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Acct |\ 2000 |\exam |\ 3 |\Lowe-ardoin |\– |\questions |\
with |\answers
Financial |\accounting |\is |\an |______ |\primary |\user |- |\CORRECT |\ANSWERS |
✔✔external managerial |\accounting |\is |\a |_____ |\primary |\user |- |\CORRECT |\ANSWERS |
✔✔internal report |\used |\in |\financial |\accounting |- |\CORRECT |\ANSWERS |
✔✔financial |\statement report |\used |\in |\managerial |\accounting |- |\CORRECT |\ANSWERS |
✔✔internal |\reports frequency |\of |\reports |\in |\financial |\accounting |- |\CORRECT |\ANSWERS |
✔✔monthly, |\quarterly |\or |\annual frequency |\of |\reports |\in |\managerial |\accounting |- |\CORRECT |\ANSWERS |\✔✔as |\needed purpose |\of |\reports |\in |\financial |\accounting |- |\CORRECT |\ANSWERS |
✔✔general
purpose |\of |\reports |\in |\managerial |\accounting |- |\CORRECT |\ANSWERS |
✔✔specific content |\of |\reports |\in |\financial |\accounting |- |\CORRECT |\ANSWERS |
✔✔highly |\aggregated content |\of |\reports |\in |\managerial |\accounting |- |\CORRECT |\ANSWERS |
✔✔very |\detailed portion |\of |\business |\covered |\in |\financial |\accounting |- |\CORRECT |
ANSWERS |\✔✔whole |\business portion |\of |\business |\covered |\in |\managerial |\accounting |- |\CORRECT |
ANSWERS |\✔✔subunit verification |\process |\in |\financial |\accounting |- |\CORRECT |\ANSWERS |
✔✔audited verification |\process |\in |\managerial |\accounting |- |\CORRECT |\ANSWERS |
✔✔not |\audited are |\you |\required |\to |\follow |\GAAP |\in |\financial |\accounting |- |\CORRECT |
ANSWERS |\✔✔yes
costs |\can |\be |\broken |\down |\into |\ 2 |\main |\categories |- |\CORRECT |
ANSWERS |\✔✔product |\and |\period aka |\manufacturing |\costs; |\Incurred |\at |\the |\factory. |\These |\are |
considered |\inventoriable |\costs |\as |\they |\are |\originally |\placed |\on |\the |
balance |\sheet |\and |\moved |\to |\the |\income |\statement |\when |\goods |\are |\sold. |- |\CORRECT |\ANSWERS |\✔✔product |\costs matched |\with |\revenues |\of |\a |\specific |\time |\period |\and |\charged |
directly |\to |\expense. |- |\CORRECT |\ANSWERS |\✔✔period |\costs beginning |\finished |\inventory |+ |\cost |\of |\goods |\manufactured- |\ending |
finished |\goods |= |\cost |\of |\goods |\sold |- |\CORRECT |\ANSWERS |\✔✔cost |
of |\goods |\sold |(manufacturer) manufacturers |\have |\ 3 |\types |\of |\inventory |\on |\the |\balance |\sheet |- |
CORRECT |\ANSWERS |\✔✔1. |\finished |\goods
- |\work |\in |\process
- |\raw |\materials the |\function |\that |\pertains |\to |\keeping |\the |\activities |\of |\the |\enterprise |\on |\track |\is: |- |\CORRECT |\ANSWERS |\✔✔a. |\planning b. |\directing c. |\controlling
d. |\accounting C. |\CONTROLLING for |\a |\manufacturing |\company, |\which |\of |\the |\following |\is |\an |\example |\of |\a |\period |\cost |\rather |\than |\a |\product |\cost? |- |\CORRECT |\ANSWERS |
