deliveriesB) 26.0 deliveriesC) 29.4 deliveriesD) 32.0 deliveriesAnswer: AExplanation: A) EOQ = The square root of [(2 × (104,000/25) × $94.50) / ($18.75 + $3.50)]EOQ = 188 packages[(104,000 / 25) / 188] = 22.1 deliveriesDiff: 3Terms: economic order quantity (EOQ)Objective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Green Grass Incorporated is a distributor of golf balls. Garry's Golf Supplies is a local retail outlet which sells golf balls. Garry's purchases the golf balls from Green Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72. Green Grass Incorporated pays all incoming freight, and Garry's Golf Supplies does not inspect the balls due to Green Grass' reputation for high quality. Annual demand is 172,800 golf balls at a rate of 3,322 balls per week. Garry's Golf Supplies earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data are available:Relevant ordering costs per purchase order $125.00Carrying costs per carton per year:Relevant insurance, materials handling,breakage, etc., per year $ 0.7756) If Garry's makes an order (1/12 of annual demand) once per month, what are the relevant total costs?A) $1,500B) $2,085.67C) 2,225.00D) $3,000.00Answer: CExplanation: C) Order Quantity = Annual Demand / 12 = 14,400 balls/month = 200 cartons per monthRTC = Ordering Costs + Carrying CostsCarrying Cost per carton =price × invest rate + insurance/handlingCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25RTC = (12 × $125.00) + ((200/2) × $7.25) =$2,225.00Diff: 3Terms: economic order quantity (EOQ), ordering costs, carrying costsObjective: 3AACSB: Analytical skills57) What is the economic order quantity?A) 200 cartonsB) 288 cartonsC) 300 cartonsD) 388 cartonsAnswer: BExplanation: B) Annual Demand / 172,800 / 72 = 2,400 cartonsCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25EOQ = The square root of [(2 × (172,800/72) × $125.00) / ($7.25)]EOQ = 287.7 cartons - round to 288Diff: 2Terms: economic order quantity (EOQ)Objective: 3AACSB: Analytical skills58) Purchasing at the EOQ recommended level, how many deliveries will be made during each time period?A) 2 deliveriesB) 6.0 deliveriesC) 8.3 deliveriesD) 12 deliveriesAnswer: CExplanation: C) Annual Demand / 172,800 / 72 = 2,400 cartonsCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25EOQ = The square root of [(2 × (172,800/72) × $125.00) / ($7.25)]EOQ = 287.7 cartonsDeliveries = Annual Demand / EOQ = 8.3Diff: 3Terms: economic order quantity (EOQ)Objective: 3AACSB: Analytical skills59) Purchasing at the EOQ recommended level, what are the relevant total costs?A) $1,500.00B) $2,085.67C)$2,225.00 D) $3,000.00Answer:B Explanation: B) Annual Demand / 172,800 / 72 = 2,400 cartonsCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25EOQ = The square root of [(2 × (172,800/72) × $125.00) / ($7.25)]EOQ = 287.7 cartonsRTC = 2)]25.7($7.287[7.287]00.125$)72/800,172[(⨯+⨯ = $2,085.67 Your solution might be slightly different based on rounding.Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:3 AACSB:Analytical skills Answer the following questions using the information below:The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:Relevant ordering costs per purchase order $150Relevant carrying costs per year:Required annual return on investment 10%Required other costs per year $1.40Annual demand is 10,000 packages per year. The purchase price per package is $16.60) What is the economic order quantity?A) 150,000 unitsB) 1,000 unitsC) 75,000 unitsD) 5,000 unitsAnswer:B Explanation: B) Unit carrying costs = ($16 × 0.10) + $1.40 = $3EOQ = The square root of [(2 × 10,000 × $150) / $3] = 1,000 unitsDiff: 3Terms:economic order quantity (EOQ) Objective:2 AACSB:Analytical skills61) What are the relevant total costs at the economic order quantity?A) $1,000B) $1,500C) $3,000D) $3,500Answer:C Explanation: C) Unit carrying costs = ($16 × 0.10) + $1.40 = $3EOQ = The square root of [(2 × 10,000 × $150) / $3] = 1,000 unitsRTC = ⎥⎦⎤⎢⎣⎡⨯+⨯2)3$000,1(000,1)150$000,10( = $3,000 Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:2 AACSB:Analytical skills 62) What are the total relevant costs, assuming the quantity ordered equals 500 units?A) $3,500B) $500C) $4,000D) $3,750Answer:D Explanation: D) RTC = ⎥⎦⎤⎢⎣⎡⨯+⨯2)3$500(500)150$000,10( = $3,750 Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:2 AACSB:Analytical skills 63) How many deliveries will be required at the economic order quantity?A) 1.0 deliveryB) 5.1 deliveriesC) 8.2 deliveriesD) 10.0 deliveriesAnswer:D Explanation: D) 10,000 / 1,000 = 10 deliveriesDiff: 3Terms:economic order quantity (EOQ) Objective:2 AACSB:Analytical skills 64) The annual relevant total costs are at a minimum when relevant:A) ordering costs are greater than the relevant carrying costsB) carrying costs are greater than the relevant ordering costsC) carrying costs are equal to relevant ordering costsD) None of these answers is correct.Answer:C Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:2 AACSB:Reflective thinking65) The reorder point is simplest to compute when:A) both demand and purchase-order lead times are known with certaintyB) the number of units sold variesC) the safety stock amount never variesD) the relevant ordering costs and the relevant carrying costs are equalAnswer: ADiff: 2Terms: economic order quantity (EOQ), reorder pointObjective: 3AACSB: Reflective thinking66) Diskette Company sells 200 discs per week. Purchase-order lead time is 1-1/2 weeks and the economic-orderquantity is 450 units. What is the reorder point?A) 200 unitsB) 300 unitsC) 750 unitsD) 1,125 unitsAnswer: BExplanation: B) 200 × 1.5= 300 unitsDiff: 2Terms: economic order quantity (EOQ), reorder pointObjective: 4AACSB: Analytical skills67) Wilson's Deli can predict with virtual certainty the demand for its products. Wilson's sells 20 hams perweek. Purchase-order lead time is 2 weeks and the economic-order quantity is 50 hams. What is the reorder point?A) 20 hamsB) 30 hamsC) 40 hamsD) 50 hamsAnswer: CExplanation: C) 20 × 2= 40 hamsDiff: 2Terms: economic order quantity (EOQ), reorder pointObjective: 4AACSB: Analytical skillsOwen-King Company sells optical equipment. Lens Company manufactures special glass lenses. Owen-King Company orders 5,200 lenses per year, 100 per week, at $20 per lens. Lens Company covers all shipping costs. Owen-King Company earns 30% on its cash investments. The purchase-order lead time is 2.5 weeks. Owen-King Company sells 125 lenses per week. The following data are available:Relevant ordering costs per purchase order $21.25Relevant insurance, materials handling, breakage,and so on, per year $ 2.5068) What is the economic order quantity for Owen-King Company?A) 325 lensesB) 297 lensesC) 210 lensesD) 161 lensesAnswer: DExplanation: D) EOQ = The square root of [(2 × 5,200 × $21.25) / (($20 × 30%) + $2.50)]EOQ = 161 lensesDiff: 2Terms: economic order quantity (EOQ)Objective: 4AACSB: Analytical skills69) What is the reorder point?A) 220.5 lensesB) 312.5 lensesC) 397.5 lensesD) 415.5 lensesAnswer: BExplanation: B) 125 lenses × 2.5 weeks = 312.5 lensesDiff: 2Terms: reorder pointObjective: 4AACSB: Analytical skillsThe following information applies to Labs Plus, which supplies microscopes to laboratories throughout the country. Labs Plus purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.Annual demand (weekly demand= 1/52 of annual demand) 15,600 unitsOrders per year 20Lead time in days 15 daysCost of placing an order $10070) What are the annual relevant carrying costs, assuming each order was made at the economic-order-quantityamount?A) $200B) $1,000C) $2,000D) $6,000Answer: CExplanation: C) Annual carrying costs = annual ordering costs = $100 × 20 = $2,000Diff: 2Terms: economic order quantity (EOQ), carrying costsObjective: 2AACSB: Analytical skills71) What is the economic order quantity assuming each order was made at the economic-order-quantity amount?A) 15 unitsB) 20 unitsC) 780 unitsD) 1,040 unitsAnswer: CExplanation: C) 15,600/20 = 780Diff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills72) What is the reorder point?A) 780 unitsB) 643 unitsC) 1,560 unitsD) 1,680 unitsAnswer: BExplanation: B) 15,600/52 = 300/7 = 42.86 daily demand × 15 = 643Diff: 2Terms: reorder pointObjective: 1AACSB: Analytical skills。

《成本会计》（双语）试卷B一、单项选择题（每题1分，共20分）1.辅助生产费用的交互分配是指( )。

A.辅助生产费用在各辅助生产车间之间的分配B.辅助生产费用在各基本生产车间之间的分配C.辅助生产费用在各生产车间之间的分配D.辅助生产费用在辅助生产车间与基本生产车间之间的分配2.厂部发生的下列各项费用中，可以作为制造费用核算的是( )。

A.管理人员工资 B.房屋折旧费C.办公费D.设计制图费3.某车间采用按年度计划分配率分配法分配制造费用。

该车间全年制造费用计划为3780元。

全年各种产品的计划产量为：甲产品200件，乙产品400件；单件产品的工时定额为：甲产品5小时，乙产品2小时。

据此计算的该车间制造费用年度计划分配率是( )。

A.540 B.6.3 C.2.1 D.0.94.某产品4月份在生产过程中发现的不可修复废品的生产成本为800元，赔款为300元，回收废品残料的价值为100元。

据此计算的该产品4月份废品净损失是( )元。

A.1000 B.200 C.400 D.5005.甲产品月末在产品只计算原材料费用。

该产品月初在产品原材料费用为3600元；本月发生的原材料费用2100元。

原材料均在生产开始时一次投入。

本月完工产品200件，月末在产品100件。

据此计算的甲产品本月末在产品原材料费用是( )元。

A.5700 B.3800 C.2100 D.19006.各月在产品数量变动较大的情况下，采用在产品按定额成本计价法将生产费用在完工产品和在产品之间进行分配时，可能导致( )。

A.月初在产品成本为负数B.本月发生的生产费用为负数C.本月完工产品成本为负数D.月末在产品成本为负数7.区别各种产品成本计算基本方法的标志是( )。

A.成本管理要求B.成本计算期间C.成本计算对象D.间接费用的分配方法 8.下列方法中，属于产品成本计算辅助方法的是( )。

A.品种法 B.分类法 C.分步法 D.分批法9.某企业采用分批法计算产品成本，并把不同日期投产的产品作为不同的批别。

英语会计考试题目及答案一、选择题（每题2分，共20分）1. What is the basic equation of accounting?A. Assets = Liabilities + EquityB. Revenue - Expenses = ProfitC. Depreciation - Amortization = LossD. Cost of Goods Sold + Operating Expenses = Net Income答案：A2. Which of the following is NOT a type of intangible asset?A. TrademarkB. PatentC. CopyrightD. Inventory答案：D3. The process of allocating the cost of a tangible asset over its useful life is known as:A. AmortizationB. DepreciationC. AccrualD. Provision答案：B4. What is the purpose of adjusting entries at the end of anaccounting period?A. To increase the company's profitB. To ensure the financial statements are accurate and up-to-dateC. To reduce the company's tax liabilityD. To prepare for the next accounting period答案：B5. The term "Double Entry Bookkeeping" refers to the practice of:A. Recording transactions twiceB. Recording debits and credits for every transactionC. Keeping two sets of booksD. Using two different accounting software答案：B...二、简答题（每题10分，共30分）1. Explain the difference between "revenue recognition" and "matching principle".答案：Revenue recognition is the process of recognizing income in the accounting records as it is earned, regardless of when payment is received. The matching principle, on the other hand, is an accounting concept that requires expenses to be recognized in the same accounting period as the revenue they helped generate. This ensures that the financial statements reflect the actual performance of the business fora given period.2. What are the main components of a balance sheet?答案：The main components of a balance sheet are assets, liabilities, and equity. Assets represent what the company owns, liabilities represent what the company owes, and equity represents the residual interest in the assets of the entity after deducting liabilities....三、计算题（每题15分，共30分）1. Given the following information for XYZ Corp., calculate the net income for the year ended December 31, 2023:- Sales revenue: $500,000- Cost of goods sold: $300,000- Operating expenses: $100,000- Depreciation expense: $20,000- Interest expense: $10,000答案：Net Income = Sales Revenue - (Cost of Goods Sold + Operating Expenses + Depreciation Expense + Interest Expense) Net Income = $500,000 - ($300,000 + $100,000 + $20,000 + $10,000)Net Income = $500,000 - $440,000Net Income = $60,0002. If a company purchased a machine for $50,000 and expectsit to have a useful life of 5 years with no residual value, calculate the annual depreciation expense using the straight-line method.答案：Annual Depreciation Expense = (Cost of Asset - Residual Value) / Useful LifeAnnual Depreciation Expense = ($50,000 - $0) / 5Annual Depreciation Expense = $10,000...结束语：希望这份英语会计考试题目及答案对您的学习和复习有所帮助。

