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会计英语模拟练习题

会计英语模拟练习题### 会计英语模拟练习题#### 一、选择题（每题2分，共20分）1. Which of the following is not a financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Organizational Chart2. The term "Double Entry Accounting" refers to:A. Recording transactions twiceB. Recording transactions in two different accountsC. Recording transactions in two different waysD. Recording transactions in two different currencies3. What is the purpose of adjusting entries?A. To correct past errorsB. To update the financial records for the current periodC. To prepare for the next accounting periodD. To predict future financial performance4. The accounting equation is:A. Assets = Liabilities + EquityB. Assets = Liabilities - EquityC. Assets - Liabilities = EquityD. Liabilities = Assets - Equity5. Which of the following is not a type of inventory valuation?A. FIFOB. LIFOC. Weighted AverageD. Net Present Value#### 二、填空题（每题2分，共20分）6. The process of recording financial transactions in the order they occur is known as __________.7. The __________ is a summary of the changes in a company's financial position over a period of time.8. A __________ is an expense that has been incurred but not yet paid.9. The __________ method of depreciation allocates the cost of a fixed asset over its useful life.10. The __________ is the difference between the opening and closing balances of an account.#### 三、简答题（每题15分，共40分）11. Explain the concept of "matching principle" in accounting and its importance.12. Describe the steps involved in preparing a balance sheet.#### 四、案例分析题（20分）13. Assume you are an accountant for a small business. The business has just completed its fiscal year. You have been provided with the following information:- Total revenue for the year: $500,000- Cost of goods sold: $300,000- Operating expenses: $100,000- Depreciation expense: $20,000- Interest expense: $10,000Calculate the net income of the business and prepare a brief income statement in English.Note: This is a simulated exercise intended for educational purposes only. The questions and answers provided are for illustrative purposes and may not reflect actual accounting practices or standards.。

会计专业英语模拟题(开卷)解读

《会计专业英语》模拟题一．单项选择题1.The Realization Principle indicates that revenue usually should be recognizedand recorded in the accounting record, .A. when goods are sole or services are rendered to customersB. when cash is collected from customersC. at the end of the accounting periodD. only when the revenue can be matched by an equal dollar amount of expenses2. The Matching Principle: .A. applies only to situations in which a cash payment occurs before an expense is recognizedB. applies only to situations in which a cash receipt occurs before revenue is recognizedC. is used in accrual accounting to determine the proper period for recognition of expensesD. is used in accrual accounting to determine the proper period in which to recognize revenue3. Xxx company paid $2850 on account. The effect of this transaction on the accounting equation is to .A. decrease assets and decrease owner’s equityB. increase liabilities and decrease owner’s equityC. have no effect on total assetsD. decrease assets and decrease liabilities4. Which of the following concepts belongs to accounting assumption? .A. ConservationB. Money measurementC. MaterialityD. Consistency5. Which of these is/are an example of an asset account?___A. service revenueB. withdrawalsC. suppliesD. all of the above6. Which of these statements is false? .A. increase in assets and increase in revenues are recorded with a debitB. increase in liabilities and increase in owner’s e quity are recorded witha creditC. increase in both assets and withdrawals are recorded with a debitD. decreases in liabilities and increase in expenses are recorded with a debit二．判断题1. Accounting provides financial information that is only useful to business management. ( )2. The accounting process generates financial reports for both “internal” and “external” users. ( )3. The basic concept of double-entry accounting is that total debits must equal total credits for every business transaction.（）4.A trial balance represents a listing of the ledger accounts and balances at a particular moment in time.（）5. The ledger account provides a chronological order of transactions.（）6. Post reference columns are found only in the journal, not in the ledger.（）ually two signatures are required on a business check for it to be valid.（）8.When a check is written by a business, the immediate effect is to reduce both the balance shown in the checkbook and the balance on the bank's records. （）9.The final amounts shown on both sides of the bank reconciliation statement are labeled "Adjusted Balances."（）10. A leasehold is an example of a long-life asset.（）11. The accounting reporting period agrees to the calendar year. ( )12.An increase in permanent capital is recorded as a credit to the account. ( )13. Dollar signs are used in the amount areas of the ledger accounts. ( )14.If the trial balance shows that the ledger is in balance, this means that the individual business transactions were recorded to the appropriate ledger accounts. ( )15. Every business transaction is first recorded in the journal. ( )16.Internal control of operations is equally complex in a small and in a large organization. ( )17.There are only two parties to a check: the person who writes it (the drawee) and the person to whom it is written (the payee). ( )18.Two documents used in preparing a bank reconciliation statement are the bank statement and the checkbook stubs.( )19. A common cause of inequality between the balances on the bank statement and in the checkbook is outstanding checks. ( )20.Depreciation expense is usually recorded at least once a year. ( )21.Amortization is the conversion of the cost of an intangible asset to an expense. ( )三．翻译题1. Sole Proprietorship Enterprises2. Profit cost and capital cost principle3. Double entry system4. Source documents5. Environmental accounting6. Matching principle7. Gross profit 8. Perpetual inventory system9. Intangible assets 10. 原始凭证11. 固定资产四．完成下列等式1. Accounting Equation：Assets =2. Perpetual inventory system：Ending Inv. =五．编制银行存款余额调节表The following information pertains to ABC company:（1）cash balance per bank July 31, $7263（2）July bank service charge not recorded by the depositor $15（3） cash balance per book July 31, $7190（4） Deposits in transit July 31, $1700（5）Note for $1000 collected for ABC in July by bank plus interest $36, and charge $20 for service. The collection has not been recorded byABC and no interest has been accrued（6）Outstanding checks July 31 , $772Prepare Bank reconciliation at July 31.六．编写借贷会计分录On July 1, N. B. Edgar opened Coin-Op Laundry. Edgar’s acco untantlisted the following chart of accounts:Cash Supplies Prepaid Insurance EquipmentFurniture and Fixtures Accounts PayableN. B. Edgar, Capital N. B. Edgar, DrawingLaundry Revenue Wages ExpenseRent Expense Utilities Expense Miscellaneous ExpenseDuring July, the following transactions were completed:a.Edgar deposited $20,000 in a bank account in the name of the business.b.Bought tables and chairs for cash, $450c.Paid the rent for the current month, $705d.Bought washers and dryers from Eldon Equipment, $17,400, paying $4,000 incash and placing the balance on account.e.Bought laundry supplies on account from Borkal Distributors, $410.f.Sold services for cash, $862.g.Bought insurance for one year, $468.h.Paid on account to Eldon Equipment, a creditor, $550.i.Received and paid the electric bill, $118.j.Paid on account to Borkal Distributors, a creditor, $145.k.Sod services to customers for cash for the second half of the month, $881.l.Received and paid the bill for the business license, $45.m.Paid wages to an employee, $1,146.n.Edgar withdrew cash for personal use, $875.InstructionsRecord the transactions with “Dr.” and “Cr.”七．编制试算平衡表The bank statement of LA Company shows a final balance of $2119 as of March 31, the balance of the cash in the ledger as of that is $1552, LA accountant has taken the following steps.Prepare bank reconciliation at March 31.(1) Noted that the deposit made on March 31 was not recorded on the bank statement, $762.(2) Noted outstanding checks: no.921, $626. no.985, $69. no.986, $438.(3) Noted credit memo: note collected by the bank from ABC company ,$200, not recordedin the journal.(4) Noted debit memo: collection charge and service charge not recorded in the journal, $4.八．存货成本计算C asey Electronics’ ending inventory consists of 182 Model M43 CD players acquired through various purchases, as follows:Specific Purchase Number of Units Cost per Unit Total CostB e g i n n i n g i n v e n t o r y34$270$9180First purchase 60 282 16,920Second purchase 256 298 76,288Third purchase 164 312 51,168Total units available 514 $153,556Of the 514 units available for sale, 182 units are still on hand and 332 have been sold.Under the periodic inventory system, If Casey Electronics chooses LIFO method, how should it calculate the cost of the 182 CD players on hand?九．设立T形账户并编制试算平衡表(1) May1: Jill Jones and her family invested $8,000 in BBE Company and received 800 shares ofstock.(2) May2: BBE purchased an equipment for $2,500 cash.(3) May 8: BBE purchased a $15,000 truck. BBE paid $2,000 in cash and issued a note payablefor the remaining $13,000.(4) May 18: BBE sold services on account to ABC Lawns, $150. ABC Lawns agree to pay BBEwithin 30 days.(5) May 29: BBE provided services for a client and received $750 in cash.(6) May31:BBE purchased gasoline for the truck for $50 cash.Please Analyze the above transactions of BBE Company, set up its "T" accounts, and prepare a trial balance.参考答案：一．单项选择题1.A2.C3.D4.B5.C6.A二．判断题1.F2.T3.T4.T5.F6.F7.T8.F9.T 10.F11.F 12.T 13.F 14.F 15.T 16.F 17.F 18.T 19.T 20.T 21.T三．翻译题1. 独资企业2. 划分收益性支出与资本性支出3. 复式记帐法4. 原始凭证5.环境会计6. 配比原则7. 毛利8. 永序盘存制9.无形资产10. source document 11.fixed asset四．完成下列等式1. Accounting Equation：Assets = Liabilities + Owner's Equity2. Perpetual inventory system：Ending Inv. =Beg. Inv.+ Purchases-Cost of goods sold五．编制银行存款余额调节表ABC CompanyBank ReconciliationJuly 31 20Bank statement balance, July 31 $7263 Add. Deposits In Transit 17008963Deduct: Outstanding checks 772 Adjusted bank statement balance 8191Ledger balance of cash $7190 Add. Credit memo 10368226 Deduct: Bank service charge 2015Adjusted ledger balance of cash 8191 六．编写借贷会计分录A Dr. Cash 20000Cr. N. B. Edgar, Capital 20000B Dr. Furniture and Fixtures 450Cr. Cash 450C Dr. Rent Expense 705Cr. Cash 705D Dr. Equipment 17400Cr. Cash 4000Accounts Payable 13400E Dr. Supplies 410Cr. Accounts Payable 410F Dr. Cash 862Cr. Laundry Revenue 862G Dr. Prepaid Insurance 468Cr. Cash 468H Dr. Accounts Payable 550Cr. Cash 550I Dr. Utilities Expense 118Cr. Cash 118J Dr. Accounts Payable 145Cr. Cash 145K Dr. Cash 881Cr. Laundry Revenue 881L Dr. Miscellaneous Expense 45Cr. Cash 45M Dr. Wages Expense 1146Cr. Cash 1146N Dr. N. B. Edgar, Drawing 875Cr. Cash 875七．编制试算平衡表LA CompanyBank reconciliationMarch 31 2004Bank statement balance, March 31 $2119Add. Deposits In Transit 7622881Deduct: Outstanding checksNo. 921 $626No. 985 69No. 986 438 1133Adjusted bank statement balance 1748Ledger balance of cash $1552Add. Note collected by bank 2001752Deduct: Bank service & collection charges 4Adjusted Ledger Balance of Cash 1748八．存货成本计算34 Units(beginning inventory) @ $270 each = $918060 Units(first purchase) @ $282 each = 16920 88 Units(second purchase) @ $298 each = 26224182 Units $52324九．设立T形账户并编制试算平衡表。

成本与管理会计英文版试题库答案ch20

Cost Accounting, 13e (Horngren et al.)Chapter 20 Inventory Management, Just-in-Time, and Simplified Costing Methods1) Retailers generally have a high percentage of net income to revenues.Answer: FALSEExplanation: Retailers have a low percentage of net income to revenues.Diff: 2Terms: inventory managementObjective: 1AACSB: Analytical skills2) Inventory management is the planning, organizing, and controlling activities that focus on the flow ofmaterials into, through, and from the organization.Answer: TRUEDiff: 2Terms: inventory managementObjective: 1AACSB: Analytical skills3) Purchasing costs generally include the freight and transportation costs on goods acquired from suppliers.Answer: TRUEDiff: 2Terms: purchasing costsObjective: 1AACSB: Analytical skills4) Expediting costs of a stockout include the additional ordering costs, plus any associated transportation costs.Answer: TRUEExplanation: Expediting costs include the associated transportation costs.Diff: 2Terms: stockout costsObjective: 1AACSB: Analytical skills5) Carrying costs arise when an organization experiences an ability to deliver its goods to its customers.Answer: FALSEExplanation: Carrying costs arise when an organization holds its goods for sale.Diff: 2Terms: carrying costsObjective: 1AACSB: Analytical skills6) Shrinkage costs result from water damage to clothing and other soft goods.Answer: FALSEExplanation: Shrinkage costs result from theft by outsiders, embezzlement by employees, misclassifications, and clerical errors.Diff: 2Terms: shrinkageObjective: 1AACSB: Analytical skillscounted.Answer: TRUEDiff: 2Terms: shrinkageObjective: 1AACSB: Analytical skills8) All inventory costs are available in financial accounting systems.Answer: FALSEExplanation: Opportunity costs are rarely recorded in formal accounting systems and they are often a very significant cost component.Diff: 2Terms: shrinkageObjective: 1AACSB: Analytical skills9) Sharing inventory data throughout the supply chain leads to more "rush" orders occurring.Answer: FALSEExplanation: Sharing inventory data throughout the supply chain leads to fewer "rush" orders occurring.Diff: 2Terms: inventory managementObjective: 1AACSB: Analytical skills10) The simplest version of the Economic Order Quantity model incorporates only ordering costs, carrying costs,and purchasing costs into the calculation.Answer: FALSEExplanation: Purchasing costs are ignored in the Economic Order Quantity.Diff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills11) To determine the Economic Order Quantity, the relevant ordering costs are minimized and the relevantcarrying costs are maximized.Answer: FALSEExplanation: We minimize both the relevant ordering costs and the relevant carrying costs.Diff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills12) The Economic Order Quantity increases with demand and ordering costs and decreases with carrying costs.Answer: TRUEDiff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skillscosts are equal.Answer: TRUEDiff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills14) When retailers are uncertain about demand for their products or availability of their products from thesuppliers, they often hold a fixed level of safety stock to make sure they will be able to fulfill the customers' needs.Answer: TRUEDiff: 2Terms: safety stockObjective: 2AACSB: Ethical reasoning15) The annual relevant carrying costs of inventory consist of incremental costs plus the opportunity cost ofcapital.Answer: TRUEDiff: 3Terms: carrying costsObjective: 3AACSB: Analytical skills16) Just-in-time purchasing requires organizations to place smaller purchase orders with their suppliers.Answer: TRUEDiff: 2Terms: just-in-time (JIT) purchasingObjective: 3AACSB: Analytical skills17) Just-in-time purchasing is guided solely by the economic order quantity.Answer: FALSEExplanation: Inventory management also includes purchasing costs, stockout costs, and quality costs.Diff: 2Terms: just-in-time (JIT) purchasing, economic order quantity (EOQ)Objective: 3AACSB: Analytical skills18) The higher level of variability at manufacturers rather than suppliers, and at retailers rather thanmanufacturers is called the "bullwhip effect."Answer: FALSEExplanation: The higher level of variability is at suppliers rather than manufacturers, and at manufacturers rather than at suppliers.Diff: 3Terms: inventory managementObjective: 3AACSB: Reflective thinking19) Just-in-time purchasing describes the flow of goods, services, and information from the initial sources ofmaterials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations.Answer: FALSEExplanation: Supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether thoseactivities occur in the same organization or in other organizations.Diff: 3Terms: supply chainObjective: 4AACSB: Reflective thinking20) A "push-through" system, often described as a just-in-time system, emphasizes simplicity and closecoordination among work centers.Answer: FALSEExplanation: The narrative describes a Materials Requirement Planning system.Diff: 2Terms: just-in-time (JIT) productionObjective: 5AACSB: Communication21) Costs of setting up a production run are analogous to ordering costs in the Economic Order Quantity (EOQ)model.Answer: TRUEDiff: 2Terms: ordering costsObjective: 5AACSB: Analytical skills22) A "demand-pull" system, often described as a materials requirement planning system, focuses first on theforecasted amount and timing of finished goods and then determines the demand for materials components and subassemblies at each of the prior stages of production.Answer: FALSEExplanation: The narrative describes a push-through system.Diff: 2Terms: material requirements planning (MRP)Objective: 5AACSB: Reflective thinking23) In a just-in-time inventory system, there is less emphasis on the need to eliminate scrap and rework problems.Answer: FALSEExplanation: There is more emphasis on the need to eliminate scrap and rework problems.Diff: 2Terms: just-in-time (JIT) productionObjective: 5AACSB: Reflective thinking24) Just-in-time systems are similar to materials requirement planning systems in that both systems aredemand-pull systems.Answer: FALSEExplanation: Just-in-time systems are not similar to materials requirement planning systems in that just-in-time production is a demand-pull system and materials requirements planning is a push-throughapproach.Diff: 2Terms: just-in-time (JIT) production, materials requirements planning (MRP)Objective: 5, 6AACSB: Analytical skills25) A financial benefit of a just-in-time system is that inventory carrying costs are reduced.Answer: TRUEDiff: 2Terms: just-in-time (JIT) production, just-in-time (JIT) purchasingObjective: 6AACSB: Reflective thinking26) In a just-in-time system, suppliers are selected primarily on the basis of their ability to provide materials andproducts at the lowest possible price.Answer: FALSEExplanation: In a just-in-time system, suppliers are selected on the basis of their ability to deliver quality materials in a timely manner.Diff: 2Terms: just-in-time (JIT) production, just-in-time (JIT) purchasingObjective: 6AACSB: Reflective thinking27) An Enterprise Resource Planning (ERP) System comprises a single database that collects data and feeds itinto software applications supporting all of a company's business activities.Answer: TRUEDiff: 2Terms: enterprise resource planning (ERP) systemObjective: 6AACSB: Use of Information Technology28) In a backflush-costing system, no record of work in process appears in the accounting records.Answer: TRUEDiff: 3Terms: backflush costingObjective: 7AACSB: Reflective thinking29) Backflush costing is a costing system that omits recording some or all of the journal entries relating to thestages from purchase of direct materials to the sales of finished goods.Answer: TRUEDiff: 2Terms: backflush costingObjective: 7AACSB: Reflective thinking30) A trigger point refers to the inventory level at which a reorder is generated.Answer: FALSEExplanation: A trigger point refers to the point at which a journal entry is made.Diff: 2Terms: trigger pointObjective: 7AACSB: Reflective thinking31) A firm using a backflush costing system will always use actual costs rather than standard costs.Answer: FALSEExplanation: A firm using a backflush costing system can use standard costs as well as actual costs.Diff: 2Terms: backflush costingObjective: 7AACSB: Reflective thinking32) The "flush" in backflush refers to the fact that there are no variances in a backflush costing system usingstandard costs.Answer: FALSEExplanation: The "flush" in backflush refers to the fact that costs are "flushed" out of the system after the product has been produced or sold.Diff: 2Terms: backflush costingObjective: 7AACSB: Reflective thinking33) Companies that have fast manufacturing lead times usually find that a version of backflush costing willreport cost numbers similar to what a sequential costing approach would report.Answer: TRUEDiff: 3Terms: backflush costingObjective: 8AACSB: Analytical skills34) Backflush costing is usually restricted to companies adopting JIT production methods.Answer: FALSEExplanation: Backflush costing is also helpful in companies that have fast manufacturing times, and that have very stable inventory.Diff: 3Terms: backflush costing, just-in-time (JIT) productionObjective: 8AACSB: Reflective thinking35) A positive aspect of backflush costing is the presence of the visible audit trail.Answer: FALSEExplanation: In backflush costing, the visible audit trail diminishes.Diff: 3Terms: backflush costingObjective: 8AACSB: Reflective thinking36) Lean accounting is a costing method that supports creating value for the customer by costing the entire valuestream, not individual products or departments, thereby eliminating waste in the accounting process.Answer: TRUEDiff: 3Terms: lean accountingObjective: 9AACSB: Reflective thinking37) Which of the following industries would have the highest cost of goods sold percentage relative to sales?A) computer manufacturersB) retail organizationsC) drug manufacturersD) The percentage will usually depend on the success of a particular company.Answer: BDiff: 2Terms: inventory managementObjective: 1AACSB: Reflective thinking38) The costs of goods acquired from suppliers including incoming freight or transportation costs are:A) purchasing costsB) ordering costsC) stockout costsD) carrying costsAnswer: ADiff: 2Terms: purchasing costsObjective: 1AACSB: Reflective thinking39) The costs of preparing, issuing, and paying purchase orders, plus receiving and inspecting the itemsincluded in orders is:A) purchasing costsB) ordering costsC) stockout costsD) carrying costsAnswer: BDiff: 2Terms: ordering costsObjective: 1AACSB: Reflective thinking40) The costs that result from theft of inventory are:A) shrinkage costsB) external failure costsC) stockout costsD) costs of qualityAnswer: ADiff: 2Terms: shrinkageObjective: 1AACSB: Reflective thinking41) The costs that result when a company runs out of a particular item for which there is a customer demand are:A) shrinkage costsB) shortage costsC) stockout costsD) EOQ estimation costsAnswer: CDiff: 2Terms: stockout costsObjective: 1AACSB: Reflective thinking42) The costs that result when features and characteristics of a product or service are not in conformance withthe specifications are:A) inspection costsB) costs of qualityC) purchasing costsD) design costsAnswer: BDiff: 2Terms: stockout costsObjective: 1AACSB: Reflective thinking43) The costs that result when a company holds an inventory of goods for sale:A) purchasing costsB) carrying costsC) opportunity costsD) interest costsAnswer: BDiff: 2Terms: stockout costsObjective: 1AACSB: Reflective thinking44) Quality costs include:A) purchasing costsB) ordering costsC) stockout costsD) prevention costsAnswer: DDiff: 2Terms: quality costsObjective: 1AACSB: Reflective thinking45) Obsolescence is an example of which cost category?A) carrying costsB) labor costsC) ordering costsD) quality costsAnswer: ADiff: 2Terms: carrying costsObjective: 2AACSB: Reflective thinking46) The costs associated with storage are an example of which cost category?A) quality costsB) labor costsC) ordering costsD) carrying costsAnswer: DDiff: 2Terms: carrying costsObjective: 2AACSB: Reflective thinking47) Which of the following is an assumption of the economic-order-quantity decision model?A) The quantity ordered can vary at each reorder point.B) Demand ordering costs and carrying costs fluctuate.C) There will be timely labor costs.D) No stockouts occur.Answer: DDiff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Reflective thinking48) The economic order quantity ignores:A) purchasing costsB) relevant ordering costsC) stockout costsD) Both A and C are correct.Answer: DDiff: 3Terms: economic order quantity (EOQ)Objective: 2AACSB: Reflective thinking49) The purchase-order lead time is the:A) difference between the times an order is placed and deliveredB) difference between the products ordered and the products receivedC) discrepancies in purchase ordersD) time required to correct errors in the products receivedAnswer: ADiff: 2Terms: purchase-order lead timeObjective: 2AACSB: Reflective thinking50) Which of the following statements about the economic-order-quantity decision model is FALSE?A) It assumes purchasing costs are relevant when the cost per unit changes due to the quantity ordered.B) It assumes quality costs are irrelevant if quality is unaffected by the number of units purchased.C) It assumes stockout costs are irrelevant if no stockouts occur.D) It assumes ordering costs and carrying costs are relevant.Answer: ADiff: 3Terms: economic order quantity (EOQ)Objective: 2AACSB: Reflective thinking51) Relevant total costs in the economic-order-quantity decision model equal relevant ordering costs plusrelevant:A) carrying costsB) stockout costsC) quality costsD) purchasing costsAnswer: ADiff: 2Terms: economic order quantity (EOQ), ordering costs, carrying costsObjective: 2AACSB: Reflective thinking52) Phonic Goods is a distributor of videotapes. Tape-Disk Mart is a local retail outlet which sells blank andrecorded videos. Tape-Disk Mart purchases tapes from Phonic Goods at $3.00 per tape; tapes are shipped in packages of 20. Phonic Goods pays all incoming freight, and Tape-Disk Mart does not inspect the tapes due to Phonic Goods' reputation for high quality. Annual demand is 104,000 tapes at a rate of 4,000 tapes per week. Tape-Disk Mart earns 20% on its cash investments. The purchase-order lead time is two weeks. The following cost data are available:Relevant ordering costs per purchase order $90.50Carrying costs per package per year:Relevant insurance, materials handling,breakage, etc., per year $ 4.50What is the required annual return on investment per package?A) $60.00B) $2.50C) $12.00D) $0.60Answer: CExplanation: C) 20 tapes × $3.00 =$60.00$60.00 × 0.2 =$12.00Diff: 3Terms: ordering costs, carrying costsObjective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Stereo Goods is a distributor of videotapes. Video Mart is a local retail outlet which sells blank and recorded videos.Video Mart purchases tapes from Stereo Goods at $5.00 per tape; tapes are shipped in packages of 25. Stereo Goods pays all incoming freight, and Video Mart does not inspect the tapes due to Stereo Goods' reputation for high quality. Annual demand is 104,000 tapes at a rate of 2,000 tapes per week. Video Mart earns 15% on its cash investments. Thepurchase -order lead time is one week. The following cost data are available:Relevant ordering costs per purchase order $94.50Carrying costs per package per year:Relevant insurance, materials handling,breakage, etc., per year $ 3.5053) What is the economic order quantity?A) 874 packagesB) 652 packagesC) 200 packagesD) 188 packagesAnswer:D Explanation: D) EOQ = The square root of [(2 × (104,000/25) × $94.50) / ($18.75 + $3.50)]EOQ = 188 packagesDiff: 2Terms:economic order quantity (EOQ) Objective:3 AACSB:Analytical skills 54) What are the relevant total costs?A) $6,150.50B) $4,182.56C) $2,560.20D) $1,951.70Answer:B Explanation: B) EOQ = The square root of [(2 × (104,000/25) × $94.50) / ($18.75 + $3.50)]EOQ = 188 packagesRTC = 2)]50.3$75.18($188[188]50.94$)25/000,104[(+⨯+⨯= $4,182.56 188 Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:3 AACSB:Analytical skills55) How many deliveries will be made during each time period?A) 22.1 deliveriesB) 26.0 deliveriesC) 29.4 deliveriesD) 32.0 deliveriesAnswer: AExplanation: A) EOQ = The square root of [(2 × (104,000/25) × $94.50) / ($18.75 + $3.50)]EOQ = 188 packages[(104,000 / 25) / 188] = 22.1 deliveriesDiff: 3Terms: economic order quantity (EOQ)Objective: 3AACSB: Analytical skillsAnswer the following questions using the information below:Green Grass Incorporated is a distributor of golf balls. Garry's Golf Supplies is a local retail outlet which sells golf balls. Garry's purchases the golf balls from Green Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72. Green Grass Incorporated pays all incoming freight, and Garry's Golf Supplies does not inspect the balls due to Green Grass' reputation for high quality. Annual demand is 172,800 golf balls at a rate of 3,322 balls per week. Garry's Golf Supplies earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data are available:Relevant ordering costs per purchase order $125.00Carrying costs per carton per year:Relevant insurance, materials handling,breakage, etc., per year $ 0.7756) If Garry's makes an order (1/12 of annual demand) once per month, what are the relevant total costs?A) $1,500B) $2,085.67C) 2,225.00D) $3,000.00Answer: CExplanation: C) Order Quantity = Annual Demand / 12 = 14,400 balls/month = 200 cartons per monthRTC = Ordering Costs + Carrying CostsCarrying Cost per carton =price × invest rate + insurance/handlingCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25RTC = (12 × $125.00) + ((200/2) × $7.25) =$2,225.00Diff: 3Terms: economic order quantity (EOQ), ordering costs, carrying costsObjective: 3AACSB: Analytical skills57) What is the economic order quantity?A) 200 cartonsB) 288 cartonsC) 300 cartonsD) 388 cartonsAnswer: BExplanation: B) Annual Demand / 172,800 / 72 = 2,400 cartonsCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25EOQ = The square root of [(2 × (172,800/72) × $125.00) / ($7.25)]EOQ = 287.7 cartons - round to 288Diff: 2Terms: economic order quantity (EOQ)Objective: 3AACSB: Analytical skills58) Purchasing at the EOQ recommended level, how many deliveries will be made during each time period?A) 2 deliveriesB) 6.0 deliveriesC) 8.3 deliveriesD) 12 deliveriesAnswer: CExplanation: C) Annual Demand / 172,800 / 72 = 2,400 cartonsCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25EOQ = The square root of [(2 × (172,800/72) × $125.00) / ($7.25)]EOQ = 287.7 cartonsDeliveries = Annual Demand / EOQ = 8.3Diff: 3Terms: economic order quantity (EOQ)Objective: 3AACSB: Analytical skills59) Purchasing at the EOQ recommended level, what are the relevant total costs?A) $1,500.00B) $2,085.67C)$2,225.00 D) $3,000.00Answer:B Explanation: B) Annual Demand / 172,800 / 72 = 2,400 cartonsCarrying Cost per carton = ($.75 × 72 × 12%) + $0.77 = $7.25EOQ = The square root of [(2 × (172,800/72) × $125.00) / ($7.25)]EOQ = 287.7 cartonsRTC = 2)]25.7($7.287[7.287]00.125$)72/800,172[(⨯+⨯ = $2,085.67 Your solution might be slightly different based on rounding.Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:3 AACSB:Analytical skills Answer the following questions using the information below:The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:Relevant ordering costs per purchase order $150Relevant carrying costs per year:Required annual return on investment 10%Required other costs per year $1.40Annual demand is 10,000 packages per year. The purchase price per package is $16.60) What is the economic order quantity?A) 150,000 unitsB) 1,000 unitsC) 75,000 unitsD) 5,000 unitsAnswer:B Explanation: B) Unit carrying costs = ($16 × 0.10) + $1.40 = $3EOQ = The square root of [(2 × 10,000 × $150) / $3] = 1,000 unitsDiff: 3Terms:economic order quantity (EOQ) Objective:2 AACSB:Analytical skills61) What are the relevant total costs at the economic order quantity?A) $1,000B) $1,500C) $3,000D) $3,500Answer:C Explanation: C) Unit carrying costs = ($16 × 0.10) + $1.40 = $3EOQ = The square root of [(2 × 10,000 × $150) / $3] = 1,000 unitsRTC = ⎥⎦⎤⎢⎣⎡⨯+⨯2)3$000,1(000,1)150$000,10( = $3,000 Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:2 AACSB:Analytical skills 62) What are the total relevant costs, assuming the quantity ordered equals 500 units?A) $3,500B) $500C) $4,000D) $3,750Answer:D Explanation: D) RTC = ⎥⎦⎤⎢⎣⎡⨯+⨯2)3$500(500)150$000,10( = $3,750 Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:2 AACSB:Analytical skills 63) How many deliveries will be required at the economic order quantity?A) 1.0 deliveryB) 5.1 deliveriesC) 8.2 deliveriesD) 10.0 deliveriesAnswer:D Explanation: D) 10,000 / 1,000 = 10 deliveriesDiff: 3Terms:economic order quantity (EOQ) Objective:2 AACSB:Analytical skills 64) The annual relevant total costs are at a minimum when relevant:A) ordering costs are greater than the relevant carrying costsB) carrying costs are greater than the relevant ordering costsC) carrying costs are equal to relevant ordering costsD) None of these answers is correct.Answer:C Diff: 3Terms:economic order quantity (EOQ), ordering costs, carrying costs Objective:2 AACSB:Reflective thinking65) The reorder point is simplest to compute when:A) both demand and purchase-order lead times are known with certaintyB) the number of units sold variesC) the safety stock amount never variesD) the relevant ordering costs and the relevant carrying costs are equalAnswer: ADiff: 2Terms: economic order quantity (EOQ), reorder pointObjective: 3AACSB: Reflective thinking66) Diskette Company sells 200 discs per week. Purchase-order lead time is 1-1/2 weeks and the economic-orderquantity is 450 units. What is the reorder point?A) 200 unitsB) 300 unitsC) 750 unitsD) 1,125 unitsAnswer: BExplanation: B) 200 × 1.5= 300 unitsDiff: 2Terms: economic order quantity (EOQ), reorder pointObjective: 4AACSB: Analytical skills67) Wilson's Deli can predict with virtual certainty the demand for its products. Wilson's sells 20 hams perweek. Purchase-order lead time is 2 weeks and the economic-order quantity is 50 hams. What is the reorder point?A) 20 hamsB) 30 hamsC) 40 hamsD) 50 hamsAnswer: CExplanation: C) 20 × 2= 40 hamsDiff: 2Terms: economic order quantity (EOQ), reorder pointObjective: 4AACSB: Analytical skillsOwen-King Company sells optical equipment. Lens Company manufactures special glass lenses. Owen-King Company orders 5,200 lenses per year, 100 per week, at $20 per lens. Lens Company covers all shipping costs. Owen-King Company earns 30% on its cash investments. The purchase-order lead time is 2.5 weeks. Owen-King Company sells 125 lenses per week. The following data are available:Relevant ordering costs per purchase order $21.25Relevant insurance, materials handling, breakage,and so on, per year $ 2.5068) What is the economic order quantity for Owen-King Company?A) 325 lensesB) 297 lensesC) 210 lensesD) 161 lensesAnswer: DExplanation: D) EOQ = The square root of [(2 × 5,200 × $21.25) / (($20 × 30%) + $2.50)]EOQ = 161 lensesDiff: 2Terms: economic order quantity (EOQ)Objective: 4AACSB: Analytical skills69) What is the reorder point?A) 220.5 lensesB) 312.5 lensesC) 397.5 lensesD) 415.5 lensesAnswer: BExplanation: B) 125 lenses × 2.5 weeks = 312.5 lensesDiff: 2Terms: reorder pointObjective: 4AACSB: Analytical skillsThe following information applies to Labs Plus, which supplies microscopes to laboratories throughout the country. Labs Plus purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.Annual demand (weekly demand= 1/52 of annual demand) 15,600 unitsOrders per year 20Lead time in days 15 daysCost of placing an order $10070) What are the annual relevant carrying costs, assuming each order was made at the economic-order-quantityamount?A) $200B) $1,000C) $2,000D) $6,000Answer: CExplanation: C) Annual carrying costs = annual ordering costs = $100 × 20 = $2,000Diff: 2Terms: economic order quantity (EOQ), carrying costsObjective: 2AACSB: Analytical skills71) What is the economic order quantity assuming each order was made at the economic-order-quantity amount?A) 15 unitsB) 20 unitsC) 780 unitsD) 1,040 unitsAnswer: CExplanation: C) 15,600/20 = 780Diff: 2Terms: economic order quantity (EOQ)Objective: 2AACSB: Analytical skills72) What is the reorder point?A) 780 unitsB) 643 unitsC) 1,560 unitsD) 1,680 unitsAnswer: BExplanation: B) 15,600/52 = 300/7 = 42.86 daily demand × 15 = 643Diff: 2Terms: reorder pointObjective: 1AACSB: Analytical skills。