✔✔a. |\depreciation |\of |\factory |\equipment b. |\wages |\of |\salesperson c. |\wages |\of |\matching |\operator d. |\insurance |\on |\factory |\equipment B. |\WAGES |\OF |\SALESPERSON for |\the |\year, |\mahatma |\company |\has |\cost |\of |\goods |\manufactured |
$325,000, |\beginning |\finished |\goods |\inventory |$150,000, |\and |\ending |\finished |\goods |\inventory |\is |$175,000. |\The |\cost |\of |\goods |\sold |\is: |- |
CORRECT |\ANSWERS |\✔✔a. |$275, b. |$300, c. |$325, d. |\350,000 |
B. |\300,
breakeven |\is |\where: |- |\CORRECT |\ANSWERS |\✔✔-contribution |\margin |= |\fixed |\costs -total |\sales |= |\total |\costs |(fixed |& |\variable) -net |\income |\is |\zero breakeven |\can |\be |\computed |\in |\ 3 |\ways: |- |\CORRECT |\ANSWERS |
✔✔mathematical, |\contribution |\margin, |\CVP |\graph the |\break-even |\point |\can |\be |\expresses |\in |__________ |\or |__________ |- |
CORRECT |\ANSWERS |\✔✔units dollars rather |\than |\breaking |\even, |\managers |\usually |\set |\an |\income |
objective |\called |_________________________ |- |\CORRECT |\ANSWERS |
✔✔target |\net |\income costs |\that |\vary |\in |\total |\directly |\and |\proportionately |\with |\changes |\in |
activity |\level |\are: |- |\CORRECT |\ANSWERS |\✔✔a. |\variable |\costs b. |\fixed |\costs c. |\mixed |\costs d. |\semi-variable |\costs
A. |\VARIABLE |\COSTS
the |\contribution |\margin |\ratio |\increases |\when |- |\CORRECT |\ANSWERS |
✔✔a. |\fixed |\costs |\increase b. |\fixed |\costs |\decrease c. |\variable |\costs |\as |\a |\percentage |\of |\sales |\decreases d. |\variable |\costs |\as |\a |\percentage |\of |\sales |\increase C. |\VARIABLE |\COSTS |\AS |\A |\PERCENTAGE |\OF |\SALES |\DECREASE dolce |\company |\is |\planning |\to |\sell |\400,000 |\hammers |\for |$1.50/unit. |
the |\contribution |\margin |\ration |\is |\20%. |\If |\Dolce |\will |\break |\even |\at |
this |\level |\of |\sales, |\what |\are |\the |\fixed |\costs |- |\CORRECT |\ANSWERS |
✔✔a. |$120, b. |$280, c. |$400, d. |$480, A. |$120, after |\the |\break-even |\point, |\fixed |\costs |\are: |- |\CORRECT |\ANSWERS |
✔✔a. |\less |\than |\the |\contribution |\margin b. |\equal |\to |\the |\contribution |\margin
- |\coordination |\of |\activities
- |\increases |\management's |\awareness
- |\motivates |\personel the |\principle |\of |\effective |\budgeting |\that |\requires |\managers |\to |\have |
both |\the |\authority |\and |\responsibility |\is |______ |__________ |__________ |- |
CORRECT |\ANSWERS |\✔✔sound |\organizational |\structure the |\best |\type |\of |\budget |\is |\a |_______ |__ |____ |\budget |- |\CORRECT |
ANSWERS |\✔✔bottom |\to |\top when |\a |\manager |\intentionally |\creates |\a |\low |\budget, |\this |\is |\known |
as |_______ |______ |- |\CORRECT |\ANSWERS |\✔✔budgetary |\slack the |\most |\common |\budget |\term |\is |_____ |_______ |\but |\budgets |\can |
cover |\different |\time |\periods |- |\CORRECT |\ANSWERS |\✔✔one |\year the |\budget |\that |\keeps |\management |\planning |\a |\full |\year |\ahead |\is |\a |______ |_______ |- |\CORRECT |\ANSWERS |\✔✔continuous |\budget what |\are |\the |\two |\main |\classes |\of |\a |\master |\budget |(which |\is |\a |\set |
