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Link for the Answer:
ACC
561 WEEK 1 WILEYPLUS PRACTICE QUIZ
1.The proprietorship form of business organization
2.Most business enterprises in the United States are
3.A business organized as a separate legal entity is
a
4.Which of the following is the best definition of an
internal user of accounting information?
5.Which of the following groups uses accounting information
primarily to insure the entity is operating within prescribed rules?
6.Which of the following groups uses accounting information
to determine whether the company can pay its obligations?
7.Which of the following financial statements is divided
into major categories of operating, investigating, and financing activities?
8.Ending retained earnings for a period is equal to:
9.The financial statement that summarizes the changes in
retained earnings for a specific period of time is the
10.To show how successfully your business performed during
a period of time, you would report its revenues and expenses in the
11.Which financial statement is prepared first?
12.An income statement shows
13.Dawson Corporation has the following information available
for 2011:
Based on this information, what is Dawson’s Common Stock
balance at the end of the year?
14.Declaring a cash dividend will
15.At December 31, 2012 Lowery Company had retained
earnings of $2,184,000. During 2012 they issued stock for $98,000, and paid
dividends of $34,000. Net income for 2012 was $402,000. The retained earnings
balance at the beginning of 2012 was:
16.Which of the following organizations issues accounting
standards for countries outside the United States?
17.Generally accepted accounting principles
18.The agency of the United State Government that oversees
the U.S. financial markets is the
19.What organization issues U.S. accounting standards?
20.Two of the major characteristics that make accounting
information useful are
ACC 561 WEEK 1 WILEYPLUS ASSIGNMENT BE 1-7, BE 1-8
Resource: WileyPLUS
Complete the following Week 1 Assignment in WileyPLUS:
•Brief Exercise: 1-7
•Brief Exercise: 1-8
ACC 561 WEEK 1 INDIVIDUAL ASSIGNMENT FINANCIAL
STATEMENT REVIEW
Select an American corporation.
Visit its website and download the Income Statement,
Statement of Stockholders Equity, Balance Sheet, and Statement of Cash Flows.
Complete the University of Phoenix Material: Financial
Statement Review Worksheet.
Submit the completed worksheet, copies of the downloaded
financial statements, and a link to the website.
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 2 WILEYPLUS PRACTICE QUIZ
1.The relationship between current assets and current
liabilities is important in evaluating a company’s
2.Which of the following is a measure of liquidity?
3.Current assets divided by current liabilities is known as
the
4.Danner Corporation reported net sales of $600,000 and
$800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base
year, what percentage do 2013 sales represent of the base?
5.In analyzing financial statements, horizontal analysis is
a
6.Comparative balance sheets
7.Assume the following cost of goods sold data for a
company:
2013$1,500,000
2012$1,200,000
2011$1,000,000
If 2011 is the base year, what is the percentage increase
in cost of goods sold from 2011 to 2013?
8.Comparisons of data within a company are an example of
the following comparative basis:
9.The following schedule is a display of what type of
analysis?
AmountPercent
Current assets$100,0025%
Property, plant, and equipment300,00075%
Total assets$400,000100%
10.A common measure of profitability is the
11.Which one of the following would be considered a
long-term solvency ratio?
12. The current
ratio is
13.Richards, Inc. has the following income statement (in
millions):
RICHARDS, INC.
Income Statement
For the Year Ended December 31, 2012
Net Sales$180
Cost of Goods Sold60
Gross Profit120
Operating Expenses75
Net Income$45
Using vertical analysis, what percentage is assigned to net
income?
ACC 561 WEEK 2 LEARNING TEAM REFLECTION ( COMPARATIVE
AND RATIO ANALYSIS)
Write a paper of no more than 750 words in which you
discuss the difference between comparative and ratio analysis. Differentiate
and share the purpose and importance of each.
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 2 INDIVIDUAL ASSIGNMENT SARBANES-OXLEY
ACT OF 2002
Write a paper that describes the main aspects of the
regulatory environment which will protect the public from fraud within
corporations, Pay particular attention to SOX requirements.
Required Elements:
•No more than 1400 words
•Specifically evaluate whether SOX will be effective in
avoiding future frauds.
•Format consistent with APA guidelines
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 3 WILEYPLUS PRACTICE QUIZ
1.A major purpose of cost accounting is to
2.The two basic types of cost accounting systems are
3.A process cost system would most likely be used by a company
that makes
4.Which of the following would be accounted for using a job
order cost system?
5.The flow of costs in a job order cost system
6.The entry to record the acquisition of raw materials on
account is
7.Time tickets should be approved by
8.The labor costs that have been identified as indirect
labor should be charged to
9.Manufacturing overhead is applied to each job
10.A process cost accounting system is most appropriate
when
11.Which of these best reflects a distinguishing factor
between a job order cost system and a process cost system?
12.In process cost accounting, manufacturing costs are
summarized on a
13.In a process cost system, product costs are summarized:
14.Which of the following is considered a difference
between a job order cost and a process cost system?