成本会计专业题英文版

TRUE/FALSE1. Products, services, departments, and customers may be cost objects.Answer: True Difficulty: 1 Objective: 12. Costs are accounted for in two basic stages: assignment followed by accumulation.Answer: False Difficulty: 1 Objective: 1Costs are accounted for in two basic stages: accumulation followed by assignment. 3. Actual costs and budgeted costs are two different terms referring to the same thing.Answer: False Difficulty: 1 Objective: 1Budgeted costs are what is planned before the beginning of the accounting period,while actual costs are those costs compiled at the end of the accounting period.4. The same cost may be direct for one cost object and indirect for another cost object.Answer: True Difficulty: 3 Objective: 25. Assigning direct costs poses more problems than assigning indirect costs.Answer: False Difficulty: 2 Objective: 2Tracing direct costs is quite straightforward, whereas assigning indirect costs to anumber of different cost objects can be very challenging.6. Improvements in information-gathering technologies are making it possible to tracemore costs as direct.Answer: True Difficulty: 2 Objective: 27. Misallocated indirect costs may lead to promoting products that are not profitable.Answer: True Difficulty: 2 Objective: 28. The materiality of the cost is a factor in classifying the cost as a direct or indirect cost.Answer: True Difficulty: 2 Objective: 29. The cost of a customized machine only used in the production of a single productwould be classified as a direct cost.Answer: True Difficulty: 1 Objective: 210. Some fixed costs may be classified as direct manufacturing costs.Answer: True Difficulty: 1 Objective: 211. Fixed costs have no cost driver in the short run, but may have a cost driver in the longrun.Answer: True Difficulty: 2 Objective: 312. Costs that are difficult to change over the short run are always variable over the longrun.Answer: True Difficulty: 2 Objective: 313. Knowing whether a cost is a period or a product cost helps to estimate total costs at anew level of activity.Answer: False Difficulty: 2 Objective: 3Knowing whether a cost is a variable or a fixed cost helps to estimate total costs at a new level of activity.14. A decision maker cannot adjust capacity over the short run.Answer: True Difficulty: 1 Objective: 315. Fixed costs vary with the level of production or sales volume.Answer: False Difficulty: 1 Objective: 3Variable costs vary with the level of production or sales volume.16. Currently, most administrative personnel costs would be classified as fixed costs.Answer: True Difficulty: 1 Objective: 317. Fixed costs depend on the resources used, not the resources acquired.Answer: False Difficulty: 2 Objective: 3Fixed costs depend on the resources acquired, and not whether the resources are used or not.18. When making decisions using fixed costs, the focus should be on total costs and notunit costs.Answer: True Difficulty: 2 Objective: 419. When 50,000 units are produced the fixed cost is $10 per unit. Therefore, when100,000 units are produced fixed costs will remain at $10 per unit.Answer: False Difficulty: 3 Objective: 4When 100,000 units are produced fixed costs will decrease to $5 per unit.20. Service-sector companies provide services or intangible products to their customers.Answer: True Difficulty: 1 Objective: 5 MULTIPLE CHOICE37. Cost objects includea. products.b. customers.c. departments.d. all of the above.Answer: d Difficulty: 2 Objective: 138. Actual costs area. the costs incurred.b. budgeted costs.c. estimated costs.d. forecasted costs.Answer: a Difficulty: 1 Objective: 139. The general term used to identify both the tracing and the allocation of accumulatedcosts to a cost object isa. cost accumulation.b. cost assignment.c. cost tracing.d. conversion costing.Answer: b Difficulty: 1 Objective: 140. The collection of accounting data in some organized way isa. cost accumulation.b. cost assignment.c. cost tracing.d. conversion costing.Answer: a Difficulty: 1 Objective: 141. Cost tracing isa. the assignment of direct costs to the chosen cost object.b. a function of cost allocation.c. the process of tracking both direct and indirect costs associated with a cost object.d. the process of determining the actual cost of the cost object.Answer: a Difficulty: 2 Objective: 242. Cost allocation isa. the process of tracking both direct and indirect costs associated with a cost object.b. the process of determining the actual cost of the cost object.c. the assignment of indirect costs to the chosen cost object.d. a function of cost tracing.Answer: c Difficulty: 2 Objective: 243. The determination of a cost as being either direct or indirect depends upona. the accounting system.b. the allocation system.c. the cost tracing system.d. the cost object chosen.Answer: d Difficulty: 2 Objective: 244. Classifying a cost as either direct or indirect depends upona. the behavior of the cost in response to volume changes.b. whether the cost is expensed in the period in which it is incurred.c. whether the cost can be easily identified with the cost object.d. whether an expenditure is avoidable or not in the future.Answer: c Difficulty: 2 Objective: 245. A manufacturing plant produces two product lines: football equipment and hockeyequipment. Direct costs for the football equipment line are thea. beverages provided daily in the plant break room.b. monthly lease payments for a specialized piece of equipment needed tomanufacture the football helmet.c. salaries of the clerical staff that work in the company administrative offices.d. utilities paid for the manufacturing plant.Answer: b Difficulty: 2 Objective: 246. A manufacturing plant produces two product lines: football equipment and hockeyequipment. An indirect cost for the hockey equipment line is thea. material used to make the hockey sticks.b. labor to bind the shaft to the blade of the hockey stick.c. shift supervisor for the hockey line.d. plant supervisor.Answer: d Difficulty: 2 Objective: 247. Which one of the following items is a direct cost?a. Customer-service costs of a multiproduct firm; Product A is the cost object.b. Printing costs incurred for payroll check processing; payroll check processing isthe cost object.c. The salary of a maintenance supervisor in a multiproduct manufacturing plant;Product B is the cost object.d. Utility costs of the administrative offices; the accounting department is the costobject.Answer: b Difficulty: 2 Objective: 248. Indirect manufacturing costsa. can be traced to the product that created the costs.b. can be easily identified with the cost object.c. generally include the cost of material and the cost of labor.d. may include both variable and fixed costs.Answer: d Difficulty: 2 Objective: 249. All of the following are true EXCEPT that indirect costsa. may be included in prime costs.b. are not easily traced to products or services.c. vary with the selection of the cost object.d. may be included in manufacturing overhead.Answer: a Difficulty: 2 Objective: 250. Which statement is TRUE?a. All variable costs are direct costs.b. Because of a cost-benefit tradeoff, some direct costs may be treated as indirectcosts.c. All fixed costs are indirect costs.d. All direct costs are variable costs.Answer: b Difficulty: 3 Objective: 251. Cost behavior refers toa. classifying costs as either inventoriable or period costs.b. how costs react to a change in the level of activity.c. whether a particular expense has been ethically incurred.d. whether a cost is incurred in a manufacturing, merchandising, or servicecompany.Answer: b Difficulty: 2 Objective: 352. An understanding of the underlying behavior of costs helps in all of the followingEXCEPTa. costs can be better estimated as volume expands and contracts.b. true costs can be better evaluated.c. process inefficiencies can be better identified and as a result improved.d. sales volume can be better estimated.Answer: d Difficulty: 2 Objective: 3 53. At a plant where a union agreement sets annual salaries and conditions, annual laborcosts usuallya. are considered a variable cost.b. are considered a fixed cost.c. depend on the scheduling of floor workers.d. depend on the scheduling of production runs.Answer: b Difficulty: 2 Objective: 354. Variable costsa. are always indirect costs.b. increase in total when the actual level of activity increases.c. include most personnel costs and depreciation on machinery.d. can always be traced directly to the cost object.Answer: b Difficulty: 2 Objective: 355. Fixed costsa. may include either direct or indirect costs.b. vary with production or sales volumes.c. include parts and materials used to manufacture a product.d. can be adjusted in the short run to meet actual demands.Answer: a Difficulty: 2 Objective: 356. Fixed costs depend ona. the amount of resources used.b. the amount of resources acquired.c. the volume of production.d. the volume of sales.Answer: b Difficulty: 3 Objective: 357. Which one of the following is a variable cost in an insurance company?a. Rentb. President's salaryc. Sales commissionsd. Property taxesAnswer: c Difficulty: 1 Objective: 358. Which of the following is a fixed cost in an automobile manufacturing plant?a. Administrative salariesb. Electricity used by assembly-line machinesc. Sales commissionsd. Windows for each car producedAnswer: a Difficulty: 2 Objective: 359. If each furnace required a hose that costs $20 and 2,000 furnaces are produced for themonth, the total cost for hoses isa. considered to be a direct fixed cost.b. considered to be a direct variable cost.c. considered to be an indirect fixed cost.d. considered to be an indirect variable cost.Answer: b Difficulty: 3 Objective: 360. The MOST likely cost driver of distribution costs isa. the number of parts within the product.b. the number of miles driven.c. the number of products manufactured.d. the number of production hours.Answer: b Difficulty: 2 Objective: 361. The MOST likely cost driver of direct material costs isa. the number of parts within the product.b. the number of miles driven.c. the number of products manufactured.d. the number of production hours.Answer: c Difficulty: 2 Objective: 362. Which of the following statements is FALSE?a. There is a cause-and-effect relationship between the cost driver and the level ofactivity.b. Fixed costs have cost drivers over the short run.c. Over the long run all costs have cost drivers.d. Volume of production is a cost driver of direct manufacturing costs.Answer: b Difficulty: 2 Objective: 363. A band of normal activity or volume in which specific cost-volume relationships aremaintained is referred to asa. the average range.b. the cost-allocation range.c. the cost driver range.d. the relevant range.Answer: d Difficulty: 1 Objective: 364. Within the relevant range, if there is a change in the level of the cost driver thena. total fixed costs and total variable costs will change.b. total fixed costs and total variable costs will remain the same.c. total fixed costs will remain the same and total variable costs will change.d. total fixed costs will change and total variable costs will remain the same.Answer: c Difficulty: 2 Objective: 365. Within the relevant range, if there is a change in the level of the cost driver thena. fixed and variable costs per unit will change.b. fixed and variable costs per unit will remain the same.c. fixed costs per unit will remain the same and variable costs per unit will change.d. fixed costs per unit will change and variable costs per unit will remain the same.Answer: d Difficulty: 2 Objective: 366. When 10,000 units are produced, fixed costs are $14 per unit. Therefore, when 20,000units are produced fixed costsa. will increase to $28 per unit.b. will remain at $14 per unit.c. will decrease to $7 per unit.d. will total $280,000.Answer: c Difficulty: 3 Objective: 467. When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000units are produceda. variable costs will total $120,000.b. variable costs will total $60,000.c. variable unit costs will increase to $12 per unit.d. variable unit costs will decrease to $3 per unit.Answer: a Difficulty: 3 Objective: 468. Christi Manufacturing provided the following information for last month.Sales $10,000Variable costs 3,000Fixed costs 5,000Operating income $2,000If sales double next month, what is the projected operating income?a. $4,000b. $7,000c. $9,000d. $12,000Answer: c Difficulty: 3 Objective: 4(10,000 x 2) - ($3,000 x 2) - $5,000 = $9,00069. Kym Manufacturing provided the following information for last month.Sales $12,000Variable costs 4,000Fixed costs 1,000Operating income $7,000If sales double next month, what is the projected operating income?a. $14,000b. $15,000c. $18,000d. $19,000Answer: b Difficulty: 3 Objective: 4(12,000 x 2) - ($4,000 x 2) - $1,000 = $15,00070. Wheel and Tire Manufacturing currently produces 1,000 tires per month. The followingper unit data apply for sales to regular customers:Direct materials $20Direct manufacturing labor 3Variable manufacturing overhead 6Fixed manufacturing overhead 10Total manufacturing costs $39The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires?a. $39,000b. $78,000c. $68,000d. $62,000Answer: c Difficulty: 2 Objective: 4[($20 + $3 + $6) x 2,000 units] + ($10 x 1,000 units) = $68,00071. Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. Thefollowing per unit data apply for sales to regular customers:Direct materials $50Direct manufacturing labor 5Variable manufacturing overhead 14Fixed manufacturing overhead 10Total manufacturing costs $79The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What is the per unit cost of producing 2,000 bicycles?a. $79 per unitb. $158 per unitc. $74 per unitd. $134 per unitAnswer: c Difficulty: 3 Objective: 4[($50 + $5 + $14) x 2,000 units] + ($10 x 1,000 units) = $148,000 / 2,000 units = $74 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 AND 73.Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:Direct materials $30Direct manufacturing labor 5Variable manufacturing overhead 10Fixed manufacturing overhead 40Total manufacturing costs $8572 The plant has capacity for 2,000 axles and is considering expanding production to 1,500axles. What is the total cost of producing 1,500 axles?a. $85,000b. $170,000c. $107,500d. $102,500Answer: c Difficulty: 2 Objective: 4[($30 + $5 + $10) x 1,500 units] + ($40 x 1,000 units) = $107,50073. What is the per unit cost when producing 1,500 axles?a. $71.67b. $107.50c. $85.00d. $170.00Answer: a Difficulty: 2 Objective: 4$107,500 / 1,500 = $71.67THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 74 THROUGH 76. Pederson Company reported the following:Manufacturing costs $2,000,000Units manufactured 50,000Units sold 47,000 units sold for $75 per unitBeginning inventory 0 units74. What is the average manufacturing cost per unit?a. $40.00b. $42.55c. $00.025d. $75.00Answer: a Difficulty: 1 Objective: 4$2,000,000 / 50,000 = $40.0075. What is the amount of ending finished goods inventory?a. $1,880,000b. $120,000c. $225,000d. $105,000Answer: b Difficulty: 2 Objective: 4(50,000 - 47,000) x $40.00 = $120,00076. What is the amount of gross margin?a. $1,750,000b. $3,525,000c. $5,405,000d. $1,645,000Answer: d Difficulty: 3 Objective: 747,000 x ($75 - $40) = $1,645,000THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 77 THROUGH 79. The following information pertains to Alleigh’s Mannequins:Manufacturing costs $1,500,000Units manufactured 30,000Units sold 29,500 units sold for $85 per unitBeginning inventory 0 units77. What is the average manufacturing cost per unit?a. $50.00b. $50.85c. $17.65d. $85.00Answer: a Difficulty: 1 Objective: 4$1,500,000 / 30,000 = $50.0078. What is the amount of ending finished goods inventory?a. $42,500b. $25,424c. $25,000d. $1,475,000Answer: c Difficulty: 2 Objective: 4(30,000 - 29,500) x $50.00 = $25,00079. What is the amount of gross margin?a. $1,475,000b. $1,500,000c. $2,507,500d. $1,032,500Answer: d Difficulty: 3 Objective: 729,500 x ($85 - $50) = $1,032,50080. Which of the following companies is part of the service sector of our economy?a. Wal-Martb. Bank of Americac. General Motorsd. Answer: b Difficulty: 1 Objective: 581. Which of the following companies is part of the merchandising sector of our economy?a. General Motorsb. Intelc. The GAPd. Robert Meyer Accounting FirmAnswer: c Difficulty: 1 Objective: 582. Which of the following companies is part of the manufacturing sector of our economy?a. Nikeb. Barnes & Noblec. Corvette Law Firmd. Sears, Roebuck, and CompanyAnswer: a Difficulty: 1 Objective: 583. Service-sector companies reporta. only merchandise inventory.b. only finished goods inventory.c. direct materials inventory, work-in-process inventory, and finished goodsinventory accounts.d. no inventory accounts.Answer: d Difficulty: 1 Objective: 684. Manufacturing-sector companies reporta. only merchandise inventory.b. only finished goods inventory.c. direct materials inventory, work-in-process inventory, and finished goodsinventory accounts.d. no inventory accounts.Answer: c Difficulty: 1 Objective: 685. For a manufacturing company, direct material costs may be included ina. direct materials inventory only.b. merchandise inventory only.c. both work-in-process inventory and finished goods inventory.d. direct materials inventory, work-in-process inventory, and finished goodsinventory accounts.Answer: d Difficulty: 3 Objective: 686. For a manufacturing company, direct labor costs may be included ina. direct materials inventory only.b. merchandise inventory only.c. both work-in-process inventory and finished goods inventory.d. direct materials inventory, work-in-process inventory, and finished goodsinventory accounts.Answer: c Difficulty: 3 Objective: 687. For a manufacturing company, indirect manufacturing costs may be included ina. direct materials inventory only.b. merchandise inventory only.c. both work-in-process inventory and finished goods inventory.d. direct materials inventory, work-in-process inventory, and finished goodsinventory accounts.Answer: c Difficulty: 3 Objective: 688. For a manufacturing-sector company, the cost of factory insurance is classified as aa. direct material cost.b. direct manufacturing labor cost.c. manufacturing overhead cost.d. period cost.Answer: c Difficulty: 1 Objective: 689. For a printing company, the cost of paper is classified as aa. direct material cost.b. direct manufacturing labor cost.c. manufacturing overhead cost.d. period cost.Answer: a Difficulty: 1 Objective: 690. Wages paid to machine operators on an assembly line are classified as aa. direct material cost.b. direct manufacturing labor cost.c. manufacturing overhead cost.d. period cost.Answer: b Difficulty: 1 Objective: 6 91. Manufacturing overhead costs in an automobile manufacturing plant MOST likelyincludea. labor costs of the painting department.b. indirect material costs such as lubricants.c. sales commissions.d. steering wheel costs.Answer: b Difficulty: 1 Objective: 692. Manufacturing overhead costs are also referred to asa. indirect manufacturing costs.b. prime costs.c. period costs.d. conversion costs.Answer: a Difficulty: 1 Objective: 6THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 93 THROUGH 97. Gilley Incorporated reported the following information:On January 31, 20x3:Job #101 was the only job in process with accumulated costs of $3,000.During February the following costs were added to production:Job #101 $10,000Job #102 $ 8,000Job #103 $ 7,000On February 28, 20x3:Job #101 was completed and sold for $18,000.Job #102 was completed but not sold.Job #103 remains in production.93. What is work-in-process inventory on February 28, 20x3?a. $7,000b. $8,000c. $25,000d. $3,000Answer: a Difficulty: 1 Objective: 6Job #103 $7,00094. What is finished goods inventory on February 28, 20x3?a. $7,000b. $8,000c. $21,000d. $10,000Answer: b Difficulty: 1 Objective: 6Job #102 $8,00095. What is cost of goods manufactured for February?a. $10,000b. $8,000c. $13,000d. $21,000Answer: d Difficulty: 3 Objective: 7(Job #101 $13,000) + (Job #102 $8,000)96. What is cost of goods sold for February?a. $18,000b. $10,000c. $13,000d. $21,000Answer: c Difficulty: 2 Objective: 7Job #101 $13,00097. What is gross margin for February?a. $5,000b. $18,000c. $8,000d. $13,000Answer: a Difficulty: 3 Objective: 7 $18,000 - $13,000 = $5,00098. The income statement of a manufacturing firm reportsa. period costs only.b. inventoriable costs only.c. both period and inventoriable costs.d. period and inventoriable costs but at different times, the reporting varies.Answer: c Difficulty: 2 Objective: 799. The income statement of a service-sector firm reportsa. period costs only.b. inventoriable costs only.c. both period and inventoriable costs.d. period and inventoriable costs but at different times, the reporting varies.Answer: a Difficulty: 2 Objective: 7 100. Manufacturing costs include all EXCEPTa. costs incurred inside the factory.b. both direct and indirect costs.c. both variable and fixed costs.d. both inventoriable and period costs.Answer: d Difficulty: 2 Objective: 7 101. Inventoriable costsa. include administrative and marketing costs.b. are expensed in the accounting period sold.c. are particularly useful in management accounting.d. are also referred to as nonmanufacturing costs.Answer: b Difficulty: 2 Objective: 7 102. Inventoriable costs are expensed on the income statementa. when direct materials for the product are purchased.b. after the products are manufactured.c. when the products are sold.d. not at any particular time, it varies.Answer: c Difficulty: 2 Objective: 7103. Costs that are initially recorded as assets and expensed when sold are referred to asa. period costs.b. inventoriable costs.c. variable costs.d. fixed costs.Answer: b Difficulty: 2 Objective: 7104. For merchandising companies, inventoriable costs includea. the cost of the goods themselves.b. incoming freight costs.c. insurance costs for the goods.d. all of the above.Answer: d Difficulty: 2 Objective: 7105. For manufacturing firms, inventoriable costs includea. plant supervisor salaries.b. research and development costs.c. costs of dealing with customers after the sale.d. distribution costs.Answer: a Difficulty: 2 Objective: 7106. A plant manufactures several different products. The wages of the plant supervisor can be classified as a(n)a. direct cost.b. inventoriable cost.c. variable cost.d. period cost.Answer: b Difficulty: 2 Objective: 7107. The cost of inventory reported on the balance sheet may include all of the following EXCEPTa. customer-service costs.b. wages of the plant supervisor.c. depreciation of the factory equipment.d. the cost of parts used in the manufacturing process.Answer: a Difficulty: 2 Objective: 7108. For a computer manufacturer, period costs include the cost ofa. the keyboard.b. labor used for assembly and packaging.c. distribution.d. assembly-line equipment.Answer: c Difficulty: 1 Objective: 7109. Period costsa. include only fixed costs.b. seldom influence financial success or failure.c. include the cost of selling, delivering, and after-sales support for customers.d. should be treated as an indirect cost rather than as a direct manufacturing cost.Answer: c Difficulty: 2 Objective: 7110. Period costsa. are treated as expenses in the period they are incurred.b. are directly traceable to products.c. include direct labor.d. are also referred to as manufacturing overhead costs.Answer: a Difficulty: 2 Objective: 7111. Which of the following is NOT a period cost?a. Marketing costsb. General and administrative costsc. Research and development costsd. Manufacturing costsAnswer: d Difficulty: 1 Objective: 7112. Costs expensed on the income statement in the accounting period incurred are referred to asa. direct costs.b. indirect costs.c. period costs.d. inventoriable costs.Answer: c Difficulty: 1 Objective: 7113. Prime costs includea. direct materials and direct manufacturing labor costs.b. direct manufacturing labor and manufacturing overhead costs.c. direct materials and manufacturing overhead costs.d. only direct materials.Answer: a Difficulty: 1 Objective: 7114. Conversion costs includea. direct materials and direct manufacturing labor costs.b. direct manufacturing labor and manufacturing overhead costs.c. direct materials and manufacturing overhead costs.d. only direct materials.Answer: b Difficulty: 1 Objective: 7115. Total manufacturing costs equala. direct materials + prime costs.b. direct materials + conversion costs.c. direct manufacturing labor costs + prime costs.d. direct manufacturing labor costs + conversion costs.Answer: b Difficulty: 2 Objective: 7116. The cost classification system used by manufacturing firms include all of the following EXCEPTa. direct materials costs and conversion costs.b. direct materials costs, direct manufacturing labor costs, and manufacturingoverhead costs.c. indirect materials costs, indirect manufacturing labor costs, and manufacturingoverhead costs.d. prime costs and manufacturing overhead costs.Answer: c Difficulty: 2 Objective: 7117. Manufacturing overhead costs may include all EXCEPTa. salaries of the plant janitorial staff.b. labor that can be traced to individual products.c. wages paid for unproductive time due to machine breakdowns.d. overtime premiums paid to plant workers.Answer: b Difficulty: 3 Objective: 7118. Debated items that some companies include as direct manufacturing labor includea. fringe benefits.b. vacation pay.c. training time.d. all of the above.Answer: d Difficulty: 2 Objective: 7119. Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime. One week she worked 42 hours, which included 2 hours of overtime. Compensation would be reported asa. $400 of direct labor and $30 of manufacturing overhead.b. $400 of direct labor and $zero of manufacturing overhead.c. $420 of direct labor and $10 of manufacturing overhead.d. $430 of direct labor and $zero of manufacturing overhead.Answer: c Difficulty: 2 Objective: 7Direct labor (42 hours x $10) + Overtime premium (2 hrs x $5) = $430。