会计专业英语试题及答案一、选择题（每题2分，共20分）1. Which of the following is not an accounting principle?A. Accrual BasisB. Going ConcernC. ConsistencyD. Cash BasisAnswer: D2. The process of summarizing, analyzing, and reporting financial data is known as:A. BudgetingB. AccountingC. AuditingD. TaxationAnswer: B3. What is the term used to describe the systematic and periodic recording of financial transactions?A. BookkeepingB. PayrollC. TaxationD. AuditingAnswer: A4. Which of the following is not a component of the balance sheet?A. AssetsB. LiabilitiesC. EquityD. RevenueAnswer: D5. The matching principle requires that:A. Expenses are recognized when incurredB. Expenses are recognized when paidC. Expenses are recognized in the same period as the revenue they generateD. Expenses are recognized when the cash is received Answer: C6. The accounting equation is:A. Assets = Liabilities + EquityB. Assets - Liabilities = EquityC. Assets + Equity = LiabilitiesD. Assets = Equity - LiabilitiesAnswer: A7. The term "double-entry bookkeeping" refers to the practice of:A. Recording transactions twiceB. Recording transactions in two accountsC. Recording debits and credits for every transactionD. Recording transactions in two different booksAnswer: C8. Which of the following is not a type of intangible asset?A. PatentsB. TrademarksC. GoodwillD. InventoryAnswer: D9. The purpose of an income statement is to show:A. The financial position of a company at a point in timeB. The changes in equity over a period of timeC. The financial performance of a company over a period of timeD. The cash flows of a company over a period of time Answer: C10. The statement of cash flows is used to report:A. How cash is generated and used during a periodB. The net income of a company for a periodC. The changes in equity for a periodD. The changes in assets and liabilities for a period Answer: A二、填空题（每题2分，共20分）1. The accounting cycle includes the following steps:journalizing, posting, __________, adjusting entries, and closing entries.Answer: trial balance2. The __________ principle requires that all business transactions should be recorded at their fair value in the accounting records.Answer: Fair Value3. The __________ is a summary of all the journal entries fora period, listed in date order.Answer: General Journal4. __________ are expenses that have been incurred but not yet paid.Answer: Accrued Expenses5. The __________ is a report that shows the beginning cash balance, cash receipts, cash payments, and the ending cash balance for a period.Answer: Cash Flow Statement6. The __________ ratio is calculated by dividing current assets by current liabilities.Answer: Current Ratio7. __________ are assets that are expected to be converted into cash or used up within one year or one operating cycle. Answer: Current Assets8. __________ is the process of determining the cost of goodssold and the value of ending inventory.Answer: Costing9. __________ is the process of estimating the useful life of an asset and allocating its cost over that period.Answer: Depreciation10. __________ is the process of adjusting the accounts to reflect the proper revenue and expenses for the period. Answer: Accrual Accounting三、简答题（每题10分，共20分）1. Explain the difference between revenue and profit. Answer: Revenue is the income generated from the normal business activities of an entity during a specific period, before deducting expenses. Profit, on the other hand, is the excess of revenues and gains over expenses and losses for a period. It represents the net income or net earnings of a business.2. What are the main components of a balance sheet?Answer: The main components of a balance sheet are assets, liabilities, and equity. Assets represent what a company owns or controls with future economic benefit. Liabilities are obligations or debts that a company owes to others. Equity is the residual interest in the assets of the entity after deducting all its liabilities, representing the ownership interest of the shareholders.四、计算题（每题15分，共30分）1. Calculate the net income for the year if the revenue is$500,000, the cost of goods sold is $300,000, operating expenses are $80,000, and other expenses are $20,000. Answer: Net Income = Revenue - Cost of Goods Sold - Operating。

Cost Accounting, 13e (Horngren et al.)Chapter 7 Flexible Budgets, Direct-Cost Variances, and Management Control1) The master budget is one type of flexible budget.Answer: FALSEExplanation: The master budget is a static budget.Diff: 1Terms: flexible budgetObjective: 1AACSB: Reflective thinking2) A flexible budget is calculated at the start of the budget period.Answer: FALSEExplanation: A flexible budget is calculated at the end of the budget period when actual output is known.Diff: 1Terms: flexible budgetObjective: 1AACSB: Reflective thinking3) Information regarding the causes of variances is provided when the master budget is compared with actualresults.Answer: FALSEExplanation: Little information regarding the causes of variances is provided when the master budget is compared with actual results because you are comparing a budget for one level of activity withactual costs for a different level of activity.Diff: 2Terms: varianceObjective: 1AACSB: Reflective thinking4) A variance is the difference between the actual cost for the current and previous year.Answer: FALSEExplanation: A variance is the difference between actual results and expected (or budgeted) performance.Diff: 2Terms: varianceObjective: 1AACSB: Reflective thinking5) A favorable variance results when budgeted revenues exceed actual revenues.Answer: FALSEExplanation: An unfavorable variance results when budgeted revenues exceed actual revenues.Diff: 2Terms: favorable varianceObjective: 1AACSB: Reflective thinking6) Management by exception is the practice of concentrating on areas not operating as anticipated (such as acost overrun) and placing less attention on areas operating as anticipated.Answer: TRUEDiff: 1Terms: management by exceptionObjective: 1AACSB: Reflective thinking7) The essence of variance analysis is to capture a departure from what was expected.Answer: TRUEDiff: 1Terms: varianceObjective: 1AACSB: Reflective thinking8) A favorable variance should be ignored by management.Answer: FALSEExplanation: Favorable variance investigation may lead to improved production methods, other discoveries for future opportunities, or not be good news at all and adversely affect other variances.Diff: 1Terms: favorable varianceObjective: 1AACSB: Reflective thinking9) An unfavorable variance may be due to poor planning rather than due to inefficiency.Answer: TRUEDiff: 2Terms: unfavorable varianceObjective: 1AACSB: Communication10) The only difference between the static budget and flexible budget is that the static budget is prepared usingplanned output.Answer: TRUEDiff: 2Terms: static budget, flexible budgetObjective: 2AACSB: Reflective thinking11) The static-budget variance can be subdivided into the flexible-budget variance and the sales-volume variance.Answer: TRUEDiff: 2Terms: static-budget variance, sales-volume variance, flexible-budget varianceObjective: 2AACSB: Reflective thinking12) The flexible-budget variance may be the result of inaccurate forecasting of units sold.Answer: FALSEExplanation: The sales-volume variance is the result of inaccurate forecasting of units sold.Diff: 3Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking13) Decreasing demand for a product may create a favorable sales-volume variance.Answer: FALSEExplanation: Decreasing demand for a product may create an unfavorable sales-volume variance.Diff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking14) An unfavorable variance is conclusive evidence of poor performance.Answer: FALSEExplanation: An unfavorable variance suggests further investigation, not conclusive evidence of poor performance.Diff: 2Terms: unfavorable varianceObjective: 2AACSB: Reflective thinking15) A company would not need to use a flexible budget if it had perfect foresight about actual output units.Answer: TRUEDiff: 2Terms: flexible budgetObjective: 2AACSB: Reflective thinking16) The flexible-budget variance pertaining to revenues is often called a selling-price variance.Answer: TRUEDiff: 1Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking17) Cost control is the focus of the sales-volume variance.Answer: FALSEExplanation: The sales-volume variance is not a measure of cost, but rather a measure of actual output units differing from budgeted output units.Diff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking18) The term efficiency variance is the direct-cost portion of the flexible-budget variance.Answer: FALSEExplanation: The flexible-budget variance for direct-cost inputs is subdivided into two detailed variances, the efficiency variance and the price variance.Diff: 1Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking19) Managers generally have more control over efficiency variances than price variances.Answer: TRUEExplanation: Efficiency variances are primarily affected by internal factors, whereas price changes may be influenced by market factors.Diff: 3Terms: efficiency variance, price varianceObjective: 3AACSB: Reflective thinking20) To prepare budgets based on actual data from past periods is preferred since past inefficiencies are excluded.Answer: FALSEExplanation: A deficiency of using budgeted input quantity information based on actual quantity data from past periods is that past inefficiencies are included.Diff: 2Terms: static budgetObjective: 3AACSB: Reflective thinking21) All budgets are based on standard costs.Answer: FALSEExplanation: Budgets may be based on standard costs, actual amounts from last year, or data from other companies.Diff: 2Terms: standard costObjective: 3AACSB: Reflective thinking22) A standard is attainable through efficient operations but allows for normal disruptions such as machinebreakdowns and defective production.Answer: TRUEDiff: 3Terms: standard costObjective: 3AACSB: Reflective thinking23) One advantage of using standard times to develop a budget is they are simple to compile, are based solely onthe past actual history, and do not require expected future changes to be taken into account.Answer: FALSEExplanation: An advantage of using standard times is they aim to take into account changes expected to occur in the budget period.Diff: 3Terms: standardObjective: 3AACSB: Reflective thinking24) The presumed cause of a material price variance will determine how a company responds.Answer: TRUEDiff: 1Terms: price varianceObjective: 4AACSB: Reflective thinking25) The price variance is the difference between the actual price and the budgeted price of the input, multipliedby the actual quantity of input.Answer: TRUEDiff: 1Terms: price varianceObjective: 4AACSB: Reflective thinkingand the budgeted quantity of input allowed to produce actual output, multiplied by the actual price.Answer: FALSEExplanation: The efficiency variance is the difference between actual quantity of input used and the budgeted quantity of input allowed to produce actual output, multiplied by the budgeted price.Diff: 1Terms: efficiency varianceObjective: 4AACSB: Reflective thinking27) The use of high-quality raw materials is likely to result in a favorable efficiency variance and an unfavorableprice variance.Answer: TRUEDiff: 2Terms: efficiency variance, price varianceObjective: 4AACSB: Reflective thinking28) The direct manufacturing labor price variance is likely to be favorable if higher-skilled workers are put on ajob.Answer: FALSEExplanation: The direct manufacturing labor variance is likely to be unfavorable if higher-skilled workers are put on a job since they are usually also higher paid.Diff: 2Terms: price varianceObjective: 4AACSB: Reflective thinking29) Although computed separately, price variances and efficiency variances should not be analyzed separatelyfrom each other.Answer: TRUEDiff: 2Terms: price variance, efficiency varianceObjective: 4AACSB: Reflective thinking30) A favorable variance can be automatically interpreted as "good news."Answer: FALSEExplanation: A favorable variance may not be good news at all because it adversely affects other variances that increase total costs.Diff: 1Terms: favorable varianceObjective: 5AACSB: Reflective thinking31) Variances often affect each other.Answer: TRUEDiff: 1Terms: varianceObjective: 5AACSB: Analytical skillscreativity and resourcefulness.Answer: FALSEExplanation: The most common outcome when variance analysis is used for performance evaluation is that managers seek targets that are easily attainable and avoid targets that require creativity andresourcefulness.Diff: 2Terms: varianceObjective: 5AACSB: Ethical reasoning33) When using variance for performance evaluation, managers often focus on effectiveness and efficiency astwo of the common attributes used in comparing expected results with actual results.Answer: TRUEDiff: 2Terms: varianceObjective: 5AACSB: Ethical reasoning34) For critical items such as product defects, a small variance may prompt investigation.Answer: TRUEDiff: 2Terms: varianceObjective: 5AACSB: Analytical skills35) A particular variance generally signals one particular problem.Answer: FALSEExplanation: There are many potential causes of a single variance.Diff: 1Terms: varianceObjective: 5AACSB: Analytical skills36) If budgets contain slack, cost variances will tend to be favorable.Answer: TRUEDiff: 2Terms: favorable varianceObjective: 5AACSB: Analytical skills37) Continuous improvement budgeted costs target price reductions and efficiency improvements.Answer: TRUEDiff: 1Terms: standard costObjective: 5AACSB: Analytical skillsperiod of time.Answer: FALSEExplanation: Improvement opportunities are easier to identify when products are first produced.Diff: 2Terms: varianceObjective: 5AACSB: Reflective thinking39) It is best to rely totally on financial performance measures rather than using a combination of financial andnonfinancial performance measures.Answer: FALSEExplanation: It is best to rely on a combination of financial and nonfinancial performance measures.Diff: 2Terms: varianceObjective: 5AACSB: Reflective thinking40) From the perspective of control, the direct materials price variance should be isolated at the time the directmaterials are requisitioned for use.Answer: FALSEExplanation: From the perspective of control, the direct materials price variance should be isolated at the earliest possible time, which is at the time of purchase, not of use.Diff: 2Terms: price varianceObjective: 5AACSB: Reflective thinking41) The goal of variance analysis is for managers to understand why variances arise, to learn, and to improvefuture performance.Answer: TRUEDiff: 2Terms: varianceObjective: 5AACSB: Communication42) Employees logging in to production floor terminals and other modern technologies greatly facilitate the useof a standard costing system.Answer: TRUEDiff: 1Terms: standard costObjective: 5AACSB: Reflective thinking43) Performance variance analysis can be used in activity-based costing systems.Answer: TRUEDiff: 1Terms: varianceObjective: 6AACSB: Reflective thinking44) Price variances can be calculated for batch-level costs as well as for output unit-level costs.Answer: TRUEDiff: 1Terms: price varianceObjective: 6AACSB: Reflective thinking45) Benchmarking is the continuous process of measuring products, services, and activities against the bestpossible levels of performance, either inside or outside the organization.Answer: TRUEDiff: 1Terms: benchmarkingObjective: 7AACSB: Reflective thinking46) When benchmarking, the best levels of performance are typically found in companies that are totallydifferent.Answer: FALSEExplanation: When benchmarking, the best levels of performance are typically found in competing companies or in companies having similar processes.Diff: 1Terms: benchmarkingObjective: 7AACSB: Reflective thinking47) One problem with benchmarking is ensuring that numbers are comparable.Answer: TRUEDiff: 1Terms: benchmarkingObjective: 7AACSB: Reflective thinking48) When benchmarking it is best when management accountants simply analyze the costs and allowmanagement to provide the insight as to why the revenues and costs differ between companies.Answer: FALSEExplanation: When benchmarking, management accountants are more valuable when they analyze the costs and also provide management with insight as to why the revenues and costs differ betweencompanies.Diff: 1Terms: benchmarkingObjective: 7AACSB: Communication49) The master budget is:A) a flexible budgetB) a static budgetC) developed at the end of the periodD) based on the actual level of outputAnswer: BDiff: 1Terms: static budgetObjective: 1AACSB: Reflective thinking50) A flexible budget:A) is another name for management by exceptionB) is developed at the end of the periodC) is based on the budgeted level of outputD) provides favorable operating resultsAnswer: BDiff: 1Terms: flexible budgetObjective: 1AACSB: Reflective thinking51) Management by exception is the practice of concentrating on:A) the master budgetB) areas not operating as anticipatedC) favorable variancesD) unfavorable variancesAnswer: BDiff: 1Terms: management by exceptionObjective: 1AACSB: Reflective thinking52) A variance is:A) the gap between an actual result and a benchmark amountB) the required number of inputs for one standard outputC) the difference between an actual result and a budgeted amountD) the difference between a budgeted amount and a standard amountAnswer: CDiff: 1Terms: varianceObjective: 1AACSB: Reflective thinking53) An unfavorable variance indicates that:A) actual costs are less than budgeted costsB) actual revenues exceed budgeted revenuesC) the actual amount decreased operating income relative to the budgeted amountD) All of these answers are correct.Answer: CDiff: 2Terms: unfavorable varianceObjective: 1AACSB: Reflective thinking54) A favorable variance indicates that:A) budgeted costs are less than actual costsB) actual revenues exceed budgeted revenuesC) the actual amount decreased operating income relative to the budgeted amountD) All of these answers are correct.Answer: BDiff: 2Terms: favorable varianceObjective: 1AACSB: Reflective thinkingAnswer the following questions using the information below:Abernathy Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.Actual BudgetedUnits sold 92,000 units 90,000 unitsVariable costs $450,800 $432,000Fixed costs $ 95,000 $100,00055) What is the static-budget variance of revenues?A) $20,000 favorableB) $20,000 unfavorableC) $2,000 favorableD) $2,000 unfavorableAnswer: AExplanation: A) (92,000 units × $10) - (90,000 units × $10) = $20,000 FDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills56) What is the static-budget variance of variable costs?A) $1,200 favorableB) $18,800 unfavorableC) $20,000 favorableD) $1,200 unfavorableAnswer: BExplanation: B) $450,800 - $432,000 = $18,800 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills57) What is the static-budget variance of operating income?A) $3,800 favorableB) $3,800 unfavorableC) $6,200 favorableD) $6,200 unfavorableAnswer: CExplanation: C) Actual Static Static-budgetResults Budget VarianceUnits sold 92,000 90,000Revenues $920,000 $900,000 $20,000 FVariable costs 450,800 432,000 18,800 UContribution margin $469,200 $468,000 1,200 FFixed costs 95,000 100,000 (5,000) FOperating income $374,200 $368,000 $6,200 F Diff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skillsAnswer the following questions using the information below:Bates Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.Actual BudgetedUnits sold 495,000 units 500,000 unitsVariable costs $1,250,000 $1,500,000Fixed costs $ 925,000 $ 900,00058) What is the static-budget variance of revenues?A) $50,000 favorableB) $50,000 unfavorableC) $5,000 favorableD) $5,000 unfavorableAnswer: BExplanation: B) (495,000 units × $10) - (500,000 units × $10) = $50,000 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills59) What is the static-budget variance of variable costs?A) $200,000 favorableB) $50,000 unfavorableC) $250,000 favorableD) $250,000 unfavorableAnswer: CExplanation: C) $1,250,000 - $1,500,000= $250,000 FDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills60) What is the static-budget variance of operating income?A) $175,000 favorableB) $195,000 unfavorableC) $225,000 favorableD) $325,000 unfavorableAnswer: AExplanation: A) Actual Static Static-budgetResults Budget VarianceUnits sold 495,000 500,000Revenues $4,950,000 $5,000,000 $(50,000) UVariable costs 1,250,000 1,500,000 (250,000) FContribution margin $3,700,000 $3,500,000 200,000 FFixed costs 925,000 900,000 25,000 UOperating income $2,775,000 $2,600,000 $175,000 F Diff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skillsAnswer the following questions using the information below:Racine Filter Corporation used the following data to evaluate their current operating system. The company sells items for $14.50 each and had used a budgeted selling price of $15 per unit.Actual BudgetedUnits sold 206,000 units 200,000 unitsVariable costs $965,000 $950,000Fixed costs $ 53,000 $ 50,00061) What is the static-budget variance of revenues?A) $90,000 favorableB) $13,000 favorableC) $13,000 unfavorableD) $6,000 favorableAnswer: CExplanation: C) (206,000 units × $14.50) - (200,000 units × $15) = $13,000 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills62) What is the static-budget variance of variable costs?A) $13,000 favorableB) $13,000 unfavorableC) $15,000 favorableD) $15,000 unfavorableAnswer: DExplanation: D) $965,000 - $950,000= $15,000 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills63) What is the static-budget variance of operating income?A) $31,000 unfavorableB) $26,000 favorableC) $28,000 favorableD) $28,000 unfavorableAnswer: AExplanation: A) Actual Static Static-budgetResults Budget VarianceUnits sold 202,000 200,000Revenues $2,987,000 $3,000,000 $(13,000) UVariable costs 965,000 950,000 (15,000) UContribution margin $2,022,000 $2,050,000 28,000 UFixed costs 53,000 50,000 3,000 UOperating income $ 1,969,000 $2,000,000 $31,000 U Diff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills64) Regier Company had planned for operating income of $10 million in the master budget but actually achievedoperating income of only $7 million.A) The static-budget variance for operating income is $3 million favorable.B) The static-budget variance for operating income is $3 million unfavorable.C) The flexible-budget variance for operating income is $3 million favorable.D) The flexible-budget variance for operating income is $3 million unfavorable.Answer: BDiff: 2Terms: static-budget variance, flexible-budget varianceObjective: 1AACSB: Analytical skills65) The flexible budget contains:A) budgeted amounts for actual outputB) budgeted amounts for planned outputC) actual costs for actual outputD) actual costs for planned outputAnswer: ADiff: 1Terms: flexible budgetObjective: 2AACSB: Reflective thinking66) The following items are the same for the flexible budget and the master budget EXCEPT the same:A) variable cost per unitB) total fixed costsC) units soldD) sales price per unitAnswer: CDiff: 2Terms: flexible budgetObjective: 2AACSB: Reflective thinking67) The sales-volume variance is due to:A) using a different selling price from that budgetedB) inaccurate forecasting of units soldC) poor production performanceD) Both A and B are correct.Answer: BDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking68) An unfavorable sales-volume variance could result from:A) decreased demand for the productB) competitors taking market shareC) customer dissatisfaction with the productD) All of these answers are correct.Answer: DDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking69) If a sales-volume variance was caused by poor-quality products, then the ________ would be in the bestposition to explain the variance.A) production managerB) sales managerC) purchasing managerD) management accountantAnswer: ADiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking70) The variance that is BEST for measuring operating performance is the:A) static-budget varianceB) flexible-budget varianceC) sales-volume varianceD) selling-price varianceAnswer: BDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking71) An unfavorable flexible-budget variance for variable costs may be the result of:A) using more input quantities than were budgetedB) paying higher prices for inputs than were budgetedC) selling output at a higher selling price than budgetedD) Both A and B are correct.Answer: DDiff: 3Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking72) An unfavorable variance:A) may suggest investigation is neededB) is conclusive evidence of poor performanceC) demands that standards be recomputedD) indicates continuous improvement is neededAnswer: ADiff: 2Terms: unfavorable varianceObjective: 2AACSB: Reflective thinking73) All of the following are needed to prepare a flexible budget EXCEPT determining the:A) budgeted variable cost per output unitB) budgeted fixed costsC) actual selling price per unitD) actual quantity of output unitsAnswer: CDiff: 3Terms: flexible budgetObjective: 2AACSB: Reflective thinking74) The variance that LEAST affects cost control is the:A) flexible-budget varianceB) direct-material-price varianceC) sales-volume varianceD) direct manufacturing labor efficiency varianceAnswer: CDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking75) A flexible-budget variance is $800 favorable for unit-related costs. This indicates that costs were:A) $800 more than the master budgetB) $800 less than for the planned level of activityC) $800 more than standard for the achieved level of activityD) $800 less than standard for the achieved level of activityAnswer: DDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:JJ White planned to use $82 of material per unit but actually used $80 of material per unit, and planned to make 1,200 units but actually made 1,000 units.76) The flexible-budget amount is:A) $80,000B) $82,000C) $96,000D) $98,400Answer: BExplanation: B) 1,000 units × $82 = $82,000Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skills77) The flexible-budget variance is:A) $2,000 favorableB) $14,000 unfavorableC) $16,400 unfavorableD) $2,400 favorableAnswer: AExplanation: A) ($80 - $82) × 1,000 = $2,000 FDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skills78) The sales-volume variance is:A) $2,000 favorableB) $14,000 unfavorableC) $16,400 unfavorableD) $2,400 favorableAnswer: CExplanation: C) (1,000 - 1,200) × $82 = $16,400 UDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Analytical skills79) Aebi Corporation currently produces cardboard boxes in an automated process. Expected production permonth is 20,000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs are $9,000per month. Manufacturing overhead is allocated based on units of production. What is the flexible budgetfor 10,000 and 20,000 units, respectively?A) $10,500; $16,500B) $10,500; $21,000C) $15,000; $21,000D) None of these answers are correct.Answer: CExplanation: C) 10,000 units 20,000 unitsMaterials ($0.60) $ 6,000 $12,000Machinery 9,000 9,000$15,000 $21,000Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:McKenna Incorporated planned to use $24 of material per unit but actually used $25 of material per unit, and planned to make 1,000 units but actually made 1,200 units.80) The flexible-budget amount is:A) $24,000B) $25,000C) $28,800D) $30,000Answer: CExplanation: C) 1,200 units × $24 = $28,800Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skills81) The flexible-budget variance is:A) $4,800 favorableB) $1,200 unfavorableC) $5,000 unfavorableD) $6,000 favorableAnswer: BExplanation: B) ($25 - $24) × 1,200 = $1,200 UDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skills82) The sales-volume variance is:A) $4,800 favorableB) $1,200 unfavorableC) $5,000 unfavorableD) $6,000 favorableAnswer: AExplanation: A) (1,200 - 1,000) × $24 = $4,800 FDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:Seldon Incorporated planned to use $37.50 of material per unit but actually used $36.75 of material per unit, and planned to make 900 units but actually made 800 units.83) The flexible-budget amount is:A) $30,000B) $33,750C) $29,400D) $600Answer: AExplanation: A) 800 units × $37.50 = $30,000Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skills84) The flexible-budget variance is:A) $3,750 favorableB) $3,750 unfavorableC) $600 unfavorableD) $600 favorableAnswer: DExplanation: D) ($36.75 - $37.50) × 800 = $600 FDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skills85) The sales-volume variance is:A) $3,750 favorableB) $3,750 unfavorableC) $600 unfavorableD) $600 favorableAnswer: BExplanation: B) (800 - 900) × $37.50 = $3,750 UDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Analytical skills。

