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

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

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

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

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

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

7. Glues and screws are variable costs in a furniture company. (Points: 5) True

(Points: 5) False . (Points: 5) False 11. (Points: 5) True 10. Unit price is the difference between the price per unit of a product and the unit cost. (Points: 5) False 14. (Points: 5) True 9.8. (Points: 5) True 13. Batch processing combines elements of individual-job and continuous-flow processing. A differentiated product has some distinguishing characteristic or quality for which consumers are willing to pay a premium. Process costing assigns the costs associated with a particular job to the units produced in that job. Normal costing measures unit costs by adding the actual costs of direct materials and direct labor to an estimated overhead cost incurred in producing the units (Points: 5) True 12. Markup is the difference between the unit cost and the selling price of a product. A predetermined overhead rate is an estimate of the amount of overhead that management believes should be assigned to a unit of product.

15. Equivalent units are the number of units that would have been produced during a period if all of the department's efforts had resulted in completed units. In parallel processing the flow of products breaks off at some point so that different units go through different processing departments. (Points: 5) False . (Points: 5) True 17. (Points: 5) True 16. Target-profit analysis is a technique used to find the volume of sales . GAAP requires that absorption costing be used to prepare internal reports.at which a company just covers its total costs. volume. (Points: 5) True 18. (Points: 5) False 19. and profits to make managerial decisions. (Points: 5) True 20.in units or dollars . A company's margin of safety is the excess of the breakeven point over actual sales. Cost-volume-profit (CVP) analysis is the use of an understanding of the relationship among costs.

Foreign currency exchange rates refer to the relative values of the currencies of different countries. direct labor dollars. Plant supervision is a unit-level cost. and machine hours are examples of activity bases. The actual overhead rate is found using estimated overhead costs divided by the estimated activity level.21. some products are likely to be produced in higher volume than others. (Points: 5) . (Points: 5) True 27. Direct labor. The direct materials budget identifies the amount of materials that will be required to support a company's total production needs. Low inflation rates are called hyperinflation. (Points: 5) True 24. (Points: 5) False 25. (Points: 5) True 22. Top-down budgets involve all levels of an organization working to achieve the organization's goal. (Points: 5) False 23. (Points: 5) True 26. (Points: 5) False 28. If a company produces more than one type of product.

Operating assets is Sales . innovation and learning. Failure costs are incurred to identify poor-quality products (or services) before a customer receives the goods or services.False 29. (Points: 5) True 34. Quality costs are limited to companies that manufacture tangible products. (Points: 5) False 33. (Points: 5) True . (Points: 5) False 31.(cost of goods sold + other operating expenses). An unfavorable variance results when the actual price (or quantity) is less than the standard price (or quantity) for materials or labor. and internal business. The balanced scorecard has key performance criteria in four categories: financial. (Points: 5) False 35. Transfer pricing involves setting appropriate selling prices for goods or services when the seller is external to the company. (Points: 5) False 32. (Points: 5) False 30. customer satisfaction. A market-based transfer pricing policy requires buyers and sellers to transfer goods based on externally verifiable prices.

(Points: 5) False 39. (Points: 5) True 38. (Points: 5) False 42. (Points: 5) False . Operational capital investment decisions affect all or a considerable part of a company's operations. A manufacturing cell is a group of related machines.36. the process will be improved. Bottlenecks represents the number of units completed by a process in a given period of time. (Points: 5) True 41. The theory of constraints states that by identifying a constraint. Processes within service organizations do not contain bottlenecks that affect lead time and throughput. Cycle time is the number of minutes that pass between units leaving the final assembly area. have uncertain lives. and require large investments. that exists in the processing of a good or service and taking corrective steps. (Points: 5) False 37. typically arranged in a straight line. such as a bottleneck. (Points: 5) False 40. Investment center managers are only held accountable for costs.

The payback period is the average accounting income a project generates per period divided by the amount of the investment in the project. (Points: 5) True 47. Traditional management accounting information (Points: 5) focuses entirely on cost drivers . The cost of capital is the interest rate that results in the present value of cash inflows from an investment. (Points: 5) False 48. Which of the following trends in the new business environment is concerned with the length of time it takes to develop. Payroll and other expenses are susceptible to manipulation. manufacture. (Points: 5) False 45. Service companies also make capital investment decisions. Internal control systems are based on the theory that workers do not always behave in ways that are in the best interests of their company or its owners. (Points: 5) False 44. (Points: 5) True 46. and deliver a product? (Points: 5) TQM 49.43.