成本与管理会计英文版试题库答案ch07

Cost Accounting, 13e (Horngren et al.)Chapter 7 Flexible Budgets, Direct-Cost Variances, and Management Control1) The master budget is one type of flexible budget.Answer: FALSEExplanation: The master budget is a static budget.Diff: 1Terms: flexible budgetObjective: 1AACSB: Reflective thinking2) A flexible budget is calculated at the start of the budget period.Answer: FALSEExplanation: A flexible budget is calculated at the end of the budget period when actual output is known.Diff: 1Terms: flexible budgetObjective: 1AACSB: Reflective thinking3) Information regarding the causes of variances is provided when the master budget is compared with actualresults.Answer: FALSEExplanation: Little information regarding the causes of variances is provided when the master budget is compared with actual results because you are comparing a budget for one level of activity withactual costs for a different level of activity.Diff: 2Terms: varianceObjective: 1AACSB: Reflective thinking4) A variance is the difference between the actual cost for the current and previous year.Answer: FALSEExplanation: A variance is the difference between actual results and expected (or budgeted) performance.Diff: 2Terms: varianceObjective: 1AACSB: Reflective thinking5) A favorable variance results when budgeted revenues exceed actual revenues.Answer: FALSEExplanation: An unfavorable variance results when budgeted revenues exceed actual revenues.Diff: 2Terms: favorable varianceObjective: 1AACSB: Reflective thinking6) Management by exception is the practice of concentrating on areas not operating as anticipated (such as acost overrun) and placing less attention on areas operating as anticipated.Answer: TRUEDiff: 1Terms: management by exceptionObjective: 1AACSB: Reflective thinking7) The essence of variance analysis is to capture a departure from what was expected.Answer: TRUEDiff: 1Terms: varianceObjective: 1AACSB: Reflective thinking8) A favorable variance should be ignored by management.Answer: FALSEExplanation: Favorable variance investigation may lead to improved production methods, other discoveries for future opportunities, or not be good news at all and adversely affect other variances.Diff: 1Terms: favorable varianceObjective: 1AACSB: Reflective thinking9) An unfavorable variance may be due to poor planning rather than due to inefficiency.Answer: TRUEDiff: 2Terms: unfavorable varianceObjective: 1AACSB: Communication10) The only difference between the static budget and flexible budget is that the static budget is prepared usingplanned output.Answer: TRUEDiff: 2Terms: static budget, flexible budgetObjective: 2AACSB: Reflective thinking11) The static-budget variance can be subdivided into the flexible-budget variance and the sales-volume variance.Answer: TRUEDiff: 2Terms: static-budget variance, sales-volume variance, flexible-budget varianceObjective: 2AACSB: Reflective thinking12) The flexible-budget variance may be the result of inaccurate forecasting of units sold.Answer: FALSEExplanation: The sales-volume variance is the result of inaccurate forecasting of units sold.Diff: 3Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking13) Decreasing demand for a product may create a favorable sales-volume variance.Answer: FALSEExplanation: Decreasing demand for a product may create an unfavorable sales-volume variance.Diff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking14) An unfavorable variance is conclusive evidence of poor performance.Answer: FALSEExplanation: An unfavorable variance suggests further investigation, not conclusive evidence of poor performance.Diff: 2Terms: unfavorable varianceObjective: 2AACSB: Reflective thinking15) A company would not need to use a flexible budget if it had perfect foresight about actual output units.Answer: TRUEDiff: 2Terms: flexible budgetObjective: 2AACSB: Reflective thinking16) The flexible-budget variance pertaining to revenues is often called a selling-price variance.Answer: TRUEDiff: 1Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking17) Cost control is the focus of the sales-volume variance.Answer: FALSEExplanation: The sales-volume variance is not a measure of cost, but rather a measure of actual output units differing from budgeted output units.Diff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking18) The term efficiency variance is the direct-cost portion of the flexible-budget variance.Answer: FALSEExplanation: The flexible-budget variance for direct-cost inputs is subdivided into two detailed variances, the efficiency variance and the price variance.Diff: 1Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking19) Managers generally have more control over efficiency variances than price variances.Answer: TRUEExplanation: Efficiency variances are primarily affected by internal factors, whereas price changes may be influenced by market factors.Diff: 3Terms: efficiency variance, price varianceObjective: 3AACSB: Reflective thinking20) To prepare budgets based on actual data from past periods is preferred since past inefficiencies are excluded.Answer: FALSEExplanation: A deficiency of using budgeted input quantity information based on actual quantity data from past periods is that past inefficiencies are included.Diff: 2Terms: static budgetObjective: 3AACSB: Reflective thinking21) All budgets are based on standard costs.Answer: FALSEExplanation: Budgets may be based on standard costs, actual amounts from last year, or data from other companies.Diff: 2Terms: standard costObjective: 3AACSB: Reflective thinking22) A standard is attainable through efficient operations but allows for normal disruptions such as machinebreakdowns and defective production.Answer: TRUEDiff: 3Terms: standard costObjective: 3AACSB: Reflective thinking23) One advantage of using standard times to develop a budget is they are simple to compile, are based solely onthe past actual history, and do not require expected future changes to be taken into account.Answer: FALSEExplanation: An advantage of using standard times is they aim to take into account changes expected to occur in the budget period.Diff: 3Terms: standardObjective: 3AACSB: Reflective thinking24) The presumed cause of a material price variance will determine how a company responds.Answer: TRUEDiff: 1Terms: price varianceObjective: 4AACSB: Reflective thinking25) The price variance is the difference between the actual price and the budgeted price of the input, multipliedby the actual quantity of input.Answer: TRUEDiff: 1Terms: price varianceObjective: 4AACSB: Reflective thinkingand the budgeted quantity of input allowed to produce actual output, multiplied by the actual price.Answer: FALSEExplanation: The efficiency variance is the difference between actual quantity of input used and the budgeted quantity of input allowed to produce actual output, multiplied by the budgeted price.Diff: 1Terms: efficiency varianceObjective: 4AACSB: Reflective thinking27) The use of high-quality raw materials is likely to result in a favorable efficiency variance and an unfavorableprice variance.Answer: TRUEDiff: 2Terms: efficiency variance, price varianceObjective: 4AACSB: Reflective thinking28) The direct manufacturing labor price variance is likely to be favorable if higher-skilled workers are put on ajob.Answer: FALSEExplanation: The direct manufacturing labor variance is likely to be unfavorable if higher-skilled workers are put on a job since they are usually also higher paid.Diff: 2Terms: price varianceObjective: 4AACSB: Reflective thinking29) Although computed separately, price variances and efficiency variances should not be analyzed separatelyfrom each other.Answer: TRUEDiff: 2Terms: price variance, efficiency varianceObjective: 4AACSB: Reflective thinking30) A favorable variance can be automatically interpreted as "good news."Answer: FALSEExplanation: A favorable variance may not be good news at all because it adversely affects other variances that increase total costs.Diff: 1Terms: favorable varianceObjective: 5AACSB: Reflective thinking31) Variances often affect each other.Answer: TRUEDiff: 1Terms: varianceObjective: 5AACSB: Analytical skillscreativity and resourcefulness.Answer: FALSEExplanation: The most common outcome when variance analysis is used for performance evaluation is that managers seek targets that are easily attainable and avoid targets that require creativity andresourcefulness.Diff: 2Terms: varianceObjective: 5AACSB: Ethical reasoning33) When using variance for performance evaluation, managers often focus on effectiveness and efficiency astwo of the common attributes used in comparing expected results with actual results.Answer: TRUEDiff: 2Terms: varianceObjective: 5AACSB: Ethical reasoning34) For critical items such as product defects, a small variance may prompt investigation.Answer: TRUEDiff: 2Terms: varianceObjective: 5AACSB: Analytical skills35) A particular variance generally signals one particular problem.Answer: FALSEExplanation: There are many potential causes of a single variance.Diff: 1Terms: varianceObjective: 5AACSB: Analytical skills36) If budgets contain slack, cost variances will tend to be favorable.Answer: TRUEDiff: 2Terms: favorable varianceObjective: 5AACSB: Analytical skills37) Continuous improvement budgeted costs target price reductions and efficiency improvements.Answer: TRUEDiff: 1Terms: standard costObjective: 5AACSB: Analytical skillsperiod of time.Answer: FALSEExplanation: Improvement opportunities are easier to identify when products are first produced.Diff: 2Terms: varianceObjective: 5AACSB: Reflective thinking39) It is best to rely totally on financial performance measures rather than using a combination of financial andnonfinancial performance measures.Answer: FALSEExplanation: It is best to rely on a combination of financial and nonfinancial performance measures.Diff: 2Terms: varianceObjective: 5AACSB: Reflective thinking40) From the perspective of control, the direct materials price variance should be isolated at the time the directmaterials are requisitioned for use.Answer: FALSEExplanation: From the perspective of control, the direct materials price variance should be isolated at the earliest possible time, which is at the time of purchase, not of use.Diff: 2Terms: price varianceObjective: 5AACSB: Reflective thinking41) The goal of variance analysis is for managers to understand why variances arise, to learn, and to improvefuture performance.Answer: TRUEDiff: 2Terms: varianceObjective: 5AACSB: Communication42) Employees logging in to production floor terminals and other modern technologies greatly facilitate the useof a standard costing system.Answer: TRUEDiff: 1Terms: standard costObjective: 5AACSB: Reflective thinking43) Performance variance analysis can be used in activity-based costing systems.Answer: TRUEDiff: 1Terms: varianceObjective: 6AACSB: Reflective thinking44) Price variances can be calculated for batch-level costs as well as for output unit-level costs.Answer: TRUEDiff: 1Terms: price varianceObjective: 6AACSB: Reflective thinking45) Benchmarking is the continuous process of measuring products, services, and activities against the bestpossible levels of performance, either inside or outside the organization.Answer: TRUEDiff: 1Terms: benchmarkingObjective: 7AACSB: Reflective thinking46) When benchmarking, the best levels of performance are typically found in companies that are totallydifferent.Answer: FALSEExplanation: When benchmarking, the best levels of performance are typically found in competing companies or in companies having similar processes.Diff: 1Terms: benchmarkingObjective: 7AACSB: Reflective thinking47) One problem with benchmarking is ensuring that numbers are comparable.Answer: TRUEDiff: 1Terms: benchmarkingObjective: 7AACSB: Reflective thinking48) When benchmarking it is best when management accountants simply analyze the costs and allowmanagement to provide the insight as to why the revenues and costs differ between companies.Answer: FALSEExplanation: When benchmarking, management accountants are more valuable when they analyze the costs and also provide management with insight as to why the revenues and costs differ betweencompanies.Diff: 1Terms: benchmarkingObjective: 7AACSB: Communication49) The master budget is:A) a flexible budgetB) a static budgetC) developed at the end of the periodD) based on the actual level of outputAnswer: BDiff: 1Terms: static budgetObjective: 1AACSB: Reflective thinking50) A flexible budget:A) is another name for management by exceptionB) is developed at the end of the periodC) is based on the budgeted level of outputD) provides favorable operating resultsAnswer: BDiff: 1Terms: flexible budgetObjective: 1AACSB: Reflective thinking51) Management by exception is the practice of concentrating on:A) the master budgetB) areas not operating as anticipatedC) favorable variancesD) unfavorable variancesAnswer: BDiff: 1Terms: management by exceptionObjective: 1AACSB: Reflective thinking52) A variance is:A) the gap between an actual result and a benchmark amountB) the required number of inputs for one standard outputC) the difference between an actual result and a budgeted amountD) the difference between a budgeted amount and a standard amountAnswer: CDiff: 1Terms: varianceObjective: 1AACSB: Reflective thinking53) An unfavorable variance indicates that:A) actual costs are less than budgeted costsB) actual revenues exceed budgeted revenuesC) the actual amount decreased operating income relative to the budgeted amountD) All of these answers are correct.Answer: CDiff: 2Terms: unfavorable varianceObjective: 1AACSB: Reflective thinking54) A favorable variance indicates that:A) budgeted costs are less than actual costsB) actual revenues exceed budgeted revenuesC) the actual amount decreased operating income relative to the budgeted amountD) All of these answers are correct.Answer: BDiff: 2Terms: favorable varianceObjective: 1AACSB: Reflective thinkingAnswer the following questions using the information below:Abernathy Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.Actual BudgetedUnits sold 92,000 units 90,000 unitsVariable costs $450,800 $432,000Fixed costs $ 95,000 $100,00055) What is the static-budget variance of revenues?A) $20,000 favorableB) $20,000 unfavorableC) $2,000 favorableD) $2,000 unfavorableAnswer: AExplanation: A) (92,000 units × $10) - (90,000 units × $10) = $20,000 FDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills56) What is the static-budget variance of variable costs?A) $1,200 favorableB) $18,800 unfavorableC) $20,000 favorableD) $1,200 unfavorableAnswer: BExplanation: B) $450,800 - $432,000 = $18,800 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills57) What is the static-budget variance of operating income?A) $3,800 favorableB) $3,800 unfavorableC) $6,200 favorableD) $6,200 unfavorableAnswer: CExplanation: C) Actual Static Static-budgetResults Budget VarianceUnits sold 92,000 90,000Revenues $920,000 $900,000 $20,000 FVariable costs 450,800 432,000 18,800 UContribution margin $469,200 $468,000 1,200 FFixed costs 95,000 100,000 (5,000) FOperating income $374,200 $368,000 $6,200 F Diff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skillsAnswer the following questions using the information below:Bates Corporation used the following data to evaluate their current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.Actual BudgetedUnits sold 495,000 units 500,000 unitsVariable costs $1,250,000 $1,500,000Fixed costs $ 925,000 $ 900,00058) What is the static-budget variance of revenues?A) $50,000 favorableB) $50,000 unfavorableC) $5,000 favorableD) $5,000 unfavorableAnswer: BExplanation: B) (495,000 units × $10) - (500,000 units × $10) = $50,000 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills59) What is the static-budget variance of variable costs?A) $200,000 favorableB) $50,000 unfavorableC) $250,000 favorableD) $250,000 unfavorableAnswer: CExplanation: C) $1,250,000 - $1,500,000= $250,000 FDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills60) What is the static-budget variance of operating income?A) $175,000 favorableB) $195,000 unfavorableC) $225,000 favorableD) $325,000 unfavorableAnswer: AExplanation: A) Actual Static Static-budgetResults Budget VarianceUnits sold 495,000 500,000Revenues $4,950,000 $5,000,000 $(50,000) UVariable costs 1,250,000 1,500,000 (250,000) FContribution margin $3,700,000 $3,500,000 200,000 FFixed costs 925,000 900,000 25,000 UOperating income $2,775,000 $2,600,000 $175,000 F Diff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skillsAnswer the following questions using the information below:Racine Filter Corporation used the following data to evaluate their current operating system. The company sells items for $14.50 each and had used a budgeted selling price of $15 per unit.Actual BudgetedUnits sold 206,000 units 200,000 unitsVariable costs $965,000 $950,000Fixed costs $ 53,000 $ 50,00061) What is the static-budget variance of revenues?A) $90,000 favorableB) $13,000 favorableC) $13,000 unfavorableD) $6,000 favorableAnswer: CExplanation: C) (206,000 units × $14.50) - (200,000 units × $15) = $13,000 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills62) What is the static-budget variance of variable costs?A) $13,000 favorableB) $13,000 unfavorableC) $15,000 favorableD) $15,000 unfavorableAnswer: DExplanation: D) $965,000 - $950,000= $15,000 UDiff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills63) What is the static-budget variance of operating income?A) $31,000 unfavorableB) $26,000 favorableC) $28,000 favorableD) $28,000 unfavorableAnswer: AExplanation: A) Actual Static Static-budgetResults Budget VarianceUnits sold 202,000 200,000Revenues $2,987,000 $3,000,000 $(13,000) UVariable costs 965,000 950,000 (15,000) UContribution margin $2,022,000 $2,050,000 28,000 UFixed costs 53,000 50,000 3,000 UOperating income $ 1,969,000 $2,000,000 $31,000 U Diff: 2Terms: static-budget varianceObjective: 1AACSB: Analytical skills64) Regier Company had planned for operating income of $10 million in the master budget but actually achievedoperating income of only $7 million.A) The static-budget variance for operating income is $3 million favorable.B) The static-budget variance for operating income is $3 million unfavorable.C) The flexible-budget variance for operating income is $3 million favorable.D) The flexible-budget variance for operating income is $3 million unfavorable.Answer: BDiff: 2Terms: static-budget variance, flexible-budget varianceObjective: 1AACSB: Analytical skills65) The flexible budget contains:A) budgeted amounts for actual outputB) budgeted amounts for planned outputC) actual costs for actual outputD) actual costs for planned outputAnswer: ADiff: 1Terms: flexible budgetObjective: 2AACSB: Reflective thinking66) The following items are the same for the flexible budget and the master budget EXCEPT the same:A) variable cost per unitB) total fixed costsC) units soldD) sales price per unitAnswer: CDiff: 2Terms: flexible budgetObjective: 2AACSB: Reflective thinking67) The sales-volume variance is due to:A) using a different selling price from that budgetedB) inaccurate forecasting of units soldC) poor production performanceD) Both A and B are correct.Answer: BDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking68) An unfavorable sales-volume variance could result from:A) decreased demand for the productB) competitors taking market shareC) customer dissatisfaction with the productD) All of these answers are correct.Answer: DDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking69) If a sales-volume variance was caused by poor-quality products, then the ________ would be in the bestposition to explain the variance.A) production managerB) sales managerC) purchasing managerD) management accountantAnswer: ADiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking70) The variance that is BEST for measuring operating performance is the:A) static-budget varianceB) flexible-budget varianceC) sales-volume varianceD) selling-price varianceAnswer: BDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking71) An unfavorable flexible-budget variance for variable costs may be the result of:A) using more input quantities than were budgetedB) paying higher prices for inputs than were budgetedC) selling output at a higher selling price than budgetedD) Both A and B are correct.Answer: DDiff: 3Terms: flexible-budget varianceObjective: 2AACSB: Reflective thinking72) An unfavorable variance:A) may suggest investigation is neededB) is conclusive evidence of poor performanceC) demands that standards be recomputedD) indicates continuous improvement is neededAnswer: ADiff: 2Terms: unfavorable varianceObjective: 2AACSB: Reflective thinking73) All of the following are needed to prepare a flexible budget EXCEPT determining the:A) budgeted variable cost per output unitB) budgeted fixed costsC) actual selling price per unitD) actual quantity of output unitsAnswer: CDiff: 3Terms: flexible budgetObjective: 2AACSB: Reflective thinking74) The variance that LEAST affects cost control is the:A) flexible-budget varianceB) direct-material-price varianceC) sales-volume varianceD) direct manufacturing labor efficiency varianceAnswer: CDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Reflective thinking75) A flexible-budget variance is $800 favorable for unit-related costs. This indicates that costs were:A) $800 more than the master budgetB) $800 less than for the planned level of activityC) $800 more than standard for the achieved level of activityD) $800 less than standard for the achieved level of activityAnswer: DDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:JJ White planned to use $82 of material per unit but actually used $80 of material per unit, and planned to make 1,200 units but actually made 1,000 units.76) The flexible-budget amount is:A) $80,000B) $82,000C) $96,000D) $98,400Answer: BExplanation: B) 1,000 units × $82 = $82,000Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skills77) The flexible-budget variance is:A) $2,000 favorableB) $14,000 unfavorableC) $16,400 unfavorableD) $2,400 favorableAnswer: AExplanation: A) ($80 - $82) × 1,000 = $2,000 FDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skills78) The sales-volume variance is:A) $2,000 favorableB) $14,000 unfavorableC) $16,400 unfavorableD) $2,400 favorableAnswer: CExplanation: C) (1,000 - 1,200) × $82 = $16,400 UDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Analytical skills79) Aebi Corporation currently produces cardboard boxes in an automated process. Expected production permonth is 20,000 units, direct-material costs are $0.60 per unit, and manufacturing overhead costs are $9,000per month. Manufacturing overhead is allocated based on units of production. What is the flexible budgetfor 10,000 and 20,000 units, respectively?A) $10,500; $16,500B) $10,500; $21,000C) $15,000; $21,000D) None of these answers are correct.Answer: CExplanation: C) 10,000 units 20,000 unitsMaterials ($0.60) $ 6,000 $12,000Machinery 9,000 9,000$15,000 $21,000Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:McKenna Incorporated planned to use $24 of material per unit but actually used $25 of material per unit, and planned to make 1,000 units but actually made 1,200 units.80) The flexible-budget amount is:A) $24,000B) $25,000C) $28,800D) $30,000Answer: CExplanation: C) 1,200 units × $24 = $28,800Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skills81) The flexible-budget variance is:A) $4,800 favorableB) $1,200 unfavorableC) $5,000 unfavorableD) $6,000 favorableAnswer: BExplanation: B) ($25 - $24) × 1,200 = $1,200 UDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skills82) The sales-volume variance is:A) $4,800 favorableB) $1,200 unfavorableC) $5,000 unfavorableD) $6,000 favorableAnswer: AExplanation: A) (1,200 - 1,000) × $24 = $4,800 FDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:Seldon Incorporated planned to use $37.50 of material per unit but actually used $36.75 of material per unit, and planned to make 900 units but actually made 800 units.83) The flexible-budget amount is:A) $30,000B) $33,750C) $29,400D) $600Answer: AExplanation: A) 800 units × $37.50 = $30,000Diff: 2Terms: flexible budgetObjective: 2AACSB: Analytical skills84) The flexible-budget variance is:A) $3,750 favorableB) $3,750 unfavorableC) $600 unfavorableD) $600 favorableAnswer: DExplanation: D) ($36.75 - $37.50) × 800 = $600 FDiff: 2Terms: flexible-budget varianceObjective: 2AACSB: Analytical skills85) The sales-volume variance is:A) $3,750 favorableB) $3,750 unfavorableC) $600 unfavorableD) $600 favorableAnswer: BExplanation: B) (800 - 900) × $37.50 = $3,750 UDiff: 2Terms: sales-volume varianceObjective: 2AACSB: Analytical skills。