15.The costs that are easiest to trace directly to products
are
16.Other the most difficult part of computing accurate unit
costs is determining the process amount of----------------------to assign to
each product, service, or job.
17.The last step in activity-based costing is to
18.The first step in activity-based costing is to
19.A well-designed activity-based costing system starts
with
20.An example of an activity cost pool is
ACC 561 WEEK 3 TEAM ASSIGNMENT AMERICAN CORPORATION ANALYSIS
Select an American corporation.
Visit its website and download its financial
statements.
Write a paper of no more than 1250 words in which you
conduct a comparative and ratio analysis to measure profitability and
liquidity.
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 3 WILEYPLUS ASSIGNMENT (BE 13-8, BE
13-9, BE 13-4, BE 13-5, BE 13-10, BE 13-13)
Access the following Week 3 Assignment in WileyPLUS:
•Brief Exercise 13-8 (essay)
•Brief Exercise 13-9 (essay)
•Brief Exercise 13-4
•Brief Exercise 13-5
•Brief Exercise 13-10
•Brief Exercise 13-13
Click the Assignment Files tab to submit your
assignment.
ACC 561 WEEK 4 WILEYPLUS ASSIGNMENT PAPER EXERCISE
17-2
Accessthe following Week 4 reading, linked to this assignment:
•Broadening Your Perspective 17-2
Writea paper of no more than 750 words in which you respond
to the Broadening Your Perspective 17-2 activity titled "Managerial
Perspective" in Ch. 17 ofAccounting.
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 4 LEARNING TEAM REFLECTION (CVP
ANALYSIS)
Managerial accounting is all about making informed
decisions. Cost-volume-profit (CVP) analysis is one of the most powerful tools
available for managers to crunch numbers, gain a thorough understanding of a
situation, and perform a what-if analysis.
Write a paper of no more than 750 words in which you
discuss the activities and learning this week and share how CVP analysis may be
helpful to an entrepreneur starting a new business.
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 4 WILEYPLUS PRACTICE QUIZ
1.A variable cost is a cost that
2.An increase in the level of activity will have the
following effects on unit costs for variable and fixed costs:
3.A fixed cost is a cost which
4.Hollis Industries produces flash drives for computers,
which it sells for $20 each. Each flash drive costs $14 of variable costs to
make. During April, 1,000 drives were sold. Fixed costs for March were $2 per
unit for a total of $1,000 for the month. How much is the contribution margin
ratio?
5.Contribution margin
6.The equation which reflects a CVP income statement is
7.A company sells a product which has a unit sales price of
$5, unit variable cost of $3 and total fixed costs of $150,000. The number of
units the company must sell to break even is
8.Under absorption costing and variable costing, how are
fixed manufacturing costs treated?
9.Management may be tempted to overproduce when using
10.Only direct materials, direct labor, and variable manufacturing
overhead costs are considered product costs when using
ACC 561 WEEK 5 INDIVIDUAL WILEYPLUS ASSIGNMENT PAPER
EXERCISE 18-1
Resource: WileyPLUS
Access the following Week 5 Assignment in WileyPLUS:
•Broadening Your Perspective 18-1
Write a paper of no more than 750 words in which you
respond to the Broadening Your Perspective 18-1 activity titled "Decision
Making Across the Organization" in Ch. 18 of Accounting.
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 5 WILEYPLUS ASSIGNMENT (BE 18-8, BE
18-10, BE 18-11, BE 19-16, EX 19-17, BE 21-1, BE 21-4)
Resource: WileyPLUS
Complete the following Week 5 Assignment in WileyPLUS:
•Brief Exercise 18-8
•Brief Exercise 18-10
•Brief Exercise 18-11
•Brief Exercise 19-16
•Exercise 19-17
•Brief Exercise 21-1
•Brief Exercise 21-4
ACC 561 WEEK 5 INDIVIDUAL ASSIGNMENT COSTING METHODS
PAPER (EXERCISE 19-17)
Write a paper of no more than 350 words after completing
Exercise 19-17 in WileyPLUS in which you respond to the following questions:
•In this case, would it be better to use the variable or
absorption costing method, and why?
•What are the benefits of the two methods?
•Which method would lead to the best decision when a
competitor is submitting a lower bid for your product?
Click the Assignment Files tab to submit your assignment
ACC 561 WEEK 5 WILEYPLUS PRACTICE QUIZ
1.Why are budgets useful in the planning process?
2.A common starting point in the budgeting process is
3.Which of the following statements about budget acceptance
in an organization is true?
4.Why is budgetary control?
5.The comparison of differences between actual and planned
results
6.A static budget
7.A responsibility centers generate both revenues and
costs?
8.The linens department of a large department store is
9.What is a standard cost?
