Batch

20'13
9ctobgr
%SWizs
D 1. Over the relevant range, total revenuesand total costs
a. Increase,'butat a decreasingrate! c,, Remainconstant
b. Decrease be graphed as straight-line
-c---{an
O 2. Whichis definedas the point where inventorycarryingcosts and orderingcostsare at their lowest?
a. Breakevenpoint 3 Economicorder guantity
b. Order cycletime ' d. Marginalprice

D 3. An upturn in economicactivity is indicatedby all of the following,except

' a. Irrfrased housingstarts
b, Reductionin the quantity of unemploymentclaims
: c. Ine.rebsein personal travel
d.. Reductidnin the amount of luxury purchases
A 4. Delta ManufActlring Co has had a problem with its product quality. The company has had a farge
amount'of co'Stsrelated to product recalls. In consideringcost of quality methodology, if the company
waits to reducethese costs, the most likeiy ptaceto incur costs would be for
Prevention c. lnternal failure
-{-
b, Appraisal d. Externalfailure
C 5. The process of developing.specificationsfor hardware, software, personnel hpurs, data resources,and
. information products required to develop a system b relerred to as
a. System analysis . ** Systemdesign
b. System feasibility d. Systemsmaintenance .
C 6. A partiallset ofkandafid ch&racteristie of a real-tirile system is
a. Batched input, on-line files, and an ext€nsive communicationnetwork
b. Relianceupon seguerithalfiles, prompt input from users and intiractive programs
{ On-line files, prompt input qqe'r.s,
and an extensive rn
r lead tilne
7. Nile Co.'s cttst allocation and product costing procedures fottow activity-based costing princigtbs.
Activ&s have 'been identified and classified as bdng either value;addingior non-value-adiing aS to
. ebcit Fducf;'which of the following activitits, uilrO.io-wite productionpro.6rr, is non-value-addiigZ
a, De$gn erlgFlneer&!$activiry c. Drill pr",ss activRy
b', H€et'tr€atrn€nt activity .& Rair materiats stcragre activity
B. All of tt* fsfowins avrgadvantages of debt ftnancirq. except
a. Interest iStax deductible
' b. The uac bf d6tt will assist in lowering tlre firrnb cost of capital
c. In pqi* of inflltion, debt is paid back with pesos that are worth tesgthan the ones
borrmrd
,, d. inl[frtmn of debt decreasesstockhofders,risk
c 9' In conslderilS *frgS*r,tg r€pt*ce a major item of rnachinery now or at the end of its usefitl life, on€
shouldrynlp: ' .,,.:
a: 'OWtunity cd*s .s Sunk costs
b.. Fixed costs fl. Imputed costs
A 10' Which-ofthese tools would best give a graphical representatlonof sequenceof activities and decisions?
a/ Flowchart c. Histogram
b. Controf ehart d: Run chart
b 11. Arlong the following major parts of a project feasibititystudy, which grouping is consideredcritical?
' a.- Managernent, f.inancial,and social returno
.E Marketing,engineering/technical,financial
c. Technical,financial,.andenvironmentalaspects
d. Economicbenefits,management,and financial
12' A company developsa budget that is based on the behavior of costs and rcvenues over a
,rangeof sa.les
for the upcomingyear. This is an exampleof a
a. ?roductionbudget c. Capitalbudget
b. Cash budget .k Flexiblebudget
V d3. ln, regression analysis, which of the following correlation coefficients represents the strongest
relationsfipsbetweenthe independentand dependentvariables?
a . 1.03 - c. - 0.20
,Y - o'89 d. 0.75
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MS Quiz 5 (October2013 Batch) - Page2

S 14. The measurementof the benefit lost by using resourcesfor a given purposeis
' a. Economicefficiency ;- c. Comparativeadvantage
,V Opportunity cost d. Absotuteadvantage
9 15. The)ength of time betweenthe acquisitionof inventoryand paymentfor it is calledthe
a-- Operating cycle c. Accountsreceivableperiod
b. Inventory conversionperiod # Accountspayable deferral period