Cost Accounting, 13e (Horngren et al.)Chapter 9 Inventory Costing and Capacity Analysis1) The two most common methods of costing inventories in manufacturing companies are variable costing andfixed costing.Answer: FALSEExplanation: The two methods are variable costing and absorption costing.Diff: 1Terms: absorption costing, variable costingObjective: 1AACSB: Reflective thinking2) Absorption costing "absorbs" only variable manufacturing costs.Answer: FALSEExplanation: Absorption costing "absorbs" all manufacturing costs, both fixed and variable.Diff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking3) Variable costing includes all variable costs both manufacturing and nonmanufacturing in inventory.Answer: FALSEExplanation: Variable costing includes only manufacturing variable costs in inventory.Diff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking4) Under both variable and absorption costing, all variable manufacturing costs are inventoriable costs.Answer: TRUEDiff: 1Terms: variable costing, absorption costingObjective: 1AACSB: Reflective thinking5) The main difference between variable costing and absorption costing is the way in which fixedmanufacturing costs are accounted for.Answer: TRUEDiff: 1Terms: absorption costing, variable costingObjective: 1AACSB: Reflective thinking6) Under variable costing, fixed manufacturing costs are treated as an expense of the period.Answer: TRUEDiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking7) The contribution-margin format of the income statement is used with absorption costing.Answer: FALSEExplanation: The contribution-margin format of the income statement is used with variable costing.Diff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking8) The contribution-margin format of the income statement distinguishes manufacturing costs fromnonmanufacturing costs.Answer: FALSEExplanation: The contribution-margin format of the income statement distinguishes variable costs from fixed costs.Diff: 1Terms: variable costingObjective: 2AACSB: Reflective thinking9) The gross-margin format of the income statement highlights the lump sum of fixed manufacturing costs.Answer: FALSEExplanation: The gross-margin format of the income statement distinguishes manufacturing costs from nonmanufacturing costs, but it does not highlight the lump sum of fixed manufacturing costs.Diff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinking10) In absorption costing, all nonmanufacturing costs are subtracted from gross margin.Answer: TRUEDiff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking11) Direct costing is a perfect way to describe the variable-costing inventory method.Answer: FALSEExplanation: Direct costing is a less than perfect way to describe this method because not all variable costs are inventoriable costs.Diff: 2Terms: direct costingObjective: 2AACSB: Analytical skills12) When variable costing is used, an income statement will show gross margin.Answer: FALSEExplanation: When variable costing is used, an income statement will show contribution margin.Diff: 2Terms: variable costingObjective: 2AACSB: Reflective thinking13) The income under variable costing will always be the same as the income under absorption costing.Answer: FALSEExplanation: The income under variable costing will sometimes be the same as the income under absorption costing.Diff: 2Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinking14) Absorption costing is required by GAAP (Generally Accepted Accounting Principles) for external reporting.Answer: TRUEDiff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinking15) When production deviates from the denominator level, a production-volume variance always exists underabsorption costing.Answer: TRUEDiff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking16) Fixed manufacturing costs included in cost of goods available for sale + the production-volume variance willalways = total fixed manufacturing costs under absorption costing.Answer: TRUEDiff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking17) The production-volume variance only exists under absorption costing and not under variable costing.Answer: TRUEDiff: 1Terms: absorption costing, variable costingObjective: 2AACSB: Reflective thinking18) When the unit level of inventory increases during an accounting period, operating income is greater undervariable costing than absorption costing.Answer: FALSEExplanation: Greater operating income is reported under variable costing than absorption costing when the unit level of inventory decreases during an accounting period.Diff: 3Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinkingdifference of expensing fixed manufacturing costs.Answer: TRUEDiff: 2Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinking20) If managers report inventories of zero at the start and end of each accounting period, operating incomesunder absorption costing and variable costing will be the same.Answer: TRUEDiff: 2Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinking21) Under absorption costing, managers can increase operating income by holding more inventories at the endof the period.Answer: TRUEDiff: 2Terms: absorption costingObjective: 3AACSB: Reflective thinking22) Many companies use variable costing for internal reporting to reduce the undesirable incentive to build upinventories.Answer: TRUEDiff: 2Terms: variable costing, absorption costingObjective: 3AACSB: Analytical skills23) Under variable costing, managers can increase operating income by simply producing more inventory at theend of the accounting period even if that inventory never gets sold.Answer: FALSEExplanation: Under absorption costing, managers can increase operating income by producing more inventory at the end of the accounting period.Diff: 3Terms: variable costingObjective: 3AACSB: Analytical skills24) Nonfinancial measures such as comparing units in ending inventory this period to units in ending inventorylast period can help reduce buildup of excess inventory.Answer: TRUEDiff: 1Terms: absorption costingObjective: 3AACSB: Reflective thinkingclassifying costs into fixed or variable categories.Answer: TRUEDiff: 2Terms: variable costingObjective: 3AACSB: Communication26) Managers can increase operating income when absorption costing is used by producing more inventory.Answer: TRUEDiff: 2Terms: absorption costingObjective: 3AACSB: Reflective thinking27) A manager can increase operating income by deferring maintenance beyond the current accounting periodwhen absorption costing is used.Answer: TRUEDiff: 2Terms: absorption costingObjective: 3AACSB: Reflective thinking28) Throughput costing considers only direct materials and direct manufacturing labor to be truly variable costs.Answer: FALSEExplanation: Throughput costing considers only direct materials to be truly variable costs.Diff: 1Terms: throughput costingObjective: 4AACSB: Reflective thinking29) Throughput costing is also referred to as super-variable costing.Answer: TRUEDiff: 1Terms: throughput costing, super-variable costingObjective: 4AACSB: Reflective thinking30) When production quantity exceeds sales, throughput costing results in reporting greater operating incomethan variable costing.Answer: FALSEExplanation: When production quantity exceeds sales, throughput costing results in reporting lower operating income than variable costing.Diff: 3Terms: throughput costing, variable costingObjective: 4AACSB: Reflective thinking31) Throughput costing provides more incentive to produce for inventory than does absorption costing.Answer: FALSEExplanation: Throughput costing provides less incentive to produce for inventory than does absorption costing.Diff: 1Terms: throughput costing, absorption costingObjective: 4internal reports.Answer: TRUEDiff: 2Terms: throughput costing, absorption costingObjective: 4AACSB: Reflective thinking33) Throughput contribution equals revenues minus all product costs.Answer: FALSEExplanation: Throughput contribution equals revenues minus direct materials costs.Diff: 1Terms: throughput costingObjective: 4AACSB: Reflective thinking34) Throughput costing results in a higher amount of manufacturing costs being placed in inventory than eithervariable or absorption costing.Answer: FALSEExplanation: Throughput costing results in a lower amount of manufacturing costs being placed in inventory than either variable or absorption costing.Diff: 2Terms: throughput costingObjective: 4AACSB: Reflective thinking35) Determining the "right" level of capacity is one of the most strategic and difficult decisions managers face.Answer: TRUEDiff: 2Terms: practical capacityObjective: 5AACSB: Ethical reasoning36) Both theoretical and practical capacity measure capacity in terms of demand for the output.Answer: FALSEExplanation: Both theoretical and practical capacity measure capacity in terms of what a plant cansupply available capacity.Diff: 2Terms: theoretical capacity, practical capacityObjective: 5AACSB: Reflective thinking37) Normal capacity utilization is the expected level of capacity utilization for the current budget period, whichis typically one year.Answer: FALSEExplanation: Master-budget capacity utilization is the expected level of capacity utilization for the current budget period, which is typically one year.Diff: 1Terms: normal capacity utilizationObjective: 5AACSB: Reflective thinking38) Normal capacity utilization is not the same as master-budget capacity utilization.Answer: TRUEDiff: 1Terms: normal capacity utilization, master-budget capacity utilizationObjective: 5AACSB: Reflective thinking39) Theoretical capacity is generally much larger than master-budget capacity utilization.Answer: TRUEDiff: 1Terms: theoretical capacityObjective: 5AACSB: Reflective thinking40) Theoretical capacity allows time for regular machine maintenance.Answer: FALSEExplanation: Theoretical capacity is the denominator-level concept that is based on producing at full efficiency all the time.Diff: 2Terms: theoretical capacityObjective: 5AACSB: Reflective thinking41) Estimates of human factors such as the increased risk of injury when machines work at faster speeds areimportant when estimating practical capacity.Answer: TRUEDiff: 2Terms: practical capacityObjective: 5AACSB: Reflective thinking42) Theoretical capacity is unattainable in the real world.Answer: TRUEDiff: 1Terms: theoretical capacityObjective: 5AACSB: Analytical skills43) Theoretical capacity is the capacity level that represents what the firm is able to obtain under reasonablecircumstances.Answer: FALSEExplanation: Practical capacity is the capacity level that represents what the firm is able to obtain under reasonable circumstances.Diff: 2Terms: theoretical capacityObjective: 5AACSB: Reflective thinking44) Fixed manufacturing cost per unit will be the same no matter what capacity concept is used.Answer: FALSEExplanation: Fixed manufacturing cost per unit will be different depending on the capacity concept used.Diff: 2Terms: fixed cost, unit costObjective: 645) Data from normal costing and standard costing are used in pricing and product-mix decisions.Answer: TRUEDiff: 2Terms: normal costing, standard costingObjective: 6AACSB: Communication46) If a company chooses practical capacity for planning purposes, it must also use practical capacity forperformance evaluation.Answer: FALSEExplanation: There is no requirement that one capacity-level concept has to be used for all purposes.Diff: 2Terms: practical capacityObjective: 6AACSB: Reflective thinking47) Theoretical capacity is most often used to cost a product.Answer: FALSEExplanation: Theoretical capacity is unattainable and therefore should not be used to cost a product. Practical capacity is generally used to cost a product.Diff: 2Terms: theoretical capacityObjective: 6AACSB: Reflective thinking48) Practical capacity highlights capacity acquired but currently not used.Answer: TRUEDiff: 2Terms: practical capacityObjective: 6AACSB: Reflective thinking49) For benchmarking purposes it is best to use master-budget capacity because all competitors use about thesame about of capacity for production.Answer: FALSEExplanation: For benchmarking purposes it is best to use practical capacity because it best represents the long-run cost of capacity.Diff: 2Terms: master-budget capacity utilizationObjective: 6AACSB: Reflective thinking50) Using normal capacity for pricing decisions can lead to setting noncompetitive selling prices.Answer: TRUEDiff: 3Terms: normal capacity utilizationObjective: 7AACSB: Reflective thinking51) Using master-budget capacity for pricing purposes can lead to a downward demand spiral.Answer: TRUEDiff: 2Terms: master-budget capacity utilization, downward demand spiralObjective: 752) Using practical capacity is best for evaluating the marketing manager's performance for a particular year.Answer: FALSEExplanation: Using master-budget capacity is best for evaluating the marketing manager's performance.Diff: 3Terms: practical capacityObjective: 7AACSB: Reflective thinking53) The production-volume variance is affected by the choice of capacity concept used to determine thedenominator level.Answer: TRUEDiff: 2Terms: practical capacityObjective: 7AACSB: Reflective thinking54) The higher the denominator level the higher the budgeted fixed manufacturing cost rate per unit.Answer: FALSEExplanation: The higher the denominator level the lower the budgeted fixed manufacturing cost rate per unit.Diff: 2Terms: practical capacityObjective: 7AACSB: Reflective thinking55) Master-budget capacity utilization can be more reliably estimated than normal capacity utilization.Answer: TRUEDiff: 2Terms: master-budget capacity utilizationObjective: 7AACSB: Reflective thinking56) Unused capacity is considered wasted resources and the result of poor planning.Answer: FALSEExplanation: Unused capacity is not considered wasted resources because capacity has to be purchased in "large chunks" to accommodate future needs, not just the needs of the current period.Diff: 1Terms: practical capacityObjective: 7AACSB: Reflective thinking57) Challenges only result from estimating the denominator level, but not the costs in the numerator of the fixedmanufacturing cost rate.Answer: FALSEExplanation: Challenges result from estimating both the denominator level and the costs in the numerator of the fixed manufacturing cost rate.Diff: 1Terms: practical capacityObjective: 7AACSB: Reflective thinking58) Estimating capacity costs is unique to manufacturing and it is not applicable to nonmanufacturing entities.Answer: FALSEExplanation: Estimating capacity costs is needed in both manufacturing and nonmanufacturing entities.Diff: 1Terms: practical capacityObjective: 7AACSB: Reflective thinking59) If the capacity level chosen to calculate the budgeted fixed overhead cost rate is more than the actualproduction, an unfavorable production-volume variance will result.Answer: TRUEDiff: 2Terms: practical capacityObjective: 7AACSB: Reflective thinking60) The breakeven points are the same under both variable costing and absorption costing.Answer: FALSEExplanation: The breakeven points are generally different under both variable costing and absorption costing.Diff: 2Terms: variable costing, absorption costingObjective: AAACSB: Reflective thinking61) Which of the following cost(s) are inventoried when using variable costing?A) direct manufacturing costsB) variable marketing costsC) fixed manufacturing costsD) Both A and B are correct.Answer: ADiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking62) Which of the following cost(s) are inventoried when using absorption costing?A) direct manufacturing costsB) variable marketing costsC) fixed manufacturing costsD) Both A and C are correct.Answer: DDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking63) ________ is a method of inventory costing in which all variable and fixed manufacturing costs are includedas inventoriable costs.A) Variable costingB) Mixed costingC) Absorption costingD) Standard costingAnswer: CDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking64) Absorption costing is required for all of the following EXCEPT:A) generally accepted accounting principlesB) determining a competitive selling priceC) external reporting to shareholdersD) income tax reportingAnswer: BDiff: 2Terms: absorption costingObjective: 1AACSB: Reflective thinking65) Absorption costing:A) expenses marketing costs as cost of goods soldB) treats direct manufacturing costs as a period costC) includes fixed manufacturing overhead as an inventoriable costD) is required for internal reports to managersAnswer: CDiff: 3Terms: absorption costingObjective: 1AACSB: Reflective thinking66) Variable costing:A) expenses administrative costs as cost of goods soldB) treats direct manufacturing costs as a product costC) includes fixed manufacturing overhead as an inventoriable costD) is required for external reporting to shareholdersAnswer: BDiff: 3Terms: variable costingObjective: 1AACSB: Reflective thinking67) ________ method(s) expense(s) variable marketing costs in the period incurred.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: DDiff: 1Terms: variable costing, absorption costing, throughput costingObjective: 1AACSB: Reflective thinking68) ________ method(s) include(s) fixed manufacturing overhead costs as inventoriable costs.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: BDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking69) ________ method(s) expense(s) direct material costs as cost of goods sold.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: DDiff: 1Terms: variable costing, absorption costing, throughput costingObjective: 1AACSB: Reflective thinking70) ________ method(s) is required for tax reporting purposes.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: BDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking71) ________ is a method of inventory costing in which only variable manufacturing costs are included asinventoriable costs.A) Fixed costingB) Variable costingC) Absorption costingD) Mixed costingAnswer: BDiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking72) Variable costing regards fixed manufacturing overhead as a(n):A) administrative costB) inventoriable costC) period costD) product costAnswer: CDiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking73) The only difference between variable and absorption costing is the expensing of:A) direct manufacturing costsB) variable marketing costsC) fixed manufacturing costsD) Both A and C are correct.Answer: CDiff: 2Terms: variable costing, absorption costingObjective: 1AACSB: Reflective thinkingMarie's Decorating produces and sells a mantel clock for $100 per unit. In 20X5, 100,000 clocks were produced and 80,000 were sold. Other information for the year includes:Direct materials $30.00 per unitDirect manufacturing labor $ 2.00 per unitVariable manufacturing costs $ 3.00 per unitSales commissions $ 5.00 per partFixed manufacturing costs $25.00 per unitAdministrative expenses, all fixed $15.00 per unit74) What is the inventoriable cost per unit using variable costing?A) $32B) $35C) $40D) $60Answer: BExplanation: B) $30.00 + $2.00 + $3.00 = $35.00Diff: 2Terms: variable costingObjective: 1AACSB: Analytical skills75) What is the inventoriable cost per unit using absorption costing?A) $32B) $35C) $60D) $80Answer: CExplanation: C) $30 + $2 + $3 + $25 = $60Diff: 2Terms: absorption costingObjective: 1AACSB: Analytical skillsGabe's Auto produces and sells an auto part for $30.00 per unit. In 20X5, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes:Direct materials $12.00 per unitDirect manufacturing labor $ 2.25 per unitVariable manufacturing costs $ 0.75 per unitSales commissions $ 3.00 per partFixed manufacturing costs $375,000 per yearAdministrative expenses, all fixed $135,000 per year76) What is the inventoriable cost per unit using variable costing?A) $14.25B) $15.00C) $18.00D) $21.75Answer: BExplanation: B) $12.00 + $2.25 + $0.75 = $15.00Diff: 2Terms: variable costingObjective: 1AACSB: Analytical skills77) What is the inventoriable cost per unit using absorption costing?A) $15.00B) $18.00C) $18.75D) $21.75Answer: CExplanation: C) $12.00 + $2.25 + $0.75 + ($375,000 / 100,000) = $18.75Diff: 2Terms: absorption costingObjective: 1AACSB: Analytical skills78) Which of the following inventory costing methods shown below is required by GAAP (Generally AcceptedAccounting Principles) for external financial reporting?A) absorption costingB) variable costingC) throughput costingD) direct costingAnswer: ADiff: 2Terms: absorption costingObjective: 1AACSB: Reflective thinking79) The contribution-margin format of the income statement:A) is used with absorption costingB) calculates gross marginC) distinguishes between manufacturing and nonmanufacturing costsD) is used with variable costingAnswer: DDiff: 2Terms: variable costingObjective: 2AACSB: Reflective thinking80) The gross-margin format of the income statement:A) is used with variable costingB) is used with absorption costingC) calculates contribution marginD) distinguishes variable costs from fixed costsAnswer: BDiff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinking81) The contribution-margin format of the income statement:A) is used with absorption costingB) highlights the lump sum of fixed manufacturing costsC) distinguishes manufacturing costs from nonmanufacturing costsD) calculates gross marginAnswer: BDiff: 3Terms: variable costingObjective: 2AACSB: Reflective thinking82) The gross-margin format of the income statement:A) distinguishes between manufacturing and nonmanufacturing costsB) distinguishes variable costs from fixed costsC) is used with variable costingD) calculates contribution marginAnswer: ADiff: 3Terms: absorption costingObjective: 2AACSB: Reflective thinking83) ________ are subtracted from sales to calculate contribution margin.A) Variable manufacturing costsB) Variable marketing costsC) Fixed manufacturing costsD) Both A and B are correct.Answer: DDiff: 2Terms: variable costingObjective: 2AACSB: Reflective thinking84) ________ are subtracted from sales to calculate gross margin.A) Variable manufacturing costsB) Variable marketing costsC) Fixed manufacturing costsD) Both A and C are correct.Answer: DDiff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinkingAnswer the following questions using the information below:Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:Variable manufacturing costs $20.00 per unitVariable marketing costs $ 3.00 per unitFixed manufacturing costs $ 7.00 per unitAdministrative expenses, all fixed $15.00 per unitEnding inventories:Direct materials -0-WIP -0-Finished goods 250 units85) What is cost of goods sold per unit using variable costing?A) $20B) $23C) $30D) $45Answer: AExplanation: A) $20, only variable manufacturing costs are included when using variable costing.Diff: 1Terms: variable costingObjective: 2AACSB: Analytical skills86) What is cost of goods sold using variable costing?A) $35,000B) $40,000C) $47,250D) $54,000Answer: AExplanation: A) $20 × 1,750 units = $35,000Diff: 2Terms: variable costingObjective: 2AACSB: Analytical skills87) What is contribution margin using variable costing?A) $96,250B) $91,000C) $104,000D) $110,000Answer: BExplanation: B) ($75 × 1,750) - [($20 + $3) × 1,750 units] = $91,000Diff: 3Terms: variable costingObjective: 2AACSB: Analytical skills88) What is operating income using variable costing?A) $52,500B) $78,750C) $65,750D) $47,000Answer: DExplanation: D) Contribution margin of $91,000 - [($7 + $15) × 2,000 units] = $47,000Diff: 3Terms: variable costingObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:Andrea's Hobbies produces and sells a luxury animal pillow for $40.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:Variable manufacturing costs $19 per unitVariable marketing costs $ 1 per unitFixed manufacturing costs $30,000 per monthAdministrative expenses, all fixed $6,000 per monthEnding inventories:Direct materials -0-WIP -0-Finished goods 750 units89) What is cost of goods sold per unit when using absorption costing?A) $19B) $20C) $29D) $32Answer: CExplanation: C) $19 + ($30,000 / 3,000 units) = $29Diff: 2Terms: absorption costingObjective: 2AACSB: Analytical skills。