10.Using standard costs
11.Unfavorable materials price and quality variances are
generally the responsibility of the
ACC 561 WEEK 5 LEARNING TEAM DELIVERABLES
ACC 561 Week 5 Learning Team Deliverables
(Summary of Week 5)
ACC 561 WEEK 6 LEARNING TEAM REFLECTION (INCREMENTAL
ANALYSIS)
Incremental analysis is considered to be more economical
than a comprehensive analysis, while being just as effective. Do you agree or
disagree?
Explain your answer in a paper of no more than 750 words.
Click the Assignment Files tab to submit your assignment.
ACC 561 WEEK 6 WILEYPLUS ASSIGNMENT (EXERCISE 20-3,
EX 22-1, BE 23-3, BE 23-4, BE 23-6)
Resource: WileyPLUS
Complete the following Week 6 Assignment in WileyPLUS:
•Exercises: 20-3
•Exercises: 22-1
•Brief Exercise 23-3
•Brief Exercise 23-4
•Brief Exercise 23-6
ACC 561 WEEK 6 WILEYPLUS PRACTICE QUIZ
1.A major accounting contribution to the managerial
decision-making process in evaluating possible courses of action is to
2.In incremental analysis,
3.Incremental analysis is most useful
4.It costs Ross Co. $24 of variable and $10 of fixed costs
to produce one bathroom scale which normally sells for $70. A foreign
wholesaler offers to purchase 2,000 scales at $30 each. Ross would incur special
shipping costs of $2 per scale if the order were accepted. Ross has sufficient
unused capacity to produce the 2,000 scales. If the special order is accepted,
what will be the effect on net income?
5.Carter, Inc. can make 100 units of a necessary component
part with the following costs:
Direct Materials$120,000
Direct Labor 20,000
Variable Overhead60,000
Fixed Overhead40,000
If Carter purchases the component externally, $30,000 of
the fixed costs can be avoided. At what external price for the 100 units is the
company indifferent between making or buying?
6.Mink Manufacturing is unsure of whether to sell its
product assembled or unassembled. The unit cost of the unassembled product is
$60 and Mink would sell it for $130. The cost to assemble the product is
estimated at $42 per unit and the company believes the market would support a
price of $170 on the assembled unit. What decision should Mink make?
7.A company decided to replace an old machine with a new
machine. Which of the following is considered a relevant cost?
ACC 561 FINAL EXAM GUIDE
1) The statement of cash flows is used for _____.
2) Nonoperating items on the income statement _____.
A. are revenues and expenses arising from adjusting entries
B. include interest income and expense
C. appear only on corporate income statements
D. appear on the income statement immediately after gross profit
3) The difference between a single-step and multiple-step income statement is that a single-step income statement _____.
A. groups all revenues together and all expenses together, whereas a multiple-step income statement separates certain revenues and expenses from each other and presents subtotals
B. calculates net income using one method, whereas a multiple-step income statement calculates net income using two or more methods
C. calculates gross profit and operating income, whereas a multiple-step income statement does not
D. shows only 1 year's net income, whereas a multiple-step income statement shows multiple years' net income
4) Which one of the following statements is true?
A. The statement of cash flows reports the cash receipts but not cash payments of an entity over a period of time.
B. Both the statement of cash flows and the income statement determine the net income for a company.
C. Transactions affecting the sale and the purchase or production of goods and services are reported in the financing activities section of the statement of cash flows.
D. Investing activities in the statement of cash flows include acquiring and selling long-term assets.
5) The _____ accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.
A. continuity
B. conservatism
C. cost-benefit
D. materiality
6) A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____.
A. paid-in capital and a credit to retained earnings.
B. cash and a credit to common stock.
C. retained earnings and a credit to cash.
D. cash and a credit to retained income.
7) Which type of organization would most likely have work-in-process inventory?
A. A retail store
B. A manufacturing company
C. A service organization
D. A real-estate investment trust
8) _____ is a measure of income or profit divided by the investment required to obtain that income or profit.
A. Return on sales
B. Capital turnover
C. Return on investment
D. Residual income
9) The following information is available for the Peter Company:
Sales: $150,000
Invested capital: $156,250
ROI: 10%
The return on sales is _____.
A. 10.00%
B. 10.42%
C. 62.50%
D. 9.60%
10) The following information is available for the Peter Company:
Sales: $500,000
Invested capital: $312,500
ROI: 10%
The return on sales is _____.
A. 10.00%
B. 6.250%
C. 1.000%
D. 62.50%
11) Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.
A. 75%
B. 93.75%
C. 18.75%
D. 46.88%
12) When the variable costing method is used, fixed factory overhead appears on the income statement as a _____.
A. component of cost of goods sold
B. fixed expense
C. production-volume variance
D. component of gross profit
13) In absorption costing, costs are separated into the major categories of _____.
A. manufacturing and nonmanufacturing
B. manufacturing and fixed
C. fixed and variable
D. variable and nonmanufacturing
14) _____ is another term for variable costing.
A. Full costing
B. Direct costing
C. Traditional costing
D. Absorption costing
15) Budgeted service department cost rates protects the user departments from _____.
