Question :
51.Which of the following not a provision of the Sarbanes-Oxley : 1257008
51.Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?
A. The chief executive officer and the chief financial officer are jointly responsible for establishment and enforcement of internal controls.
B. Companies are required to report on the effectiveness of their internal controls.
C. The company’s external auditor is charged with the ultimate responsibility for the accuracy of the company’s financial statements and accompanying footnotes.
D. The company’s external auditors are required to attest to the accuracy of the internal controls report.
52.Which of following practices is not considered an effective means of reengineering business systems?
A. Identifying the best practices used by world-class competitors
B. Improving the accuracy of cost allocations
C. Increasing non-value added activities
D. All of these are effective means of reengineering business systems.
53.Levenworth Company incurs unnecessary costs each period because of the excess quantities of inventory maintained to meet unexpected customer demand. The costs of inventory financing, storage, supervision, and obsolescence could most likely be reduced by which of the following practices?
A. Activity-based costing
B. Just-in-time inventory
C. Total quality management
D. Benchmarking
54.During which of the following activities, value is considered to be added to a product or service takes place?
A. Process time
B. Move time
C. Inspection time
D. Rework time
55.Which of the following best represents a characteristic of managerial accounting?
A. Information is historically based and reported annually.
B. Information is based on estimates and is bounded by relevance and timeliness.
C. Information is regulated by the Securities and Exchange Commission.
D. Information is characterized by reliability and objectivity.
56.Which of the following statements concerning manufacturing costs is incorrect?
A. All salaries incurred by the sales department are expensed as incurred.
B. Direct labor costs are recorded initially in an inventory account.
C. Depreciation on manufacturing equipment is a period cost.
D. The cost of direct materials can be readily traced to products.
57.Steuben Company produces dog houses. During 2013, Steuben Company incurred the following costs: Wages paid to factory machine operators in producing the dog houses should be categorized as:
A. a product cost and recorded in the inventory account
B. a period cost and recorded on the income statement
C. a product cost and recorded on the income statement
D. a period cost and recorded in the inventory account
58.Steuben Company produces dog houses. During 2013, Steuben Company incurred the following costs: Based on the above information, the amount of period costs shown on Steuben’s 12/31/2013 income statement is:
A. $430,000
B. $150,000
C. $30,000
D. $180,000
59.Steuben Company produces dog houses. During 2013, Steuben Company incurred the following costs: Based on the above information, which of the following would not be treated as a product cost:
A. office manager’s salary
B. rent expense incurred on manufacturing facility
C. depreciation on manufacturing equipment
D. salaries of factory machine operators
60.The benefits of a just-in-time system would include all of the following except:
A. increased warehousing costs.
B. reduced inventory holding costs.
C. improved customer satisfaction.
D. decrease in the number of suppliers.
61.The Sarbanes Oxley Act of 2002:
A. prohibits CPA’s from becoming managerial accountants.
B. created Generally Accepted Accounting principles (GAAP).
C. requires the CEO and CFO to defer responsibility for internal controls to external auditors.
D. requires management to establish a whistleblower policy.
62.A systematic problem-solving philosophy that encourages front line workers to achieve zero defects is known as:
A. just-in-time (JIT).
B. total quality management (TQM).
C. activity based management (ABM).
D. None of these.
63.Randall Company manufactures chocolate bars. The following were among Randall’s 2013 manufacturing costs: Randall’s 2013 direct labor costs amounted to:
A. $400,000
B. $300,000
C. $175,000
D. $375,000
64.Randall Company manufactures chocolate bars. The following were among Randall’s 2013 manufacturing costs: Randall’s 2013 direct materials amounted to:
A. $25,000
B. $225,000
C. $250,000
D. $475,000
65.Which of the following items would be reported directly on the income statement as a period cost?
A. Selling and administrative salaries
B. Cost of lubricant for oiling machinery
C. Wages paid to machine operators
D. All of these.