COVERAGE OF LEARNING OBJECTIVESManagerial Accounting, the Business Organization, andProfessional Ethics1-A1 (10-15 min.)Because the accountant's duties often are not sharply defined, some of these answers could be challenged:1. Scorekeeping. Determining a depreciation schedule is simplyan exercise in preparing financial statements to report theresults of activities.2. Problem solving. Helps a manager assess the impact of adecision.3. Scorekeeping. Reports on the results of an operation. Couldalso be attention directing if scrap is an area that might require management decisions.4. Attention directing. Focuses attention on areas that needattention.5. Attention directing. Helps managers learn about theinformation contained in a performance report.6. Scorekeeping. The statement merely reports what hashappened.7. Problem solving. The cost comparison is apparently usefulbecause the manager wishes to decide between two alternatives.Thus, it aids problem solving.8. Attention directing. Variances point out areas where resultsdiffer from expectations. Interpreting them directs attention to possible causes of the differences.9. Problem solving. Aids a decision about where the parts shouldbe made.10. Attention directing and problem solving. Budgeting involvesmaking decisions about planned activities -- hence, aidingproblem solving. Budgets also direct attention to areas ofopportunity or concern --hence, directing attention. Reporting against the budget also has a scorekeeping dimension.1-A2 (15-20 min.)1. Budgeted Actual DeviationsAmounts Amounts or Variances Room rental $ 140 $ 140 $ 0Food 700 905 205UEntertainment 600 600 0Decorations 220 190 30FTotal $1,660 $1,835 $175U2. Because of the management by exception rule, room rental andentertainment require no explanation. The actual expenditure for food exceeded the budget by $205. Of this $205, $150 isexplained by attendance of 15 persons more than budgeted (ata budget of $10 per person) and $55 is explained byexpenditures above $10 per person.Actual expenditures for decorations were $30 less than thebudget. If all desired decorations were purchased, thedecorations committee should be commended for their savings.1-A3 (10 min.)All of the situations raise possibilities for violation of the integrity standard. In addition, the manager in each situation must address an additional ethical standard:1. The General Mills manager must respect the confidentialitystandard. He or she should not disclose any information about the new cereal.2. Felix must address his level of competence for the assignment.If his supervisor knows his level of expertise and wants ananalysis from a “layperson” point of view, he sh ould do it.However, if the supervisor expects an expert analysis, Felixmust admit his lack of competence.3. The credibility standard should cause Mary Sue to decline toomit the information from her budget. It is relevantinformation, and its omission may mislead readers of thebudget.Because the accountant’s duties often are not sharply defined, some of these answers could be challenged:1. Problem solving. Provides information for deciding betweentwo alternative courses of action.2. Scorekeeping. Simply recording of what has happened.3. Problem solving. Helps a manager decide between alternatives.4. Attention directing. Directs attention to the use of overtimelabor.5. Problem solving. Provides information to managers fordeciding whether to move corporate headquarters.6. Attention directing. Directs attention to why nursing costsincreased.7. Attention directing. Directs attention to areas where actualresults differed from the budget.8. Problem solving. Helps the vice-president to decide whichcourse of action is best.9. Problem solving. Produces information to help the marketingdepartment make a decision about a marketing campaign.10. Scorekeeping. Records actual overtime costs.11. Attention directing. Directs attention to stores with either highor low ratios of advertising expenses to sales.12. Attention directing. Directs attention to causes of returns ofthe drug.13. Attention directing or problem solving, depending on the use ofthe schedule. If it is to identify areas of high fuel usage it isattention directing. If it is to plan for purchases of fuel, it isproblem solving.14. Scorekeeping. Records events.15. Scorekeeping. Records items needed for financial statements.1 & 2. Budget Actual VarianceSales $75,000 $74,860 $ 140UCosts:Fireworks $36,000 $39,500 $3,500ULabor 15,000 13,000 2,000FOther 8,000 8,020 20UTotal cost 59,000 60,520 1,520UProfit $16,000 $14,340 $1,660U3. The cost of fireworks was $3,500 ÷ $36,000 = 9.7% over budget.Did fireworks suppliers raise their prices? Did competitioncause retail prices to be lower than expected? There should be some explanation for the extra cost of fireworks. Also, thelabor cost was $2,000 ÷ $15,000 =13.3% below budget. Itwould be useful to discover why this cost was saved. Both sales and other costs were very close to budget.1-B3 (10 - 15 min.)1. Controller. Divisional financial statements report onoperations. Financial statements are generally produced bythe controller's department.2. Controller. Advising managers aids operating decisions.3. Controller. Advice on cost analysis aids managers' operatingdecisions.4. Treasurer. Analysts affect the company's ability to raisecapital, which is the responsibility of the treasurer.5. Treasurer. Financing the business is the responsibility of thetreasurer.6. Controller. Tax returns are part of the accounting processoverseen by the controller.7. Treasurer. Insurance, as with other risk managementactivities, is usually the responsibility of the treasurer.8. Treasurer. Allowing credit is a financial decision.1. A code of conduct is a document specifying the ethicalstandards of an organization.2.Different companies include different elements in their codes ofconduct. Some of the items included in companies’ codes ofconduct include maintaining a dress code, avoiding illegaldrugs, following instructions of superiors, being reliable andprompt, maintaining confidentiality, not accepting personalgifts from stakeholders as a result of company role, avoidingracial or sexual discrimination, avoiding conflict of interest,complying with laws and regulations, not using organ ization’s property for personal use, not discriminating against race orage or sexual orientation, and reporting illegal or questionable activity. Some companies have a simple code with little detail, and others have long lists of rules and regulations regardingappropriate conduct. The key is that the code of conduct must fit with the corporate culture.3. Simply having a code of conduct does not guarantee ethicalbehavior by employees. Most important is top management’sethical example and its support of the code of conduct. Acompany’s performance evaluation and reward system must be consistent with its code of conduct. If unethical actions arerewarded, they will be encouraged even if they violate the code of conduct.1-1 Internal managers and external parties (for example, investors and government authorities) use accounting information for three broad purposes:1. Internal reporting to managers for planning and controllingoperations.2. Internal reporting to managers for special decision-makingand long-range planning.3. External reporting to stockholders, government, and otherinterested parties.1-2 The emphasis of financial accounting has traditionally been on the historical data presented in the external reports. Management accounting emphasizes planning and control purposes.1-3 The branch of accounting described in the quotation is management accounting.1-4 Scorekeeping is the recording (including accumulation and classification) of data for a later evaluation of performance. Attention directing is the reporting and interpretation of information for the purpose of focusing on inefficiencies of operation, opportunities for improvement, and imperfections and operating problems. Problem solving presents a concise analysis of alternative courses of action and recommends the best course of action.1-5 No. GAAP applies to publicly issued annual financial reports. Internal accounting reports are not restricted by GAAP.1-6 Yes, but it covers more than that. The Foreign Corrupt Practices Act applies to all publicly-held companies and covers the quality of internal accounting control as well as bribes and other matters.1-7 Many managers believe that the costs of applying the provisions of the Sarbanes-Oxley act are greater then the benefits. This is especially true about the mandated auditing of companies’ internal control systems.1-8 Users cannot easily observe the quality of accounting information. Thus, they rely on the integrity of accountants to be sure the information is accurate. Information that is unreliable is worthless, so if accountants do not have a reputation for integrity, the information they produce will not have value.1-9 No. The ethics developed as a student carry over into one’s professional life. Integrity is important at all stages of development. Students who use unethical means to achieve success are likely to try similar methods when in business.1-10 Three examples of service organizations are banks, insurance companies, and public accounting firms. Such organizations tend to be labor intensive, have outputs that are difficult to define and measure, and have both inputs and outputs that are difficult or impossible to store.1-11 Two considerations are cost-benefit balance and behavioral effects. Cost-benefit balance refers to how well an accounting system helps achieve management's goals in relation to the cost of the system. The behavioral consideration specifies that an accounting system should be judged by how it will affect the behavior (that is, decisions) of managers.1-12 Yes. The act of recording events has become as much a part of operating activities as the act of selling or buying. For example, cash receipts and disbursements must be traced, and receivables and payables must be recorded, or else gross confusion would ensue.1-13 A budget is a quantitative expression of a plan of action; a performance report compares actual results compared with the budget; and a variance measures the differences between budget and actual.1-14 No. Management by exception means that management spends more effort on those areas that seem to be out of control and less on areas that are functioning as planned. This method is an efficient way for managers to decide where to put their time and effort.1-15 Information that is relevant for decisions about a product depends on the product's life-cycle stage. Therefore, to prepare and interpret information, accountants should be aware of the current stage of a product's life cycle.1-16 The six functions are: (1) research and development –generation and experimentation with new ideas for products, services, or processes; (2) product, service, and process design –detailed design and engineering of products, services, or processes;(3) production – use of resources to produce a product or service; (4) marketing - informing customers of the value and features of products or services; (5) distribution – delivering products or services to customers; and (6) customer service – support provided to customers.1-17 No. Not all of the functions are of equal importance to the success of a company. Measurement and reporting should focus on those functions that enable a company to gain and maintain a competitive edge. In addition, some functions in the value chain may not be present in some organizations.1-18 Line managers are directly responsible for the production and sale of goods or services. Staff managers have an advisory function – they support line managers.1-19 Management accountants are the information specialists, even in non-hierarchical companies. However, in such companies they are more directly involved with managers and are often parts of cross-functional teams.1- 20 A treasurer is concerned mainly with the company's financial matters, the controller with operating matters. In large organizations, there are sufficient activities associated with both financial and operating matters to justify two separate positions. In a small organization the same person might be both treasurer and controller.1-21 The four parts of the CMA examination are: (1) business analysis, (2) management accounting and reporting, (3) strategic management, and (4) business applications.1-22 This is not true. About one-third of CEOs in companies with revenues greater than $500 million come from finance or accounting backgrounds. Accounting is excellent preparation for top management positions because accountants are often exposed to many parts of the company early in their careers.1-23 Changes in technology are affecting how accountants operate. Increasing computer capabilities and decreasing computer costs have changed how accountants gather, store, manipulate, and report data. Today accountants work with managers to get needed information. Among other things, they must be able to account for e-commerce transactions efficiently and safely, they often must integrate their accounting systems into ERP systems, and an increasing number are beginning to use XBRL to communicate information electronically.1-24 The essence of the just-in-time philosophy is the elimination of waste, accomplished by reducing the time products spend in the production process and trying to eliminate the time spent in activities that do not add value to the product.1-25 Moving tools and products that are in process from one location to another in a plant is an activity that does not add value to the product. So changing the plant layout to eliminate wasted movement and time improves production efficiency.1-26 Six Sigma is an important management philosophy, and it has important implications for management accountants. Management accountants play a major role in Six Sigma applications as both the experts on the measurements being used and as full members of the cross-functional teams that lead the efforts.1-27 The four major responsibilities are: (1) competence - develop knowledge; know and obey laws, regulations, and technical standards; and perform appropriate analyses, (2) confidentiality - refrain from disclosing or using confidential information, (3) integrity - avoid conflicts of interest, refuse gifts that might influence actions, recognize limitations, and avoid activities that might discredit the profession, and (4) credibility - communicate information fairly, objectively, and completely, within confidentiality constraints.1-28 Standards do not always provide the needed guidance. Sometimes an action borders on being unethical, but it is not clearly an ethical violation. Other times two ethical standards conflict. In situations such as these, accountants must make ethical judgments. 1-29 (5-10 min.)Typical activities associated with the treasurer function include: ❑Provision of capital❑Investor relations❑Short-term financing❑Banking and custody❑Credit management and collections of cash❑Investments❑Risk managementTypical activities associated with the controller function include: ❑Planning for control❑Reporting and interpreting❑Evaluating and consulting❑Tax administration❑Government reporting❑Protection of assets❑Economic appraisal1-30 (5-10 min.)Activities 2, 4, 5, and 6 are primarily associated with marketing decisions.The management accountant would assist in these decisions as follows:Airbus’s pricing decision requires cost data relevant to the new method of distributing spare parts. will need to know the costs of the advertising program as well as the additional costs of other value chain functions resulting from increased sales. TexMex Foods will need to know the incremental revenues and incremental costs associated with the special order. Target Stores needs to know the impact on both revenues and costs of closing one of its stores.1-31 (5-10 min.)Activities 1, 7, and 8 are primarily associated with production decisions.The management accountant would assist in these decisions as follows.Saab needs an analysis of the costs associated with purchasing the part compared to the costs of making the part. Dell will need to know the costs of the training program and the savings associated with increased efficiencies in the setup and changeover activities. Ford needs to know the costs and salvage values of the replacement equipment, the proceeds of the sale of the old equipment, and the operating savings associated with the use of the new equipment.1. Management 4. Management 7. Financial2. Management 5. Management3. Financial 6. Financial1-33 (10 min.)1. Performance ReportBudget Actual Variance Explanation Revenues $330,000 $328,000 $(2,000) U Additional salesfrom newproducts* Advertising cost 30,000 32,500 (2,500) U New advertisingcampaignNet $4,500 U* From the New Products Report, seven new products were added. This exceeded the plan to add six.2.Factors that may not have been considered include:a.The costs of new products may have exceeded their price.b.Customer satisfaction with new products may not have beenpart of the new products report.petitors’ reactions to the Starbucks store’s actions maynot have been anticipated.d.External uncontrollable factors such as increases inoperating costs, adverse weather, changes in the overalleconomy, new competitors entering the market, or keyemployee turnover may have decreased efficiency.1. Line, support 3. Staff, marketing 5. Staff, support2. Line, marketing 4. Staff, support 6. Line, production 1-35 (30 min.)Microsoft is a company that most students will know and have some understanding of what functions its managers perform. Nevertheless, this may not be an easy exercise for those who have little knowledge of how companies operate.Research & development – Because software companies must continually come out with new products and upgrades to their current products, this is a critical function for Microsoft. More than one-fourth of Microsoft’s operating expenses are devoted to R&D. Design of products, services, or processes – For Microsoft the design and R&D process probably overlap considerably. Product design is critical; process design is probably not. One essential part of design is beta testing – that is, field testing of new software. This quality-control step is essential to prevent customer dissatisfaction with new products.Production – Microsoft produces disks and CD-ROMs and the manuals and packaging to go with them. However, they are increasingly delivering software over the Internet, which takes an initial process design and then few resources. It is not likely a major focus for Microsoft.Marketing – Microsoft spends more on sales and marketing than on any other operating expense. Increasing competition in software sales makes marketing essential to the company’s future. This function includes advertising and direct marketing activities, but it also includes activities of the company’s sales force.Distribution – This function is becoming simpler for Microsoft as it delivers more and more software over the Internet. Although the company must stay abreast of competitors in delivery methods, this is not likely to create a major competitive advantage or disadvantage for Microsoft.Customer service – Customer service is important, but Microsoft tries to minimize its costs in this area by product design – making things work right without needing deep computer expertise. Still, poor customer service can severely impact a company, so Microsoft must attend to it.Support functions – Most of the time these are not a major focus. There is one exception recently for Microsoft. Legal support has been front and center. The very future of the company was based on court judgments for which good legal support was essential.1-36 (15-20 min.)The management accountant's major purpose is to provide information that helps line managers in making decisions regarding the planning and controlling of operations. The accountant supplies information for scorekeeping, attention directing, and problem solving. In turn, managers use this and other information for routine and non-routine decisions and for evaluating subordinates and the performance of sub-parts of the organization. Management accountants must walk a delicate line between (1) making sure that managers are properly using the pertinent information and (2) making sure that the managers, not the accountants, are doing the actual managing.1-37 (5 min.)Other costs of a poor ethical environment include legal costs and costs due to high employee turnover. Other benefits of a good ethical environment include low employee turnover, low loss from internal theft, and improved customer satisfaction resulting from better quality and service (that result from a more productive work environment).1-38 (5 min.)There are numerous examples.“You understand how important it is to record this sale before year end, don’t you?”“Doing it this way is common for all c ompanies in our business, so don’t worry!”“Trust me, the inventory is at the warehouse.”1-39 (15-20 min.)This problem can form the basis of an introductory discussion of the entire field of management accounting. Text Exhibit 1-1 provides more details.1. The focus of management accounting is on helping internalusers to make better decisions, whereas the focus of financialaccounting is on helping external users to make betterdecisions. Management accounting helps in making a host ofdecisions, including pricing, product choices, investments inequipment, making or buying goods and services, and manager rewards.2. Generally accepted accounting principles constrain financialaccounting but not management accounting. For example, ifan organization wants to account for assets on the basis ofreplacement costs for internal purposes, no outside agency can prohibit such accounting. Of course, this means thatorganizations may have to keep more than one set of records.There is nothing immoral or unethical about having multiplesets of books, but they are expensive. Accounting data arecommodities, just like butter or eggs. Innovations in internalaccounting systems must meet the same cost-benefit tests thatother commodities endure. That is, their perceived increases in benefits must exceed their perceived increases in costs.Ultimately, benefits are measured by whether managers make better decisions that result in increased net profits or costsavings.3. Budgets, the formal expressions of management’s plans, are amajor feature of management accounting, whereas they are not as prominent in financial accounting. Budgets are majordevices for compelling and disciplining management planning.4. An important use of management accounting information isthe evaluation of performance, which often takes the form ofcomparison of actual results against budgets, providingincentives and feedback to improve future decisions.5.Accounting systems have an enormous influence on thebehavior of individuals affected by them. Managementaccounting is more concerned with the likely behavioral effects of various accounting alternatives that may be adopted than is financial accounting.1-40 (10 min.)The main point of this question is that cost information is crucial for decisions regarding which products and services should be emphasized or de-emphasized. The incentives to measure costs precisely are far greater when flat fees are being received instead of reimbursements of costs.Note, too, that nonprofit organizations and profit-seeking organizations have similar desires regarding management accounting. Accountability is now in fashion for many purposes, including justification of prices, cost control, and response to criticisms by investors (whether they be donors, taxpayers, or others).When somebody's money is at stake, accounting systems get much love and attention. In a survey of 550 hospitals, hospital financial executives said that improved cost accounting systems "are crucial to responding to changes in hospital payment mechanisms and that better cost information is essential for more profitable and efficient operations." Hospitals will increasingly identify costs by product (type of case), not just by departments.1-41 (10 min.)Paperwork and systems often seem to become ends in themselves. However, the rationale that should underlie systems design is the cost-benefit philosophy or approach that is implied in the quotation. The aim is to get the managers and their subordinates collectively to make better decisions under one system versus another system -- for a given level of costs.Marks & Spencer should look at each of the management accounting reports it produces with an eye toward how it helps managers make better decisions. Does it provide needed scorekeeping? Does it direct attention to aspects of operations that might need altering? Does it provide information for specific management decisions? These types of questions will help identify the benefit of the information in the report.Then the company must consider the cost – not just the cost of collecting the data and preparing the reports, but the cost of educating managers to use the information and the cost of the time to read, digest, and act on the information. Too much information may be costly because it makes it time-consuming (and thus costly) to sift through the reams of information to find the few items that are important. An additional cost may be the loss of important information because the total volume of information makes it too difficult to ferret out the important items.1-42 (10 min.) Financial information is important in all companies. But how managers get and use financial information can differ depending on the culture and philosophies of the company.Top executives of a company often represent a functional area that is critical to the competitive economic advantage of the company. If technology is crucial, engineers generally hold important executive positions. If marketing differentiates the company from others, marketing executives usually dominate. But regardless of the source of a company’s competitive advantage, its success will eventually be measured in economic terms. They must attend to financial aspects to thrive and often even to survive.Management accountants must work with the dominant managers in any organization. The modern trend toward use of cross-functional teams places management accountants at the center of the action regardless of what type of managers and executives dominate. Most companies realize that there is a financial dimension to almost every major decision, so they want the financial experts, management accountants, involved in the decisions. But to be accepted as an important part of these teams, the management accountants must know how to help managers in various functional areas. In General Mills, if accountants can’t talk the language of marketing, they will not have great influence. In ArvinMeritor, if they do not understand the information needs of engineers they will not provide value.。