A. service department efficiencies
B. price fluctuations
C. service outages
D. employee control
16) _____ is an example of the external financial-reporting purpose of the cost management systems.
A. The cost of a manufacturing process
B. The product mix to optimize profitability
C. The amount of inventory that should appear on the balance sheet
D. Budget reporting
17) The level of sales at which revenues equal expenses and net income is zero is called the _____.
A. margin of safety
B. contribution margin
C. break-even point
D. marginal income point
18) Output measures of both resources and activities are _____.
A. cost drivers
B. stages of production
C. fixed activities
D. variable activities
19) The break-even point is where _____.
A. total sales revenue equals total cost plus desired profit.
B. the contribution margin equals net income plus fixed costs.
C. total sales revenue equals total cost.
D. the variable cost equals total cost.
20) _____ budgeting is when budgets are formulated with the active participation of all affected employees.
A. Financial
B. Team
C. Participative
D. Shared
21) _____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.
A. An internal control system
B. A quality control system
C. A financial-reporting system
D. A management control system
22) _____ are components of a master budget.
A. A strategic plan and an operating budget
B. An operating budget and a capital budget
C. A continuous budget and a static budget
D. A cash budget and an activity budget
23) An important factor considered by sales forecasters is _____.
A. production employee requirements.
B. expectations of the board of directors.
C. competitors’ activities.
D. the desired level of sales.
24) _____ models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product mix.
A. Variance analysis
B. Financial planning
C. Accounting
D. Futuring
25) Which of the following is an objective of budgeting?
A. Budgeting provides benchmarks against which performance can be measured.
B. Budgeting provides a fixed fiscal plan that should not be changed during the year.
C. Budgeting helps managers build favorable variances into the performance-evaluation process.
D. Budgeting is done exclusively by the chief fiscal officer for control purposes.
26) An organization's budget program should be used
A. to have power over employees.
B. to assign blame to managers that do not meet budgetary goals.
C. to help managers plan and control the organization’s performance.
D. to help the chief fiscal officer to allocate resources to the favored projects of the executives.
27) The activity-based costing may reveal _________, whereas traditional costing cannot.
A. high-volume products are overcosted
B. low-volume products are overcosted
C. both high- and low-volume products are overcosted
D. both high- and low-volume products are undercosted
28) _____ is a method of approximating cost functions.
A. Cost-driver analysis
B. Transaction analysis
C. Product analysis
D. Account analysis
29) In relation to a cost function, the term reliability refers to _____.
A. whether the costs and activities can be easily observed
B. whether the cost function conforms to a given mathematical model
C. how well the cost function predicts future costs
D. how well the cost function explains past cost behavior
30) One of the simplest methods to measure a linear cost function from past data is the _____.
A. regression analysis method
B. high–low method
C. least squares regression method
D. visual-fit method
2) Nonoperating items on the income statement _____.
A. are revenues and expenses arising from adjusting entries
B. include interest income and expense
C. appear only on corporate income statements
D. appear on the income statement immediately after gross profit
3) The difference between a single-step and multiple-step income statement is that a single-step income statement _____.
A. groups all revenues together and all expenses together, whereas a multiple-step income statement separates certain revenues and expenses from each other and presents subtotals
B. calculates net income using one method, whereas a multiple-step income statement calculates net income using two or more methods
C. calculates gross profit and operating income, whereas a multiple-step income statement does not
D. shows only 1 year's net income, whereas a multiple-step income statement shows multiple years' net income
4) Which one of the following statements is true?
A. The statement of cash flows reports the cash receipts but not cash payments of an entity over a period of time.
B. Both the statement of cash flows and the income statement determine the net income for a company.
C. Transactions affecting the sale and the purchase or production of goods and services are reported in the financing activities section of the statement of cash flows.
D. Investing activities in the statement of cash flows include acquiring and selling long-term assets.
5) The _____ accounting convention uses the acquisition cost minus depreciation in valuing an asset on the balance sheet.
A. continuity
B. conservatism
C. cost-benefit
D. materiality
6) A new corporation issuing a common, no-par value stock for cash would include a journal entry a debit to _____.
A. paid-in capital and a credit to retained earnings.
B. cash and a credit to common stock.
C. retained earnings and a credit to cash.
D. cash and a credit to retained income.
7) Which type of organization would most likely have work-in-process inventory?
A. A retail store
B. A manufacturing company
C. A service organization
D. A real-estate investment trust
8) _____ is a measure of income or profit divided by the investment required to obtain that income or profit.
A. Return on sales
B. Capital turnover
C. Return on investment
D. Residual income
9) The following information is available for the Peter Company:
Sales: $150,000
Invested capital: $156,250
ROI: 10%
The return on sales is _____.
A. 10.00%
B. 10.42%
C. 62.50%
D. 9.60%
10) The following information is available for the Peter Company:
Sales: $500,000
Invested capital: $312,500
ROI: 10%
The return on sales is _____.