A 16. A predeterminedoverhead rate cannot be used

.{ If a companydoes not budget its.overheadcosts
/ b. By a companythat usesjob-order costing
. c. In a multi:productcompany
d. By a highly automatedcompanywhere labor is a minor part of productcost
b- tl.A depreciationtax-shieldis
a. An after-tax cash outflow c. The cash provided by recording depreciation
A reductionin incometaxes d. The expense caused by depreciation
,g
D 18. Which of the follolvlng budgdting systems focuseson improving operations?
, a. Responsibility'budgeting c. OperaUonalbudgeting
b- Ae0viry-ba$qd budgeting d, Kaizenbudgeting
A fg. Ihe degree of operating leverage is not affected by the change in
' a. Intprest ocpense c. euantity of units sold
b. Variab*ecost per unit d. Fixed costs ''

b ' 20. Which.oftfE bflo{Ting is likely to be a benefit of electronicdata interchange(EDI)?

a. Irrcreagd transmissionspeed of actual documents
.V Improved businessrelationshipswith trading partners
. c. Fecreased liability related to protegtion of proprbtary business data
d. Decfeased reguirgmeftt for backup and contingency plannifig
CZt.In evaluatmla.cgmpany'S ability to pay a 60-day loan, a creditor Woutdpiobably be most interested in
a. Debt ratio ,pr' Quick ratio
b. Price-earniftgs ratio d. Number of tirrnesinterest earned

A, , Employmentmust fall
their wage
b. Governmentmust set a maximum wage belowthe equitibriumwage
c. Flrms in the industry must'become smaller
d. Product suFply must dtclease
.
A 23. In a male-or-buy decision
.a fi*ed costs that can be avoided in the future are relevant
b. Fixed costs that wifl cortinue regardless of the decision are relevant
c, Irrelevant costs may be included in thc anatysis
d. Only variable costs are relevant
(: ZC.Which of the following will result in raising the breakevenpoint?
a. A decrease in the variable cost per unit
b. A decreasein income tax rates
c. An increase in the variable cq51per unit
d. An increasein the unit contribution malEn
'b
25. When ealcufatingttle cost of capital, the cost assignedto retained earnings should be
a. Tero
t' tower than the cost of external common equity
'f,qual
c. bothe cost of external common eeuity
d. Hi{her than the cost of externalcommon equity
A 26. The debt ratio and times interestearnedare measuresof
_ a. Solyency c. Profitabifity
b. Liquidity d. Asset activity

D 27. Abnormalspoilageis
' a. Not expected to occulrwhen standard costs are used
b. Not usuallycontrollableby the productionsupervisor
c. The result of unrealisticproductionstandards
F Not expectedto occur under efficientoperatingconditions

0 28. A company.employs a. system of internal reporting, which furnishes depar-Lm€ntal managers with
revenue and cost information on only those it€ms that are subject to their control. Items not iubject to
the manager'scontrolare excludedin the pefformancereports.This methooorii.ounting irino*n.t
a. contributionmargin reporting c. Absorptionaccounting
' b. Segmentreporting il Resoonsibilitv
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MS Quiz 5 (October2013 Batch) - page 3

A 29. Whichof the followingis a tool of monetary policy that a nation'scentral bank could use to stabitizethe
economyduring an inflationaryperiod?
,,: a. Selling government securities c. Lowering bank discount rates
b. Loweringbank reserverequirements d. Encouraginghighertax rate
,h

V 30. Whichvarianceis least relevantfor control purposes?