英文版会计学考试题及答案English Accounting Exam Questions and AnswersQuestion 1: Define the term "Double Entry Bookkeeping" and explain its significance in accounting.Answer 1: Double Entry Bookkeeping is a system of recording financial transactions in which every entry to an account requires a corresponding and opposite entry to a different account. This ensures that the accounting equation (Assets = Liabilities + Owner's Equity) remains in balance. The significance of double entry bookkeeping lies in its ability to provide an accurate and comprehensive picture of a business's financial status, facilitating better decision-making and financial control.Question 2: What is the purpose of a trial balance, and how does it help in the preparation of financial statements?Answer 2: A trial balance is a report that lists the balances of all general ledger accounts at a particular point in time, with debit and credit amounts. It is used to ensure that the debits and credits have been recorded correctly. The trial balance helps in the preparation of financial statements by identifying any discrepancies in the accounting records, which can then be rectified before finalizing the statements.Question 3: Explain the difference between "AccrualAccounting" and "Cash Accounting."Answer 3: Accrual Accounting is a method of accounting where revenues and expenses are recognized when they are earned or incurred, not necessarily when cash is received or paid. This method provides a more accurate representation of a company's financial performance over a period. Cash Accounting, on the other hand, records transactions only when cash is exchanged. It is simpler and is often used by small businesses or those that operate on a cash basis.Question 4: Describe the process of preparing an income statement.Answer 4: Preparing an income statement involves several steps:1. List all the revenues for the period, such as sales and service income.2. Deduct all the expenses incurred to generate those revenues, including cost of goods sold, operating expenses, and taxes.3. Calculate the net income by subtracting total expenses from total revenues.4. The income statement should reflect the company's profitability over a specified period, typically a month, quarter, or year.Question 5: What are the main components of a balance sheet, and how do they relate to each other?Answer 5: The main components of a balance sheet are:1. Assets: What the company owns or controls with future economic benefit, divided into current assets (short-term) and non-current assets (long-term).2. Liabilities: Obligations the company owes to others, classified as current liabilities (due within one year) and long-term liabilities (due after one year).3. Owner's Equity: The residual interest in the assets of the entity after deducting liabilities, also known as shareholders' equity or net assets.These components are related through the fundamental accounting equation: Assets = Liabilities + Owner's Equity.Question 6: How does depreciation affect a company'sfinancial statements?Answer 6: Depreciation is a non-cash accounting method used to allocate the cost of tangible assets over their useful lives. It affects a company's financial statements in the following ways:1. It reduces the book value of the asset on the balance sheet.2. It increases the accumulated depreciation account, whichis a contra-asset account.3. It decreases net income on the income statement, as depreciation is an expense.4. It can lower taxable income, potentially reducing the company's tax liability.Question 7: What is the purpose of the statement of cash flows, and how does it differ from the income statement?Answer 7: The purpose of the statement of cash flows is to provide information about a company's cash receipts and payments during a period, showing how these cash flows affect the company's financial position. It differs from the income statement in that:1. It focuses on cash transactions, not accrual-basis accounting.2. It categorizes cash flows into operating, investing, and financing activities.3. It does not report net income but rather the net change in cash and cash equivalents.Question 8: Explain the concept of "Going Concern" and its importance in financial reporting.Answer 8: The Going Concern concept assumes that a businesswill continue to operate for the foreseeable future, allowing it to realize its assets and discharge its liabilities in the normal course of business. It is important in financial reporting because it underpins the accrual basis of accounting, which assumes that the business will continue to operate and therefore can recognize revenues and expensesover time.Question 9: What are the ethical considerations in accounting, and why are they important?Answer 9: Ethical considerations in accounting include honesty, integrity, objectivity, and confidentiality. Theyare important because they ensure the reliability andcredibility of financial information, which is crucial for stakeholders to make informed decisions. Ethical behavior also helps maintain public trust。