A. 10.00%
B. 6.250%
C. 1.000%
D. 62.50%
11) Company A’s revenues are $300 on invested capital of $240. Expenses are currently 70% of sales. If Angelo Company can reduce its capital investment by 20% in Company A, return on investment will be _____.
A. 75%
B. 93.75%
C. 18.75%
D. 46.88%
12) When the variable costing method is used, fixed factory overhead appears on the income statement as a _____.
A. component of cost of goods sold
B. fixed expense
C. production-volume variance
D. component of gross profit
13) In absorption costing, costs are separated into the major categories of _____.
A. manufacturing and nonmanufacturing
B. manufacturing and fixed
C. fixed and variable
D. variable and nonmanufacturing
14) _____ is another term for variable costing.
A. Full costing
B. Direct costing
C. Traditional costing
D. Absorption costing
15) Budgeted service department cost rates protects the user departments from _____.
A. service department efficiencies
B. price fluctuations
C. service outages
D. employee control
16) _____ is an example of the external financial-reporting purpose of the cost management systems.
A. The cost of a manufacturing process
B. The product mix to optimize profitability
C. The amount of inventory that should appear on the balance sheet
D. Budget reporting
17) The level of sales at which revenues equal expenses and net income is zero is called the _____.
A. margin of safety
B. contribution margin
C. break-even point
D. marginal income point
18) Output measures of both resources and activities are _____.
A. cost drivers
B. stages of production
C. fixed activities
D. variable activities
19) The break-even point is where _____.
A. total sales revenue equals total cost plus desired profit.
B. the contribution margin equals net income plus fixed costs.
C. total sales revenue equals total cost.
D. the variable cost equals total cost.
20) _____ budgeting is when budgets are formulated with the active participation of all affected employees.
A. Financial
B. Team
C. Participative
D. Shared
21) _____ is the logical integration of management accounting tools to gather and report data and to evaluate performance.
A. An internal control system
B. A quality control system
C. A financial-reporting system
D. A management control system
22) _____ are components of a master budget.
A. A strategic plan and an operating budget
B. An operating budget and a capital budget
C. A continuous budget and a static budget
D. A cash budget and an activity budget
23) An important factor considered by sales forecasters is _____.
A. production employee requirements.
B. expectations of the board of directors.
C. competitors’ activities.
D. the desired level of sales.
24) _____ models are mathematical models of the master budget that can react to any set of assumptions about sales, costs, and product mix.
A. Variance analysis
B. Financial planning
C. Accounting
D. Futuring
25) Which of the following is an objective of budgeting?
A. Budgeting provides benchmarks against which performance can be measured.
B. Budgeting provides a fixed fiscal plan that should not be changed during the year.
C. Budgeting helps managers build favorable variances into the performance-evaluation process.
D. Budgeting is done exclusively by the chief fiscal officer for control purposes.
26) An organization's budget program should be used
A. to have power over employees.
B. to assign blame to managers that do not meet budgetary goals.
C. to help managers plan and control the organization’s performance.
D. to help the chief fiscal officer to allocate resources to the favored projects of the executives.
27) The activity-based costing may reveal _________, whereas traditional costing cannot.
A. high-volume products are overcosted
B. low-volume products are overcosted
C. both high- and low-volume products are overcosted
D. both high- and low-volume products are undercosted
28) _____ is a method of approximating cost functions.
A. Cost-driver analysis
B. Transaction analysis
C. Product analysis
D. Account analysis
29) In relation to a cost function, the term reliability refers to _____.
A. whether the costs and activities can be easily observed
B. whether the cost function conforms to a given mathematical model
C. how well the cost function predicts future costs
D. how well the cost function explains past cost behavior
30) One of the simplest methods to measure a linear cost function from past data is the _____.
A. regression analysis method
B. high–low method
C. least squares regression method
D. visual-fit method
ACC 561 FINAL EXAM GUIDE (NEW)
1.Which of the following is an advantage of corporations
relative to partnerships and sole proprietorships?
2.The group of users of accounting information charged with
achieving the goals of the business is its
3.Which of the following financial statements is cornered
with the company at a point in time?
4.An income statement
5.The most important information needed to determine if
companies can pay their current obligations is the
6.A liquidity ratio measures the
7.The convention of consistency refers to consistent use of
accounting principles
8.Horizontal analysis is also known as
9.Horizontal analysis is a technique for evaluating a
series of financial statement data over a period of time
10.Vertical analysis is a technique that expresses each
item in a financial statement
11.Process costing is used when
12.An important feature of a job order cost system is that
each job
13.In a process cost system, product costs are summarized:
14.An activity that has a direct cause-effect relationship
with the resources consumed is a(n)
15.Activity-based costing
16.A cost which remains constant per unit at various levels
of activity is a
17.Fixed costs are $600,000 and the contribution margin per
unit is $150. What is the break-even point?