a. Mdterialuse valiance c. Fixed overhead,budget trariance
Fixed overhead volume variance d. Labor efficiencyvariance
-"bf
D 31' An executive infgrrnafion systi:m (EIS) has all of the fottowingcharacteristics,except
a. Focusingon obtaining sffategic objectives
,b.Givingimmediateinformationaboutanorganization,scriticalsuccessfactors
c. Providinginformatbn from nontraditionatcomputer sources
7{, Providingadvice and answersto top managementfrom a knowledgn'bascdsystem
C 32' The discount rate (hurdle rate of return) must be determined in advancefor-the
a. Paybackperlod method g Net present value method
b' Time-adjusted rate of retum method d. Internal rate of return method
C.'S:. Which of the following would an auditor ordinarily considerthe greatest risk regarding an entity,s
use of
electronicdata interchangje(EDI)?
a. Authorizationof EDI transactions .d Improper Oistributionof EDI transactions
b. Duplicationof EDI transrnissions d. Eliminationof paper documents
t
A 34' Whichof the followingactionsis likely to reducethe length of a firm,s conversioncycte?
z Adopting a new.inventory system that reducesthe inventory conversionpeiipO.
b' Adopting a new inventory system that increasesthe inventory convercionpe?ioo
cj Lncreasingthe average days sales oUtstandinoon its accounti receivable
--'-
d. Reducingthe amount of time the firms takes [o pay its rrpprie"---']
l
A 35. The p_rimary
reasonfor adoptrngbotatquality.manrgement(TeM) is to achiwe
gryter custornersatisfiction -
4 b. c, Reducea
oeiiverycharges
Reduceddeliverytirire d. Greateremployeepanictpation
e,, 36. Which of ttie following measures of to managcrnent wh€fl
,tFfi
Y
a, Structural unemployment F?i&ionalunernployment
b, Cyclicalunemployment -e{
d. Overallunemployrnent
V37. The amount of cash that a firm keeps on hand in order to take advantage of any b€rgain purchases
t?rat
may arise is referred to as its
a. Transactionbalance c. precautionarybalence
' b. Compensatingbalance $ S,pe"utativebalance n, e
C ":e'firyiJ."1$ts in a bdch conllxrtcr system causcd by irlcorrect program3 may not be detected
immediately because
a' Errors in sorne transactlon may cause retection of other transa€tionsin the
batch
b" The ld€atlficationof errors in input data typicafly is not part of the program
.( There are time debys in processingtransiltioni in a oaicn system' "
d. Thg processingof transactions in a batch system is not unifoim
c 39' which i.:]:?:j-!tl"lv to be affected by hiring workers with ressskin than rhose atready
working?
a. ":.]:ff,
Matertat use variance c, , llaterial price variance
b. Labor rate variance .
-d; Variableoverhead efficiencyvariance
I 4,0. whicfi of the fotfowing itsranadvantage of the payback methodl
It is €asy to urlderstand
/x r c. It distirlguishesthe source of cash inflows
b' It considers thi] time value of money d, It €orlsiders cash flow ror a1 veiii oi|.,ei.oie.t
6 41' The common fixcd costs that appear on this segrnentedincome statement
refer to costs that
a. Are due to the production of finishec,goods
-' b. Are incurred by each of the individubl-segmentsin the conduct oi noi-ut
"-"": business
.€ are incuried at one reverfor the benefit or'two or more *9m;;i,
d" Can be influencedby a single segrnent manager over a short-term
time period,
0 42' A batancedscorecardapproachto performancemeasurement
?.- Can only be used in profit or investment centers
{ Fialancesfinantial measureswith non-financialmeasures
c. Usesonly qualitativedata to evaluateperformance
d.. Uses budget€d data rather than historical data
b 43' In activity-basedcosting,which of the followingwould be consideredas
' 6. Repairof machines a value-addedactivity?
c. Bookkeepin g i
E Engineeringdesign d. Storageof iiventory
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MS Quiz 5 (October2013 Batch) - Page4 ,t
- ,
b 44. One of the ways managerialaccountingvariesfrom financialaccountingis that managerialac-qounting
- a. Is bound by generallyacceptedaccountingprinciples
,f Classifiesinformation in different ways
c. Does not use financialstatements
d. Dealsonly with economicevents
AI 45. Whichof the followingis nof .includedin a reconciliationof net income to cash flow from operations?
' a. Dividendson preferredstock c. Arnortization of patents
b. , Gain on sale of long-term investments d. Depreciationexpense
A cA.Whichofthe.followingisamanufacturingoverheadcostintheproductionofanautomobile?
y' The cost of small tools used in mountingtires on each automobile
' b. The cost of the tires on each automobile
c. The cost pf the laborers who.placetires on each autornobile
d. The delivery costs forthe tires on each automobile
D ql.If an investmentprojecthas a profitabitityindexof 1.15,then the
a, Project's internal rate of return is 15olo ,
b. project's cost of capital is greater than its interna{ r'ateof return
'c.
Project's internal rate of retu.rnexceedsits net present value
' fi. Net present value of the project is positive
C +A. Which of the following risks is not greater-in an electronic funds transfer (EFT) environrnent than in a
manual system using.paper transactions?
. a. Unauthorizedaccessand activity c Higher cost per transaction
b. Duplicatetransactionprocessing d Inadequate backup and recovery capabitities
D 49. The movement along the demand curve frtm one price-quantity combinationto another is called a(n)
a. Changein demand ' c. Shift in the dernand curve
' b. Increasein demancl d. change in theguantity,demanded
b 50. The mo$t important considerationswith respect to short:tefm investmentsare
a. ' Returnand,value c. Return and risk
Risk and liquidity d, Growth and value
0 51. A-Xmasterbudget
.?,
b.
Containsonly
c,
Can be.usedto determinemanufacturingcost variances
,a Containsthe o-Deratingbudget
D Sz, In..assessingthe'financial prospects for .a firm, financial analysts use v{$ious techniques) which of the
: following is an exampfe of veftical corRnion-sizeanalysis?
o, An assessmefltof the relative stabitity of a firm's level of vertical integration
b. A colnparisonin financial ratio from between two or more firms in the same idrdustrv
c. A statement that current advertising exp€nse is 296 greater than in thE'prior year
;I
JLa A 3t*ement'that current advertising expense is Zoloof sales
A S:. Which one of the followinEconsidersthe impact of fixed overhead costs on units produced?
fvU absorptton costing c. Direct costing
- b. MarginalcosHng d. Variable costinE
D 54. ManageFnentservi{Gsof CPAscover all of the foilowing,'except
a, Project feasibility studies
, b. System design development and implementation
c. OrgrenizationsfdEvebiment and pfanning
f evAit, tax and legn/ services
t.
A 55. The internal rate of return is the
a. Rate of inte?est that equatesthe present veHueof cash outflows and the present value
of cash inflows
b. Minimum acceptabterate of return for a proposed investment
c. Risk-adjustedrate of return
d. Requiredrate of return
I