成本与管理会计英文版试题库答案ch09

Cost Accounting, 13e (Horngren et al.)Chapter 9 Inventory Costing and Capacity Analysis1) The two most common methods of costing inventories in manufacturing companies are variable costing andfixed costing.Answer: FALSEExplanation: The two methods are variable costing and absorption costing.Diff: 1Terms: absorption costing, variable costingObjective: 1AACSB: Reflective thinking2) Absorption costing "absorbs" only variable manufacturing costs.Answer: FALSEExplanation: Absorption costing "absorbs" all manufacturing costs, both fixed and variable.Diff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking3) Variable costing includes all variable costs both manufacturing and nonmanufacturing in inventory.Answer: FALSEExplanation: Variable costing includes only manufacturing variable costs in inventory.Diff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking4) Under both variable and absorption costing, all variable manufacturing costs are inventoriable costs.Answer: TRUEDiff: 1Terms: variable costing, absorption costingObjective: 1AACSB: Reflective thinking5) The main difference between variable costing and absorption costing is the way in which fixedmanufacturing costs are accounted for.Answer: TRUEDiff: 1Terms: absorption costing, variable costingObjective: 1AACSB: Reflective thinking6) Under variable costing, fixed manufacturing costs are treated as an expense of the period.Answer: TRUEDiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking7) The contribution-margin format of the income statement is used with absorption costing.Answer: FALSEExplanation: The contribution-margin format of the income statement is used with variable costing.Diff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking8) The contribution-margin format of the income statement distinguishes manufacturing costs fromnonmanufacturing costs.Answer: FALSEExplanation: The contribution-margin format of the income statement distinguishes variable costs from fixed costs.Diff: 1Terms: variable costingObjective: 2AACSB: Reflective thinking9) The gross-margin format of the income statement highlights the lump sum of fixed manufacturing costs.Answer: FALSEExplanation: The gross-margin format of the income statement distinguishes manufacturing costs from nonmanufacturing costs, but it does not highlight the lump sum of fixed manufacturing costs.Diff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinking10) In absorption costing, all nonmanufacturing costs are subtracted from gross margin.Answer: TRUEDiff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking11) Direct costing is a perfect way to describe the variable-costing inventory method.Answer: FALSEExplanation: Direct costing is a less than perfect way to describe this method because not all variable costs are inventoriable costs.Diff: 2Terms: direct costingObjective: 2AACSB: Analytical skills12) When variable costing is used, an income statement will show gross margin.Answer: FALSEExplanation: When variable costing is used, an income statement will show contribution margin.Diff: 2Terms: variable costingObjective: 2AACSB: Reflective thinking13) The income under variable costing will always be the same as the income under absorption costing.Answer: FALSEExplanation: The income under variable costing will sometimes be the same as the income under absorption costing.Diff: 2Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinking14) Absorption costing is required by GAAP (Generally Accepted Accounting Principles) for external reporting.Answer: TRUEDiff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinking15) When production deviates from the denominator level, a production-volume variance always exists underabsorption costing.Answer: TRUEDiff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking16) Fixed manufacturing costs included in cost of goods available for sale + the production-volume variance willalways = total fixed manufacturing costs under absorption costing.Answer: TRUEDiff: 1Terms: absorption costingObjective: 2AACSB: Reflective thinking17) The production-volume variance only exists under absorption costing and not under variable costing.Answer: TRUEDiff: 1Terms: absorption costing, variable costingObjective: 2AACSB: Reflective thinking18) When the unit level of inventory increases during an accounting period, operating income is greater undervariable costing than absorption costing.Answer: FALSEExplanation: Greater operating income is reported under variable costing than absorption costing when the unit level of inventory decreases during an accounting period.Diff: 3Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinkingdifference of expensing fixed manufacturing costs.Answer: TRUEDiff: 2Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinking20) If managers report inventories of zero at the start and end of each accounting period, operating incomesunder absorption costing and variable costing will be the same.Answer: TRUEDiff: 2Terms: variable costing, absorption costingObjective: 2AACSB: Reflective thinking21) Under absorption costing, managers can increase operating income by holding more inventories at the endof the period.Answer: TRUEDiff: 2Terms: absorption costingObjective: 3AACSB: Reflective thinking22) Many companies use variable costing for internal reporting to reduce the undesirable incentive to build upinventories.Answer: TRUEDiff: 2Terms: variable costing, absorption costingObjective: 3AACSB: Analytical skills23) Under variable costing, managers can increase operating income by simply producing more inventory at theend of the accounting period even if that inventory never gets sold.Answer: FALSEExplanation: Under absorption costing, managers can increase operating income by producing more inventory at the end of the accounting period.Diff: 3Terms: variable costingObjective: 3AACSB: Analytical skills24) Nonfinancial measures such as comparing units in ending inventory this period to units in ending inventorylast period can help reduce buildup of excess inventory.Answer: TRUEDiff: 1Terms: absorption costingObjective: 3AACSB: Reflective thinkingclassifying costs into fixed or variable categories.Answer: TRUEDiff: 2Terms: variable costingObjective: 3AACSB: Communication26) Managers can increase operating income when absorption costing is used by producing more inventory.Answer: TRUEDiff: 2Terms: absorption costingObjective: 3AACSB: Reflective thinking27) A manager can increase operating income by deferring maintenance beyond the current accounting periodwhen absorption costing is used.Answer: TRUEDiff: 2Terms: absorption costingObjective: 3AACSB: Reflective thinking28) Throughput costing considers only direct materials and direct manufacturing labor to be truly variable costs.Answer: FALSEExplanation: Throughput costing considers only direct materials to be truly variable costs.Diff: 1Terms: throughput costingObjective: 4AACSB: Reflective thinking29) Throughput costing is also referred to as super-variable costing.Answer: TRUEDiff: 1Terms: throughput costing, super-variable costingObjective: 4AACSB: Reflective thinking30) When production quantity exceeds sales, throughput costing results in reporting greater operating incomethan variable costing.Answer: FALSEExplanation: When production quantity exceeds sales, throughput costing results in reporting lower operating income than variable costing.Diff: 3Terms: throughput costing, variable costingObjective: 4AACSB: Reflective thinking31) Throughput costing provides more incentive to produce for inventory than does absorption costing.Answer: FALSEExplanation: Throughput costing provides less incentive to produce for inventory than does absorption costing.Diff: 1Terms: throughput costing, absorption costingObjective: 4internal reports.Answer: TRUEDiff: 2Terms: throughput costing, absorption costingObjective: 4AACSB: Reflective thinking33) Throughput contribution equals revenues minus all product costs.Answer: FALSEExplanation: Throughput contribution equals revenues minus direct materials costs.Diff: 1Terms: throughput costingObjective: 4AACSB: Reflective thinking34) Throughput costing results in a higher amount of manufacturing costs being placed in inventory than eithervariable or absorption costing.Answer: FALSEExplanation: Throughput costing results in a lower amount of manufacturing costs being placed in inventory than either variable or absorption costing.Diff: 2Terms: throughput costingObjective: 4AACSB: Reflective thinking35) Determining the "right" level of capacity is one of the most strategic and difficult decisions managers face.Answer: TRUEDiff: 2Terms: practical capacityObjective: 5AACSB: Ethical reasoning36) Both theoretical and practical capacity measure capacity in terms of demand for the output.Answer: FALSEExplanation: Both theoretical and practical capacity measure capacity in terms of what a plant cansupply available capacity.Diff: 2Terms: theoretical capacity, practical capacityObjective: 5AACSB: Reflective thinking37) Normal capacity utilization is the expected level of capacity utilization for the current budget period, whichis typically one year.Answer: FALSEExplanation: Master-budget capacity utilization is the expected level of capacity utilization for the current budget period, which is typically one year.Diff: 1Terms: normal capacity utilizationObjective: 5AACSB: Reflective thinking38) Normal capacity utilization is not the same as master-budget capacity utilization.Answer: TRUEDiff: 1Terms: normal capacity utilization, master-budget capacity utilizationObjective: 5AACSB: Reflective thinking39) Theoretical capacity is generally much larger than master-budget capacity utilization.Answer: TRUEDiff: 1Terms: theoretical capacityObjective: 5AACSB: Reflective thinking40) Theoretical capacity allows time for regular machine maintenance.Answer: FALSEExplanation: Theoretical capacity is the denominator-level concept that is based on producing at full efficiency all the time.Diff: 2Terms: theoretical capacityObjective: 5AACSB: Reflective thinking41) Estimates of human factors such as the increased risk of injury when machines work at faster speeds areimportant when estimating practical capacity.Answer: TRUEDiff: 2Terms: practical capacityObjective: 5AACSB: Reflective thinking42) Theoretical capacity is unattainable in the real world.Answer: TRUEDiff: 1Terms: theoretical capacityObjective: 5AACSB: Analytical skills43) Theoretical capacity is the capacity level that represents what the firm is able to obtain under reasonablecircumstances.Answer: FALSEExplanation: Practical capacity is the capacity level that represents what the firm is able to obtain under reasonable circumstances.Diff: 2Terms: theoretical capacityObjective: 5AACSB: Reflective thinking44) Fixed manufacturing cost per unit will be the same no matter what capacity concept is used.Answer: FALSEExplanation: Fixed manufacturing cost per unit will be different depending on the capacity concept used.Diff: 2Terms: fixed cost, unit costObjective: 645) Data from normal costing and standard costing are used in pricing and product-mix decisions.Answer: TRUEDiff: 2Terms: normal costing, standard costingObjective: 6AACSB: Communication46) If a company chooses practical capacity for planning purposes, it must also use practical capacity forperformance evaluation.Answer: FALSEExplanation: There is no requirement that one capacity-level concept has to be used for all purposes.Diff: 2Terms: practical capacityObjective: 6AACSB: Reflective thinking47) Theoretical capacity is most often used to cost a product.Answer: FALSEExplanation: Theoretical capacity is unattainable and therefore should not be used to cost a product. Practical capacity is generally used to cost a product.Diff: 2Terms: theoretical capacityObjective: 6AACSB: Reflective thinking48) Practical capacity highlights capacity acquired but currently not used.Answer: TRUEDiff: 2Terms: practical capacityObjective: 6AACSB: Reflective thinking49) For benchmarking purposes it is best to use master-budget capacity because all competitors use about thesame about of capacity for production.Answer: FALSEExplanation: For benchmarking purposes it is best to use practical capacity because it best represents the long-run cost of capacity.Diff: 2Terms: master-budget capacity utilizationObjective: 6AACSB: Reflective thinking50) Using normal capacity for pricing decisions can lead to setting noncompetitive selling prices.Answer: TRUEDiff: 3Terms: normal capacity utilizationObjective: 7AACSB: Reflective thinking51) Using master-budget capacity for pricing purposes can lead to a downward demand spiral.Answer: TRUEDiff: 2Terms: master-budget capacity utilization, downward demand spiralObjective: 752) Using practical capacity is best for evaluating the marketing manager's performance for a particular year.Answer: FALSEExplanation: Using master-budget capacity is best for evaluating the marketing manager's performance.Diff: 3Terms: practical capacityObjective: 7AACSB: Reflective thinking53) The production-volume variance is affected by the choice of capacity concept used to determine thedenominator level.Answer: TRUEDiff: 2Terms: practical capacityObjective: 7AACSB: Reflective thinking54) The higher the denominator level the higher the budgeted fixed manufacturing cost rate per unit.Answer: FALSEExplanation: The higher the denominator level the lower the budgeted fixed manufacturing cost rate per unit.Diff: 2Terms: practical capacityObjective: 7AACSB: Reflective thinking55) Master-budget capacity utilization can be more reliably estimated than normal capacity utilization.Answer: TRUEDiff: 2Terms: master-budget capacity utilizationObjective: 7AACSB: Reflective thinking56) Unused capacity is considered wasted resources and the result of poor planning.Answer: FALSEExplanation: Unused capacity is not considered wasted resources because capacity has to be purchased in "large chunks" to accommodate future needs, not just the needs of the current period.Diff: 1Terms: practical capacityObjective: 7AACSB: Reflective thinking57) Challenges only result from estimating the denominator level, but not the costs in the numerator of the fixedmanufacturing cost rate.Answer: FALSEExplanation: Challenges result from estimating both the denominator level and the costs in the numerator of the fixed manufacturing cost rate.Diff: 1Terms: practical capacityObjective: 7AACSB: Reflective thinking58) Estimating capacity costs is unique to manufacturing and it is not applicable to nonmanufacturing entities.Answer: FALSEExplanation: Estimating capacity costs is needed in both manufacturing and nonmanufacturing entities.Diff: 1Terms: practical capacityObjective: 7AACSB: Reflective thinking59) If the capacity level chosen to calculate the budgeted fixed overhead cost rate is more than the actualproduction, an unfavorable production-volume variance will result.Answer: TRUEDiff: 2Terms: practical capacityObjective: 7AACSB: Reflective thinking60) The breakeven points are the same under both variable costing and absorption costing.Answer: FALSEExplanation: The breakeven points are generally different under both variable costing and absorption costing.Diff: 2Terms: variable costing, absorption costingObjective: AAACSB: Reflective thinking61) Which of the following cost(s) are inventoried when using variable costing?A) direct manufacturing costsB) variable marketing costsC) fixed manufacturing costsD) Both A and B are correct.Answer: ADiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking62) Which of the following cost(s) are inventoried when using absorption costing?A) direct manufacturing costsB) variable marketing costsC) fixed manufacturing costsD) Both A and C are correct.Answer: DDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking63) ________ is a method of inventory costing in which all variable and fixed manufacturing costs are includedas inventoriable costs.A) Variable costingB) Mixed costingC) Absorption costingD) Standard costingAnswer: CDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking64) Absorption costing is required for all of the following EXCEPT:A) generally accepted accounting principlesB) determining a competitive selling priceC) external reporting to shareholdersD) income tax reportingAnswer: BDiff: 2Terms: absorption costingObjective: 1AACSB: Reflective thinking65) Absorption costing:A) expenses marketing costs as cost of goods soldB) treats direct manufacturing costs as a period costC) includes fixed manufacturing overhead as an inventoriable costD) is required for internal reports to managersAnswer: CDiff: 3Terms: absorption costingObjective: 1AACSB: Reflective thinking66) Variable costing:A) expenses administrative costs as cost of goods soldB) treats direct manufacturing costs as a product costC) includes fixed manufacturing overhead as an inventoriable costD) is required for external reporting to shareholdersAnswer: BDiff: 3Terms: variable costingObjective: 1AACSB: Reflective thinking67) ________ method(s) expense(s) variable marketing costs in the period incurred.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: DDiff: 1Terms: variable costing, absorption costing, throughput costingObjective: 1AACSB: Reflective thinking68) ________ method(s) include(s) fixed manufacturing overhead costs as inventoriable costs.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: BDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking69) ________ method(s) expense(s) direct material costs as cost of goods sold.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: DDiff: 1Terms: variable costing, absorption costing, throughput costingObjective: 1AACSB: Reflective thinking70) ________ method(s) is required for tax reporting purposes.A) Variable costingB) Absorption costingC) Throughput costingD) All of these answers are correct.Answer: BDiff: 1Terms: absorption costingObjective: 1AACSB: Reflective thinking71) ________ is a method of inventory costing in which only variable manufacturing costs are included asinventoriable costs.A) Fixed costingB) Variable costingC) Absorption costingD) Mixed costingAnswer: BDiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking72) Variable costing regards fixed manufacturing overhead as a(n):A) administrative costB) inventoriable costC) period costD) product costAnswer: CDiff: 1Terms: variable costingObjective: 1AACSB: Reflective thinking73) The only difference between variable and absorption costing is the expensing of:A) direct manufacturing costsB) variable marketing costsC) fixed manufacturing costsD) Both A and C are correct.Answer: CDiff: 2Terms: variable costing, absorption costingObjective: 1AACSB: Reflective thinkingMarie's Decorating produces and sells a mantel clock for $100 per unit. In 20X5, 100,000 clocks were produced and 80,000 were sold. Other information for the year includes:Direct materials $30.00 per unitDirect manufacturing labor $ 2.00 per unitVariable manufacturing costs $ 3.00 per unitSales commissions $ 5.00 per partFixed manufacturing costs $25.00 per unitAdministrative expenses, all fixed $15.00 per unit74) What is the inventoriable cost per unit using variable costing?A) $32B) $35C) $40D) $60Answer: BExplanation: B) $30.00 + $2.00 + $3.00 = $35.00Diff: 2Terms: variable costingObjective: 1AACSB: Analytical skills75) What is the inventoriable cost per unit using absorption costing?A) $32B) $35C) $60D) $80Answer: CExplanation: C) $30 + $2 + $3 + $25 = $60Diff: 2Terms: absorption costingObjective: 1AACSB: Analytical skillsGabe's Auto produces and sells an auto part for $30.00 per unit. In 20X5, 100,000 parts were produced and 75,000 units were sold. Other information for the year includes:Direct materials $12.00 per unitDirect manufacturing labor $ 2.25 per unitVariable manufacturing costs $ 0.75 per unitSales commissions $ 3.00 per partFixed manufacturing costs $375,000 per yearAdministrative expenses, all fixed $135,000 per year76) What is the inventoriable cost per unit using variable costing?A) $14.25B) $15.00C) $18.00D) $21.75Answer: BExplanation: B) $12.00 + $2.25 + $0.75 = $15.00Diff: 2Terms: variable costingObjective: 1AACSB: Analytical skills77) What is the inventoriable cost per unit using absorption costing?A) $15.00B) $18.00C) $18.75D) $21.75Answer: CExplanation: C) $12.00 + $2.25 + $0.75 + ($375,000 / 100,000) = $18.75Diff: 2Terms: absorption costingObjective: 1AACSB: Analytical skills78) Which of the following inventory costing methods shown below is required by GAAP (Generally AcceptedAccounting Principles) for external financial reporting?A) absorption costingB) variable costingC) throughput costingD) direct costingAnswer: ADiff: 2Terms: absorption costingObjective: 1AACSB: Reflective thinking79) The contribution-margin format of the income statement:A) is used with absorption costingB) calculates gross marginC) distinguishes between manufacturing and nonmanufacturing costsD) is used with variable costingAnswer: DDiff: 2Terms: variable costingObjective: 2AACSB: Reflective thinking80) The gross-margin format of the income statement:A) is used with variable costingB) is used with absorption costingC) calculates contribution marginD) distinguishes variable costs from fixed costsAnswer: BDiff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinking81) The contribution-margin format of the income statement:A) is used with absorption costingB) highlights the lump sum of fixed manufacturing costsC) distinguishes manufacturing costs from nonmanufacturing costsD) calculates gross marginAnswer: BDiff: 3Terms: variable costingObjective: 2AACSB: Reflective thinking82) The gross-margin format of the income statement:A) distinguishes between manufacturing and nonmanufacturing costsB) distinguishes variable costs from fixed costsC) is used with variable costingD) calculates contribution marginAnswer: ADiff: 3Terms: absorption costingObjective: 2AACSB: Reflective thinking83) ________ are subtracted from sales to calculate contribution margin.A) Variable manufacturing costsB) Variable marketing costsC) Fixed manufacturing costsD) Both A and B are correct.Answer: DDiff: 2Terms: variable costingObjective: 2AACSB: Reflective thinking84) ________ are subtracted from sales to calculate gross margin.A) Variable manufacturing costsB) Variable marketing costsC) Fixed manufacturing costsD) Both A and C are correct.Answer: DDiff: 2Terms: absorption costingObjective: 2AACSB: Reflective thinkingAnswer the following questions using the information below:Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:Variable manufacturing costs $20.00 per unitVariable marketing costs $ 3.00 per unitFixed manufacturing costs $ 7.00 per unitAdministrative expenses, all fixed $15.00 per unitEnding inventories:Direct materials -0-WIP -0-Finished goods 250 units85) What is cost of goods sold per unit using variable costing?A) $20B) $23C) $30D) $45Answer: AExplanation: A) $20, only variable manufacturing costs are included when using variable costing.Diff: 1Terms: variable costingObjective: 2AACSB: Analytical skills86) What is cost of goods sold using variable costing?A) $35,000B) $40,000C) $47,250D) $54,000Answer: AExplanation: A) $20 × 1,750 units = $35,000Diff: 2Terms: variable costingObjective: 2AACSB: Analytical skills87) What is contribution margin using variable costing?A) $96,250B) $91,000C) $104,000D) $110,000Answer: BExplanation: B) ($75 × 1,750) - [($20 + $3) × 1,750 units] = $91,000Diff: 3Terms: variable costingObjective: 2AACSB: Analytical skills88) What is operating income using variable costing?A) $52,500B) $78,750C) $65,750D) $47,000Answer: DExplanation: D) Contribution margin of $91,000 - [($7 + $15) × 2,000 units] = $47,000Diff: 3Terms: variable costingObjective: 2AACSB: Analytical skillsAnswer the following questions using the information below:Andrea's Hobbies produces and sells a luxury animal pillow for $40.00 per unit. In the first month of operation, 3,000 units were produced and 2,250 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes:Variable manufacturing costs $19 per unitVariable marketing costs $ 1 per unitFixed manufacturing costs $30,000 per monthAdministrative expenses, all fixed $6,000 per monthEnding inventories:Direct materials -0-WIP -0-Finished goods 750 units89) What is cost of goods sold per unit when using absorption costing?A) $19B) $20C) $29D) $32Answer: CExplanation: C) $19 + ($30,000 / 3,000 units) = $29Diff: 2Terms: absorption costingObjective: 2AACSB: Analytical skills。

英文版会计学考试题及答案

英文版会计学考试题及答案English Accounting Exam Questions and AnswersQuestion 1: Define the term "Double Entry Bookkeeping" and explain its significance in accounting.Answer 1: Double Entry Bookkeeping is a system of recording financial transactions in which every entry to an account requires a corresponding and opposite entry to a different account. This ensures that the accounting equation (Assets = Liabilities + Owner's Equity) remains in balance. The significance of double entry bookkeeping lies in its ability to provide an accurate and comprehensive picture of a business's financial status, facilitating better decision-making and financial control.Question 2: What is the purpose of a trial balance, and how does it help in the preparation of financial statements?Answer 2: A trial balance is a report that lists the balances of all general ledger accounts at a particular point in time, with debit and credit amounts. It is used to ensure that the debits and credits have been recorded correctly. The trial balance helps in the preparation of financial statements by identifying any discrepancies in the accounting records, which can then be rectified before finalizing the statements.Question 3: Explain the difference between "AccrualAccounting" and "Cash Accounting."Answer 3: Accrual Accounting is a method of accounting where revenues and expenses are recognized when they are earned or incurred, not necessarily when cash is received or paid. This method provides a more accurate representation of a company's financial performance over a period. Cash Accounting, on the other hand, records transactions only when cash is exchanged. It is simpler and is often used by small businesses or those that operate on a cash basis.Question 4: Describe the process of preparing an income statement.Answer 4: Preparing an income statement involves several steps:1. List all the revenues for the period, such as sales and service income.2. Deduct all the expenses incurred to generate those revenues, including cost of goods sold, operating expenses, and taxes.3. Calculate the net income by subtracting total expenses from total revenues.4. The income statement should reflect the company's profitability over a specified period, typically a month, quarter, or year.Question 5: What are the main components of a balance sheet, and how do they relate to each other?Answer 5: The main components of a balance sheet are:1. Assets: What the company owns or controls with future economic benefit, divided into current assets (short-term) and non-current assets (long-term).2. Liabilities: Obligations the company owes to others, classified as current liabilities (due within one year) and long-term liabilities (due after one year).3. Owner's Equity: The residual interest in the assets of the entity after deducting liabilities, also known as shareholders' equity or net assets.These components are related through the fundamental accounting equation: Assets = Liabilities + Owner's Equity.Question 6: How does depreciation affect a company'sfinancial statements?Answer 6: Depreciation is a non-cash accounting method used to allocate the cost of tangible assets over their useful lives. It affects a company's financial statements in the following ways:1. It reduces the book value of the asset on the balance sheet.2. It increases the accumulated depreciation account, whichis a contra-asset account.3. It decreases net income on the income statement, as depreciation is an expense.4. It can lower taxable income, potentially reducing the company's tax liability.Question 7: What is the purpose of the statement of cash flows, and how does it differ from the income statement?Answer 7: The purpose of the statement of cash flows is to provide information about a company's cash receipts and payments during a period, showing how these cash flows affect the company's financial position. It differs from the income statement in that:1. It focuses on cash transactions, not accrual-basis accounting.2. It categorizes cash flows into operating, investing, and financing activities.3. It does not report net income but rather the net change in cash and cash equivalents.Question 8: Explain the concept of "Going Concern" and its importance in financial reporting.Answer 8: The Going Concern concept assumes that a businesswill continue to operate for the foreseeable future, allowing it to realize its assets and discharge its liabilities in the normal course of business. It is important in financial reporting because it underpins the accrual basis of accounting, which assumes that the business will continue to operate and therefore can recognize revenues and expensesover time.Question 9: What are the ethical considerations in accounting, and why are they important?Answer 9: Ethical considerations in accounting include honesty, integrity, objectivity, and confidentiality. Theyare important because they ensure the reliability andcredibility of financial information, which is crucial for stakeholders to make informed decisions. Ethical behavior also helps maintain public trust。

会计专业英语-模拟题

会计专业英语-模拟题《会计专业英语》模拟题⼀.单选题1.The Realization Principle indicates that revenue usually should be recognized and recorded in the accounting record().A.when goods are sole or services are rendered to customersB.when cash is collected from customersC.at the end of the accounting periodD.only when the revenue can be matched by an equal dollar amount of expenses[答案]:A2.The Matching Principle:().A.applies only to situations in which a cash payment occurs before an expense is recognizedB.applies only to situations in which a cash receipt occurs before revenue is recognizedC.is used in accrual accounting to determine the proper period for recognition of expensesD.is used in accrual accounting to determine the proper period in which to recognize revenue[答案]:C3.Xxx company paid $2850 on account. The effect of this transaction on the accounting equation is to ().A.decrease assets and decrease owner’s equityB.increase liabilities and decrease owner’s equityC.have no effect on total assetsD.decrease assets and decrease liabilities[答案]:D4.Which of the following concepts belongs to accounting assumption?().A.ConservationB.Money measurementC.MaterialityD.Consistency[答案]:B5.Which of these is/are an example of an asset account?___A.service revenueB.withdrawalsC.suppliesD.all of the above[答案]:C6.Which of these statements is false?().A.increase in assets and increase in revenues are recorded with a debitB.increase in liabilities and increase in owner’s equity are recorded with a c reditC.increase in both assets and withdrawals are recorded with a debitD.decreases in liabilities and increase in expenses are recorded with a debit[答案]:A7.Note payable has a normal beginning balance of $30 000. During the period, new borrowings total $63,000 and the ending balance in Note Payable is $41,000. Determine the payments on loans during the period. ______A.$74000B.$52000C.$134000D.[答案]:B8.Typical liability accounts include _____.A.accounts payable, bank loan, wages payable, drawingsB.Accounts payable, bank overdraft, wages payable, stationaryC.Accounts receivable, bank overdraft, wages payableD.Accounts payable, borrowing from the public, bank overdraft, wages payable.[答案]:D9.Which of these accounts has a normal debit balance?_____.A.Rent ExpenseB.WithdrawalsC.Service RevenueD.Both A and B have a normal debit balance[答案]:D⼆.判断题1.Accounting provides financial information that is only useful to business management.()[答案]:F2.The accounting process generates financial reports for both “internal” and “external” u sers.() [答案]:T3.The basic concept of double-entry accounting is that total debits must equal total credits for every business transaction.() [答案]:T4.A trial balance represents a listing of the ledger accounts and balances at a particular moment in time.()[答案]:T5.The ledger account provides a chronological order of transactions.()6.Post reference columns are found only in the journal, not in the ledger.()[答案]:F/doc/178e564601d8ce2f0066f5335a8102d276a2611a.html ually two signatures are required on a business check for it to be valid.()[答案]:T8.When a check is written by a business, the immediate effect is to reduce both the balance shown in the checkbook and the balance on the bank's records. ()[答案]:F9.The final amounts shown on both sides of the bank reconciliation statement are labeled "Adjusted Balances."()[答案]:T10.A leasehold is an example of a long-life asset.()[答案]:F11.The accounting reporting period agrees to the calendar year. ()[答案]:F12.An increase in permanent capital is recorded as a credit to the account. ()[答案]:T13.Dollar signs are used in the amount areas of the ledger accounts. ()[答案]:F14.If the trial balance shows that the ledger is in balance, this means that the individual business transactions were recorded to the appropriate ledger accounts. ()[答案]:F15.Every business transaction is first recorded in the journal. ()[答案]:T16.Internal control of operations is equally complex in a small and in a large organization. ()[答案]:F17.Two documents used in preparing a bank reconciliation statement are the bank statement and the checkbook stubs.() [答案]:T18.A common cause of inequality between the balances on the bank statement and in the checkbook is outstanding checks. ()19.Depreciation expense is usually recorded at least once a year. ()[答案]:T20.Amortization is the conversion of the cost of an intangible asset to an expense. ()[答案]:T21.Two methods of recognizing accelerated depreciation are the straight-line and the double-declining balance method.() [答案]:F22.Research and development costs represent an intangible asset. ()[答案]:T23.A present reduction in cash required to generate revenues is called “an expense”[答案]:F24.The revenue expenses are paid to influence the current operating result.[答案]:F25.Advertising expense is usually collected as period expense.[答案]:T26.There are only two parties to a check: the person who writes it (the drawee) and the person to whom it is written (the payee). ()[答案]:F27.Repair of a generator is a capital expenditure. ()[答案]:F28.Revenue increases owner's equity.()[答案]:T29.Revenue is recognized when we receive cash from the buyers.()[答案]:F30.Interest revenue should be measured based on the length of time. ()[答案]:T三.翻译题1.Sole Proprietorship Enterprises[答案]:独资企业2.Profit cost and capital cost principle[答案]:划分收益性⽀出与资本性⽀出3.Double entry system[答案]:复式记帐法4.Source documents[答案]:原始凭证5.Environmental accounting[答案]:环境会计6.Matching principle[答案]:配⽐原则7.Gross profit[答案]:⽑利8.Perpetual inventory system[答案]:永序盘存制9.Intangible assets[答案]:⽆形资产10.fixed asset[答案]:固定资产11.Statement of cash flows[答案]:现⾦流量表12.Bank Reconciliation[答案]:银⾏余额调节表13.Low-valued and easily-damaged implements [答案]:低值易耗品14.Physical depreciation[答案]:有形损耗15.Short-term debt-paying ability[答案]:短期偿债能⼒16.Accelerated depreciation method[答案]:加速折旧法17.notes receivable[答案]:应收票据18.long-term solvency[答案]:长期偿债能⼒四.论述题1.完成下列等式:1. Accounting Equation:Assets =2. Perpetual inventory system:Ending Inv. =[答案]:1. Accounting Equation:Assets = Liabilities + Owner's Equity2. Perpetual inventory system:Ending Inv. =Beg. Inv.+ Purchases-Cost of goods sold。