Part I (50%)I. Multiple Choices (20%, 2% for each question)The following information for questions 1-3Adam Company makes a household appliance with model number 001. The goal for 2009 is toreduce direct materials usage per unit. No defective units are currently produced. Manufacturingconversion costs depend on production capacity defined in terms of 001 units that can be produced.The industry market size for appliances increased 10% from 2008 to 2009. The following additionaldata are available for 2008 and 2009:2008 2009Units of 001 produced and sold 10,000 11,000Selling price $100 $95Direct materials (square feet) 30,000 29,000Direct material costs per square foot $11 $12Manufacturing capacity for 001 (units) 12,500 12,000Total conversion costs $250,000 $240,000Conversion costs per unit of capacity $20 $201. What is operating income for 2008?A) $420,000 B) $450,000 C) $750,000 D) $700,000 E) none of above2. What is operating income for 2009?A) $997,500 B) $678,500 C) $457,000 D) $447,000 E) none of above3. Which strategy is Adam Corporation pursuing?A) Product differentiation, because the units produced and sold increased.B) Product differentiation, because total conversion costs decreased.C) Cost leadership, because direct material costs per square foot increased.D) Cost leadership, because the selling price decreased.E) none of above4. The ________ approach adjusts individual job-cost records to account for under-allocated orover-allocated overhead.A) adjusted allocation-rate B) proration C) write-off to cost of goods soldD) Both A and B are correct E) none of above5. All of the following are operating budgets except the _____A) purchases budget B) capital budget C) cost of goods sold budgetD) budgeted income statement E) none of above6. The following data for the Hebbe Company pertain to the production of 2,000 glass pigeonsduring July:Standard variable-overhead cost: $6.00 per pound of glass.Total actual variable-overhead cost: $11,000.Standard variable-overhead cost allowed for units produced was $13,000. Variable-overhead efficiency variance was $240 unfavorable_____ is the variable-overhead flexible-budget variance.A) $2,000 favorable B) $240 unfavorable C) $1,280 favorableD) $1,000 unfavorable E) none of aboveThe following information for questions 7-8Havord Manufacturing uses a normal cost system and had the following data available for 2009:Direct materials purchased on account $ 73,000Direct materials requisitioned 40,000Direct labor cost incurred 65,000Factory overhead incurred 73,000Cost of goods completed 146,000Cost of goods sold 128,000Beginning direct materials inventory 13,000Beginning WIP inventory 32,000Beginning finished goods inventory 29,000Overhead application rate, as a percent of direct-labor costs 125 percent7. The journal entry to record the materials placed into production would include a:A) credit to Direct Materials Inventory for $40,000B) debit to Direct Materials Inventory for $74,000C) credit to WIP Inventory for $40,000D) debit to WIP Inventory for $74,000 E) none of above8. The ending balance of work-in-process inventory is:A) $219,250 B) $72,250 C) $65,000 D) $211,000 E) none of above9. Which of the following inventory costing methods shown below is required by GAAP (GenerallyAccepted Accounting Principles) for external financial reporting?A) absorption costing B) variable costing C) throughput costingD) direct costing E) none of above10. Which budget is NOT necessary to prepare the budgeted balance sheet?A) cash budget B)budgeted income statement C) budgeted statement of cash flow D)revenue budgetII Problem1. Following a strategy of product differentiation, Nobel Corporation makes a high-end computermonitor, OK10. Nobel Corporation presents the following data for the years 2008 and 2009:2008 2009Units of OK10 produced and sold 5,000 5,500Selling price $400 $450Direct materials (pounds) 15,000 15,375Direct materials costs per pound $40 $45Manufacturing capacity for OK10 (units) 10,000 10,000Conversion costs $1,000,000 $1,100,000Conversion costs per unit of capacity $100 $110Selling and customer-service capacity (customers) 60 58Total selling and customer-service costs $360,000 $362,500Selling and customer-service capacity cost per customer $6,000 $6,250Nobel Corporation produces no defective units but it wants to reduce direct materials usage per unitof OK10 in 2009. Manufacturing conversion costs in each year depend on production capacity definedin terms of OK10 units that can be produced. Selling and customer-service costs depend on the numberof customers that the customer and service functions are designed to support. Nobel Corporation has 46customers in 2008 and 50 customers in 2009. The industry market size for high-end computer monitorsincreased 5% from 2008 to 2009.Required: (15%)a. What is the revenue effect of the price-recovery component?b. What is the cost effect of the price-recovery component?c. What is the net effect on operating income as a result of the price-recovery component?2. What are the three criteria a company should use to evaluate and choose a cost driver? Brieflyexplain each of the three criteria. (10%)3. Why is the book value of old equipment irrelevant to the equipment replacement decision? (5%)Part II (50%)............................................................................................Problem1. DYS Medical Instruments sells 25,000 units of MR-25, a surgical scalpel, each year, which itpurchases from Sloco Manufacturing. Sloco’s reputation for quality is the best in the industry. DYSis now considering adopting JIT purchasing. The purchase price of each scalpel will increase by asmall amount, and more-frequent, smaller orders will be placed with Sloco. DYS expects thatrealistically, under JIT purchasing, there will be stockouts for about 4 units each month and eachstockout will cost about $4 to handle. The expected relevant changes are summarized here:CurrentPurchasingPolicyJITPurchasingPolicyNumber of units ordered per yearPurchase price per unitOrdering cost per purchase orderNumber of purchase orders per yearRequired annual rate of return on investmentOther carrying costs per unit per yearExpected number of stockout units per monthCost per stockout unit25,000$16$35020%$5--25,000$16.04$350020%$54$4Required(1) Compute the estimated dollar savings (loss) for DYS Medical Instruments from the adoption ofpurchasing. (12 %)2. The JR corporation produces and sells three soft drinks: Limor, Cola and Orlem. Budgeted andactual results for 2009 are as follows:Budget for 2009Actual for 2009ProductSelling Price perCartonVariable Cost perCartonCartons SoldSelling Price perCartonVariable Cost perCartonCartons SoldLimor$6$4400,000$6.2$4.5480,000Cola$4$2.8600,000$4.25$2.75900,000Orlem$7.2$4.41,000,000$6.8$4.61,620,000The total soft drinks market was estimated to reach sales of 25 million cartons in the easternregion of the United States for 2009. However, actual total sales volume in the region was 30 millioncartons.Required:(1) Compute the total sales mix variance for Orlem. (5%)(2) Compute the market-share and market-size variances for JR in 2009. (10%)3. The YWW Corporation makes wire harnesses for the aircraft industry. YWW is uncertain aboutwhen and how many customer orders will be received. The company makes harnesses only afterreceiving firm orders from its customers. YWW has recently purchased a new machine to make twotypes of wire harnesses, one for Boeing airplanes (X7) and the other for Airbus Industries airplanes(A3). The annual capacity of the new machine is 8,450 hours. The following information isavailable for next year:CustomerAnnualaveragenumberof ordersManufacturingtime requiredSelling price per order ifaverage manufacturinglead time per order isVariable costper orderInventory carrying cost per order per hourLess than 100 hoursMore than 100 hoursX715040 hours$20,000$19,400$15,000$0.6A32050 hours18,50018,10014,0000.55Required(1) Compute the average manufacturing lead times per order if YWW produces both X7 and A3.(6%)(2) Even though A3 has a positive contribution margin, managers are evaluating whether YWWshould (i) manufacture and sell only X7 or (ii) manufacture and sell both X7 and A3. Whichalternative will maximize the operating income of YWW? Show your computation. (8%)4. Please fill in the following blanks: (9%)A companyRevenuesIncomeInvestmentIncome as a percentage of revenuesInvestment turnoverROI??$4,000,000 0.5%4?。