18.The break-even point is where
19.When a company assigns the costs of direct materials,
direct labor, and both variable and fixed manufacturing overhead to products,
that company is using
20.If a division manager’s compensation is based upon the
division’s net income, the manager may decide to meet the net income targets by
increasing production when using
21.An unrealistic budget is more likely to result when it
22.A major element in budgetary control is
23.The purpose of the sales budget report is to
24.The accumulation of accounting data on the basis of the
individual manager who has the authority to make day-to-day decisions about
activities in an area is called
25.Variance reports are
26.Internal reports that review the actual impact of
decisions are prepared by
27.The process of evaluating financial data that change
under alternative courses of action is called
28.Seasons Manufacturing manufactures a product with a unit
variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs
were $480,000 when 10,000 units were produced and sold. The company has a
one-time opportunity to sell an additional 1,000 units at $140 each in a foreign
market which would not affect its present sales. If the company has sufficient
capacity to produce the additional units, acceptance of the special order would
affect net income as follows:
29.Carter, Inc. can make 100 units of a necessary component
part with the following costs:
Direct Materials$120,000
Direct Labor20,000
Variable Overhead60,000
Fixed Overhead40,000
If Carter can purchase the component externally for
$220,000 and only $10,000 of the fixed costs can be avoided, what is the
correct make-or-buy decision?
30.A company has a process that results in 15,000 pounds of
Product A that can be sold for $16 per pound. An alternative would be to
process Product A further at a cost of $200,000 and then sell it for $28 per
pound. Should management sell Product A now or should Product A be processed
further and then sold? What is the effect of the action?
ACC 561 FINAL GUIDE 2
ACC 561 Final Guide Set 2
1) According to the Financial Executives
Institute, one function of controllership is _____.
2) Performance reports _____.
3) Budgets _____.
4) Ethical accountants are important to
society because _____.
5) According to the Institute of Management
Accountants’ Statement of Ethical Professional Practice, the standard of
competence includes:
6) According to the Institute of Management
Accountants’ Statement of Ethical Professional Practice, the standard of
objectivity includes _____.
7) Which scorecard function is associated
with making non-routine decisions?
8) _____ is the field of accounting that
develops information for external decision makers such as stockholders,
suppliers, banks, and government regulatory agencies.
9) Launching a new product line is an
example of _____.
10) The _____ is also called the statement
of financial position.
11) The accrual basis of accounting
recognizes the impact of transactions on the financial statements in the period
when _____.
12) The _____ is not one of the three major
financial statements.
13) The use of acquisition cost less
depreciation in valuing an asset on the balance sheet is the logical result of
the _____ accounting convention.
14) The accounting convention of _____
guides the relative sophistication of the accounting system.
15) The accounting convention of _____ means
selecting the method of measurement that yields the gloomiest immediate
results.
16) The statement of cash flows is used for
all of the following except_____.
17) The difference between a single and
multiple step income statement is that a single step income statement_____.
18) Sylvester Company requires clients to
pay in advance for legal services. One such client made a $4,000 payment on May
1, and Sylvester Company recorded this transaction in the appropriate liability
account. As of May 20, the legal services that the client requested had been
completed. The May 20 accounting entry will:
19) Output measures of both resources and
activities are _____.
20) Which of the following is not a cost
driver of customer services costs?
21) Which value chain function would include
the cost of computer-aided design equipment and cost to develop the prototype
of a product?
22) Walnut Corporation sells desks at $480
per desk. The costs associated with each desk are as follows:
Direct materials
Total fixed costs for the period are
$456,840. The contribution margin per desk is _____.
23) Hug Me Company produces dolls. Each doll
sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for
direct materials and $5.25 is for direct labor. If total fixed costs are
$435,000, then the break even volume in dollars is _____.
24) If the sales price per unit is $100, the
unit variable cost is $75, and total fixed costs are $150,000, then the break
even volume in dollar sales rounded to the nearest whole dollar is _____.
25) _____ of approximating cost functions
does not involve the analysis of past costs.
26) In relation to a cost function, the term
reliability means_____.
27) The _____ method of measuring cost
functions is the least reliable.
28) _____ is a name for a system that first
accumulates overhead costs for each of the activities of an organization, and
then assigns the costs of activities to the products, services, or other cost
objects that caused that activity.
29) The change from traditional costing to
activity-based costing may reveal that _____.
30) _____ is an example of the external
financial reporting purpose of the cost management systems.
31) _____ models are mathematical models of
the master budget that can react to any set of assumption about sales, costs,
and product mix.
32) Budgets generate negative feelings if
they are _____.
38) The master budget quantifies targets for
all of the following except _____.
39) Differences between the static budget
and the flexible budget are due to _____.
40) Costs are allocated for all the
following purposes except to _____.
41) The use of budgeted service department
cost rates protects using departments from _____.