会计专业英语模拟试题及答案

会计专业英语模拟试题及答案《会计专业英语》模拟试题及答案一、单选题（每题1分，共 20分）1. Which of the following statements about accounting concepts or assumptions are correct?1） The money measurement assumption is that items in accounts are initially measured at their historical cost.2） In order to achieve comparability it may sometimes be necessary to override the prudence concept.3）To facilitate comparisons between different entities it is helpful if accounting policies and changes in them are disclosed.4） To comply with the law, the legal form of a transaction must always be reflected in financial statements.A 1 and 3B 1 and 4C 3 onlyD 2 and 3Johnny had receivables of $5 500 at the start of 2010. During the year to 31 Dec 2010 he makes credit sales of $55 000 and receives cash of $46 500 from credit customers. What is the balance on the accounts receivables at 31 Dec 2010?$8 500 Dr$8 500 Cr$14 000 Dr$14 000 CrShould dividends paid appear on the face of a company’s cash flow statement?YesNoNot sureEitherWhich of the following inventory valuation methods is likely to lead to the highest figure for closing inventory at a time when prices are dropping?Weighted Average costFirst in first out (FIFO)Last in first out (LIFO)Unit cost5. Which of following items may appear as non-current assets in a company’s the statement of financial position?(1) plant, equipment, and property(2) company car(3) €4000 cash(4) €1000 chequeA. (1), (3)B. (1), (2)C. (2), (3)D. (2), (4)6. Which of the following items may appear as current liabilities in a company’s balance sheet?(1) investment in subsidiary(2) Loan matured within one year.(3) income tax accrued untill year end.(4) Preference dividend accruedA (1), (2) and (3)B (1), (2) and (4)C (1), (3) and (4)D (2), (3) and (4)7. The trial balance totals of Gamma at 30 September 2010 are:Debit $992,640Credit $1,026,480Which TWO of the following possible errors could, when corrected, cause the trial balance to agree?1. An item in the cash book $6,160 for payment of rent has not been entered in the rent payable account.2. The balance on the motor expenses account $27,680 has incorrectly been listed in the trial balance as a credit.3. $6,160 proceeds of sale of a motor vehicle has been posted to the debit of motor vehicles asset account.4. The balance of $21,520 on the rent receivable account has been omitted from thetrial balance.A 1 and 2B 2 and 3C 2 and 4D 3 and 48. Theta prepares its financial statements for the year to 30 April each year. The company pays rent for its premises quarterly in advance on 1 January, 1 April, 1 July and 1 October each year. The annual rent was $84,000 per year until 30 June 2010. It was increased from that date to $96,000 per year. What rent expense and end of year prepayment should be included in the financial statements for the year ended 30 April 2010? Expense PrepaymentA $93,000 $8,000B $93,000 $16,000C $94,000 $8,000D $94,000 $16,0009. At 30 September 2010, the following balances existed in the records of Lambda:Plant and equipment: $860,000Depreciation for plant and equipment: $397,000During the year ended 30 September 2010,plant with a written down value of $37,000was sold for $49,000. The plant had originally cost $80,000. Plant purchasedduring the year cost $180,000. It is the company.s policy to charge a full year depreciation in the year of acquisition ofan asset and none in the year of sale, usinga rate of 10% on the straight line basis.What net amount should appear in Lambda.sbalance sheet at 30 September 2010 for plantand equipment?A $563,000B $467,000C $510,000D $606,00010. A company’s plant and machinery ledgeraccount for the year ended 30 September 2010was as follows:Plant and machinery –cost2009 $2010 $1 October balance b/f 381 200 1 June Disposal 36 0001 Dec cash 18 00030 Sept balance c/f 363 200 399 200399 20030 Sept balance b/f 363 200The company’s policy is to charge depreciation at 20% per year on the straight line basis, with proportionate depreciation in years of purchase and disposal. What is the depreciation charge for the year ended30 September 2010?A $74,440B $84,040C $72,640D $76,84011. Listed below are some characteristics of financial information.(1) True(2) Prudence(3) Completeness(4) CorrectWhich of these characteristics contribute to reliability?A (1), (3) and (4) onlyB (1), (2) and (4) onlyC (1), (2) and (3) onlyD (2), (3) and (4) only12. The plant and machinery cost account ofa company is shown below. The company’s policy is to charge depreciation at 20% on the straight line basis, with proportionate depreciation in years of acquisition and disposal.Plant and machinery –cost2009 $2009 $1 Jan balance b/f 280 00030 June disposal 14 000 1Apr cash 48 0001Sept cash 36 000 31 Dec balance c/f 350 000 364 000 364 000 Balance b/f 350 000What should be the depreciation charge for the year ended 31 December 2009?$67,000$64,200$70,000$68,60013. In preparing its financial statements for the current year, a company’s closing inventory was understated by $300,000. What will be the effect of this error if it remains uncorrected?A The current year’s profit will be overstated and next year’s profit will be understatedB The current year’s profit will be understated but there will be no effect on next year’s profitC The current year’s profit will be understated and next year’s profit will be overstatedD The current year’s profit w ill be overstated but there will be no effect onnext year’s profit.14. In preparing a company’s cash flow statement, which, if any, of the following items could form part of the calculation of cash flow from financing activities?(1) Proceeds of sale of premises(2) Dividends received(3) Issue of sharesA 1 onlyB 2 onlyC 3 onlyD None of them.15. At 31 March 2009 a company had oil in hand to be used for heating costing $8,200 and an unpaid heating oil bill for $3,600. At 31 March 2010 the heating oil in hand was $9,300 and there was an outstanding heating oil bill of $3,200. Payments made for heating oil during the year ended 31 March 2010 totalled $34,600. Based on these figures, what amount should appear in the company’s income statement for heating oil for theyear?A $23,900B $36,100C $45,300D $33,10016. In times of inflation In times of rising prices, what effect does the use of the historical cost concept have on a company’s asset values and profit?Asset values and profit both undervalued Asset values and profit both overvalued Asset values undervalued and profit overvaluedAsset values overvalued and profit undervalued17. Beta purchased some plant and equipment on 01/07/2010 for $60,000. The estimated residual value of the plant in 10 years time is estimated to be $6,000. Beta’s policy is to charge depreciation on the straight line basis, with a proportionate charge in the period of acquisition. What should thedepreciation charge for the plant be in Beta’s accounting period of 18 months to 30/09/2010 ?$5400$900$1350$67518. A company’s income statement for the year ended 31 December 2005 showed a net profit of $83,600. It was later found that $18,000 paid for the purchase of a motor van had been debited to the motor expenses account. It is the company’s policy to depreciate motor vans at 25 per cent per year on the straight line basis, with a full year’s charge in the year of acquisition. What would the net profit be after adjusting for this error?$97,100$70,100$106,100$101,60019. Which of the following statements are correct?(1) to be prudent, company charge depreciation annually on the fixed asset (2) substance over form means that the commercial effect of a transaction must always be shown in the financial statements even if this differs from legal form(3) in order to achieve the comparable, items should be treated in the same way year on yearA. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only20. which of the following about accruals concept are correct?(1) all financial statements are based on the accruals concept(2) the underlying theory of accruals concept and matching concept are same (3) accruals concept deals with any figurethat incurred in the period irrelevant with it’s paid or notA. 2 and 3 onlyB. All of themC. 1 and 2 onlyD. 3 only二、翻译题（共30分）1、将下列分录翻译成英文（每个2分，共10分）借：固定资产清理 30 000累计折旧 10 000贷：固定资产40 000借：银行存款 10 500贷：交易性金融资产 10 000投资收益5003．借：应付职工薪酬1 000贷：库存现金1 0004．借：银行存款4 095贷：其他业务收入3 500应交税费–应交增值税（销项税额）5955．借：应付票据40 000贷：银行存款40 0002、将下列报表翻译成中文（每空1分，共20分）ABC group the statement of financial position as at 31/Dec/2010€Non-current assetsIntangible assets Property, plant and equipment Investment in associatesHeld-for-maturity investment Deferred income tax assets Current AssetsTrade and other receivablesDerivative financial instrumentsCash and cash equivalents Assets of discontinued operation Assets in totalCurrent LiabilitiesAccrued payrollAccrued dividendAccrued accountsNon-current LiabilitiesLiabilities in total Net Assets三、阅读题（共30分）Research and development (R&D)Accounting treatment of R&DUnder International Accounting Standardsthe accounting for R&D is dealt with underIAS 38, Intangible Assets. IAS 38 statesthat an intangible asset is to be recognisedif, and only if, the following criteria aremet: it is probable that future economic benefits from the asset will flow to the entity, the cost of the asset can be reliably measured.The above recognition criteria look straightforward enough, but in reality itcan prove to be very difficult to assesswhether or not these have been met. In order to make this recognition of intangibles more clear, IAS 38 separates an R&D project into a research phase and a development phase. Research phaseIt is impossible to demonstrate whether or not a product or service at the research stage will generate any probable future economic benefit. As a result, IAS 38 states that all expenditure incurred at the research stage should be written off to the statement of comprehensive income as an expense when incurred, and will never be capitalised as an intangible asset. Development phaseUnder IAS 38, an intangible asset arising from development must be capitalised if an entity can demonstrate all of the following criteria: the technical feasibility of completing the intangible asset (so that it will be available for use or sale); intention to complete and use or sell theasset; ability to use or sell the asset; existence of a market or, if to be used internally, the usefulness of the asset; availability of adequate technical, financial, and other resources to complete the asset; the cost of the asset can be measured reliably. If any of the recognition criteria are not met then the expenditure must be charged to the income statement as incurred. Note that if the recognition criteria have been met, capitalisation must take place. Once development costs have been capitalised, the asset should be amortised in accordance with the accruals concept over its finite life. Amortisation must only begin when commercial production has commenced.Questions:Outline the criterias of recognition of intangible assets （5分）Criterias to recognised as development (5分)Identify the accounting treatment of research phase （10分）Identify the accounting treatment of development phase （10分）四、业务题（按要求用英文编制分录，每题2分，共20分）Johnny set up a business and in the first a few days of trading the following transactions occurred (ignore all the tax): He invests $80 000 of his money in his business bank accountHe then buys goods from Isabel, a supplier for $4 000 and pays by cheque, the goods is delivered right after the paymentA sale is made for $3 000 –the customer pays by chequeJohnny makes another sale for $2 000 and the customer promises to pay in the futureHe then buys goods from another supplier, Kamen, for $2 000 on credit, goods is delivered on timeHe pays a telephone bill of $800 by chequeThe credit customer pays the balance on his accountHe returened some faulty goods to his supplier Kamen, which worth $400.Bank interest of $70 is receivedA cheque customer returned $400 goods to him for a refund参考答案单选题1-5 CCACB 6-10 DCDCD 11-15 ABCDD 16-20 CBABA翻译题1）中翻英Dr disposal of fixed assetDepreciationCr fixed assetDr BankCr Tradable financial assetInvestment income3．Dr accrued payrollCr cash4．Dr bankCr other operating revenueAccrued tax-VAT (output) 5．Dr accrued notesCr bank2) 英翻中编制单位：ABC 资产负债表时间：2010年12月31日单位：欧元非流动资产无形资产固定资产长期股权投资持有至到期投资递延所得税资产流动资产应收账款及其他应收款货币资金非持续性经营资产资产总计负债流动负债应付职工薪酬应付股利应付账款非流动负债负债总计净资产3、阅读题Outline the criterias of recognition of intangible assets （5分）IAS 38 states that an intangible asset is to be recognised if, and only if, the following criteria are met: it is probable that future economic benefits from the asset will flow to the entity, the cost of the asset can be reliably measured.Criterias to recognised as development the technical feasibility of completing the intangible asset (so that it will be available for use or sale); intention to complete and use or sell the asset; ability to use or sell the asset; existence of a market or, if to be used internally, the usefulness of the asset; availability of adequate technical, financial, and otherresources to complete the asset; the cost of the asset can be measured reliably. Identify the accounting treatment of research phase （10分）IAS 38 states that all expenditure incurred at the research stage should be written off to the statement of comprehensive income as an expense when incurred, and will never be capitalised as an intangible asset. Identify the accounting treatment of development phase （10分）intangible asset arising from development must be capitalised Once development costs have been capitalised, the asset should be amortised in accordance with the accruals concept over its finite life. Amortisation must only begin when commercial production has commenced.4、业务题Dr bankCr capitalDr finished goodsCr bankDr bankCr sales revenueDr accounts receivableCr sales revenueDr finished goodsCr accrued accountsDr administrativeCr bankDr bankCr accounts receivableDr bankCr finished goods Dr bankCr financial expenseDr sales revenueCr bank。

(完整版)会计英语模拟卷

浙江大学继续教育学院试卷模拟卷答案课程代码名称_会计英语__ 考试时间：90分钟--------------------------------------------------------------------------------请保持卷面整洁，答题字迹工整。

一、汉译英（共15小题，每小题2分，共30分）1.会计信息质量特征: qualitative characteristic of accounting information2.及时性: timeliness3.净利润: net profit （net income）4.报告期间: reporting period5.资本支出: capital expenditure6.流动性资源: liquid resource7.经营活动: operating activities8.投资报酬: returns from investment9.总资产报酬率: rate of return on total assets10.市盈率: price-earnings ratio11.直接人工: direct labor12.期间费用: period expense13.股利支付率: dividend yield rate14.利息获利倍数: times interest earned15.资产负债率: debts to total assets ratio二、单选题（共10小题，每小题2分，共20分）1. Contribution margin （revenue minus variable costs）is an important tool for （）.A. financial ratio analysisB. horizontal analysisC. vertical analysisD. cost-volume-profit analysis2. In manufacturing operations, the costs of direct materials and direct labor are ( ) with respect to the number of units manufactured.A. semivariable costsB. semifixed costsC. variable costsD. fixed costs3. One of the major characteristics of an accounting asset is：The asset must be capable of measurement in ( ).A. physical termsB. monetary termsC. cashD. units4. The balance sheet is concerned with setting out the financial position of a business （）.A. at one moment in timeB. at one dayC. over a periodD. during a period5. The purpose of （）is to measure and report how much profit (wealth) the business has generated over a period.A. the balance sheetB. the cash flow statementC. the income statementD. the financial statement6. The( ), also known as the acid-test ratio, shows the relationship between highly liquid (quick) assets and current liabilities.A. financial ratioB. quick ratioC. current ratioD. leverage ratio7.（）represent creditors claims to the firms assets.A. EquitiesB. LiabilitiesC. AssetsD. Capitals8. The ( ) figure represents the cost of goods which were sold during the period. rather than the cost of goods purchased during the period.A. revenueB. cost of salesC. expenseD. income9. When financial statement amounts for two or more years are placed side by side in adjacent columns, such a statement is called ( )A. a common-size financial statementB. trend percentageC. a comparative financial statementD. component percentage10. Accounting information should be free from any material error or bias. It should be capable ofbeing relied on by users to represent what it is supposed to represent. That means accounting information should be （）.A. relevanceB. reliabilityC. comparabilityD. understandability三、英译汉（共4小题，每小题的得分见各题中具体标注，共50分）1.(10分)The ability to generate revenues is often viewed as one of the important keys to success for a company. As important as generating revenues, controlling expenses is also a barometer（晴雨表）of a company’s success.创造收入的能力常常被看作一个公司成功的关键之一。

英语会计模拟考试题及答案

英语会计模拟考试题及答案一、选择题（每题2分，共20分）1. Which of the following is not a primary financial statement?A. Balance SheetB. Income StatementC. Cash Flow StatementD. Payroll ReportAnswer: D2. The process of measuring the value of a company's assets and liabilities is known as:A. ValuationB. ReconciliationC. DepreciationD. AmortizationAnswer: A3. What is the formula for calculating the Return on Investment (ROI)?A. (Net Income / Total Assets) * 100B. (Net Income / Total Equity) * 100C. (Return - Investment) / Investment * 100D. (Return / Investment) * 100Answer: D4. Which of the following is an example of a contingent liability?A. Accounts PayableB. Unearned RevenueC. Warranty ObligationsD. Notes PayableAnswer: C5. The accounting equation is:A. Assets = Liabilities + EquityB. Assets = Liabilities - EquityC. Assets - Liabilities = EquityD. Equity = Assets + LiabilitiesAnswer: A二、填空题（每空1分，共10分）6. The term "double-entry" in accounting refers to thepractice of recording each transaction in at least ________ accounts.Answer: two7. When a company pays off its debts, it is known as ________.Answer: debt reduction8. The accounting principle that requires companies to report revenues and expenses in the period in which they are earnedor incurred is called the ________.Answer: matching principle9. The process of estimating the useful life of an asset is known as ________.Answer: depreciation10. A budget is a financial plan that outlines a company's expected ________ and expenses for a specific period.Answer: revenues三、简答题（每题5分，共30分）11. Explain the difference between an asset and a liability.Answer: An asset is a resource controlled by a company as a result of past events and provides future economic benefits.A liability is an obligation or debt that arises from past events, which the company has little or no discretion to avoid, and involves the transfer of assets or services toother entities in the future.12. What is the purpose of an income statement?Answer: The purpose of an income statement is to summarize a company's revenues, gains, expenses, and lossesduring a specific period, providing information on the company's profitability.13. Describe the accounting cycle.Answer: The accounting cycle is a systematic process that includes identifying, recording, and summarizing business transactions. It starts with the analysis of transactions, journalizing, posting to ledger accounts, preparing an adjusted trial balance, closing entries, and finally, preparing financial statements.14. What is the purpose of a balance sheet?Answer: The purpose of a balance sheet is to provide a snapshot of a company's financial position at a specific point in time, showing the company's assets, liabilities, and equity.15. Explain the concept of depreciation.Answer: Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It is a non-cash expense that reflects the consumption of the asset's economic benefits over time.四、计算题（每题10分，共40分）16. Calculate the depreciation expense for a machine that costs $100,000 with a useful life of 5 years and no residual value using the straight-line method.Answer: Depreciation Expense = (Cost - Residual Value) / Useful Life = ($100,000 - $0) / 5 = $20,000 per year.17. If a company has revenues of $500,000 and expenses of $300,000, what is the net income?Answer: Net Income = Revenues - Expenses = $500,000 - $300,000 = $200,000.18. A company has total assets of $1,200,000 and total liabilities of $600,000. What is the equity?Answer: Equity = Total Assets - Total Liabilities = $1,200,000 - $600,000 = $600,000.19. Calculate the return on investment (ROI) for an investment of $50,000 that returns $10,000.Answer: ROI = (Return / Investment) * 100 = ($10,000 / $50,000) * 100。

财务会计模拟试卷（英文版）

TRUE/FALSE1.The excess of revenue over the expenses incurred in earning the revenue is called capital.FANS: F DIF: 2 OBJ: 082.Drawings are an example of an expense.ANS: F DIF: 2 OBJ: 013.An adjusting entry would adjust revenue so it is reported when earned and not when cash is received.ANS: T DIF: 2 OBJ: 024.A company depreciates its equipment $350 a year. The adjusting entry for December 31 is debitDepreciation Expense, $350 and credit Equipment, $350.TANS: F DIF: 4 OBJ: 035.After Net Income or Loss is entered on the work sheet, the debit column total must equal the creditcolumn total for the Balance Sheet pair of columns.TANS: T DIF: 3 OBJ: 026.The income summary account is closed to the owner's capital account.TANS: T DIF: 1 OBJ: 047.Accounts in the ledger are usually maintained in alphabetical order.ANS: F DIF: 2 OBJ: 018.The increase side of all accounts is the normal balance.FANS: T DIF: 2 OBJ: 039.The ending merchandise inventory for 2005 is the same as the beginning merchandise inventory for2006.TANS: T DIF: 2 OBJ: 0210.In a perpetual inventory system, when merchandise is returned to the seller, Cost of Merchandise Soldis one of the accounts debited to record the transaction.YANS: T DIF: 2 OBJ: 0311.When an account receivable that has been written off is subsequently collected, the accountreceivable is reinstated.YANS: T DIF: 2 OBJ: 0412.A note receivable can be sold to a financial institution to secure cash before the maturity date. Thistype of transaction is called discounting the note receivable.YANS: T DIF: 1 OBJ: App13.All property, plant, and equipment assets are depreciated over time.FANS: F DIF: 2 OBJ: 0114.Capital expenditures are costs that are charged to Stockholders' Equity accounts.YANS: F DIF: 1 OBJ: 0315.Interest expense is reported in the operating expense section of the income statement.FANS: F DIF: 2 OBJ: 0216.Dividends in arrears are liabilities of the corporation.FANS: F DIF: 2 OBJ: 0317.A large retained earnings account means that there is cash available to pay dividends.YANS: F DIF: 2 OBJ: 0718.The amortization of a premium on bonds payable decreases bond interest expense.ANS: T DIF: 2 OBJ: 0419.The effective-interest method of amortizing a bond discount or premium is the preferred methodANS: T DIF: 2 OBJ: 0420.If two companies have the same current ratio, their ability to pay short-term debt is the same.FANS: F DIF: 2 OBJ: 02MULTIPLE CHOICE1.Which of the following is not a step in providing accounting information to stakeholders?Aa. design the accounting information systemb. prepare accounting surveysc. identify stakeholdersd. record economic dataANS: B DIF: 3 OBJ: 022.Which of the following applications of the rules of debit and credit is true?a. decrease Prepaid Insurance with a credit and the normal balance is a creditb. increase Accounts Payable with a credit and the normal balance is a debitc. increase Supplies Expense with a debit and the normal balance is a debitd. decrease Cash with a debit and the normal balance is a creditANS: C DIF: 3 OBJ: 033.A debit may signify a(n)a. decrease in asset accountsb. decrease in liability accountsc. increase in the capital accountd. decrease in the drawing accountANS: B DIF: 1 OBJ: 034.Which of the following applications of the rules of debit and credit is true?a. decrease Prepaid Insurance with a credit and the normal balance is a creditb. increase Accounts Payable with a credit and the normal balance is a debitc. increase Supplies Expense with a debit and the normal balance is a debitd. decrease Cash with a debit and the normal balance is a creditANS: C DIF: 3 OBJ: 03ing accrual accounting, expenses are recorded and reported onlya. when they are incurred, whether or not cash is paidb. when they are incurred and paid at the same timec. if they are paid before they are incurredd. if they are paid after they are incurredANS: A DIF: 3 OBJ: 016.If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n)Aa. deferralb. accrualc. revenued. liabilityANS: A DIF: 2 OBJ: 037.A net loss appears on the work sheet in thea. debit column of the Balance Sheet columnsb. credit column of the Balance Sheet columnsc. debit column of the Income Statement columnsd. credit column of the Adjustments columnsANS: A DIF: 2 OBJ: 028.On August 1, a company collects revenue in advance for the next twelve months and credits a liabilityaccount. The adjusting entry at year end on the work sheet wouldABCa. increase a liability accountb. decrease an asset accountc. decrease a revenue accountd. decrease a liability accountANS: D DIF: 3 OBJ: 029. A company, using the periodic inventory system, has merchandise inventory costing $140 on handat the beginning of the period. During the period, merchandise costing $400 is purchased. At year-end, merchandise inventory costing $180 is on hand. The cost of merchandise sold for the year isa. $720b. $550c. $360d. none of the aboveANS: C DIF: 4 OBJ: 0210.Which of the following accounts should be closed to Income Summary at the end of the fiscalyear?ACD？a. Merchandise Inventoryb. Accumulated Depreciationc. Drawingd. Cost of Merchandise SoldANS: D DIF: 1 OBJ: Ap211.The two methods of accounting for uncollectible receivables are the allowance method and the Ba. equity methodb. direct write-off methodc. interest methodd. cost methodANS: B DIF: 2 OBJ: 0312.Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (beforeadjustment), and an analysis of customers' accounts indicates doubtful accounts of $12,900.Which of the following entries records the proper provision for doubtful accounts?Da. debit Uncollectible Accounts Expense, $14,000; credit Allowance for Doubtful Accounts,$14,000b. debit Allowance for Doubtful Accounts, $14,000; credit Uncollectible Accounts Expense,$14,000c. debit Allowance for Doubtful Accounts, $11,800; credit Uncollectible Accounts Expense,$11,800d. debit Uncollectible Accounts Expense, $11,800; credit Allowance for Doubtful Accounts,$11,800ANS: D DIF: 3 OBJ: 0413.A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 4years or 18,000 hours. What is the amount of depreciation for the second full year, using the declining-balance method at double the straight-line rate?Aa. $15,000b. $30,000c. $16,250d. $32,500ANS: C DIF: 3 OBJ: 0214.A capital expenditure results in a debit to Da. an expense accountb. a capital accountc. a liability accountd. an asset accountANS: D DIF: 1 OBJ: 0315.Pilgrim Company sells merchandise with a one year warranty. In 2008, sales consisted of 1,500 units.It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in 2008 and 70% in 2009. In the 2008 income statement, Pilgrim should show warranty expense of Aa. $4,500b. $10,500c. $15,000d. $0ANS: C DIF: 3 OBJ: 0316.The journal entry a company uses to record the issuance of a note for the purpose of borrowing funds forthe business is Ba. debit Accounts Payable; credit Notes Payableb. debit Cash; credit Notes Payablec. debit Notes Payable; credit Cashd. debit Cash and Interest Expense; credit Notes PayableANS: B DIF: 2 OBJ: 0217.The par value per share of common stock represents Aa. the minimum selling price of the stock established by the articles of incorporation.b. the minimum amount the stockholder will receive when the corporation is liquidatedc. an arbitrary amount established in the articles of incorporationd. the amount of dividends per share to be received each yearANS: C DIF: 1 OBJ: 03, 0418.Hurd Company acquired a building valued at $160,000 for property tax purposes in exchange for 10,000shares of its $5 par common stock. The stock is widely traded and selling for $15 per share. At what amount should the building be recorded by Hurd Company?Aa. $50,000b. $150,000c. $160,000d. $200,000ANS: B DIF: 1 OBJ: 0419.The entry to record the amortization of a premium on bonds payable isa. debit Premium on Bonds Payable, credit Interest Expenseb. debit Interest Expense, credit Premium on Bond Payablec. debit Interest Expense, debit Premium on Bonds Payable, credit Cashd. debit Bonds Payable, credit Interest ExpenseANS: C DIF: 3 OBJ: 0420. The following information is available for Duncan Co.:2006 Dividends per share of common stock $ 1.40Market price per share of common stock 17.50Which of the following statements is correct?Ca. The dividend yield is 8.0%, which is of interest to investors seeking an increase in marketprice of their stocks.b. The dividend yield is 8.0%, which is of special interest to investors seeking current returns ontheir investments.c. The dividend yield is 12.5%, which is of interest to bondholders.d. The dividend yield is 8.0 times the market price, which is important in solvency analysis.ANS: B DIF: 3 OBJ: 03Problems8.The balances in the ledger of Landscape Services as of December 31, 2005 before adjustments, are asfollows:Cash $ 4,500 Capital Stock $20,000 Supplies 4,150 Retained Earnings 13,050 Prepaid Insurance 8,700 Dividends 2,900 Equipment 42,000 Service Revenue 52,500 Accumulated Salary Expense 28,500 Depreciation 10,200 Rent Expense 5,000Adjustment data are as follows: supplies on hand, December 31, $1,000; insurance expired for December, $900; depreciation on equipment for December, $1,500; salaries accrued, December 31, $1,000.(a) Prepare a ten-column worksheet for Landscape Services for December, 2005.(b) On the basis of the worksheet in (a), present the following in good order: (1) incomestatement, (2) retained earnings statement (no additional investments were made duringthe month), and (3) balance sheet.(c) On the basis of the worksheet in (a), journalize the closing entries as of December 31,2005.ANS:(a)Landscape ServicesWorksheetFor the Month Ended December 31, 2005 ) ) ) )Trial Balance Adjustments ) Account Title Dr. Cr. Dr. Cr. )Cash 4,500 ..... ..... ..... ) Supplies 4,150 ..... ..... (a) 3,150 ) Prepaid Insurance 8,700 ..... ..... (b) 900 ) Equipment 42,000 ..... ..... ..... ) Accumulated Depreciation ..... 10,200 ..... (c) 1,500 ) Capital Stock ..... 20,000 ..... ..... ) Retained Earnings ..... 13,050 ..... ..... ) Dividends 2,900 ..... ..... ..... ) Service Revenue ..... 52,500 ..... ..... ) Salary Expense 28,500 ..... (d) 1,000 ..... ) Rent Expense 5,000 ..... ..... ..... )95,750 95,750 )) Supplies Expense ..... ..... (a) 3,150 ..... ) Insurance Expense ..... ..... (b) 900 ..... ) Depreciation Expense ..... ..... (c) 1,500 ..... )Salaries Payable ..... ..... ..... d) 1,000 ) Net Income 6,550 6,550 )) (( Adjusted(Trial Balance Income Statement Balance Sheet( Dr. Cr. Dr. Cr. Dr. Cr. (( 4,500 ..... ..... ..... 4,500 ..... ( 1,000 ..... ..... ..... 1,000 ..... ( 7,800 ..... ..... ..... 7,800 ..... (42,000 ..... ..... ..... 42,000 ..... ( ..... 11,700 ..... ..... ..... 11,700 ( ..... 20,000 ..... ..... ..... 20,000 ( ..... 13,050 ..... ..... ..... 13,050 ( 2,900 ..... ..... ..... 2,900 ..... (...... 52,500 ..... 52,500 ..... ..... ( 29,500 ..... 29,500 ..... ..... ..... ( 5,000 ..... 5,000 ..... ..... ..... ( 3,150 ..... 3,150 ..... ..... ..... ( 900 ..... 900 ..... ..... ..... ( 1,500 ..... 1,500 ..... ..... ..... ( ..... 1,000 ..... ..... ..... 1,000 (98,250 98,250 40,050 52,500 58,200 45,750 (====== ====== 12,450 ...... ...... 12,450 ( 52,500 52,500 58,200 58,200 ( ====== ====== ====== ======(b) (1)Landscape ServicesIncome StatementFor the Month Ended December 31, 2005Service revenue $52,500 Operating expenses:Salary expense $29,500Rent expense 5,000Supplies expense 3,150 Depreciation expense 1,500Insurance expense 900Total operating expenses 40,050 Net income $12,450(2)Landscape ServicesRetained Earnings StatementFor the Month Ended December 31, 2005Retained Earnings, December 1, 2005 $13,050 Net income for the month $12,450Less dividends2,900Increase in owner's equity 9,550 Retained Earnings, December 31, 2005 $22,600(3)Landscape ServicesBalance SheetDecember 31, 2005Assets LiabilitiesCurrent assets:Cash $ 4,500 Current liabilities:Supplies 1,000 Salaries payable $ 1,000 Prepaid insurance 7,800Total currentassets $13,300 Stockholders' EquityCapital Stock 20,000 Property, plant, andRetained Earnings 13,050 equipment:Equipment... $42,000 Total stockholders' Equity 33,050 Less accumulated$43,600 depreciation 11,700 Total Liabilities andStockholders'Total property, Equityplant, andequipment 30,300Total assets $43,600(c)Closing EntriesJan. 31 Service Revenue 52,500Income Summary 52,50031 Income Summary 40,050Salary Expense 29,500Rent Expense 5,000Supplies Expense 3,150Insurance Expense 900Depreciation Expense 1,50031 Income Summary 12,450Retained Earnings 12,45031 Retained Earnings 2,900Dividends 2,900。