Which of the following would be considered part of manufacturing overhead? (Points: 5) monthly salary expense for factory maintenance personnel 52. In some cases. Companies using a just-in-time production system (Points: 5) produce products based on customer demand . When an employee circumvents an internal control procedure. Which costs are sometimes found on the income statement and sometimes found on the balance sheet? (Points: 5) product costs 54. Internal auditors may have educational backgrounds or experience in which of the following fields? (Points: 5) all of the above 51. but never on the balance sheet? (Points: 5) period costs 55. Reasons a manager might make such an investment include (Points: 5) good strategic fit 56. which of the following is likely to take place? (Points: 5) (s)he almost always rationalizes the action 53. Which costs are always found on the income statement. managers may invest in long-term projects even though they may reduce ROI in the short run.50.

An artist creates original works on commission. instead of recording the payment to Jones' account and depositing the cash. Capital investment decisions typically involve several kinds of cash flows. Which of the following pieces of information would a manager need to calculate the cash flow associated with depreciation? (Points: 5) none of the above. A company with department names like fabrication. She is likely to use what type of costing? (Points: 5) job order 59. John receives a payment from Bobbie Jones for merchandise purchased on account. he pockets the cash. managers are tempted to make liberal cash flow assumptions that show positive Net Present Values (NPV) to obtain approval for their projects. and finishing is likely to use what type of costing to reflect its production operation? (Points: 5) process 58. This is an example of (Points: 5) lapping 60. Which kind best describes an asset's residual value? (Points: 5) lump sum 62.000 per year for five years. he records it to Jones' account. In large firms where different divisions compete for limited investment capital. A potential capital investment will be depreciated $5. since there is no cash flow associated with depreciation 61. He receives payments from customers and records the payments to the customers' accounts. Later. painting. What can senior management do to offset this tendency? (Points: 5) . XXXX XXXXX is a cash receipts clerk for Boro Company. John receives a payment from Shorty Cobb.57. Instead of recording the payment to Cobb's account. But.

000 based on 20. Fast Delivery Company delivers packages and business documents for local businesses located in the Houston metropolitan area. is trying to boost the current period's return on investment. It is estimated that the cost of electricity to run a machine for an entire 8-hour shift is $16.senior management should stipulate a discount rate slightly higher than the company's cost of capital to reduce the present value of projects 63. an investment center manager in RKH Corporation.000 direct labor hours. How much electricity cost is allocated to each unit of product? (Points: 5) $0. Which of the following elements of Cooper's cost hierarchy is most difficult to allocate because they cannot be associated directly with a product? (Points: 5) facility-level costs 66. The ratio of variable manufacturing overhead costs to fixed manufacturing overhead costs is 2:1. All of the following are strategic decisions except (Points: 5) improving machine setup times 67. In a given month . what would be an appropriate cost driver to use for the cost of the packaging envelopes provided to customers? (Points: 5) number of packages 65. The machine can produce 200 units of product for each hour of operation. Hamilton has budgeted total manufacturing overhead costs for the year as $125. Sebastian. Which of the following actions will achieve that goal? (Points: 5) delaying preventive maintenance on existing equipment until next year 68.01 64. If the company decided to adopt an ABC costing system to accumulate costs for its service.

Beginning cash balance $4.000. Control charts may be used for each of the following except (Points: 5) decrease inspection costs 73.100 Product costs (excludes depreciation) 20. Kirland Company collected the following information to prepare its cash budget for the first quarter of a recent fiscal period.000 Depreciation on factory equipment 1.000 Collections on account 23.150 If Kirkland wants an ending cash balance of $4. how much will it have to borrow in the first quarter? (Points: 5) $12.000 direct labor hours are budgeted for production. The cost of customer ill will caused by a defective product is an example of a(n) (Points: 5) internal failure cost 72.000 71. but presents a tremendous challenge 70.00 69. All of the above are key elements of just-in-time except (Points: 5) .2.000 Period costs 11.250 Capital Expenditures 3. How much overhead is budgeted? (Points: 5) $12.500. Research has shown that managers perform best when (Points: 5) the budget is obviously unachievable.000 Dividends 1.

if net income increases. All of the following are disadvantages of the just-in-time manufacturing philosophy except (Points: 5) having lower inventory levels decreases carrying costs 80. All of the following are elements of a statistical process control chart except for: (Points: 5) three lines indicating control limits for the characteristic 77. what will be the effect on return on investment (ROI)? (Points: 5) it will increase proportionately 79. Holding all other factors equal.cycle times are longer 74. If a materials quantity variance is based on the amount of material used in a period. Bottlenecks are generally caused by (Points: 5) a machine that produces at a slower rate than other machines in the process . who should be held accountable for managing the variance? (Points: 5) production manager 75. Product variability has what effect on costs and customer satisfaction? (Points: 5) increases costs and decreases customer dissatisfaction 78. Which of the following statements is TRUE? (Points: 5) both 1 and 2 are true 76.

com/questions/229qt-prior-to-world-war-ii-the-unitedstates-produced-about-seventy-five? txsid=7262752&opt=10&archiveid=3465173&viewquestion=49446336#ixzz11GJtiO rQ .justanswer.. ..Read more: Prior to World War II.JustAnswer http://www. the United States produce.

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