A 56. Which of these representsa type of applicationssoftvvarethat a large client is most likely to use?
d, Enterpriseresoureeplanning c. central processingunit
b. Operatingsystem d. Value-addednetwort
A 57. which of the followingis least likely a direct fixed cost
,
of a profit center?
,d Generaloffice administrativecosts c. Profit center manager'ssalary
- b. Depreciationon center'sequiprnent d. Timekeepingfor center'semployees
D 58. Leadsand lags are /easf relevant to budgeting
a. Purchases Production
b. Cish Sales
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MSQuiz5
MS Quiz 5 (October2013 Batch) - Page5

A 59. A financinggap (additionalfunds needed)occurswhen

Requiredassetsexceedavailableequities
-:-b. The budgeted cash balancegoes
below the minimum required balance
c. Budge{edcash receiptsare lessthan budgetedcash disbursements
d. Internal sourceof financingcoversall requirementsfor additionalcapital

D 00. Costsare allocatedto cost objects in many ways and for many reasons.Which one of the foilowingis a
- purposeof cost allocation?
a. Evaluatingrevenuecenter performance
b. Measuringincorneand assets for external reporting
':i c. Budgetingcash and controllingexpenditures
d.' Aiding in variablecostingfor internalreporting

D 61. Inof the

the batancedscorecardframework, a survey of employee satisfactionis a potential measure in which
four perspectives?
a. Finahcial c, Internalbusinessprocesses
b. Customer Learningand growth
-*,
D oz' A company obtair$ng short-term financing with trade credit will pay a higherpercentage financing cost,
' everything else being equal, when
a. The discountperCentageis lower
b. The it€ms purchasedhave a higher price
c. The items purchasedhave a lower price
' d. The supplieroffers a longerdiscountperiod
l'l
V 63. whi.chof thef,ollowing is usuaily addressedfirst in strategic planning?
. a, Outsourcing c. Organizational structure
Overalfobjectivesof the firm d, Recentannualbudgets
64. A-y
L

0 cornmoninputdeviceis a(n)
a, Compiler c. Expertsystem
b. Printer .# Point-of-sale
recorder
b 65. An accounting system that
and ertgnruf cbsmFiv€ri
of the undertying nature
a. Direct cgsting c. Cycl€-time costing
.E Activity-based costrng d. V.iriable costing
66. Which model explicitly recognizesa firm's risk when determining the estimated cost of equity?
a. Capitatasset pricingmodel c. Bond-yield-plusmodel
b, Dividend-yietd-plus-gr"owth model d. Returnon equity model
p 67. WhichoFthe followingis a risk that is higherwhen an electronicfunds transfer(EFT)system is used?
a. Improper change control procedures
b. Unauthorizedaccessand activity
c. Insulficient online edit checks
d. Inadequate backupsand disaster recovery procedures
v 68' What is the least risky strategy for convdrting frorn manual to a computerized accounts receivable
system?
. a. Direct conwrsion c. Pilot coflversion
b. Parallelconversion d. Data base conversion
c 59. An unfavorablevolume variance rneansthat
a. Cost control was probablypoor
' b.- Absorptioncostin! income is fower that variable costing income
'{ Actuatoutput was less than the level used to set the standard fixed cost
d,Actua|outptrtwa5morethanthe|evelusedtosetthestandardfixedcost
A 7O'lf 4 movie theater increasesticket prices for ttre matinee shows by 10oloand the quantity
demanded decreasesby 5o/o,then the derhandfor matlnee movie tickels is said to be
of tickets
a. Inelastic c. Unftary
b. Elastic d, Not reiatedto the changein price

