1. Customer profitability:
C) are most accurately measured using activity based costing.
2. Staley company has 30 order operators with associated costs of $1,000,000 per year. Staley calculated that each operator worked about 2,000 hours per year. Allowing for time off, each operator provided about 1,600 or productive work per year. What is the rate per hour for each order entry employee?
A) $20.83
3. The rate per hour of each order entry employee is $56.00 per hour. On average, it takes an order entry employee about 0.1 hour to enter the basic customer information for a manual customer order. In addition, manual orders require an operator to spend an additional 0.02 hour to enter each line item on the order. What is the order entry cost associated with a manual order with 10 line items?
D) $16.80
4. The 80/20 rule:
B) finds that 80% of profits are generated by the top 20% of the customers.
5. The whale curve:
B) graphs profits verses customers.
6. Service companies:
D) None of the above
7. Examining internal operations to see where the company can improve processes to lower costs of serving customers is an example of:
A) process improvements.
8. Quality engineering costs are an example of:
C) internal failure costs.
9. Constraints from the theory of constraints may include:
D) All of the above are correct.
10. In ______, all similar equipment or functions are grouped together.
A) a process layout
11. Characteristics of a process layout include:
A) continuous processing.
.
12. Lean manufacturing:
D) All of the above are correct.
13. The characteristic of a management accounting and control system that allows employees to customize applications for local decisions is referred to as being:
B) flexible.
.
14. , The research development and engineering cycle of the total life-cycle concept which focuses on developing prototypes and production processes is the:
D) product development stage.
15. The relevance of information in a MACS includes providing all of the following EXCEPT:
D) different costing methods for each division.
16. Concerns about target costing include all EXCEPT that:
A) attention may be diverted away from other company goals.
17) Target costing differs from traditional costing in all of the following ways EXCEPT:
B) target costing uses the total-life-cycle concept to minimize ownership costs.
18) Relevant costs for target costing include:
D) all future costs, both variable and fixed.
19, Which BEST describes the control function in a management accounting and control system?
D) MACS ensures performance standard goals are being met.
20. The five stages in the process of keeping an organization in control are:
C) budgeting, implementing, monitoring, evaluation and feedback.
.
21. The monitoring phase of the process of control in MACS focuses on:
.
C) measuring the current level of performance.
22. Information is relevant in a MACS if:
A) it can be applied in a flexible manner.
23. The contemporary management view of motivation, the ______is based on initiatives to improve the quality of working life.
A) balanced scorecard
24. A budget should/can do all of the following EXCEPT that it:
B) should be adjusted if new opportunities become available during the year.
The following information is need for questions 25 and 26.
For the next six months, Kurtz Company projects the following information (in units).
July / Aug. / Sept. / Oct. / Nov. / Dec.Retail demand / 300 / 300 / 450 / 450 / 600 / 600
Dealer demand / 600 / 750 / 900 / 1,050 / 1,200 / 1,350
Shop capacity / 1,500 / 1,500 / 1,500 / 1,500 / 1,500 / 1,500
Painting capacity / 1,050 / 1,050 / 1,050 / 1,800 / 1,800 / 1,800
Demand drives production for that month and cannot be carried over from one month to another. Retail customers are satisfied first.
25. The production for July is projected to be:
B) 900 units.
.
26. The number of dealer units that will be produced and sold in September is:
A) 900 units.
The following information is need for questions 27 through 30.
The following information for the second quarter of 2011 pertains to Huffington Company:
Month / Sales / PurchasesApril / $90,000 / $48,000
May / $120,000 / $60,000
June / $150,000 / $84,000
• Cash is collected from customers in the following manner:
Month of sale / 30%Month following the sale / 70%
• 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
• Labor costs are 20% of sales. Other operating costs are $45,000 per month (including $12,000 of depreciation). Both of these are paid in the month incurred.
•The cash balance on June 1 is $6,000. A minimum cash balance of $4,500 is required at the end of the month. Money can be borrowed in multiples of $3,000.
•No loans outstanding on June 1.
27. How much cash will be collected from customers in June?
A) $129,000
28. How much cash will be paid to suppliers in June?
A) $69,600
29. How much cash will be disbursed for labor and operating costs in June?
A) $63,000
30. What is the ending cash balance for June?
C) $5,400
31. Measure of financial control highlight:
A) falling profits.
32. All of the following are reasons that financial control may be an ineffective scorecard EXCEPT that:
C) it focuses on long-term rather than short-term performance measures.
.
33. Performance measures for financial control include all of the following EXCEPT:
A) reduced cycle times.
34. In a decentralized organization:
.
D) decisions are made by the managers most familiar with the problems and opportunities.
35. In a centralized organization:
.
B) company-wide standard operating procedures are common.