成本会计模拟题

Business 2101 – Managerial AccountingShelley Martin, CA – Intersession 2011Faculty of Business AdministrationMemorial University of NewfoundlandMidterm Exam #1 – 20% Version 2 May 2011STUDENT NAME (print):STUDENT SIGNATURE:STUDENT ID#:Instructions1. You have 75 minutes to complete this examination.2. The examination consists of 14 pages (including this cover page). Please ensure that youhave all of the pages.3. Circle the most appropriate answer for the Part I multiple choice questions.4. Answer the Part II, III and IV long-answer questions on the space provided.5. Non-programmable calculators are the only acceptable aid for this examination.6. Illegible answers will not be graded. Point-form answers are acceptable provided thatthey are complete enough to be understood.7. At the end of this examination, please submit the entire examination paper to the invigilator.8. Failure to stop writing once the exam period ends will result in the disqualification ofyour exam and a zero grade will be assigned to your mid-term.Exam PartSuggested TimeMarks AvailableI20 minutes27II19 minutes25III15 minutes20IV21 minutes 28Total75 minutes 100Part I – 27 Marks (estimated time – 20 minutes)Circle the most appropriate response. Marks will not be subtracted for incorrect answers.Unclear answers will not be graded. Each question is worth 1.5 marks.1. Managers of service departments need all of the following information EXCEPT:a. efficiency data on work performanceb. quality data on work performancec. profitability data of the whole companyd. profitability data of the service department2. Management accounting information is BEST described as:a. providing a signal that something is wrongb. identifying and helping to explain what is wrongc. simply summarizing information, but giving no indication that anything is wrongd. measuring overall financial performance3. Traditional cost systems distort product costs because:a. they do not know how to identify the appropriate unitsb. excess capacity costs are ignoredc. they emphasize financial accounting requirementsd. they use unit-level cost drivers to allocate support costs to products4. Fostering a culture of high ethical standards includes all of the following EXCEPT:a. following the good example set by senior managementb. communicating to employees a belief system that inspires and promotes commitmentto the organization’s core valuesc. following the general examples set by front-line employeesd. communicating to all employees a boundary system that states what actions will notbe tolerated5. Activity-based management (ABM) includes decisions about all of the following EXCEPT:a. pricing and product mixb. smoothing costsc. reducing costsd. improving efficiency of activitiesPart I6. The predetermined support cost driver rate is calculated using __________ support costs.a. actualb. allocatedc. directd. estimated7. The opportunity cost(s):a. of a resource with excess capacity is zerob. should be maximized by organizationsc. are most important to financial accountantsd. are recorded as an expense in the accounting records8. Each cost pool:a. utilizes a separate cost driver rateb. is a subset of total labour costsc. can be associated with several normal levels of activityd. All of the above are correct.9. To sustain the profitability of a product, the list price of a product must cover its:a. variable costsb. fixed costsc. indirect costsd. long-run costs10. All of the following situations cause major deterrents to effective ABC implementationEXCEPT when:a. the ABC system lacks a clear business purposeb. the ABC system’s model design is poorc. the ABC consultants fail to adapt the ABC system adequately to the specifics of theorganizationd. senior management communicates their commitment to the changePart I11. Which of the following is a sign that an ABC system may be useful?a. There are small amounts of support costs.b. Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.c. Products a company is less suited to produce and sell show no profits.d. Operations throughout the plant are fairly similar.12. What an organization tries to deliver to customers is called its value proposition, whichincludes the elements of:a. price and quality.b. price, quality, and functionality and features.c. price, quality, functionality and features, and service.d. price, quality, functionality and features, service, and industry standards.13. If a business offers both routine and specialized services, a single cost driver rate will over-cost:a. the routine serviceb. the specialized servicec. both the routine and the specialized serviced. neither the routine nor the specialized service14. Management accounting information can be used for all of the following except:a. calculate the cost of a product or service.b. evaluate the performance of a company.c. project materials needs.d. evaluate the market price of the stock.15. Which of the following manufactured products would use process costing?a. polo shirts imprinted with individualized logosb. picnic packs containing ketchup, mustard, and relishc. customized boats used for racingd. handmade stained-glass lamps for recreational roomsPart I16. Indirect manufacturing costs:a. can be traced to the product that created the costsb. may have a cause-and-effect relationship with capacity rather than with individualunits of productionc. generally include the cost of material and the cost of labord. are included in period costs17. Logical cost allocation bases for support costs include:a. cubic feet of packages moved to measure distribution activityb. machine hours to measure setup activityc. direct manufacturing labour hours to measure product designing activityd. All of the above are correct.18. A job cost sheet uses information from:a. the sales invoice regarding the pricing of the jobb. a purchase order to record raw material purchases from suppliersc. a receiving report that indicates the type and quantity of each item received in an order from a supplierd. a labour time card to record an employee’s wage rate and hours spent on a particularjobPart II – 25 marks (estimated time – 19 minutes)Zoomba Company produces and sells 60,000 boxes of specialty foods each year. Each boxcontains the same assortment of food. The company has computed the following annual costs:Variable production costs $ 200,000Fixed production costs 240,000Variable selling costs 160,000Fixed selling and administrative costs 100,000Total costs $ 700,000Zoomba normally charges $16 per box.Required:A) Determine the break-even number of boxes per year for Zoomba Company. (6 marks)B) A new distributor has offered to purchase 5,000 boxes at a special price of $12 per box.Zoomba will incur additional packaging costs of $1.5 per box to complete this order; however it will save any variable selling costs. Assuming Zoomba has surplus capacity toproduce the order, based on quantitative analysis only should Zoomba Company acceptthis order? (7 marks)C) Assume the same offer has been made to Zoomba Company as in part B, but now Zoombahas surplus capacity to produce only 2,000 boxes. Based on quantitative analysis only, should Zoomba Company accept this order? (6 marks)D) Discuss at least 3 qualitative (non-financial) considerations Zoomba Company should thinkabout before accepting the order in part C. (6 marks)Part III – 20 marks (estimated time – 15 minutes)Poseidon Company produces customized sailboats. The company uses a job order costingsystem. Its plant has three production departments: cutting, machining, and assembly. Theestimated manufacturing support costs and direct labour cost for each department for 2011 are asfollows:Cutting Machining AssemblyManufacturing Support cost $500,000 $600,000 $150,000Direct labour cost $200,000 $200,000 $300,000In May 2011, the company received an invitation from Duluth Sailing Company to bid on aluxury sailboat that must be delivered by the end of September 2011. This Duluth job wouldrequire direct manufacturing costs in the three departments as follows:Cutting Machining AssemblyDirect material cost $10,000 $ 700 $ 5,400Direct labour cost $ 9,000 $3,000 $13,000Poseidon adds a 50% mark-up to determine bid prices.Required:On this and the next page, prepare a job bid sheet for the Duluth Sailing Company job, assumingPoseidon uses departmental rates to allocate support costs (based on direct labour cost for eachdepartment).Part IIIPart IV – 28 marks (estimated time – 21 minutes)Brilliant Accents Company manufactures and sells three styles of kitchen faucets: brass,chrome, and white. All types of faucets are produced in batches of 1,000. The following information is estimated for the current year:BRASS CHROME WHITEProjected sales in units 60,000 100,000 80,000Selling price (per unit) $37 $18 $28Direct materials (per unit) $ 8 $ 4 $ 8Direct labour (per unit) $15 $ 3 $ 9Support cost per unit, based on directlabour hours (current cost system) $12 $ 3 $ 9Hours per 1000-unit batch:Setup hours 1.5 0.25 2.0Inspection hours 40 30 30Support costs and activity levels for the current year are estimated as follows:Activity Support costs Activity levelsSetups $660,000 275 setup hoursInspections $624,000 7,800 inspection hoursRequired:A) Using the current cost system, calculate the profit per unit for each type of faucet.(6 marks)B) Using an activity-based costing system and the data presented on the previous page,compute the profit per unit for each type of faucet. (16 marks)C) Consider the merits of each option –traditional job order costing and activity-based costing–for this company. Discuss at least 3 points that Brilliant Accents Company should consider when deciding which cost method to use. (6 marks)。

会计专业英语模拟题（开卷）解读

会计专业英语模拟题（开卷）解读《会计专业英语》模拟题一．单项选择题1.The Realization Principle indicates that revenue usually should be recognizedand recorded in the accounting record, .A. when goods are sole or services are rendered to customersB. when cash is collected from customersC. at the end of the accounting periodD. only when the revenue can be matched by an equal dollar amount of expenses2. The Matching Principle: .A. applies only to situations in which a cash payment occurs before an expense is recognizedB. applies only to situations in which a cash receipt occurs before revenue is recognizedC. is used in accrual accounting to determine the proper period for recognition of expensesD. is used in accrual accounting to determine the proper period in which to recognize revenue3. Xxx company paid $2850 on account. The effect of this transaction on the accounting equation is to .A. decrease assets and decrease owner’s equityB. increase liabilities an d decrease owner’s equityC. have no effect on total assetsD. decrease assets and decrease liabilities4. Which of the following concepts belongs to accounting assumption? .A. ConservationB. Money measurementC. MaterialityD. Consistency5. Which of these is/are an example of an asset account?___A. service revenueB. withdrawalsC. suppliesD. all of the above6. Which of these statements is false? .A. increase in assets and increase in revenues are recorded with a debitB. increase in liabilities a nd increase in owner’s e quity are recorded witha creditC. increase in both assets and withdrawals are recorded with a debitD. decreases in liabilities and increase in expenses are recorded with a debit二．判断题1. Accounting provides financial information that is only useful to business management. ( )2. The accounting process generates financial reports for both “internal” and “external” users. ( )3. The basic concept of double-entry accounting is that total debits must equal total credits for every business transaction.（）4.A trial balance represents a listing of the ledger accounts and balances at a particular moment in time.（）5. The ledger account provides a chronological order of transactions.（）6. Post reference columns are found only in the journal, notin the ledger.（）/doc/1125fa14473610661ed9ad51f01 dc281e53a5610.html ually two signatures are required on a business check for it to be valid.（）8.When a check is written by a business, the immediate effect is to reduce both the balance shown in the checkbook and the balance on the bank's records. （）9.The final amounts shown on both sides of the bank reconciliation statement are labeled "Adjusted Balances."（）10. A leasehold is an example of a long-life asset.（）11. The accounting reporting period agrees to the calendar year. ( )12.An increase in permanent capital is recorded as a credit to the account. ( )13. Dollar signs are used in the amount areas of the ledger accounts. ( )14.If the trial balance shows that the ledger is in balance, this means that the individual business transactions were recorded to the appropriate ledger accounts. ( )15. Every business transaction is first recorded in the journal. ( )16.Internal control of operations is equally complex in a small and in a large organization. ( )17.There are only two parties to a check: the person who writes it (the drawee) and the person to whom it is written (the payee). ( )18.Two documents used in preparing a bank reconciliation statement are the bank statement and the checkbook stubs.( )19. A common cause of inequality between the balances on the bank statement and in the checkbook is outstanding checks.( )20.Depreciation expense is usually recorded at least once a year. ( )21.Amortization is the conversion of the cost of an intangible asset to an expense. ( )三．翻译题1. Sole Proprietorship Enterprises2. Profit cost and capital cost principle3. Double entry system4. Source documents5. Environmental accounting6. Matching principle7. Gross profit 8. Perpetual inventory system9. Intangible assets 10. 原始凭证11. 固定资产四．完成下列等式1. Accounting Equation：Assets =2. Perpetual inventory system：Ending Inv. =五．编制银行存款余额调节表The following information pertains to ABC company:（1）cash balance per bank July 31, $7263（2）July bank service charge not recorded by the depositor $15（3） cash balance per book July 31, $7190（4） Deposits in transit July 31, $1700（5）Note for $1000 collected for ABC in July by bank plus interest $36, and charge $20 for service. The collection has not been recorded byABC and no interest has been accrued（6）Outstanding checks July 31 , $772Prepare Bank reconciliation at July 31.六．编写借贷会计分录On July 1, N. B. Edgar opened Coin-Op Laundry. Edgar’s accountantlisted the following chart of accounts:Cash Supplies Prepaid Insurance EquipmentFurniture and Fixtures Accounts PayableN. B. Edgar, Capital N. B. Edgar, DrawingLaundry Revenue Wages ExpenseRent Expense Utilities Expense Miscellaneous ExpenseDuring July, the following transactions were completed:a.Edgar deposited $20,000 in a bank account in the name of the business.b.Bought tables and chairs for cash, $450c.Paid the rent for the current month, $705d.Bought washers and dryers from Eldon Equipment, $17,400, paying $4,000 incash and placing the balance on account.e.Bought laundry supplies on account from Borkal Distributors, $410.f.Sold services for cash, $862.g.Bought insurance for one year, $468.h.Paid on account to Eldon Equipment, a creditor, $550.i.Received and paid the electric bill, $118.j.Paid on account to Borkal Distributors, a creditor, $145.k.Sod services to customers for cash for the second half of the month, $881.l.Received and paid the bill for the business license, $45.m.Paid wages to an employee, $1,146.n.Edgar withdrew cash for personal use, $875.InstructionsRecord the transactions with “Dr.” and “Cr.”七．编制试算平衡表The bank statement of LA Company shows a final balance of $2119 as of March 31, the balance of the cash in the ledger as of that is $1552, LA accountant has taken the following steps.Prepare bank reconciliation at March 31.(1) Noted that the deposit made on March 31 was not recorded on the bank statement, $762.(2) Noted outstanding checks: no.921, $626. no.985, $69. no.986, $438.(3) Noted credit memo: note collected by the bank from ABC company ,$200, not recordedin the journal.(4) Noted debit memo: collection charge and service charge not recorded in the journal, $4.八．存货成本计算C asey Electronics’ ending inventory consists of 182 Model M43 CD players acquired through various purchases, as follows:Specific Purchase Number of Units Cost per Unit Total CostB e g i n n i n g i n v e n t o r y34$270$9180First purchase 60 282 16,920Second purchase 256 298 76,288Third purchase 164 312 51,168Total units available 514 $153,556Of the 514 units available for sale, 182 units are still on hand and 332 have been sold.Under the periodic inventory system, If Casey Electronics chooses LIFO method, how should it calculate the cost of the 182 CD players on hand?九．设立T形账户并编制试算平衡表(1) May1: Jill Jones and her family invested $8,000 in BBE Company and received 800 shares ofstock.(2) May2: BBE purchased an equipment for $2,500 cash.(3) May 8: BBE purchased a $15,000 truck. BBE paid $2,000 in cash and issued a note payablefor the remaining $13,000.(4) May 18: BBE sold services on account to ABC Lawns, $150. ABC Lawns agree to pay BBEwithin 30 days.(5) May 29: BBE provided services for a client and received $750 in cash.(6) May31:BBE purchased gasoline for the truck for $50 cash.Please Analyze the above transactions of BBE Company, set up its "T" accounts, and prepare a trial balance.参考答案：一．单项选择题1.A2.C3.D4.B5.C6.A二．判断题1.F2.T4.T5.F6.F7.T8.F9.T 10.F11.F 12.T 13.F 14.F 15.T 16.F 17.F 18.T 19.T 20.T 21.T三．翻译题1. 独资企业2. 划分收益性支出与资本性支出3. 复式记帐法4. 原始凭证5.环境会计6. 配比原则7. 毛利8. 永序盘存制9.无形资产10. source document 11.fixed asset四．完成下列等式1. Accounting Equation：Assets = Liabilities + Owner's Equity2. Perpetual inventory system：Ending Inv. =Beg. Inv.+ Purchases-Cost of goods sold五．编制银行存款余额调节表ABC CompanyBank ReconciliationJuly 31 20Bank statement balance, July 31 $7263 Add. Deposits In Transit 1700Deduct: Outstanding checks 772 Adjusted bank statement balance 8191Ledger balance of cash $7190 Add. Credit memo 10368226 Deduct: Bank service charge 2015Adjusted ledger balance of cash 8191六．编写借贷会计分录A Dr. Cash 20000Cr. N. B. Edgar, Capital 20000B Dr. Furniture and Fixtures 450Cr. Cash 450C Dr. Rent Expense 705Cr. Cash 705D Dr. Equipment 17400Cr. Cash 4000Accounts Payable 13400E Dr. Supplies 410Cr. Accounts Payable 410F Dr. Cash 862Cr. Laundry Revenue 862G Dr. Prepaid Insurance 468Cr. Cash 468H Dr. Accounts Payable 550Cr. Cash 550I Dr. Utilities Expense 118Cr. Cash 118J Dr. Accounts Payable 145Cr. Cash 145K Dr. Cash 881Cr. Laundry Revenue 881L Dr. Miscellaneous Expense 45Cr. Cash 45M Dr. Wages Expense 1146Cr. Cash 1146N Dr. N. B. Edgar, Drawing 875Cr. Cash 875七．编制试算平衡表LA CompanyBank reconciliationMarch 31 2004Bank statement balance, March 31 $2119Add. Deposits In Transit 7622881Deduct: Outstanding checksNo. 921 $626No. 985 69No. 986 438 1133Adjusted bank statement balance 1748Ledger balance of cash $1552Add. Note collected by bank 2001752Deduct: Bank service & collection charges 4Adjusted Ledger Balance of Cash 1748八．存货成本计算34 Units(beginning inventory) @ $270 each = $918060 Units(first purchase) @ $282 each = 16920 88 Units(second purchase) @ $298 each = 26224182 Units $52324九．设立T形账户并编制试算平衡表BHK CompanyTrial BalanceMay 31,2005Cash ＄4200Accounts Receivable ＄150Plant Assets ＄17,500Notes Payable ＄13,000 Capital Stock ＄8000 Sales Revenue ＄900 Operating Expense ＄50Total ＄21,900 ＄21,900。

成本与管理会计英文版试题库答案ch14

Cost Accounting, 13e (Horngren et al.)Chapter 14 Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis1) Indirect costs are costs that cannot be traced to cost objects in an economically feasible way.Answer: TRUEDiff: 1Terms: cost allocationObjective: 1AACSB: Reflective thinking2) To motivate engineers to design simpler products, costs for production, distribution, and customer servicemay be included in product-cost estimates.Answer: TRUEDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking3) One of the purposes of allocating indirect costs is to justify costs or compute reimbursement amounts.Answer: TRUEDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking4) For external reporting, inventoriable costs under GAAP sometimes include R&D costs.Answer: FALSEExplanation: Under GAAP, inventoriable costs include only the costs of producing and sometimes the design costs of the product.Diff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking5) To allocate a cost, it must satisfy all four purposes for which costs are allocated.Answer: FALSEExplanation: To allocate a cost, it is only necessary to satisfy one of the purposes for which costs are allocated.Diff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking6) Today, companies are simplifying their cost systems and moving toward less-detailed and less-complex costallocation bases.Answer: FALSEExplanation: Companies are moving toward more-detailed and more-complex cost allocations because today technology can capture these costs in a relatively inexpensive manner.Diff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking7) Using the benefits received criterion, the costs are allocated among the beneficiaries in proportion to thebenefits each receives.Answer: TRUEDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking8) Under the fairness criterion, cost allocation is not viewed as a reasonable means of establishing a selling price.Answer: FALSEExplanation: Cost allocation is viewed as a fair way to set a selling price between two contracting parties.Diff: 3Terms: cost allocationObjective: 2AACSB: Ethical reasoning9) When using the cause-and-effect criterion, cost drivers are selected as the cost allocation bases.Answer: TRUEDiff: 1Terms: cost allocationObjective: 2AACSB: Reflective thinking10) The ability-to-bear criterion is considered superior when the purpose of cost allocation is motivation.Answer: FALSEExplanation: The cause-and-effect or benefits-received criteria is considered superior when the purpose of cost allocation is motivation.Diff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking11) The benefits of implementing a more-complex cost allocation system are relatively easy to quantify forapplication of the cost-benefit approach.Answer: FALSEExplanation: The benefits of implementing a more-complex cost allocation system are difficult to measure.Diff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking12) Each company must decide which corporate cost categories should be included in the indirect costs of thedivisions all, only a subset, or none.Answer: TRUEDiff: 2Terms: cost allocationObjective: 3AACSB: Reflective thinking13) Full allocation of corporate costs to divisions is justified when the notion of controllability is applied.Answer: FALSEExplanation: The controllability notion is used to justify excluding some or all corporate costs from division reports, not to justify including full costs.Diff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking14) Companies that want to calculate the full cost of products must allocate all corporate costs to indirect-costpools of divisions.Answer: TRUEDiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking15) When there is a lesser degree of homogeneity, fewer cost pools are required to accurately explain the use ofcompany resources.Answer: FALSEExplanation: The greater the degree of homogeneity, the fewer the cost pools required to accurately explain the use of company resources.Diff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking16) If a cost pool is homogeneous, the cost allocations using that pool will be the same as they would be if costsof each individual activity in that pool were allocated separately.Answer: TRUEDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking17) Facility-sustaining costs do not have a cause-and-effect relationship with individual products.Answer: TRUEDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking18) An individual cost item can be simultaneously a direct cost of one cost object and an indirect cost of anothercost object.Answer: TRUEDiff: 3Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking19) A homogenous cost pool has costs that have similar cause-and-effect relationships with the cost-allocationbase.Answer: TRUEDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking20) Once a cost pool has been established, it should not need to be revisited or revised.Answer: FALSEExplanation: Once a cost pool has been established, it is often necessary to revisit it or revise it.Diff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking21) All customers are equally important to a company and should receive equal levels of attention.Answer: FALSEExplanation: Customers should receive a level of attention from the company that matches their contribution to the company's profitability.Diff: 3Terms: customer-profitability analysisObjective: 4AACSB: Ethical reasoning22) The purpose of price discounting is to encourage increases in customer purchases.Answer: TRUEDiff: 3Terms: price discountingObjective: 4AACSB: Reflective thinking23) Price discounts must be uniform among all customers.Answer: FALSEExplanation: Price discounts will depend on the size of the purchase and the importance of the customer.Diff: 3Terms: price discountingObjective: 4AACSB: Ethical reasoning24) There are two elements that influence customer profitability revenues and costs.Answer: TRUEDiff: 2Terms: customer-profitability analysisObjective: 4AACSB: Reflective thinking25) Companies that only record the invoice price can usually track the magnitude of price discounting.Answer: FALSEExplanation: To track discounting, the discount must be recorded.Diff: 2Terms: price discountingObjective: 4AACSB: Reflective thinking26) A customer cost hierarchy categorizes costs related to customers into different cost pools on the basis ofusing only one cost driver.Answer: FALSEExplanation: A customer cost hierarchy categorizes costs related to customers into different cost pools using different drivers.Diff: 2Terms: homogeneous cost pool, customer cost hierarchyObjective: 4AACSB: Reflective thinking27) An activity-based costing system may focus on customers rather than products.Answer: TRUEDiff: 2Terms: customer-profitability analysisObjective: 5AACSB: Reflective thinking28) A customer cost hierarchy may include customer-sustaining costs.Answer: TRUEDiff: 2Terms: customer cost hierarchyObjective: 5AACSB: Reflective thinking29) A customer cost hierarchy may include distribution-channel costs.Answer: TRUEDiff: 1Terms: customer cost hierarchyObjective: 5AACSB: Reflective thinking30) The cost of visiting customers is an example of a customer output unit-level cost.Answer: FALSEExplanation: The cost of visiting customers is an example of a customer-sustaining cost.Diff: 2Terms: customer cost hierarchyObjective: 5AACSB: Reflective thinking31) In general, distribution-channel costs are more easily influenced by customer actions than customerbatch-level costs.Answer: FALSEExplanation: In general, customer batch-level costs are more easily influenced by customer actions than distribution-channel costs.Diff: 3Terms: customer cost hierarchyObjective: 6AACSB: Reflective thinking32) If one of four distribution channels is discontinued, corporate-sustaining costs such as general administrationcosts will most likely be reduced by 25%.Answer: FALSEExplanation: If one of four distribution channels is discontinued, corporate-sustaining costs such as general administration costs will most likely not be affected.Diff: 3Terms: customer cost hierarchyObjective: 6AACSB: Reflective thinking33) To more accurately assess customer profitability, corporate-sustaining costs should be allocated.Answer: FALSEExplanation: The allocation of corporate-sustaining costs serves no useful purpose in assessing customer profitability, decision making, performance evaluation, or motivation.Diff: 3Terms: customer-profitability analysis, customer cost hierarchyObjective: 6AACSB: Reflective thinking34) The higher the likely growth of the customer's industry and the customer's sales, the more valuable thecustomer.Answer: TRUEDiff: 3Terms: customer profitability analysisObjective: 6AACSB: Reflective thinking35) It is common to find that a small number of customers generate a high percentage of operating income.Answer: TRUEDiff: 2Terms: customer-profitability analysisObjective: 6AACSB: Reflective thinking36) Managers who utilize customer profitability charts should drop customers that generate a negative customeroperating income, since dropping an unprofitable customer will automatically cause overall income to increase.Answer: FALSEExplanation: Managers who utilize customer profitability charts should not drop customers that generate a negative customer operating income, because dropping an unprofitable customer may not causeoverall income to increase.Diff: 2Terms: customer profitability analysisObjective: 6AACSB: Reflective thinking37) It is possible that the largest customer in terms of revenue is not the most profitable customer.Answer: TRUEDiff: 2Terms: customer profitability analysisObjective: 6AACSB: Reflective thinking38) The static-budget variance is the difference between an actual result and a budgeted amount in the staticbudget.Answer: TRUEDiff: 1Terms: static budget varianceObjective: 6AACSB: Reflective thinking39) The flexible-budget variance is the difference between an actual result and the flexible-budget amount basedon the level of output actually achieved in the budget period.Answer: TRUEDiff: 1Terms: flexible-budget varianceObjective: 6AACSB: Reflective thinking40) Managers can gain more insight about the static-budget variance by subdividing it into the flexible-budgetvariance and the sales-volume variance.Answer: TRUEDiff: 1Terms: static budget varianceObjective: 6AACSB: Reflective thinking41) Additional insight can be gained by dividing the sales-mix variance into the flexible-budget variance and thesales-volume variance.Answer: FALSEExplanation: Additional insight can be gained by dividing the static-budget variance into the flexible-budget variance and the sales-volume variance.Diff: 1Terms: static budget variance, flexible budget variance, sales-volume varianceObjective: 6AACSB: Reflective thinking42) A favorable sales-mix variance arises when the actual sales-mix percentage is less than the budgetedsales-mix percentage.Answer: FALSEExplanation: A favorable sales-mix variance arises when the actual sales-mix percentage exceeds the budgeted sales-mix percentage.Diff: 3Terms: sales-mix varianceObjective: 7AACSB: Reflective thinking43) A composite unit is a hypothetical unit with weights based on the mix of individual units.Answer: TRUEDiff: 1Terms: composite unitObjective: 7AACSB: Reflective thinking44) The sales-mix variance can be explained in terms of the budgeted contribution margin per composite unit ofthe sales mix.Answer: TRUEDiff: 2Terms: sales-mix variance, composite unitObjective: 7AACSB: Reflective thinking45) The sales-quantity variance is favorable when budgeted unit sales exceed actual unit sales.Answer: FALSEExplanation: The sales-quantity variance is unfavorable when budgeted unit sales exceed actual unit sales.Diff: 3Terms: sales-quantity varianceObjective: 7AACSB: Reflective thinking46) The sales mix variance is the difference between budgeted contribution margin for the actual sales mix andthe budgeted contribution margin for the budgeted sales mix.Answer: TRUEDiff: 2Terms: sales mix varianceObjective: 7AACSB: Reflective thinking47) The sales quantity variance is the difference between budgeted contribution margin based on actual unitssold of all products at the budgeted mix, and contribution margin in the flexible budget.Answer: FALSEExplanation: The sales quantity variance is the difference between budgeted contribution margin based on actual units sold of all products at the budgeted mix, and contribution margin in the static budget.Diff: 2Terms: sales quantity varianceObjective: 7AACSB: Reflective thinking48) The market-share variance is caused solely by the actual market share being different than the budgetedmarket share.Answer: TRUEDiff: 3Terms: market-share varianceObjective: 8AACSB: Reflective thinking49) A favorable market-size variance results with a decrease in market size.Answer: FALSEExplanation: A favorable market-size variance results with an increase in market size.Diff: 3Terms: market-size varianceObjective: 8AACSB: Reflective thinking50) The flexible-budget variance can be further divided into the sales-mix variance and the sales-quantityvariance.Answer: FALSEExplanation: The sales-volume variance can be further divided into the sales-mix variance and the sales-quantity variance.Diff: 1Terms: sales-volume variance, sales-mix variance, sales-quantity varianceObjective: 8AACSB: Reflective thinking51) The market share variance is the difference in budgeted contribution margin for actual market size in unitscaused solely by the actual market share being different from the budgeted market share.Answer: TRUEDiff: 2Terms: market-share varianceObjective: 8AACSB: Reflective thinking52) The market size variance is the difference in budgeted contribution margin at budgeted market share causedsolely by actual market size in units being different from budgeted market size in units.Answer: TRUEDiff: 2Terms: market-size varianceObjective: 8AACSB: Reflective thinking53) A difficulty with the market share and market size variances is that accurate measures of market share andmarket size often do not exist.Answer: TRUEDiff: 2Terms: market-size variance, market-share varianceObjective: 8AACSB: Reflective thinking54) The direct materials mix variance is the sum of the direct materials mix variances for each input.Answer: TRUEDiff: 1Terms: direct materials mix varianceObjective: AAACSB: Reflective thinking55) An unfavorable direct materials mix variance results when cheaper direct materials are substituted for moreexpensive direct materials.Answer: FALSEExplanation: A favorable direct materials mix variance results when cheaper direct materials are substituted for more expensive direct materials.Diff: 2Terms: direct materials mix varianceObjective: AAACSB: Ethical reasoning56) A favorable direct materials yield variance results when less direct materials are used than planned.Answer: TRUEDiff: 2Terms: direct materials mix variance, direct materials yield varianceObjective: AAACSB: Reflective thinking57) Costs which are not economically feasible to trace but which are related to a cost object are known as:A) fixed costsB) direct costsC) indirect costsD) variable costsAnswer: CDiff: 1Terms: cost allocationObjective: 1AACSB: Reflective thinking58) Any item for which a separate measurement of cost is desired is known as:A) cost allocationB) a cost objectC) a direct costD) an indirect costAnswer: BDiff: 1Terms: cost objectObjective: 1AACSB: Reflective thinking59) Indirect costs:A) often comprise a large percentage of overall costs assigned to a cost objectB) specifically exclude marketing costsC) cannot be used for external reportingD) are treated as period costs and not as product costsAnswer: ADiff: 3Terms: indirect costsObjective: 1AACSB: Reflective thinking60) All of the following illustrate purposes for allocating costs to cost objects EXCEPT to:A) provide information for economic decisionsB) motivate managers and employeesC) determine a selling price the market will bearD) measure income and assets for reporting to external partiesAnswer: CDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking61) Which of the following illustrates a purpose for allocating costs to cost objects?A) to motivate managers and employeesB) to provide information to customersC) to determine a selling price the market will bearD) to measure liabilitiesAnswer: ADiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking62) The costs of all six value-chain functions should be included when determining:A) whether to add a new product lineB) the selling price of a serviceC) whether to make or buy a component part from another manufacturerD) All of these answers are correct.Answer: DDiff: 3Terms: cost allocationObjective: 1AACSB: Reflective thinking63) R&D costs are used for which purpose of cost allocation?A) to provide information for economic decisionsB) to report to external parties when using generally accepted accounting principlesC) to calculate costs of a government contractD) All of these answers are correct.Answer: ADiff: 3Terms: cost allocationObjective: 1AACSB: Communication64) Which purpose of cost allocation is used to encourage sales representatives to push high-margin products orservices?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: BDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking65) Which purpose of cost allocation is used to decide on the selling price for a customized product or service?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: ADiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking66) Which purpose of cost allocation is used to cost products at a "fair" price?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: CDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking67) Which purpose of cost allocation is used to cost inventories for reporting to tax authorities?A) to provide information for economic decisionsB) to motivate managers and other employeesC) to justify costs or compute reimbursementD) to measure income and assets for reporting to external partiesAnswer: DDiff: 2Terms: cost allocationObjective: 1AACSB: Reflective thinking68) When the purpose of cost allocation is to provide information for economic decisions or to motivatemanagers and employees, the best criteria are:A) the cause-and-effect and the ability-to bear criteriaB) the cause-and-effect and the benefits-received criteriaC) the benefits-received and the fairness criteriaD) the fairness and the ability-to-bear criteriaAnswer: BDiff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking69) ABC systems use the concept of a ________ to identify the cost drivers that best demonstrate thecause-and-effect relationship between each activity and the costs in the related cost pool.A) cost hierarchyB) cost poolC) cost allocationD) cost driverAnswer: ADiff: 2Terms: cost hierarchyObjective: 5AACSB: Reflective thinking70) To guide cost allocation decisions, the cause-and-effect criterion:A) is used less frequently than the other criteriaB) is the primary criterion used in activity-based costingC) is a difficult criterion on which to obtain agreementD) may allocate corporate salaries to divisions based on profitsAnswer: BDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking71) To guide cost allocation decisions, the benefits-received criterion:A) generally uses the cost driver as the cost allocation baseB) results in subsidizing products that are not profitableC) is the primarily used criterion in activity-based costingD) may use an allocation base of division revenues to allocate advertising costsAnswer: DDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking72) To guide cost allocation decisions, the fairness or equity criterion is:A) the criterion often cited in government contractsB) superior when the purpose of cost allocation is for economic decisionsC) used more frequently than the other criteriaD) the primary criterion used in activity-based costingAnswer: ADiff: 3Terms: cost allocationObjective: 2AACSB: Ethical reasoning73) To guide cost allocation decisions, the ability to bear criterion:A) is likely to be the most credible to operating personnelB) allocates costs in proportion to the benefits receivedC) results in subsidizing products that are not profitableD) is the criterion often cited in government contractsAnswer: CDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking74) Which cost-allocation criterion is appropriate when making an economic decision?A) the fairness or equity criterionB) the ability to bear criterionC) the cause-and-effect criterionD) All of these answers are correct.Answer: DDiff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking75) Which cost-allocation criterion is MOST likely to subsidize poor performers at the expense of the bestperformers?A) the fairness or equity criterionB) the benefits-received criterionC) the ability to bear criterionD) the cause-and-effect criterionAnswer: CDiff: 2Terms: cost allocationObjective: 2AACSB: Reflective thinking76) A challenge to using cost-benefit criteria for allocating costs is that:A) the costs of designing and implementing complex cost allocations are not readily apparentB) the benefits of making better-informed pricing decisions are difficult to measureC) cost systems are being simplified and fewer multiple cost-allocation bases are being usedD) the costs of collecting and processing information keep spiraling upwardAnswer: BDiff: 3Terms: cost allocationObjective: 2AACSB: Reflective thinking77) Corporate overhead costs can be allocated:A) using a single cost poolB) to divisions using one cost pool and then reallocating costs to products using multiple cost poolsC) using numerous individual corporate cost poolsD) All of these answers are correct.Answer: DDiff: 2Terms: cost allocationObjective: 3AACSB: Reflective thinking78) The MOST likely reason for allocating all corporate costs to divisions include that:A) division managers make decisions that ultimately control corporate costsB) divisions receive benefits from all corporate costsC) the hierarchy of costs promotes cost managementD) it is best to use multiple cost objectsAnswer: BDiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking79) The MOST likely reason for NOT allocating corporate costs to divisions include that:A) these costs are not controllable by division managersB) these costs are incurred to support division activities, not corporate activitiesC) division resources are already used to attain corporate goalsD) divisions receive no benefits from corporate costsAnswer: ADiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking80) Some companies only allocate corporate costs to divisions that are:A) planned and under the control of division managersB) output unit-level costsC) perceived as causally related to division activitiesD) direct costsAnswer: CDiff: 2Terms: cost allocationObjective: 3AACSB: Reflective thinking81) Which is the preferred allocation method for performance evaluation?A) allocating all corporate costsB) allocating only human resource costC) allocating controllable costsD) allocating uncontrollable costsAnswer: CDiff: 2Terms: cost allocationObjective: 382) Not allocating some corporate costs to divisions and products results in:A) an increase in overall corporate profitabilityB) the sum of individual product profitability being less than overall company profitabilityC) the sum of individual product profitability being greater than overall company profitabilityD) a decrease in overall corporate profitabilityAnswer: CDiff: 3Terms: cost allocationObjective: 3AACSB: Reflective thinking83) The greater the degree of homogeneity, the:A) greater the number of needed cost poolsB) fewer the number of needed cost poolsC) less accurate the costs of a particular cost objectD) greater the variety of cause-and-effect relationships with the cost driverAnswer: BDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking84) When individual activities within a cost pool have a similar relationship with the cost driver, those costs:A) need to be reallocatedB) need multiple cost driversC) are considered a homogeneous cost poolD) are considered an allocated cost poolAnswer: CDiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking85) Homogeneous cost pools lead to:A) more accurate costs of a given cost objectB) more resources being assigned to that cost objectC) the need for more cost driversD) Both A and C are correct.Answer: ADiff: 2Terms: homogeneous cost poolObjective: 3AACSB: Reflective thinking86) Identifying homogeneous cost pools:A) requires judgment and should be reevaluated on a regular basisB) should include the input of managementC) should include a cost-benefit analysisD) All of these answers are correct.Answer: DDiff: 2Terms: homogeneous cost poolObjective: 3。