42) Cost allocation base refers to the
_____.
43) Murphy Company has two service
departments, Maintenance and Personnel, as well as two production departments,
Mixing and Finishing. Maintenance costs are allocated based on
square footage while personnel costs are
allocated based on number of employees. The following information has been
gathered for the current year:
46) In absorption costing, costs are
separated into the major categories of_____.
47) _____ is another term for variable
costing.
48) When the variable costing method is
used, fixed factory overhead appears on the income statement as a_____.
49) _____ is the first step in designing a
management control system.
50) _____ is (are) the most basic component
of a management control system.
51) Identify which of the following is not a
characteristic of a management control system.
52) The following information is available
for the Peter Company:
Sales $500,000
53) _____ is a measure of income or profit
divided by the investment required to obtain that income or profit. A. Return
on investment
54) The following information is available
for the Peter Company:
Sales $150,000
ACC 561 FINAL GUIDE 3
1) According to the Financial Executives
Institute, one function of the treasurer is _____
2) Budgets _____.
3) Department performance reports can
be used to help department heads determine _____.
4) Ethical accountants are important
to society because _____.
5) Below is a statement from the Institute
of Management Accountants’ Statement of Ethical Professional Practice. “Refrain
from disclosing confidential information acquired in the course of their work
except when authorized, unless legally obligated to do so.” It is an
7) _____ refers to accounting information
developed for managers within an organization.
8) _____ is the field of accounting that
develops information for external decision makers such as stockholders,
suppliers, banks, and government regulatory agencies.
9) Launching a new product line is an
example of _____
10) _____ would not appear on the financial
statements for a sole proprietorship.
11) The _____ is also called the
statement of financial position.
12) The accrual basis of accounting
recognizes the impact of transactions on the financial statements in the period
when _____
13) The accounting convention of _____
guides the relative sophistication of the accounting system.
14) The accounting convention of _____
permits a company to immediately expense assets (such as a garbage can) with
small values and long useful lives.
15) Mr. Bryant invested $50,000 cash
in a new corporation. The new corporation will record this transaction with a
debit to_____
16) The difference between a single and
multiple step income statement is that a single step income statement_____
17) The Rebecca Company acquired merchandise
inventory costing $10,000 on September 1. The company will not pay for the
inventory until October 1. This transaction will affect the Rebecca Company by
increasing the Merchandise Inventory account by $10,000 and _____.
18) Limited liability means that_____.
19) Which value chain function would
include depreciation on transportation cost?
20) Number of engineering hours is a
likely cost driver for which value chain function?
21) Which value chain function would include
the cost of computer-aided design equipment and cost to develop the prototype
of a product?
22) Walnut Corporation sells desks at $480
per desk. The costs associated with each desk are as follows:
Direct materials
Total fixed costs for the period are
$456,840. The contribution margin per desk is _____.
23) Hug Me Company produces dolls. Each doll
sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for
direct materials and $5.25 is for direct labor. If total fixed costs are $435,000,
then the break even volume in dollars is _____.
24) If the sales price per unit is $100, the
unit variable cost is $75, and total fixed costs are $150,000, then the break
even volume in dollar sales rounded to the nearest whole dollar is _____.
25) _____ of approximating cost functions
does not involve the analysis of past costs.
26) In relation to a cost function, the term
reliability means_____.
27) The _____ method of measuring cost
functions is the least reliable.
28) _____ is a name for a system that first
accumulates overhead costs for each of the activities of an organization, and
then assigns the costs of activities to the products, services, or other cost
objects that caused that activity.
29) The change from traditional costing to
activity-based costing may reveal that _____.
30) _____ is an example of the external
financial reporting purpose of the cost management systems.
31) _____ models are mathematical models of
the master budget that can react to any set of assumption about sales, costs,
and product mix.
32) Budgets generate negative feelings if
they are _____.
38) The master budget quantifies targets for
all of the following except _____.
39) Differences between the static budget
and the flexible budget are due to _____.
40) Costs are allocated for all the
following purposes except to _____.
41) The use of budgeted service department
cost rates protects using departments from _____.
42) Cost allocation base refers to the
_____.
43) Murphy Company has two service
departments, Maintenance and Personnel, as well as two production departments,
Mixing and Finishing. Maintenance costs are allocated based on
square footage while personnel costs are
allocated based on number of employees. The following information has been
gathered for the current year:
46) In absorption costing, costs are
separated into the major categories of_____.
47) _____ is another term for variable
costing.
48) When the variable costing method is
used, fixed factory overhead appears on the income statement as a_____.
49) _____ is the first step in designing a
management control system.
50) _____ is (are) the most basic component
of a management control system.
51) _____ is (are) the most basic component
of a management control system.
52) The following information is available
for the Peter Company: Sales $150,000 Invested Capital 156,250 ROI 10% The
return on sales is _____.
53) Jewel Company’s revenues are $300
and invested capital is $240. Expenses are currently 60% of sales. Jewel
Company’s current return on investment is _____.