of |\interrelated |\budgets)? |- |\CORRECT |\ANSWERS |\✔✔operating |\and |
financial
the |\first |\operating |\budget |\is |\always |\the |_____ |______, |\as |\the |
operating |\budget |\starts |\with |\a |\sales |\forecast |- |\CORRECT |\ANSWERS |
✔✔sales |\budget the |\last |\operating |\budget |\is |\the |____ |_____ |______ |- |\CORRECT |
ANSWERS |\✔✔budgeted |\income |\statement which |\operating |\budget |\includes |\units |\only? |- |\CORRECT |\ANSWERS |
✔✔Production |\budget |(no |$$) sales |+ |\desired |\ending |\FG |\inventory |- |\beginning |\FG |\inventory |= |
required |\production |\units |- |\CORRECT |\ANSWERS |\✔✔required |
production |\in |\units = |\Units |\to |\be |\produced |\x |\direct |\labor |\time/unit |\x |\direct |\labor |\cost/hour |- |\CORRECT |\ANSWERS |\✔✔total |\direct |\labor |\cost which |\ 2 |\operating |\budgets |\are |\broken |\down |\into |\fixed |\and |\variable |\costs? |- |\CORRECT |\ANSWERS |\✔✔Manufacturing |\Overhead selling |\and |\administrative list |\the |\ 3 |\financial |\budgets? |- |\CORRECT |\ANSWERS |\✔✔1. |\capital |
expenditure
- |\cash |\budget
In |\the |\Campbell |\Company |\required |\production |\for |\June |\is |\44,000 |
units. |\To |\make |\one |\unit |\of |\finished |\product, |\three |\pounds |\of |\direct |
material |\Z |\are |\required. |\Actual |\beginning |\and |\desired |\ending |
inventories |\of |\direct |\material |\Z |\are |\100,000 |\and |\110,000 |\pounds, |
respectively. |\How |\many |\pounds |\of |\direct |\material |\Z |\must |\be |
purchased? |- |\CORRECT |\ANSWERS |\✔✔a. |\126, b. |\132, c. |\136, d. |\142, D. |\142, For |\better |\management |\acceptance, |\the |\flow |\of |\input |\date |\for |
budgeting |\should |\begin |\with |\the: |- |\CORRECT |\ANSWERS |\✔✔a. |
Accounting |\department b. |\Top |\management c. |\Lower |\level |\of |\management d. |\Budget |\committee C. |\LOWER |\LEVEL |\OF |\MANAGEMENT
- |\The |\starting |\point |\in |\preparing |\the |\master |\budget |\is |\the |- |
CORRECT |\ANSWERS |\✔✔a. |\Cash |\budget
b. |\Budgeted |\income |\statement c. |\Direct |\materials |\budget d. |\Sales |\budget D. |\SALES |\BUDGET
- |\At |\the |\beginning |\of |\the |\year, |\Opal |\Company |\has |\a |\cash |\balance |
of |$23,000. |\During |\the |\year, |\the |\company |\expects |\cash |
disbursements |\of |$160,000, |\and |\cash |\receipts |\of |$140,000. |\If |\Opal |
Company |\requires |\an |\ending |\cash |\balance |\of |$20,000, |\how |\much |
must |\the |\company |\borrow? |- |\CORRECT |\ANSWERS |\✔✔a. |$20, b. |$ c. |$17, d. |$40, C. |$17, - |\Microtech |\plans |\to |\sell |\2,000 |\computers |\in |\April; |\1,900 |\in |\May; |
and |\2,000 |\in |\June. |\The |\company |\keeps |\15% |\of |\the |\next |\month's |
sales |\as |\ending |\inventory. |\How |\many |\units |\should |\Microtech |
produce |\in |\May? |- |\CORRECT |\ANSWERS |\✔✔a. |\Amount |\cannot |\be |
determined |\due |\to |\insufficient |\information. b. |$1, c. |$1,