9 71, "Tradingon equity" pertainsto the practiceof

,X Usingfunds provided by creditors d. Trading in the stock of ottrer companies
D 72. Thequantityof outputdividedby the quantityof ,a singleinput equats
a., Residualincome c. Total productivity
b. Practicalcapacity partial productivity
)t4-
P 73. An increasein the marketsupplyof beef wouldlesuttin a(n)
a. Increasein the price of beef c. Increasein the price of pork
Decreasein the demandfor beef d. Increasein the-quantity of beef demanded
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NS Quiz 5 (October2013 Batch) - Pag'e6
74. The main componentsof the central processingunit (CPU)of a computer are
b . a. Semiconductors, online devices,and memory
_ Arithmetic-logicunit, control unit, and primary memory
"8:c. Random-accelsmemory, read-only memory, and auxiliary storage
d. Primarystorage,input-outputdevices,and arithmetic-logicunit

D 75. Which one of these costs is most likely not considereda componentof fixed factory overhead?
a. Rent c: Depreciation
b. Property taxes -k Power
A 76" Balancedscorecarduses performancemeasures with four different perspectives.Which of the following
performancerneasureswould be part of those used for the internal businessprocessesperspective?
Cycletime. c. Hours of tralning per employee.
-Ab. Employeesatisfaction. d. Customerretention.

c 77. The amount that sales may decline before lossesare incurred is called
a. Ecqnomicvalue added E Safety margin
b. Degree of operating leverage d. Net profit margin
78. A cost that bears an observableand known relationshipto a quantifiableactivity base is a (n)
Engineered cost c. Sunk cost
-{b. Indirect cost d. Target cost
A 79. The series of activities in which customer usefulnessis added to the pr;oductis the definition of
a. Value chain c. Integrated manufacturing
b. Processvalue analysis d, Activity-basedcosting
80. A target in the balancedscorecardframework js
D
a. A statement'of what the strategy must achieve and what is critical to its success
. b. A key actib.nprogram r.equlredto achieve strategic objectives
c. A diagram of the cause-and-effectrelationshipsbetween strategic objectives
.* The level of performanceor rate of irn:provementneeded in the per{ormancerneasure.

b costsdo not consider

81. Conversion
a. Depr:eciation c. Inrdirectlabor
# g-u direct materials
:
c az.If both the supply and the demand ror I go
a. Riseonly in the caseof an inelasticsupplyfunction
b. Fall only in the caseof an inelasticsupply function
c. NOt be predictabl€with only these facts
d. Rise only in the case of an inelasticdemand function
t\'
V 83. An electronic meeting conducted between several parties at remote sites is re&rred to as
a Teleprccegsing c. Telecomrnuting
b. Interactiveprocessing .* Teleconferencing
o 84. "Relevantrange",as used in cost accounting,meansthe range over which
a. Productionrlray vary .F Cost relationshipsare valid
b. Costsmay fluctuate d. Productioncosts are constant

D 85. All of the following eit examples of computer,software except

a. Dat$am mandgementsysterrl c. Languagetransfator
,K Telephonemodem d. Wordprocessing package
tt

7 86.The balanced scorecard and value-based management are techniques that are being used by a
nurriber of clrporations. In comparisonto the balancedscorecard,value-basedmanagementfocuseson
a. Nonftnancial rneasilJfeg c. Both financial and nonfinanciitlmeasures
b. Financial measures d. Quality measures
(12el. wnich is not consideredan exposure invofved with EDI systems as compared to other system?
a. Increasedrelianceupon thitd pafties. c. Increasedreliance upon computer systems.
'Delayed transaction"processing
time. d. Possibleloss of confidentiallyof infor:mation.
fi
a

A Sg. Per law of comparative advantage, lhe country that should produce a specificproduct is determined by
,t Opportunitycost c. Economicorder quantities
b. Profit margins d. Tariffs
gS. Which one of the following terms best describesa decisionsupport system (DSS)?
C
a. Managementreporting system c. Interactivesystem
b" Formalizedsystem d. Accountinginformation system
90..l{ow do,you find MS Quiz 5 which is mainly composedof t}reoryquestions?
a. Easy rg Sakto lang
'
b" Very easy d. Answer not found among the choibes
(E N D )