成本与管理会计英文版试题库答案ch03

Cost Accounting, 13e (Horngren et al.)Chapter 3 Cost-Volume-Profit Analysis1) To perform cost-volume-profit analysis, a company must be able to separate costs into fixed and variablecomponents.Answer: TRUEDiff: 1Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skills2) Cost-volume-profit analysis may be used for multi-product analysis when the proportion of differentproducts remains constant.Answer: TRUEDiff: 1Terms: cost-volume-profit (CVP) analysis, sales mixObjective: 1AACSB: Analytical skills3) It is assumed in CVP analysis that the unit selling price, unit variable costs, and unit fixed costs are knownand constant.Answer: FALSEExplanation: It is assumed in CVP analysis that the unit selling price, unit variable costs, and total fixed costs are known and constant.Diff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skills4) In CVP analysis, the number of output units is the only revenue driver.Answer: TRUEDiff: 2Terms: cost-volume-profit (CVP) analysis, revenue driverObjective: 1AACSB: Reflective thinking5) Many companies find even the simplest CVP analysis helps with strategic and long-range planning.Answer: TRUEDiff: 1Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skills6) In CVP analysis, total costs can be separated into a fixed component that does not vary with output and acomponent that is variable with output level.Answer: TRUEDiff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Reflective thinking7) In CVP analysis, variable costs include direct variable costs, but do not include indirect variable costs.Answer: FALSEExplanation: In CVP analysis variable costs include direct variable costs and indirect variable costs.Diff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Reflective thinking8) In CVP analysis, an assumption is made that the total revenues are linear with respect to output units, butthat total costs are non-linear with respect to output units.Answer: FALSEExplanation: In CVP analysis, an assumption is made that the total revenues and the total costs are non-linear with respect to output units.Diff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Reflective thinking9) A revenue driver is defined as a variable that causes changes in prices.Answer: FALSEExplanation: A revenue driver is defined as a variable that causes changes in revenues.Diff: 2Terms: revenue driverObjective: 1AACSB: Reflective thinking10) If the selling price per unit is $20 and the contribution margin percentage is 30%, then the variable cost perunit must be $6.Answer: FALSEExplanation: Then the variable cost per unit must be $14, [$20 - (.30 × $20)] = $14.Diff: 2Terms: contribution marginObjective: 1AACSB: Analytical skills11) Total revenues less total fixed costs equal the contribution margin.Answer: FALSEExplanation: Total revenues less total variable costs equal the contribution margin.Diff: 1Terms: contribution marginObjective: 1AACSB: Reflective thinking12) Gross margin is reported on the contribution income statement.Answer: TRUEDiff: 1Terms: contribution income statementObjective: 1AACSB: Analytical skillsand a company sells 5,000 units, operating income would be $40,000.Answer: TRUEDiff: 2Terms: contribution income statementObjective: 1AACSB: Analytical skills14) The selling price per unit is $30, variable cost per unit $20, and fixed cost per unit is $3. When this companyoperates above the breakeven point, the sale of one more unit will increase net income by $7.Answer: FALSEExplanation: The sale of one more unit will increase net income by $10, ($30 - $20 = $10).Diff: 2Terms: contribution income statementObjective: 2AACSB: Analytical skills15) A company with sales of $100,000, variable costs of $70,000, and fixed costs of $50,000 will reach itsbreakeven point if sales are increased by $20,000.Answer: FALSEExplanation: $50,000 / 0.30 = $166,667 of total sales are needed to break even.Diff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Analytical skills16) Breakeven point is not a good planning tool since the goal of business is to make a profit.Answer: FALSEExplanation: Breakeven point is an important planning tool that helps managers determine volume of sales/production needed to be profitable.Diff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking17) Breakeven point is that quantity of output where total revenues equal total costs.Answer: TRUEDiff: 1Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking18) In the graph method of CVP analysis, the breakeven point is the (X-axis) quantity of units sold for which thetotal revenues line crosses the total costs line.Answer: TRUEDiff: 1Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinkingrevenue at only one real output level because the starting point of the line is always the intersection of the X and Y axes.Answer: TRUEDiff: 1Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking20) A profit-volume graph shows the impact on operating income from changes in the output level.Answer: TRUEDiff: 1Terms: PV GraphObjective: 2AACSB: Reflective thinking21) If the selling price per unit of a product is $50, variable costs per unit are $40, and total fixed costs are $50,000,a company must sell 6,000 units to make a target operating income of $10,000.Answer: TRUEDiff: 3Terms: cost-volume-profit (CVP) analysisObjective: 2AACSB: Analytical skills22) An increase in the tax rate will increase the breakeven point.Answer: FALSEExplanation: A change in the tax rate will not change the breakeven point.Diff: 2Terms: net incomeObjective: 3AACSB: Analytical skills23) When making net income evaluations, CVP calculations for target income must be stated in terms of targetoperating income instead of target net income.Answer: FALSEExplanation: Target net income must be used as income taxes will reduce the operating income.Diff: 2Terms: net incomeObjective: 3AACSB: Reflective thinking24) If operating income is $70,000 and the income tax rate is 30%, then net income will be $49,000.Answer: TRUEDiff: 1Terms: net incomeObjective: 3AACSB: Analytical skills25) If planned net income is $21,000 and the tax rate is 30%, then planned operating income would be $27,300.Answer: FALSEExplanation: If planned net income is $21,000 and the tax rate is 30%, then planned operating income would be $30,000, [$21,000 / (1.0 - .3) = $30,000].Diff: 2Terms: net incomeObjective: 3AACSB: Analytical skills26) Sensitivity analysis is a "what-if" technique that managers use to examine how a result will change if theoriginally predicted data are not achieved or if an underlying assumption changes.Answer: TRUEDiff: 1Terms: sensitivity analysisObjective: 4AACSB: Reflective thinking27) Margin of safety measures the difference between budgeted revenues and breakeven revenues.Answer: TRUEDiff: 1Terms: margin of safetyObjective: 4AACSB: Reflective thinking28) If a company's breakeven revenue is $100 and its budgeted revenue is $125, then its margin of safetypercentage is 25%.Answer: FALSEExplanation: The margin of safety percentage is 20% as the denominator of the ratio is the budgeted level and not the breakeven level.Diff: 2Terms: margin of safetyObjective: 4AACSB: Analytical skills29) Sensitivity analysis helps to evaluate the risk associated with decisions.Answer: TRUEDiff: 1Terms: sensitivity analysisObjective: 4AACSB: Ethical reasoning30) If contribution margin decreases by $1 per unit, then operating profits will increase by $1 per unit.Answer: FALSEExplanation: If contribution margin decreases by $1 per unit, then operating profits will decrease by $1 per unit.Diff: 2Terms: contribution margin per unitObjective: 4AACSB: Reflective thinking31) If variable costs per unit increase, then the breakeven point will decrease.Answer: FALSEExplanation: If variable costs per unit increase, then the breakeven point will also increase.Diff: 3Terms: breakeven point (BEP)Objective: 4AACSB: Reflective thinking32) A planned increase in advertising would be considered an increase in fixed costs in CVP analysis.Answer: TRUEDiff: 2Terms: cost-volume-profit (CVP) analysisObjective: 4AACSB: Reflective thinking33) A planned decrease in selling price would be expected to cause an increase in the quantity sold.Answer: TRUEDiff: 2Terms: cost-volume-profit (CVP) analysisObjective: 4AACSB: Reflective thinking34) Companies with a greater proportion of fixed costs have a greater risk of loss than companies with a greaterproportion of variable costs.Answer: TRUEDiff: 2Terms: operating leverageObjective: 5AACSB: Reflective thinking35) The degree of operating leverage at a specific level of sales helps the managers calculate the effect thatpotential changes in sales will have on operating income.Answer: TRUEDiff: 1Terms: operating leverageObjective: 5AACSB: Reflective thinking36) If a company increases fixed costs, then the breakeven point will be lower.Answer: FALSEExplanation: If a company increases fixed costs, then the breakeven point will be higher.Diff: 3Terms: breakeven point (BEP)Objective: 5AACSB: Reflective thinking37) Companies that are substituting fixed costs for variable costs receive a greater per unit return above thebreakeven point.Answer: TRUEDiff: 3Terms: operating leverageObjective: 5AACSB: Reflective thinking38) A company with a high degree of operating leverage is at lesser risk during downturns in the economy.Answer: FALSEExplanation: A company with a high degree of operating leverage is at greater risk during downturns in the economy.Diff: 3Terms: operating leverageObjective: 5AACSB: Analytical skills39) Whether the purchase cost of a machine is treated as fixed or variable depends heavily on the time horizonbeing considered.Answer: TRUEDiff: 1Terms: operating leverageObjective: 5AACSB: Reflective thinking40) If a company has a degree of operating leverage of 2.0, that means a 20% increase in sales will result in a 40%increase in variable costs.Answer: FALSEExplanation: If a company has a degree of operating leverage of 2.0, that means a 20% increase in sales will result in a 40% increase in operating income.Diff: 3Terms: operating leverageObjective: 5AACSB: Analytical skills41) When a company has at least some fixed costs, the degree of operating leverage is different at different levelsof sales.Answer: TRUEDiff: 2Terms: operating leverageObjective: 5AACSB: Reflective thinking42) Passenger-miles are a potential measure of output for the airline industry.Answer: TRUEDiff: 1Terms: cost-volume-profit (CVP) analysisObjective: 6AACSB: Reflective thinking43) Pounds of yeast used by a bake shop is a potential measure of output for the bakery industry.Answer: FALSEExplanation: Loaves of bread or dozens of doughnuts are examples of outputs; yeast is an input that would be part of the variable cost of the product.Diff: 1Terms: cost-volume-profit (CVP) analysisObjective: 6AACSB: Analytical skills44) In multiproduct situations when sales mix shifts toward the product with the lowest contribution margin,the breakeven quantity will decrease.Answer: FALSEExplanation: In multiproduct situations when sales mix shifts toward the product with the lowest contribution margin, the breakeven quantity will increase.Diff: 3Terms: sales mixObjective: 6AACSB: Reflective thinking45) In multiproduct situations when sales mix shifts toward the product with the highest contribution margin,operating income will be higher.Answer: TRUEDiff: 3Terms: sales mixObjective: 6AACSB: Reflective thinking46) To calculate the breakeven point in a multi-product situation, one must assume that the sales mix of thevarious products remains constant.Answer: TRUEDiff: 2Terms: sales mixObjective: 6AACSB: Ethical reasoning47) If a company's sales mix is 2 units of product A for every 3 units of product B, and the company sells 1,000units in total of both products, only 200 units of product A will be sold.Answer: FALSEExplanation: If a company's sales mix is 2 units of product A for every 3 units of product B, and the company sells 1,000 units in total of both products, 400 units of product A will be sold and 600 units ofproduct B will be sold.Diff: 2Terms: sales mixObjective: 6AACSB: Analytical skills48) Barbies Beer Emporium sells beer and ale in both pint and quart sizes. If Barbies sells twice as many pints asit sells quarts, and sells 1,200 items total, it will sell 400 quarts of ale.Answer: TRUEDiff: 2Terms: sales mixObjective: 6AACSB: Analytical skills49) There is no unique breakeven point when there are multiple cost drivers.Answer: TRUEDiff: 2Terms: cost-volume-profit (CVP) analysisObjective: 7AACSB: Analytical skills50) When there are multiple cost drivers the simple CVP formula of Q = (FC + OI)/CMU can still be used.Answer: FALSEExplanation: When there are multiple cost drivers the simple CVP formula no longer applies.Diff: 1Terms: cost-volume-profit (CVP) analysisObjective: 7AACSB: Reflective thinking51) Service sector companies will never report gross margin on an income statement.Answer: TRUEDiff: 2Terms: gross margin percentageObjective: 1AACSB: Communication52) For merchandising firms, contribution margin will always be a lesser amount than gross margin.Answer: TRUEExplanation: True, because all variable costs are subtracted to compute contribution margin, but only COGS is subtracted to compute gross margin.Diff: 3Terms: contribution marginObjective: 1AACSB: Analytical skills53) Contribution margin and gross margin are terms that can be used interchangeably.Answer: FALSEExplanation: Contribution margin and gross margin refer to different amounts.Revenues - all variable costs = contribution margin; Revenues - COGS = gross margin Diff: 1Terms: contribution marginObjective: 1AACSB: Communication54) Gross Margin will always be greater than contribution margin.Answer: FALSEExplanation: If variable costs are low and/or manufacturing fixed costs are high, then contribution margin can easily be greater than gross margin.Revenues - all variable costs = contribution margin; Revenues - COGS = gross margin Diff: 1Terms: contribution marginObjective: 1AACSB: Reflective thinking55) If Johnson's Manufacturing presented a Financial Accounting Income Statement emphasizing gross marginshowing operating income of $18,000, a Contribution Income Statement emphasizing contribution margin would show a different operating income.Answer: FALSEExplanation: If Johnson's Manufacturing presented a Financial Accounting Income Statement emphasizing gross margin showing operating income of $18,000, a Contribution Income Statement emphasizingcontribution margin would show the same operating income.Diff: 2Terms: contribution income statementObjective: 1AACSB: Communication56) An expected value is the weighted average of the outcomes, with the probability of each outcome serving asthe weight.Answer: TRUEDiff: 2Terms: expected valueObjective: AAACSB: Communication57) Cost-volume-profit analysis is used PRIMARILY by management:A) as a planning toolB) for control purposesC) to prepare external financial statementsD) to attain accurate financial resultsAnswer: ADiff: 1Terms: cost-volume-profit (CVP)Objective: 1AACSB: Communication58) One of the first steps to take when using CVP analysis to help make decisions is:A) finding out where the total costs line intersects with the total revenues line on a graph.B) identifying which costs are variable and which costs are fixed.C) calculation of the degree of operating leverage for the company.D) estimating how many products will have to be sold to make a decent profit.Answer: BDiff: 1Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Reflective thinking59) Cost-volume-profit analysis assumes all of the following EXCEPT:A) all costs are variable or fixedB) units manufactured equal units soldC) total variable costs remain the same over the relevant rangeD) total fixed costs remain the same over the relevant rangeAnswer: CDiff: 2Terms: cost-volume-profit (CVP)Objective: 1AACSB: Reflective thinking60) Which of the following items is NOT an assumption of CVP analysis?A) Total costs can be divided into a fixed component and a component that is variable with respect to thelevel of output.B) When graphed, total costs curve upward.C) The unit-selling price is known and constant.D) All revenues and costs can be added and compared without taking into account the time value ofmoney.Answer: BDiff: 3Terms: cost-volume-profit (CVP)Objective: 1AACSB: Reflective thinking61) Which of the following items is NOT an assumption of CVP analysis?A) Costs may be separated into separate fixed and variable components.B) Total revenues and total costs are linear in relation to output units.C) Unit selling price, unit variable costs, and unit fixed costs are known and remain constant.D) Proportion of different products will remain constant when multiple products are sold.Answer: CDiff: 3Terms: cost-volume-profit (CVP)Objective: 1AACSB: Reflective thinking62) A revenue driver is defined as:A) any factor that affects costs and revenuesB) any factor that affects revenuesC) only factors that can influence a change in selling priceD) only factors that can influence a change in demandAnswer: BDiff: 1Terms: revenue driverObjective: 1AACSB: Reflective thinking63) Operating income calculations use:A) net incomeB) income tax expenseC) cost of goods sold and operating costsD) nonoperating revenues and nonoperating expensesAnswer: CDiff: 2Terms: revenue driverObjective: 1AACSB: Reflective thinking64) Which of the following statements about net income (NI) is TRUE?A) NI = operating income plus nonoperating revenue.B) NI = operating income plus operating costs.C) NI = operating income less income taxes.D) NI = operating income less cost of goods sold.Answer: CDiff: 1Terms: net incomeObjective: 1AACSB: Reflective thinking65) Which of the following is true about the assumptions underlying basic CVP analysis?A) Only selling price is known and constant.B) Only selling price and variable cost per unit are known and constant.C) Only selling price, variable cost per unit, and total fixed costs are known and constant.D) Selling price, variable cost per unit, fixed cost per unit, and total fixed costs are known and constant.Answer: CDiff: 2Terms: cost-volume-profit (CVP)Objective: 1AACSB: Reflective thinking66) The contribution income statement:A) reports gross marginB) is allowed for external reporting to shareholdersC) categorizes costs as either direct or indirectD) can be used to predict future profits at different levels of activityAnswer: DDiff: 1Terms: contribution income statementObjective: 1AACSB: Reflective thinking67) Contribution margin equals:A) revenues minus period costsB) revenues minus product costsC) revenues minus variable costsD) revenues minus fixed costsAnswer: CDiff: 1Terms: contribution marginObjective: 1AACSB: Reflective thinking68) The selling price per unit less the variable cost per unit is the:A) fixed cost per unitB) gross marginC) margin of safetyD) contribution margin per unitAnswer: DDiff: 1Terms: contribution marginObjective: 2AACSB: Reflective thinkingAnswer the following questions using the information below:Kaiser's Kraft Korner sells a single product. 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of variable costs, and $12,000 of fixed costs.69) Contribution margin per unit is:A) $4.00B) $4.29C) $6.00D) None of these answers are correct.Answer: CExplanation: C) ($70,000 - $28,000) / 7,000 units = $6 per unitDiff: 2Terms: contribution margin per unitObjective: 1AACSB: Analytical skillsD) None of these answers are correct.Answer: AExplanation: A) $10X - $4X - $12,000 = 0; X = 2,000 unitsDiff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Analytical skills71) The number of units that must be sold to achieve $60,000 of operating income is:A) 10,000 unitsB) 11,666 unitsC) 12,000 unitsD) None of these answers are correct.Answer: CExplanation: C) 10X - 4X - 12,000 = 60,000; X = 12,000 unitsDiff: 2Terms: cost-volume-profit (CVP) analysisObjective: 2AACSB: Analytical skills72) If sales increase by $25,000, operating income will increase by:A) $10,000B) $15,000C) $22,200D) None of these answers are correct.Answer: BExplanation: B) [($70,000 - $28,000) / $70,000] × $25,000 = $15,000Diff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skillsAnswer the following questions using the information below:Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed costs.73) Contribution margin per ham is:A) $5.00B) $15.00C) $20.00D) None of these answers are correct.Answer: BExplanation: B) ($220,000 - $55,000) / 11,000 hams = $15 per hamDiff: 2Terms: contribution margin per unitObjective: 1AACSB: Analytical skillsD) None of these answers are correct.Answer: CExplanation: B) 20X - 5X - 24,000 = 0, X = 1,600 hamsDiff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Analytical skills75) The number of hams that must be sold to achieve $75,000 of operating income is:A) 6,600 hamsB) 7,500 hamsC) 8,400 hamsD) None of these answers are correct.Answer: AExplanation: A) 20X -5X - 24,000 = 75,000; X = 6,600 hamsDiff: 2Terms: cost-volume-profit (CVP) analysisObjective: 2AACSB: Analytical skills76) If sales increase by $40,000, operating income will increase by:A) $10,000B) $20,000C) $30,000D) None of these answers are correct.Answer: CExplanation: C) Price = $220,000/11,000 = $20.00Sales in hams = $40,000/$20.00 = 2,000 hamsOperating Income increase = 2,000 hams x $15.00 per = $30,000Diff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skills77) Schuppener Company sells its only product for $18 per unit, variable production costs are $6 per unit, andselling and administrative costs are $3 per unit. Fixed costs for 10,000 units are $10,000. The contribution margin is:A) $12 per unitB) $9 per unitC) $11 per unitD) $8 per unitAnswer: BExplanation: B) $18 - $6 - $3 = $9Diff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skills78) The contribution income statement highlights:A) gross marginB) products costs and period costsC) different product linesD) variable and fixed costsAnswer: DDiff: 2Terms: contribution income statementObjective: 1AACSB: Communication79) Fixed costs equal $12,000, unit contribution margin equals $20, and the number of units sold equal 1,600.Operating income is:A) $12,000B) $20,000C) $32,000D) $40,000Answer: BExplanation: B) (1,600 × $20) - $12,000 = $20,000Diff: 3Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skills80) If selling price per unit is $30, variable costs per unit are $20, total fixed costs are $10,000, the tax rate is 30%,and the company sells 5,000 units, net income is:A) $12,000B) $14,000C) $28,000D) $40,000Answer: CExplanation: C) [(($30 - $20) × 5,000) - $10,000] × (1.0 - .3) = $28,000Diff: 2Terms: cost-volume-profit (CVP) analysisObjective: 1AACSB: Analytical skills81) At the breakeven point of 200 units, variable costs total $400 and fixed costs total $600. The 201st unit soldwill contribute ________ to profits.A) $1B) $2C) $3D) $5Answer: CExplanation: C) $1,000 - $400 - $600 = 0; Sales ($1,000 / 200) - Variable costs ($400 / 200) = $3 CMDiff: 3Terms: contribution marginObjective: 2AACSB: Analytical skills82) The breakeven point is the activity level where:A) revenues equal fixed costsB) revenues equal variable costsC) contribution margin equals variable costsD) revenues equal the sum of variable and fixed costsAnswer: DDiff: 3Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking83) Breakeven point is:A) total costs divided by variable costs per unitB) contribution margin per unit divided by revenue per unitC) fixed costs divided by contribution margin per unitD) the sum of fixed and variable costs divided by contribution margin per unitAnswer: CDiff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking84) Sales total $200,000 when variable costs total $150,000 and fixed costs total $30,000. The breakeven point insales dollars is:A) $200,000B) $120,000C) $ 40,000D) $ 30,000Answer: BExplanation: B) ($200,000 - $150,000) / $200,000 = 25% CM%; $30,000 / 0.25 = $120,000 BE salesDiff: 3Terms: breakeven point (BEP)Objective: 2AACSB: Analytical skills85) The breakeven point in CVP analysis is defined as:A) when fixed costs equal total revenuesB) fixed costs divided by the contribution margin per unitC) revenues less variable costs equal operating incomeD) when the contribution margin percentage equals total revenues divided by variable costsAnswer: BDiff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking86) Which of the following statements about determining the breakeven point is FALSE?A) Operating income is equal to zero.B) Contribution margin - fixed costs is equal to zero.C) Revenues equal fixed costs plus variable costs.D) Breakeven revenues equal fixed costs divided by the variable cost per unit.Answer: DDiff: 3Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking87) What is the breakeven point in units, assuming a product's selling price is $100, fixed costs are $8,000, unitvariable costs are $20, and operating income is $32,000?A) 100 unitsB) 300 unitsC) 400 unitsD) 500 unitsAnswer: AExplanation: A) $100N - $20N - $8,000 = 0; $80N = $8,000; N = 100 unitsDiff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Analytical skills88) If unit outputs exceed the breakeven point:A) there is a lossB) total sales revenue exceeds total costsC) there is a profitD) Both total sales revenue exceeds total costs and there is a profit.Answer: DDiff: 2Terms: breakeven point (BEP)Objective: 2AACSB: Reflective thinking89) How many units would have to be sold to yield a target operating income of $22,000, assuming variablecosts are $15 per unit, total fixed costs are $2,000, and the unit selling price is $20?A) 4,800 unitsB) 4,400 unitsC) 4,000 unitsD) 3,600 unitsAnswer: AExplanation: A) ($2,000 + $22,000) / ($20 - $15) = 4,800 unitsDiff: 3Terms: cost-volume-profit (CVP) analysisObjective: 2AACSB: Analytical skills。