54) Speedo Company’s revenues are
$300 on invested capital of $240. Expenses are currently 70% of sales. If
Angelo Company can reduce its invested capital by 20%, return on investment
will be _____
ACC 561 FINAL GUIDE 4
1) Department performance reports can be
used to help department heads determine _____.
2) Performance reports _____.
3) According to the Financial Executives
Institute, one function of controllership is _____.
4) Which of the following is not a major
factor causing changes in management accounting today? A. Increasing importance
of the service sector of the economy is not a major factor.
5) Ethical accountants are important to
society because _____.
6) According to the Institute of Management
Accountants' Statement of Ethical Professional Practice, the standard of
competence includes:
7) Which scorecard function is associated
with making non-routine decisions?
8) The primary users of management
accounting information are _____.
9) _____ is the field of accounting that
develops information for external decision makers such as stockholders,
suppliers, banks, and government regulatory agencies.
10) The _____ is also called the statement
of financial position.
11) Etiwanda Company's accountant recorded a
debit to Accounts Payable and a credit to Cash. This transaction will_____.
12) The _____ is not one of the three major
financial statements.
13) The accounting convention of _____
guides the relative sophistication of the accounting system.
14) The accounting convention of _____ means
selecting the method of measurement that yields the gloomiest immediate
results.
15) The use of acquisition cost less
depreciation in valuing an asset on the balance sheet is the logical result of
the _____ accounting convention.
16) The statement of cash flows is used for
all of the following except_____.
17) The Rebecca Company acquired merchandise
inventory costing $10,000 on September 1. The company will not pay for the
inventory until October 1. This transaction will affect the Rebecca Company by
increasing the Merchandise Inventory account by $10,000 and _____.
18) Output measures of both resources and
activities are _____.
19) Nonoperating items on the income
statement_____.
20) Number of engineering hours is a likely
cost driver for which value chain function?
21) Which value chain function would include
advertising costs?
22) Walnut Corporation sells desks at $480
per desk. The costs associated with each desk are as follows:
Direct materials $195
Direct labor 126
Variable factory overhead 51
23) If the sales price per unit is $100, the
unit variable cost is $75, and total fixed costs are $150,000, then the break
even volume in dollar sales rounded to the nearest whole dollar is _____.
24) Hug Me Company produces dolls. Each doll
sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for
direct materials and $5.25 is for direct labor. If total fixed costs are
$435,000, then the break even volume in dollars is _____.
25) The _____ method of measuring cost
functions is the least reliable.
26) _____ of approximating cost functions
does not involve the analysis of past costs.
27) Managers should apply two principles to
obtain accurate and useful cost functions. These principles are ____
28) The change from traditional costing to
activity-based costing may reveal that _____.
29) _____ need cost accounting systems.
30) A sales forecast is _____.
31) _____ is an example of the external
financial reporting purpose of the cost management systems.
32) _____ models are mathematical models of
the master budget that can react to any set of assumption about sales, costs,
and product mix.
33) A _____ gives the expected sales under a
given set of conditions.
34) A _____ gives the expected sales under a
given set of conditions.
35) Important factors considered by sales
forecasters include all of the following except _____.
36) The master budget includes forecasts for
all of the following except _____.
37) The master budget quantifies targets for
all of the following except _____.
38) _____ are components of a master budget.
39) Differences between the static budget
and the flexible budget are due to _____.
40) The use of budgeted service department
cost rates protects using departments from _____.
41) Cost allocation base refers to the
_____.
42) The preferred guidelines for allocating
service department costs include _____.
43) Murphy Company has two service departments,
Maintenance and Personnel, as well as two production departments, Mixing and
Finishing. Maintenance costs are allocated based on square footage while
personnel costs are allocated based on number of employees. The following
information has been gathered for the current year:
44) Gomez Company has two service
departments, Maintenance and Personnel, as well as two production departments,
Mixing and Finishing. Maintenance costs are allocated based on square footage
while personnel costs are allocated based on number of employees. The following
information has been gathered for the current year _____.
Maintenance Personnel Mixing Finishing
Direct dept. costs $126,000 $84,000 $105,000
$175,000
45) Serena Company has two service
departments, Maintenance and Personnel, as well as two production departments,
Mixing and Finishing. Maintenance costs are allocated based on square footage
while personnel costs are allocated based on number of employees. The following
information has been gathered for the current year:
Maintenance Personnel Mixing Finishing
46) In absorption costing, costs are
separated into the major categories of_____.
47) Absorption costing assigns _____ to the
product.
48) Factory overhead appears on the
absorption-costing income statement as_____.
49) _____ is the first step in designing a
management control system.
50) _____ is (are) the most basic component
of a management control system.
51) Identify which of the following is not a
characteristic of a management control system.
52) The following information is available
for the Peter Company:
Sales $500,000
Invested Capital 312,500
ROI 10%
53) _____ is a measure of income or profit
divided by the investment required to obtain that income or profit.
54) The following information is available
for the Peter Company:
Sales $150,000
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