英语会计试题及答案一、选择题（每题2分，共20分）1. What is the basic accounting equation?A. Assets = Liabilities + EquityB. Assets = Liabilities - EquityC. Assets + Equity = LiabilitiesD. Liabilities = Assets - Equity答案：A2. Which of the following is not an accounting principle?A. Going concernB. ConsistencyC. MaterialityD. Fair value答案：D3. What does the term "depreciation" refer to?A. The increase in the value of an asset over timeB. The allocation of the cost of a tangible asset over its useful lifeC. The decrease in the value of an asset due to obsolescenceD. The process of selling assets to pay off debts答案：B4. Which of the following is a non-current asset?A. CashB. InventoryC. LandD. Accounts payable答案：C5. What is the purpose of adjusting entries?A. To correct errors in the booksB. To update the financial statements to reflect the current financial positionC. To prepare for the next accounting periodD. To comply with tax regulations答案：B6. What is the accounting treatment for revenue recognition?A. Recognize revenue when cash is receivedB. Recognize revenue when the service is providedC. Recognize revenue when the service is earned and the amount is measurableD. Recognize revenue when the product is delivered答案：C7. Which of the following is a liability?A. Common stockB. Retained earningsC. Accounts payableD. Dividends答案：C8. What is the accounting term for the process of estimating the cost of completing a project?A. Job costingB. Activity-based costingC. Standard costingD. Variable costing答案：A9. What does the term "accrual basis accounting" mean?A. Revenues and expenses are recognized when cash is received or paidB. Revenues are recognized when earned, and expenses are recognized when incurredC. All transactions are recorded in the period in which they occurD. Only cash transactions are recorded答案：B10. Which of the following is an example of a contingent liability?A. Accounts payableB. Unearned revenueC. A lawsuit that may result in a lossD. A long-term loan答案：C二、简答题（每题5分，共30分）1. Explain the difference between a debit and a credit in accounting.答案：In accounting, a debit is an entry that increases an asset or an expense and decreases a liability or equity. Conversely, a credit is an entry that increases a liabilityor equity and decreases an asset or an expense.2. What are the main components of a balance sheet?答案：The main components of a balance sheet are assets, liabilities, and equity. Assets represent what a company owns, liabilities represent what a company owes, and equity represents the ownership interest in the company.3. Describe the accounting cycle.答案：The accounting cycle is a series of stepsaccountants follow to prepare financial statements. Itincludes journalizing transactions, posting to the ledger, adjusting entries, preparing an adjusted trial balance,closing entries, and preparing financial statements.4. What is the purpose of closing entries?答案：The purpose of closing entries is to transfer the balances of temporary accounts to the appropriate permanent accounts, such as retained earnings, at the end of an accounting period. This process helps to reset the temporaryaccounts for the next accounting period.5. Explain the concept of matching principle in accounting.答案：The matching principle in accounting states that revenues should be recognized in the same period as the expenses incurred to generate those revenues. This ensures that the financial statements accurately reflect the company's performance over the period.6. What are the two main types of financial statements?答案：The two main types of financial statements are the balance sheet, which presents a company's financial position at a specific point in time, and the income statement, which shows the company's financial performance over a period of time.三、计算题（每题15分，共30分）1. A company has the following trial balance figures: Cash $10,000, Accounts Receivable $5,000, Supplies $2,000, Equipment $15,000, Accounts Payable $4,000, Common Stock $10,000, Retained Earnings $6,000, Dividends $2,000, Sales Revenue $20,000, Cost。

Cost and Management Accounting English Version 15th Edition Exercise Questions with Answers Cost and management accounting is a crucial aspect of any business organization. It is a process that involves collecting, analyzing, and interpreting financial information to help companies make informed decisions. The 15th edition of Cost and Management Accounting focuses on the principles, techniques, and practices that are important inanalyzing costs in a manufacturing and service environment.In this article, we will provide a series of exercise questions with answers from the 15th edition of Cost and Management Accounting.Exercise Questions1.Expln the difference between actual and normal capacity.2.Describe the different types of cost behavior: fixed,variable, and semi-variable.3.What is cost-volume-profit analysis? How can this analysisbe used to make decisions?4.What are the different methods for allocating overhead costs?Which method is most appropriate in a particular situation?5.Expln the difference between job-order costing and processcosting.6.What is activity-based costing? How can it be used toimprove decision-making?7.Define cost of goods manufactured and cost of goods sold.8.What is the difference between job costing and processcosting?9.Expln the difference between direct materials, direct labor,and manufacturing overhead.10.How can a company use budgeting to plan, control, andevaluate performance?Answers1.Actual capacity refers to the maximum amount of goods orservices a company can produce in a given period, while normal capacity is the expected capacity level given typical business conditions.2.Fixed costs remn constant regardless of the level ofactivity, while variable costs change in proportion to changes in activity levels. Semi-variable costs have both fixed and variable cost components.3.Cost-volume-profit analysis is a tool used to understand howchanges in volume, price, and costs affect a company’s profits.It can be used to make decisions regarding pricing, product mix, and cost reduction strategies.4.The different methods for allocating overhead costs includedirect labor hours, direct labor cost, machine hours, andactivity-based costing. The most appropriate method depends on the nature of the costs and the activities being performed.5.Job-order costing is used for unique, customized products orservices, while process costing is used for mass-produced products or services that are identical.6.Activity-based costing is a costing method that identifiesall the activities that go into producing a product or service and assigns costs based on the activities. It can be used to improvedecision-making by providing more accurate cost information andidentifying areas where costs can be reduced.7.Cost of goods manufactured is the total cost of producinggoods, including direct materials, direct labor, and manufacturing overhead. Cost of goods sold is the cost of the goods that havebeen sold during a period.8.The mn difference between job costing and process costing isthe type of product being produced. Job costing is used for unique, customized products, while process costing is used for mass-produced products.9.Direct materials are the materials that go into a product,such as raw materials or components. Direct labor is the cost ofthe workers directly involved in producing the product.Manufacturing overhead includes all other costs that are necessary for producing a product, such as utilities, rent, and equipmentmntenance.10.Budgeting can be used to plan, control, and evaluateperformance. By setting targets and monitoring actual performanceagnst those targets, a company can identify areas where it needsto make changes to achieve its goals.In conclusion, cost and management accounting is a critical aspectof business decision-making. The 15th edition of Cost and Management Accounting provides a comprehensive overview of the principles, techniques, and practices that are essential for analyzing costs in amanufacturing and service environment. These exercise questions and answers can be used to reinforce your understanding and test your knowledge.。