CostAccounting_成本会计习题

1.Pet Products Company uses an automated process to manufactureits pet replica products. For June, the company had the followingactivities:Direct materials are placed into production at the beginning of theprocess and conversion costs are incurred evenly throughout theprocess.Required:Prepare a production cost worksheet using the FIFO method.2.The Sunshine Oil Company buys crude vegetable oil. Refining this oilresults in four products at the splitoff point: A, B, C,and D. Product C isfully processed by the splitoff point. Products A, B, and D can individuallybe further refined into Super A, Super B, and Super D. In the mostrecent month (December), the output at the splitoff point was:Computation of gross-margin percentages:3.The Carvelli Company is a manufacturer of housewares anduses standard costing. Manufacturing overhead (both variableand fixed) is allocated to products on the basis of budgetedmachine-hours. The budget for 2007 included:Variable manufacturing overhead $9 per machine-hourFixed manufacturing overhead $72,000,000Denominator level 4,000,000 machine-hoursSuppose that 3,500,000 machine-hours were allowed foractual output produced in 2007, but 3,800,000 actualmachine-hours were used. Actual manufacturing overheadwas $36,100,000, variable, and $72,200,000, fixed.Compute (a) the variable manufacturing overhead spendingand efficiency variances and (b) the fixed manufacturingoverhead spending and production-volume variances45.Madzinga’s Draperies manufactures curtains. A certain window requires the following:Direct materials standard10 square yards at $5 per yard Direct manufacturing labor standard 5 hours at $10 During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. Direct labor totaled 7,600 hours for $79,800. Required:a. Compute the direct materials price and efficiency variances for the quarter.b. Compute the direct manufacturing labor price and efficiency variances for the quarter.。

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DECISION MAKING AND RELEVANT INFORMATIONTRUE/FALSE1. A decision model is a formal method for making a choice, frequently involving bothquantitative and qualitative analyses.Answer: True Difficulty: 1 Objective: 12. Feedback from previous decisions uses historical information and, therefore, isirrelevant for making future predictions.Answer: False Difficulty: 2 Objective: 1Historical costs may be helpful in making future predictions, but are not relevant costs for decision making.3. The amount paid to purchase tools last month is an example of a sunk cost.Answer: True Difficulty: 2 Objective: 24. For decision making, differential costs assist in choosing between alternatives.Answer: True Difficulty: 1 Objective: 25. For a particular decision, differential revenues and differential costs are always relevant.Answer: True Difficulty: 1 Objective: 26. A cost may be relevant for one decision, but not relevant for a different decision.Answer: True Difficulty: 2 Objective: 27. Revenues that remain the same for two alternatives being examined are relevantrevenues.Answer: False Difficulty: 1 Objective: 2Revenues that remain the same between two alternatives are irrelevant for that decision since they do not differ between alternatives.8. Sunk costs are past costs that are unavoidable.Answer: True Difficulty: 1 Objective: 29. Quantitative factors are always expressed in numerical terms.Answer: True Difficulty: 2 Objective: 310. Qualitative factors are outcomes that are measured in numerical terms, such as the costsof direct labor.Answer: False Difficulty: 1 Objective: 3Quantitative factors are outcomes that are measured in numerical terms, such as thecosts of direct labor.11. If a manufacturer chooses to continue purchasing direct materials from a supplierbecause of the ongoing relationship that has developed over the years, the decision is based on qualitative factors.Answer: True Difficulty: 2 Objective: 312. Relevant revenues and relevant costs are the only information managers need to selectamong alternatives.Answer: False Difficulty: 3 Objective: 3Qualitative factors, as well as relevant revenues and relevant costs need to beconsidered when selecting among alternatives.13. Full costs of a product are relevant for one-time-only special order pricing decisions.Answer: False Difficulty: 2 Objective: 3Incremental costs of a product are relevant for one-time-only special order pricingdecisions.14. Full costs of a product include variable costs, but not fixed costs.Answer: False Difficulty: 1 Objective: 3Full costs of a product include variable and fixed costs for all business functions in the value chain.15. For one-time-only special orders, variable costs may be relevant but not fixed costs.Answer: True Difficulty: 2 Objective: 316. The price quoted for a one-time-only special order may be less than the price for along-term customer.Answer: True Difficulty: 2 Objective: 317. Bid prices and costs that are relevant for regular orders are the same costs that arerelevant for one-time-only special orders.Answer: False Difficulty: 2 Objective: 3Since long-term costs are relevant for regular orders and short-term costs are relevant for one-time-only special orders, the relevant costs differ.18. An incremental product cost is generally a fixed cost.Answer: False Difficulty: 1 Objective: 4An incremental product cost is generally a variable cost.19. If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $180.Answer: False Difficulty: 1 Objective: 4If Option 1 costs $100 and Option 2 costs $80, then the differential cost is $20.20. Producing another 10,000 units may increase the fixed cost of rent.Answer: True Difficulty: 3 Objective: 4True, if additional capacity must be added to accommodate the additional production needs.21. Absorption cost per unit is the best product cost to use for one-time-only special orderdecisions.Answer: False Difficulty: 2 Objective: 4Variable cost per unit is the best cost to use for one-time-only special order decisions.22. Sometimes qualitative factors are the most important factors in make-or-buy decisions.Answer: True Difficulty: 2 Objective: 423. If a company is deciding whether to outsource a part, the reliability of the supplier is animportant factor to consider.Answer: True Difficulty: 2 Objective: 424. Outsourcing is risk free to the manufacturer because the supplier now has theresponsibility of producing the part.Answer: False Difficulty: 2 Objective: 4Outsourcing has risks since the manufacturer is dependent on the supplier for a quality product, delivered in a timely manner, for a reasonable price.25. When a firm maximizes profits it will simultaneously minimize opportunity costs.Answer: True Difficulty: 3 Objective: 526. In a make-or-buy decision when there are alternative uses for capacity, the opportunitycost of idle capacity is relevant.Answer: True Difficulty: 3 Objective: 527. When opportunity costs exist, they are always relevant.Answer: True Difficulty: 3 Objective: 528. When capacity is constrained, relevant costs equal incremental costs plus opportunitycosts.Answer: True Difficulty: 2 Objective: 529. If the $17,000 spent to purchase inventory could be invested and earn interest of $1,000,then the opportunity cost of holding inventory is $17,000.Answer: False Difficulty: 2 Objective: 5The opportunity cost of holding inventory is $1,000.30. The choice is not really whether to make or buy, but rather how to best utilize availableproduction capacity.Answer: True Difficulty: 1 Objective: 531. For short-run product-mix decisions, managers should focus on minimizing total fixedcosts.Answer: False Difficulty: 2 Objective: 6For short-run product mix decisions, managers should focus on maximizing totalcontribution margin.32. For short-run product-mix decisions, maximizing contribution margin will also result inmaximizing operating income.Answer: True Difficulty: 2 Objective: 633. Regardless of the restraining resource, to maximize profits managers should producemore of the product with the greatest contribution margin per unit.Answer: False Difficulty: 2 Objective: 6To maximize profits, managers should produce more of the product with the greatest contribution margin per unit of the constraining resource.34. Management should focus on per unit costs when deciding whether to discontinue aproduct or not.Answer: False Difficulty: 2 Objective: 7Management should focus on total costs when deciding whether to discontinue aproduct or not.35. Avoidable variable and fixed costs should be evaluated when deciding whether todiscontinue a product, product line, business segment, or customer.Answer: True Difficulty: 2 Objective: 736. Depreciation allocated to a product line is a relevant cost when deciding to discontinuethat product.Answer: False Difficulty: 2 Objective: 7Depreciation is a sunk cost and never relevant.37. A company is considering adding a fourth product to use available capacity. A relevantfactor to consider is that corporate costs can now be allocated over four products rather than only three.Answer: False Difficulty: 3 Objective: 7It appears that corporate costs will not change in total, and therefore are not relevant costs for deciding whether to add a fourth product.38. When replacing an old machine with a new machine, the purchase price of the newmachine is a relevant cost.Answer: True Difficulty: 1 Objective: 839. When replacing an old machine with a new machine, the book value of the old machineis a relevant cost.Answer: False Difficulty: 1 Objective: 8The original price of the old machine is a past cost and therefore an irrelevant cost. 40. Replacing an old machine will increase operating income in the long run, but not forthis year. A manager may choose not to replace the machine if performance evaluations are based on performance over a single year.Answer: True Difficulty: 2 Objective: 941. Linear programming is a tool that maximizes total contribution margin of a mix ofproducts with multiple constraints.Answer: True Difficulty: 1 Objective: AMULTIPLE CHOICE42. Feedback regarding previous actions may affecta. future predictions.b. implementation of the decision.c. the decision model.d. all of the above.Answer: d Difficulty: 2 Objective: 143. Place the following steps from the five-step decision process in order:A = Make predictions about future costsB = Evaluate performance to provide feedbackC = Implement the decisionD = Choose an alternativea. D C A Bb. C D A Bc. A D C Bd. D C B AAnswer: c Difficulty: 2 Objective: 144. The formal process of choosing between alternatives is known asa. a relevant model.b. a decision model.c. an alternative model.d. a prediction model.Answer: b Difficulty: 1 Objective: 145. Ruggles Circuit Company manufactures circuit boards for other firms. Management isattempting to search for ways to reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the production floor next year. Using the information below regarding current operations and the new proposal, which of the following decisions should management accept?Currently Proposed Required machine operators 5 4.5Materials-handling workers 1.25 1.25Employee average pay $8 per hour $9 per hourHours worked per employee 2,100 2,000a. Do not change the production floor.b. Rearrange the production floor.c. Either, because it makes no difference to the employees.d. It doesn't matter because the costs incurred will remain the same.Answer: b Difficulty: 2 Objective: 1Current operations: 5 workers x 2,100 hours x $8.00 = $84,000Proposal: 4.5 workers x 2,000 hours x $9.00 = $81,000THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 46 AND 47.LeBlanc Lighting manufactures small flashlights and is considering raising the price by 50 cents a unit for the coming year. With a 50-cent price increase, demand is expected to fall by 3,000 units.Currently Projected Demand 20,000 units 17,000 unitsSelling price $4.50 $5.00Incremental cost per unit $3.00 $3.0046. If the price increase is implemented, operating profit is projected toa. increase by $4,000.b. decrease by $4,000.c. increase by $6,000.d. decrease by $4,500.Answer: a Difficulty: 2 Objective: 1[17,000 x ($5 - $3)] – [20,000 x ($4.50 - $3.00)] = increase of $4,00047. Would you recommend the 50-cent price increase?a. No, because demand decreased.b. No, because the selling price increases.c Yes, because contribution margin per unit increases.d. Yes, because operating profits increase.Answer: d Difficulty: 2 Objective: 148. For decision making, a listing of the relevant costsa. will help the decision maker concentrate on the pertinent data.b. will only include future costs.c. will only include costs that differ among alternatives.d. should include all of the above.Answer: d Difficulty: 2 Objective: 249. Sunk costsa. are relevant.b. are differential.c. have future implications.d. are ignored when evaluating alternatives.Answer: d Difficulty: 1 Objective: 250. A computer system installed last year is an example ofa. a sunk cost.b. a relevant cost.c. a differential cost.d. an avoidable cost.Answer: a Difficulty: 1 Objective: 251. Costs that CANNOT be changed by any decision made now or in the future area. fixed costs.b. indirect costs.c. avoidable costs.d. sunk costs.Answer: d Difficulty: 1 Objective: 252. In evaluating different alternatives, it is useful to concentrate ona. variable costs.b. fixed costs.c. total costs.d. relevant costs.Answer: d Difficulty: 1 Objective: 253. Which of the following costs always differ among future alternatives?a. Fixed costsb. Historical costsc. Relevant costsd. Variable costsAnswer: c Difficulty: 1 Objective: 254. Which of the following costs are never relevant in the decision-making process?a. Fixed costsb. Historical costsc. Relevant costsd. Variable costsAnswer: b Difficulty: 1 Objective: 2THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 55 AND 56.Jim’s 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda Civic instead for $3,000 cash. Julie estimated the following costs for the two cars:Geo Prizm Honda Civic Acquisition cost $15,000 $3,000Repairs $ 3,000 ---Annual operating costs(Gas, maintenance, insurance) $ 2,280 $2,10055. The cost NOT relevant for this decision is(are)a. the acquisition cost of the Geo Prizm.b. the acquisition cost of the Honda Civic.c. the repairs to the Geo Prizm.d. the annual operating costs of the Honda Civic.Answer: a Difficulty: 2 Objective: 256. What should Jim do? What are his savings in the first year?a. Buy the Honda Civic; $9,780b. Fix the Geo Prizm; $5,518c. Buy the Honda Civic; $180d. Fix the Geo Prizm; $5,280Answer: c Difficulty: 2 Objective: 2Geo ($3,000 + $2,280) - Honda ($3,000 + $2,100) = $180 cost savings with the Honda option57. Quantitative factorsa. include financial information, but not nonfinancial information.b. can be expressed in monetary terms.c. are always relevant when making decisions.d. include employee morale.Answer: b Difficulty: 2 Objective: 358. Qualitative factorsa. generally are easily measured in quantitative terms.b. are generally irrelevant for decision making.c. may include either financial or nonfinancial information.d. include customer satisfaction.Answer: d Difficulty: 2 Objective: 359. Historical costs are helpfula. for making future predictions.b. for decision making.c. because they are quantitative.d. with none of the above.Answer: a Difficulty: 2 Objective: 360. When making decisionsa. quantitative factors are the most important.b. qualitative factors are the most important.c. appropriate weight must be given to both quantitative and qualitative factors.d. both quantitative and qualitative factors are unimportant.Answer: c Difficulty: 2 Objective: 361. Employee morale at Dos Santos, Inc., is very high. This type of information is knownasa. a qualitative factor.b. a quantitative factor.c. a nonmeasurable factor.d. a financial factor.Answer: a Difficulty: 1 Objective: 362. Roberto owns a small body shop. His major costs include labor, parts, and rent. In thedecision-making process, these costs are considered to bea. fixed.b. qualitative factors.c. quantitative factors.d. variable.Answer: c Difficulty: 1 Objective: 363. One-time-only special orders should only be accepted ifa. incremental revenues exceed incremental costs.b. differential revenues exceed variable costs.c. incremental revenues exceed fixed costs.d. total revenues exceed total costs.Answer: a Difficulty: 3 Objective: 364. When deciding to accept a one-time-only special order from a wholesaler, managementshould do all EXCEPTa. analyze product costs.b. consider the special order’s impact on future prices of their products.c. determine whether excess capacity is available.d. verify past design costs for the product.Answer: d Difficulty: 3 Objective: 365. When there is excess capacity, it makes sense to accept a one-time-only special orderfor less than the current selling price whena. incremental revenues exceed incremental costs.b. additional fixed costs must be incurred to accommodate the order.c. the company placing the order is in the same market segment as your currentcustomers.d. it never makes sense.Answer: a Difficulty: 3 Objective: 3THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 66 THROUGH 69. Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has excess capacity. The following per unit data apply for sales to regular customers:Variable costs:Direct materials $40Direct labor 20Manufacturing support 35Marketing costs 15Fixed costs:Manufacturing support 45Marketing costs 15Total costs 170Markup (50%) 85Targeted selling price $25566. What is the full cost of the product per unit?a. $110b. $170c. $255d. $85Answer: b Difficulty: 3 Objective: 3$40 + $20 + $35 + $15 + $45 + $15 = $17067. What is the contribution margin per unit?a. $85b. $110c. $145d. $255Answer: c Difficulty: 3 Objective: 3$255 – ($40 + $20 + $35 + $15) = $14568. For Welch Manufacturing, what is the minimum acceptable price of this special order?a. $110b. $145c. $170d. $255Answer: a Difficulty: 3 Objective: 3$40 + $20 + $35 + $15 = $11069. What is the change in operating profits if the 1,000 unit one-time-only special order isaccepted for $180 a unit by Welch?a. $70,000 increase in operating profitsb. $10,000 increase in operating profitsc. $10,000 decrease in operating profitsd. $75,000 decrease in operating profitsAnswer: a Difficulty: 3 Objective: 3$180 – ($40 + $20 + $35 + $15) = $70; 1,000 x $70 = $70,000 increase70. Ratzlaff Company has a current production level of 20,000 units per month. Unit costsat this level are:Direct materials $0.25Direct labor 0.40Variable overhead 0.15Fixed overhead 0.20Marketing - fixed 0.20Marketing/distribution - variable 0.40Current monthly sales are 18,000 units. Jim Company has contacted Ratzlaff Company about purchasing 1,500 units at $2.00 each. Current sales would not be affected by the one-time-only special order, and variable marketing/distribution costs would not beincurred on the special order. What is Ratzlaff Company’s change in operating profits if the special order is accepted?a. $400 increase in operating profitsb. $400 decrease in operating profitsc. $1,800 increase in operating profitsd. $1,800 decrease in operating profitsAnswer: c Difficulty: 3 Objective: 3Manufacturing cost per unit = $0.25 + $0.40 + $0.15 = $0.801,500 x ($2.00 - $0.80) = $1,800 increase71. Black Tool Company has a production capacity is 1,500 units per month, but currentproduction is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are available?a. Yes, good customer relations are essential.b. No, the company will only break even.c. No, since only the employees will benefit.d. Yes, since operating profits will most likely increase.Answer: d Difficulty: 3 Objective: 3Since the $60 absorption cost per unit is most likely not all variable costs and since the entire $16 per unit of marketing costs may not be incurred, operating profits will most likely increase.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 THROUGH 75. Grant’s Kitchens is approached by Ms. Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers:Direct materials $455Direct labor 300Variable manufacturing support 45Fixed manufacturing support 100Total manufacturing costs 900Markup (60%) 540Targeted selling price $1440Grant’s Kitchens has excess capacity. Ms. Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.72. For Grant’s Kitchens, what is the minimum acceptable price of this one-time-onlyspecial order?a. $830b. $930c. $785d. $1440Answer: a Difficulty: 2 Objective: 3$455 + $300 + $45 + $30 = $83073. Other than price, what other items should Grant’s Kitchens consider before acceptingthis one-time-only special order?a. Reaction of shareholdersb. Reaction of existing customers to the lower price offered to Ms. Wangc. Demand for cherry cabinetsd. Price is the only consideration.Answer: b Difficulty: 2 Objective: 374. If Ms. Wang wanted a long-term commitment for supplying this product, this analysisa. would definitely be different.b. may be different.c. would not be different.d. does not contain enough information to determine if there would be a difference.Answer: a Difficulty: 2 Objective: 375. If there was limited capacity, all of the following amounts would change EXCEPTa. opportunity costs.b. differential costs.c. variable costs.d. the minimum acceptable price.Answer: c Difficulty: 3 Objective: 5THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 76 AND 77. Northwoods manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods’ policy to add a 50% markup to full costs.76. Northwoods is invited to bid on a one-time-only special order to supply 100 rustictables. What is the lowest price Northwoods should bid on this special order?a. $6,300b. $7,200c. $9,000d. $13,500Answer: b Difficulty: 2 Objective: 3$90 x 80% x 100 tables = $7,20077. A large hotel chain is currently expanding and has decided to decorate all new hotelsusing the rustic style. Northwoods Incorporated is invited to submit a bid to the hotel chain. What is the lowest price per unit Northwoods should bid on this long-term order?a. $63b. $72c. $90d. $135Answer: d Difficulty: 2 Objective: 3$90 + ($90 x 50%) = $13578. Cochran Corporation has a plant capacity of 100,000 units per month. Unit costs atcapacity are:Direct materials $4.00Direct labor 6.00Variable overhead 3.00Fixed overhead 1.00Marketing - fixed 7.00Marketing/distribution - variable 3.60Current monthly sales are 95,000 units at $30.00 each. Suzie, Inc., has contactedCochran Corporation about purchasing 2,000 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Cochran’s change inoperating profits if the one-time-only special order is accepted?a. $14,800 increaseb. $17,200 increasec. $22,000 increased. $33,200 increaseAnswer: a Difficulty: 3 Objective: 3($4.00 + 6.00 + 3.00 + 3.60) = $16.60($24.00 – 16.60) x 2,000 = $14,800 increase79. The sum of all the costs incurred in a particular business function (for example,marketing) is called thea. business function cost.b. full product cost.c. gross product cost.d. multiproduct cost.Answer: a Difficulty: 1 Objective: 380. The sum of all costs incurred in all business functions in the value chain (productdesign, manufacturing, marketing, and customer service, for example) is known as thea. business cost.b. full product cost.c. gross product cost.d. multiproduct cost.Answer: b Difficulty: 1 Objective: 381. Problems that should be avoided when identifying relevant costs include all EXCEPTa. assuming all variable costs are relevant.b. assuming all fixed costs are irrelevant.c. using unit costs that do not separate variable and fixed components.d. using total costs that separate variable and fixed components.Answer: d Difficulty: 2 Objective: 482. The BEST way to avoid misidentification of relevant costs is to focus ona. expected future costs that differ among the alternatives.b. historical costs.c. unit fixed costs.d. total unit costs.Answer: a Difficulty: 2 Objective: 483. Factors used to decide whether to outsource a part includea. the supplier’s cost of direct materials.b. if the supplier is reliable.c. the original cost of equipment currently used for production of that part.d. past design costs used to develop the current composition of the part.Answer: b Difficulty: 2 Objective: 484. Relevant costs of a make-or-buy decision include all EXCEPTa. fixed salaries that will not be incurred if the part is outsourced.b. current direct material costs of the part.c. special machinery for the part that has no resale value.d. material-handling costs that can be eliminated.Answer: c Difficulty: 3 Objective: 485. Which of following are risks of outsourcing the production of a part?a. Unpredictable qualityb. Unreliable deliveryc. Unscheduled price increasesd. All of the above are risks of outsourcing.Answer: d Difficulty: 1 Objective: 486. Which of the following minimize the risks of outsourcing?a. The use of short-term contracts that specify priceb. The responsibility for on-time delivery is now the responsibility of the supplierc. Building close relationships with the supplierd. All of the above minimize the risks of outsourcing.Answer: c Difficulty: 3 Objective: 487. The cost to produce Part A was $10 per unit in 20x3 and in 20x4 has increased to $11per unit. In 20x4, Supplier XYZ has offered to supply Part A for $9 per unit. For the make-or-buy decision,a. incremental revenues are $2 per unit.b. incremental costs are $1 per unit.c. net relevant costs are $1 per unit.d. differential costs are $2 per unit.Answer: d Difficulty: 2 Objective: 488. When evaluating a make-or-buy decision, which of the following does NOT need to beconsidered?a. Alternative uses of the production capacityb. The original cost of the production equipmentc. The quality of the supplier's productd. The reliability of the supplier's delivery scheduleAnswer: b Difficulty: 2 Objective: 489. For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis isconsidereda. a qualitative factor.b. a relevant cost.c. a differential factor.d. an opportunity cost.Answer: a Difficulty: 1 Objective: 490. The incremental costs of producing one more unit of product include all of thefollowing EXCEPTa. direct materials.b. direct labor.c. variable overhead costs.d. fixed overhead costs.Answer: d Difficulty: 2 Objective: 491. Direct materials $40, direct labor $10, variable overhead costs $30, and fixed overheadcosts $20. In the short term, the incremental cost of one unit isa. $30.b. $50.c. $80.d. $100.Answer: c Difficulty: 2 Objective: 492. Unit cost data can MOST mislead decisions bya. not computing fixed overhead costs.b. computing labor and materials costs only.c. computing administrative costs.d. not computing unit costs at the same output level.Answer: d Difficulty: 1 Objective: 493. Schmidt Sewing Company incorporates the services of Deb's Sewing. Schmidtpurchases pre-cut dresses from Deb's. This is primarily known asa. insourcing.b. outsourcing.c. relevant costing.d. sunk costing.Answer: b Difficulty: 1 Objective: 494. Pearce Sign Company manufactures signs from direct materials to the finished product.This is considereda. insourcing.b. outsourcing.c. relevant costing.d. sunk costing.Answer: a Difficulty: 1 Objective: 495. Which of the following would NOT be considered in a make-or-buy decision?a. Fixed costs that will no longer be incurredb. Variable costs of productionc. Potential rental income from space occupied by the production aread. Unchanged supervisory costsAnswer: d Difficulty: 2 Objective: 4。