Attempt All the questions. Choose the most appropriate answer (eg.

A,B,C,D and E) in the answer sheet provided at the back of the paper.
1. Much of managerial accounting information is based on: A. a cost-benefit theme. B. profit maximization. C. cost minimization. D. the generation of external information. E. effectiveness but not efficiency. 2. Managerial accounting has changed in recent years because of: A. a growing service economy in the United States. B. the growing popularity of cross-functional teams. C. an increase in global competition. D. time-based competition. E. All of these factors. 3. The value chain of a manufacturer would tend to include activities related to: A. manufacturing. B. research and development. C. product design. D. marketing. E. All of these. 4. The accounting records of Bronco Company revealed the following information:

Bronco's cost of goods manufactured is: A. $519,000. B. $522,000. C. $568,000. D. $571,000. E. some other amount. 5. Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have been: A. $130,000. B. $10,000. C. $66,000. D. $390,000. E. some other amount.

and actual machine hours were 25. $21 per machine hour. D. What are the total costs when 8.000.000.04 per machine hour. $300. The marginal cost when the twenty-first student enrolls in the school is: A. 8. The school has determined that the following biweekly revenues and costs occur at different levels of enrollment: 7. 9. Strong Company applies overhead based on machine hours. E. At the beginning of 20x1. actual manufacturing overhead costs.000. overhead applied to Work-in-Process Inventory. and machine hours would total 20.05 per machine hour. C. the 20x1 predetermined overhead rate was: A.255. actual overhead totaled $525. $3. D.000 units are produced variable costs are $35 per unit and total costs are $200. overapplied overhead. E. predetermined overhead. Throughout the accounting period. B.000. On the basis of this information. D. $3. $200. By 20x1 year-end. $0.045. Wee Care is a nursery school for pre-kindergarten children. $240. Total costs cannot be calculated based on the information presented. $55. D. C. B. $20 per machine hour. the credit side of the Manufacturing Overhead account is used to accumulate: A.000. B. Some other amount.000. E. B. $305. C. underapplied overhead.000. When 5.000. $155. $25 per machine hour . $0. the company estimated that manufacturing overhead would be $500.6. E. C.000 units are produced? A.

identification of cost drivers. Choice D E. applying $800. Some other sequence of the four activities listed above.. Choice E St. Choice B C. Choice B C. Which of the following choices correctly depicts the proper classification of direct materials used and management salaries? A. Choice C D. Armada Company applies manufacturing overhead by using a predetermined rate of 150% of direct labor cost. 12. assignment of cost to products. C. Identification of cost drivers. 831: If Armada adds a 30% markup on total cost to generate a profit. Choice A B. Choice C D. currently uses traditional costing procedures. identification of cost drivers. identification of cost pools. and number of parts components (PC) as cost drivers. The data that follow pertain to job no. Choice D E. assignment of cost to products. Data on the cost pools and respective driver volumes follow. Choice E 11. 831? A. production setups (SU). calculation of pool rates. Choice A B. identification of cost pools. Inc. identification of cost pools. assignment of cost to products. calculation of pool rates. Calculation of pool rates. The company is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH). . calculation of pool rates. identification of cost drivers.10. which of the following choices depicts a portion of the accounting needed to record the credit sale of job no. James. B. E. D. Assignment of cost to products. Which of the following is the proper sequence of events in an activity-based costing system? A. Identification of cost pools.000 of overhead to products Beta and Zeta on the basis of direct labor hours.

C. D. The overhead cost allocated to Beta by using traditional costing procedures would be: A.000.000. The company uses the high-low method to analyze costs. E. 17. E. Swanson's variable cost per copy is: A. $356. B. $240. $560. and total volume has decreased. and total volume has decreased. $0. some other amount 15. $444. 16. which of the following is probably true? A.000. $444. $356. B. E. . E. $560. D. The company is studying a variable cost. D.051. $356. C. C. Swanson made 7.056. and total volume has increased. The overhead cost allocated to Beta by using activity-based costing procedures would be: A. $356.000. the firm paid $280 for 5. and total volume has increased.000. $240. 14. A company observed a decrease in the cost per unit. E.000. The company is studying a fixed cost. D. B. and total volume has remained constant. $444.000.040. The company is studying a fixed cost. $444. The overhead cost allocated to Zeta by using traditional costing procedures would be: A. B. $0. B.000 copies and paid a total of $360 in March.000 copies. D.000. All other things being equal. Swanson and Associates presently leases a copy machine under an agreement that calls for a fixed fee each month and a charge for each copy made. an amount other than those given above. in May. C.000.000. C. $0. The company is studying a variable cost.053. D. $560.000. 18.13.000. The company is studying a fixed cost.000. some other amount. C. $240. E. B. some other amount.000. $0. some other amount. $560. $240. The overhead cost allocated to Zeta by using activity-based costing procedures would be: A.000.000.

No.000. What dollar sales level would Yellow Dot have to achieve to earn a target profit of $240. D. decrease by $12 per unit sold. D.000. Grime-X is studying the profitability of a change in operation and has gathered the following information: Should Grime-X make the change? A. and total fixed costs of $360. E. Brooklyn sells a single product to wholesalers. B.000. Swanson's monthly fixed fee is: A. $102. increase by $12 per unit sold. sells a single product for $10. decrease by $8 per unit sold. .000.000. C. D. its breakeven point will: A. C. E. because the company will be worse off by $22. B. $112. The company's budget for the upcoming year revealed anticipated unit sales of 31. because sales will drop by 3.19. $750. 22. D. $80. the company will be better off by $6. E. Inc. It is impossible to judge because additional information is needed. increase by $8 per unit sold. $600.000 units. Yellow Dot. $900.000. variable cost per unit of $8. No.000. Yes. because the company will be worse off by $4. C. E. 20. B. $400. No.000.000 units. an amount other than those given above. $500.000? A. If Brooklyn's unit sales are 200 units less than anticipated.000. a selling price of $20.600. $106. not change. B. 21.000 at a volume level of 10. C. Variable costs are $4 per unit and fixed costs total $120.

Song's costs follow. B. She feels it would be profitable because no variable selling costs will be incurred. E. S'Round Sound. if compared with separable processing. and the president is in favor of accepting the order.000 units of a product that has created a number of manufacturing problems. $594. The plant manager is opposed because the "full cost" of production is $17.23. Sound has available capacity. C. the sales revenue does not decrease to the extent that it should. B. $726. E. joint costs are not usually relevant because: A. $3. If Song were to discontinue production. None of these. $12. $720.000.000 units of IT-54: Rhythm Company has offered to purchase 3. C.000 increase. such amounts are sunk and do not change with the decision. $3.000 decrease. The relevant cost of deciding whether the division should purchase the product from an outside supplier is: A. Song. Which of the following correctly notes the change in income if the special order is accepted? A. Inc.000.000. reported the following results from the sale of 24. B. E. a division of Carolina Enterprises. When deciding whether to sell a product at the split-off point or process it further. fixed manufacturing costs would be reduced by 70%.000. $666.000. . such amounts do not help to increase sales revenue.000 decrease. C. $12. D. D. $540.000 IT-54s at $16 each. such amounts reflect opportunity costs.000 increase. currently makes 100. such amounts only slightly increase a company's sales margin. D. 24. 25.

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