Cost Accounting, 13e (Horngren et al.)Chapter 14 Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis1) Indirect costs are costs that cannot be traced to cost objects in an economically feasible way.Answer: TRUEDiff: 1Terms: cost allocationObjective: 1AACSB: Reflective thinking2) To motivate engineers to design simpler products, costs for production, distribution, and customer servicemay be included in product-cost estimates.Answer: TRUEDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking3) One of the purposes of allocating indirect costs is to justify costs or compute reimbursement amounts.Answer: TRUEDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking4) For external reporting, inventoriable costs under GAAP sometimes include R&D costs.Answer: FALSEExplanation: Under GAAP, inventoriable costs include only the costs of producing and sometimes the design costs of the product.Diff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking5) To allocate a cost, it must satisfy all four purposes for which costs are allocated.Answer: FALSEExplanation: To allocate a cost, it is only necessary to satisfy one of the purposes for which costs are allocated.Diff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking6) Today, companies are simplifying their cost systems and moving toward less-detailed and less-complex costallocation bases.Answer: FALSEExplanation: Companies are moving toward more-detailed and more-complex cost allocations because today technology can capture these costs in a relatively inexpensive manner.Diff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking7) Using the benefits received criterion, the costs are allocated among the beneficiaries in proportion to thebenefits each receives.Answer: TRUEDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking8) Under the fairness criterion, cost allocation is not viewed as a reasonable means of establishing a selling price.Answer: FALSEExplanation: Cost allocation is viewed as a fair way to set a selling price between two contracting parties.Diff: 3Terms: cost allocationObjective: 2AACSB: Ethical reasoning9) When using the cause-and-effect criterion, cost drivers are selected as the cost allocation bases.Answer: TRUEDiff: 1Terms: cost allocationObjective: 2AACSB: Reflective thinking10) The ability-to-bear criterion is considered superior when the purpose of cost allocation is motivation.Answer: FALSEExplanation: The cause-and-effect or benefits-received criteria is considered superior when the purpose of cost allocation is motivation.Diff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking11) The benefits of implementing a more-complex cost allocation system are relatively easy to quantify forapplication of the cost-benefit approach.Answer: FALSEExplanation: The benefits of implementing a more-complex cost allocation system are difficult to measure.Diff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking12) Each company must decide which corporate cost categories should be included in the indirect costs of thedivisions all, only a subset, or none.Answer: TRUEDiff: 2Terms: cost allocationObjective: 3AACSB: Reflective thinking13) Full allocation of corporate costs to divisions is justified when the notion of controllability is applied.Answer: FALSEExplanation: The controllability notion is used to justify excluding some or all corporate costs from division reports, not to justify including full costs.Diff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking14) Companies that want to calculate the full cost of products must allocate all corporate costs to indirect-costpools of divisions.Answer: TRUEDiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking15) When there is a lesser degree of homogeneity, fewer cost pools are required to accurately explain the use ofcompany resources.Answer: FALSEExplanation: The greater the degree of homogeneity, the fewer the cost pools required to accurately explain the use of company resources.Diff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking16) If a cost pool is homogeneous, the cost allocations using that pool will be the same as they would be if costsof each individual activity in that pool were allocated separately.Answer: TRUEDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking17) Facility-sustaining costs do not have a cause-and-effect relationship with individual products.Answer: TRUEDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking18) An individual cost item can be simultaneously a direct cost of one cost object and an indirect cost of anothercost object.Answer: TRUEDiff: 3Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking19) A homogenous cost pool has costs that have similar cause-and-effect relationships with the cost-allocationbase.Answer: TRUEDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking20) Once a cost pool has been established, it should not need to be revisited or revised.Answer: FALSEExplanation: Once a cost pool has been established, it is often necessary to revisit it or revise it.Diff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking21) All customers are equally important to a company and should receive equal levels of attention.Answer: FALSEExplanation: Customers should receive a level of attention from the company that matches their contribution to the company's profitability.Diff: 3Terms: customer-profitability analysisObjective: 4AACSB: Ethical reasoning22) The purpose of price discounting is to encourage increases in customer purchases.Answer: TRUEDiff: 3Terms: price discountingObjective: 4AACSB: Reflective thinking23) Price discounts must be uniform among all customers.Answer: FALSEExplanation: Price discounts will depend on the size of the purchase and the importance of the customer.Diff: 3Terms: price discountingObjective: 4AACSB: Ethical reasoning24) There are two elements that influence customer profitability revenues and costs.Answer: TRUEDiff: 2Terms: customer-profitability analysisObjective: 4AACSB: Reflective thinking25) Companies that only record the invoice price can usually track the magnitude of price discounting.Answer: FALSEExplanation: To track discounting, the discount must be recorded.Diff: 2Terms: price discountingObjective: 4AACSB: Reflective thinking26) A customer cost hierarchy categorizes costs related to customers into different cost pools on the basis ofusing only one cost driver.Answer: FALSEExplanation: A customer cost hierarchy categorizes costs related to customers into different cost pools using different drivers.Diff: 2Terms: homogeneous cost pool, customer cost hierarchyObjective: 4AACSB: Reflective thinking27) An activity-based costing system may focus on customers rather than products.Answer: TRUEDiff: 2Terms: customer-profitability analysisObjective: 5AACSB: Reflective thinking28) A customer cost hierarchy may include customer-sustaining costs.Answer: TRUEDiff: 2Terms: customer cost hierarchyObjective: 5AACSB: Reflective thinking29) A customer cost hierarchy may include distribution-channel costs.Answer: TRUEDiff: 1Terms: customer cost hierarchyObjective: 5AACSB: Reflective thinking30) The cost of visiting customers is an example of a customer output unit-level cost.Answer: FALSEExplanation: The cost of visiting customers is an example of a customer-sustaining cost.Diff: 2Terms: customer cost hierarchyObjective: 5AACSB: Reflective thinking31) In general, distribution-channel costs are more easily influenced by customer actions than customerbatch-level costs.Answer: FALSEExplanation: In general, customer batch-level costs are more easily influenced by customer actions than distribution-channel costs.Diff: 3Terms: customer cost hierarchyObjective: 6AACSB: Reflective thinking32) If one of four distribution channels is discontinued, corporate-sustaining costs such as general administrationcosts will most likely be reduced by 25%.Answer: FALSEExplanation: If one of four distribution channels is discontinued, corporate-sustaining costs such as general administration costs will most likely not be affected.Diff: 3Terms: customer cost hierarchyObjective: 6AACSB: Reflective thinking33) To more accurately assess customer profitability, corporate-sustaining costs should be allocated.Answer: FALSEExplanation: The allocation of corporate-sustaining costs serves no useful purpose in assessing customer profitability, decision making, performance evaluation, or motivation.Diff: 3Terms: customer-profitability analysis, customer cost hierarchyObjective: 6AACSB: Reflective thinking34) The higher the likely growth of the customer's industry and the customer's sales, the more valuable thecustomer.Answer: TRUEDiff: 3Terms: customer profitability analysisObjective: 6AACSB: Reflective thinking35) It is common to find that a small number of customers generate a high percentage of operating income.Answer: TRUEDiff: 2Terms: customer-profitability analysisObjective: 6AACSB: Reflective thinking36) Managers who utilize customer profitability charts should drop customers that generate a negative customeroperating income, since dropping an unprofitable customer will automatically cause overall income to increase.Answer: FALSEExplanation: Managers who utilize customer profitability charts should not drop customers that generate a negative customer operating income, because dropping an unprofitable customer may not causeoverall income to increase.Diff: 2Terms: customer profitability analysisObjective: 6AACSB: Reflective thinking37) It is possible that the largest customer in terms of revenue is not the most profitable customer.Answer: TRUEDiff: 2Terms: customer profitability analysisObjective: 6AACSB: Reflective thinking38) The static-budget variance is the difference between an actual result and a budgeted amount in the staticbudget.Answer: TRUEDiff: 1Terms: static budget varianceObjective: 6AACSB: Reflective thinking39) The flexible-budget variance is the difference between an actual result and the flexible-budget amount basedon the level of output actually achieved in the budget period.Answer: TRUEDiff: 1Terms: flexible-budget varianceObjective: 6AACSB: Reflective thinking40) Managers can gain more insight about the static-budget variance by subdividing it into the flexible-budgetvariance and the sales-volume variance.Answer: TRUEDiff: 1Terms: static budget varianceObjective: 6AACSB: Reflective thinking41) Additional insight can be gained by dividing the sales-mix variance into the flexible-budget variance and thesales-volume variance.Answer: FALSEExplanation: Additional insight can be gained by dividing the static-budget variance into the flexible-budget variance and the sales-volume variance.Diff: 1Terms: static budget variance, flexible budget variance, sales-volume varianceObjective: 6AACSB: Reflective thinking42) A favorable sales-mix variance arises when the actual sales-mix percentage is less than the budgetedsales-mix percentage.Answer: FALSEExplanation: A favorable sales-mix variance arises when the actual sales-mix percentage exceeds the budgeted sales-mix percentage.Diff: 3Terms: sales-mix varianceObjective: 7AACSB: Reflective thinking43) A composite unit is a hypothetical unit with weights based on the mix of individual units.Answer: TRUEDiff: 1Terms: composite unitObjective: 7AACSB: Reflective thinking44) The sales-mix variance can be explained in terms of the budgeted contribution margin per composite unit ofthe sales mix.Answer: TRUEDiff: 2Terms: sales-mix variance, composite unitObjective: 7AACSB: Reflective thinking45) The sales-quantity variance is favorable when budgeted unit sales exceed actual unit sales.Answer: FALSEExplanation: The sales-quantity variance is unfavorable when budgeted unit sales exceed actual unit sales.Diff: 3Terms: sales-quantity varianceObjective: 7AACSB: Reflective thinking46) The sales mix variance is the difference between budgeted contribution margin for the actual sales mix andthe budgeted contribution margin for the budgeted sales mix.Answer: TRUEDiff: 2Terms: sales mix varianceObjective: 7AACSB: Reflective thinking47) The sales quantity variance is the difference between budgeted contribution margin based on actual unitssold of all products at the budgeted mix, and contribution margin in the flexible budget.Answer: FALSEExplanation: The sales quantity variance is the difference between budgeted contribution margin based on actual units sold of all products at the budgeted mix, and contribution margin in the static budget.Diff: 2Terms: sales quantity varianceObjective: 7AACSB: Reflective thinking48) The market-share variance is caused solely by the actual market share being different than the budgetedmarket share.Answer: TRUEDiff: 3Terms: market-share varianceObjective: 8AACSB: Reflective thinking49) A favorable market-size variance results with a decrease in market size.Answer: FALSEExplanation: A favorable market-size variance results with an increase in market size.Diff: 3Terms: market-size varianceObjective: 8AACSB: Reflective thinking50) The flexible-budget variance can be further divided into the sales-mix variance and the sales-quantityvariance.Answer: FALSEExplanation: The sales-volume variance can be further divided into the sales-mix variance and the sales-quantity variance.Diff: 1Terms: sales-volume variance, sales-mix variance, sales-quantity varianceObjective: 8AACSB: Reflective thinking51) The market share variance is the difference in budgeted contribution margin for actual market size in unitscaused solely by the actual market share being different from the budgeted market share.Answer: TRUEDiff: 2Terms: market-share varianceObjective: 8AACSB: Reflective thinking52) The market size variance is the difference in budgeted contribution margin at budgeted market share causedsolely by actual market size in units being different from budgeted market size in units.Answer: TRUEDiff: 2Terms: market-size varianceObjective: 8AACSB: Reflective thinking53) A difficulty with the market share and market size variances is that accurate measures of market share andmarket size often do not exist.Answer: TRUEDiff: 2Terms: market-size variance, market-share varianceObjective: 8AACSB: Reflective thinking54) The direct materials mix variance is the sum of the direct materials mix variances for each input.Answer: TRUEDiff: 1Terms: direct materials mix varianceObjective: AAACSB: Reflective thinking55) An unfavorable direct materials mix variance results when cheaper direct materials are substituted for moreexpensive direct materials.Answer: FALSEExplanation: A favorable direct materials mix variance results when cheaper direct materials are substituted for more expensive direct materials.Diff: 2Terms: direct materials mix varianceObjective: AAACSB: Ethical reasoning56) A favorable direct materials yield variance results when less direct materials are used than planned.Answer: TRUEDiff: 2Terms: direct materials mix variance, direct materials yield varianceObjective: AAACSB: Reflective thinking57) Costs which are not economically feasible to trace but which are related to a cost object are known as:A) fixed costsB) direct costsC) indirect costsD) variable costsAnswer: CDiff: 1Terms: cost allocationObjective: 1AACSB: Reflective thinking58) Any item for which a separate measurement of cost is desired is known as:A) cost allocationB) a cost objectC) a direct costD) an indirect costAnswer: BDiff: 1Terms: cost objectObjective: 1AACSB: Reflective thinking59) Indirect costs:A) often comprise a large percentage of overall costs assigned to a cost objectB) specifically exclude marketing costsC) cannot be used for external reportingD) are treated as period costs and not as product costsAnswer: ADiff: 3Terms: indirect costsObjective: 1AACSB: Reflective thinking60) All of the following illustrate purposes for allocating costs to cost objects EXCEPT to:A) provide information for economic decisionsB) motivate managers and employeesC) determine a selling price the market will bearD) measure income and assets for reporting to external partiesAnswer: CDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking61) Which of the following illustrates a purpose for allocating costs to cost objects?A) to motivate managers and employeesB) to provide information to customersC) to determine a selling price the market will bearD) to measure liabilitiesAnswer: ADiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking62) The costs of all six value-chain functions should be included when determining:A) whether to add a new product lineB) the selling price of a serviceC) whether to make or buy a component part from another manufacturerD) All of these answers are correct.Answer: DDiff: 3Terms: cost allocationObjective: 1AACSB: Reflective thinking63) R&D costs are used for which purpose of cost allocation?A) to provide information for economic decisionsB) to report to external parties when using generally accepted accounting principlesC) to calculate costs of a government contractD) All of these answers are correct.Answer: ADiff: 3Terms: cost allocationObjective: 1AACSB: Communication64) Which purpose of cost allocation is used to encourage sales representatives to push high-margin products orservices?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: BDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking65) Which purpose of cost allocation is used to decide on the selling price for a customized product or service?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: ADiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking66) Which purpose of cost allocation is used to cost products at a "fair" price?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: CDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking67) Which purpose of cost allocation is used to cost inventories for reporting to tax authorities?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: DDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking68) When the purpose of cost allocation is to provide information for economic decisions or to motivatemanagers and employees, the best criteria are:A) the cause-and-effect and the ability-to bear criteriaB) the cause-and-effect and the benefits-received criteriaC) the benefits-received and the fairness criteriaD) the fairness and the ability-to-bear criteriaAnswer: BDiff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking69) ABC systems use the concept of a ________ to identify the cost drivers that best demonstrate thecause-and-effect relationship between each activity and the costs in the related cost pool.A) cost hierarchyB) cost poolC) cost allocationD) cost driverAnswer: ADiff: 2Terms: cost hierarchyObjective: 5AACSB: Reflective thinking70) To guide cost allocation decisions, the cause-and-effect criterion:A) is used less frequently than the other criteriaB) is the primary criterion used in activity-based costingC) is a difficult criterion on which to obtain agreementD) may allocate corporate salaries to divisions based on profitsAnswer: BDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking71) To guide cost allocation decisions, the benefits-received criterion:A) generally uses the cost driver as the cost allocation baseB) results in subsidizing products that are not profitableC) is the primarily used criterion in activity-based costingD) may use an allocation base of division revenues to allocate advertising costsAnswer: DDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking72) To guide cost allocation decisions, the fairness or equity criterion is:A) the criterion often cited in government contractsB) superior when the purpose of cost allocation is for economic decisionsC) used more frequently than the other criteriaD) the primary criterion used in activity-based costingAnswer: ADiff: 3Terms: cost allocationObjective: 2AACSB: Ethical reasoning73) To guide cost allocation decisions, the ability to bear criterion:A) is likely to be the most credible to operating personnelB) allocates costs in proportion to the benefits receivedC) results in subsidizing products that are not profitableD) is the criterion often cited in government contractsAnswer: CDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking74) Which cost-allocation criterion is appropriate when making an economic decision?A) the fairness or equity criterionB) the ability to bear criterionC) the cause-and-effect criterionD) All of these answers are correct.Answer: DDiff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking75) Which cost-allocation criterion is MOST likely to subsidize poor performers at the expense of the bestperformers?A) the fairness or equity criterionB) the benefits-received criterionC) the ability to bear criterionD) the cause-and-effect criterionAnswer: CDiff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking76) A challenge to using cost-benefit criteria for allocating costs is that:A) the costs of designing and implementing complex cost allocations are not readily apparentB) the benefits of making better-informed pricing decisions are difficult to measureC) cost systems are being simplified and fewer multiple cost-allocation bases are being usedD) the costs of collecting and processing information keep spiraling upwardAnswer: BDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking77) Corporate overhead costs can be allocated:A) using a single cost poolB) to divisions using one cost pool and then reallocating costs to products using multiple cost poolsC) using numerous individual corporate cost poolsD) All of these answers are correct.Answer: DDiff: 2Terms: cost allocationObjective: 3AACSB: Reflective thinking78) The MOST likely reason for allocating all corporate costs to divisions include that:A) division managers make decisions that ultimately control corporate costsB) divisions receive benefits from all corporate costsC) the hierarchy of costs promotes cost managementD) it is best to use multiple cost objectsAnswer: BDiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking79) The MOST likely reason for NOT allocating corporate costs to divisions include that:A) these costs are not controllable by division managersB) these costs are incurred to support division activities, not corporate activitiesC) division resources are already used to attain corporate goalsD) divisions receive no benefits from corporate costsAnswer: ADiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking80) Some companies only allocate corporate costs to divisions that are:A) planned and under the control of division managersB) output unit-level costsC) perceived as causally related to division activitiesD) direct costsAnswer: CDiff: 2Terms: cost allocationObjective: 3AACSB: Reflective thinking81) Which is the preferred allocation method for performance evaluation?A) allocating all corporate costsB) allocating only human resource costC) allocating controllable costsD) allocating uncontrollable costsAnswer: CDiff: 2Terms: cost allocationObjective: 382) Not allocating some corporate costs to divisions and products results in:A) an increase in overall corporate profitabilityB) the sum of individual product profitability being less than overall company profitabilityC) the sum of individual product profitability being greater than overall company profitabilityD) a decrease in overall corporate profitabilityAnswer: CDiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking83) The greater the degree of homogeneity, the:A) greater the number of needed cost poolsB) fewer the number of needed cost poolsC) less accurate the costs of a particular cost objectD) greater the variety of cause-and-effect relationships with the cost driverAnswer: BDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking84) When individual activities within a cost pool have a similar relationship with the cost driver, those costs:A) need to be reallocatedB) need multiple cost driversC) are considered a homogeneous cost poolD) are considered an allocated cost poolAnswer: CDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking85) Homogeneous cost pools lead to:A) more accurate costs of a given cost objectB) more resources being assigned to that cost objectC) the need for more cost driversD) Both A and C are correct.Answer: ADiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking86) Identifying homogeneous cost pools:A) requires judgment and should be reevaluated on a regular basisB) should include the input of managementC) should include a cost-benefit analysisD) All of these answers are correct.Answer: DDiff: 2Terms: homogeneous cost poolObjective: 3。