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Question : 61) ______ A) improve product design. B) eliminate activities that : 1196249

Accounting

 

61) ______ A) improve product design. B) eliminate activities that add value but are not cost drivers. C) generate profits. D) improve operations and processes. E) satisfy customers.

62) Which of the following methods of dealing with under allocated or over allocated indirect costs are compatible with ABC systems? 62) ______ A) adjusted assignment approach B) cost of goods sold method C) homogeneous cost pool approach D) proration approach E) write-off to retained earnings

63) Creating a map of the cost of important activities and the factors that cause these costs to be incurred, would be an example of what facet of ABM? 63) ______ A) a process decision B) adjusted assignment C) a pricing decision D) proration E) a cost reduction decision

64) Comparing budgeted to actual costs at year end to obtain information on how well activities were managed, would be an example of what facet of ABM? 64) ______ A) a planning and management decision B) adjusted assignment C) a pricing decision D) a process decision E) a cost reduction decision

65) Survey information regarding companies around the world indicates that many have converted to or are considering changing to an ABC system.

The benefits noted include all of the following EXCEPT 65) ______ A) the ease in defining activities and selecting cost drivers. B) more accurate cost information for pricing products. C) improved performance measures. D) more accurate information concerning the causes of costs. E) more accurate profit analysis by product.

66) Using a department indirect-cost rate to allocate costs to products will result in the same product costs as an ABC system if which of the following is TRUE? 66) ______ A) if each activity within a department has the same cost-allocation base, regardless of the number of activities B) if no single activity accounts for a significant fraction of a department’s costs C) if significant costs are incurred on different activities with different cost-allocation bases within a department, the different products use resources from different activity areas in different proportions D) if each activity in a department has a separate costing system E) if information needed for an ABC is too expensive to develop and maintain

67) Which of the following is a signal that an ABC system should be implemented? 67) ______ A) Significant amounts of indirect costs are allocated using multiple cost pools. B) All or most costs are identified as facility-sustaining costs. C) All or most costs are identified as product-sustaining costs. D) All or most costs are identified as batch-level costs. E) All or most costs are identified as output unit-level costs.

68) Which of the following is a signal that an ABC system should be implemented? 68) ______ A) Complex products appear to be losing money, while simple products appear to be profitable. B) Products make similar demands on resources because of similarities in volume. C) Products make similar demands on resources because of similarities in process steps. D) Significant amounts of indirect costs are allocated using only one or two cost pools. E) Products make similar demands on resources because of similarities in complexity level.

69) Which of the following would NOT be a signal that an ABC system should be implemented? 69) ______ A) Products that a company is well-suited to make and sell show large profits, while products for which the company is less suited to produce and sell, show small profits. B) All or most costs are identified as service-sustaining costs. C) Complex products appear to be very profitable and simple products appear to be losing money. D) Products make diverse demands on resources because of differences in volume. E) Operations staff have significant disagreements with the accounting staff about the costs of manufacturing products and services.

70) When refining a cost system to implement Activity-based costing, a company may find all of the following EXCEPT 70) ______ A) once established, ABC systems are relatively inexpensive to maintain. B) the allocations required often result in measurement errors. C) managers have to trade off the benefits of an ABC system against the measurement and implementation costs. D) they may not be able to use their preferred allocation bases. E) substitute allocation bases are available.

 

 

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July 1, 2023
    

 

106.A company's income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plant assets, $4,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses increased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A. $156,600.

B. $141,000.

C. $96,600.

D. $148,600.

E. $88,600.

107.A company's income statement showed the following: net income, $124,000 and depreciation expense, $30,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; and accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A. $118,000.

B. $159,200.

C. $123,200.

D. $148,800.

E. $178,000.

108.Use the following information and the indirect method to calculate the net cash provided or used by operating activities: 

A. $69,900.

B. $108,900.

C. $93,900.

D. $85,700.

E. $81,600.

109.In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: 

A. $120,000.

B. $71,000.

C. $70,000.

D. $24,000.

E. $110,000.

110.In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: 

A. $120,000.

B. $60,000.

C. $70,000.

D. $80,000.

E. $130,000.

111.A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:    

A. $50,000.

B. $5,000.

C. $45,000.

D. Zero. This is an operating activity.

E. Zero. This is a financing activity.

112.A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:   

A. $45,000.

B. $5,000.

C. $17,000.

D. $28,000.

E. $40,000.

113.A machine with a cost of $130,000, current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The amount(s) that should be reported in the operating section of the statement of cash flows is:   

A. $17,000.

B. $4,000.

C. $57,000.

D. $21,000.

E. $22,000.

114.A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:    

A. ($3,000).

B. $60,000.

C. ($57,000).

D. $7,000.

E. ($7,000).

115.Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addam's statement of cash flows?   

A. In operating activities as a source of funds.

B. In investing activities as a source of funds.

C. In investing activities as a use of funds.

D. In financing activities as a source of funds.

E. In financing activities as a use of funds.

 

 

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July 1, 2023
    

 

106.A company's income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plant assets, $4,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses increased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A. $156,600.

B. $141,000.

C. $96,600.

D. $148,600.

E. $88,600.

107.A company's income statement showed the following: net income, $124,000 and depreciation expense, $30,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; and accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A. $118,000.

B. $159,200.

C. $123,200.

D. $148,800.

E. $178,000.

108.Use the following information and the indirect method to calculate the net cash provided or used by operating activities: 

A. $69,900.

B. $108,900.

C. $93,900.

D. $85,700.

E. $81,600.

109.In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: 

A. $120,000.

B. $71,000.

C. $70,000.

D. $24,000.

E. $110,000.

110.In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: 

A. $120,000.

B. $60,000.

C. $70,000.

D. $80,000.

E. $130,000.

111.A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:    

A. $50,000.

B. $5,000.

C. $45,000.

D. Zero. This is an operating activity.

E. Zero. This is a financing activity.

112.A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:   

A. $45,000.

B. $5,000.

C. $17,000.

D. $28,000.

E. $40,000.

113.A machine with a cost of $130,000, current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The amount(s) that should be reported in the operating section of the statement of cash flows is:   

A. $17,000.

B. $4,000.

C. $57,000.

D. $21,000.

E. $22,000.

114.A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:    

A. ($3,000).

B. $60,000.

C. ($57,000).

D. $7,000.

E. ($7,000).

115.Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addam's statement of cash flows?   

A. In operating activities as a source of funds.

B. In investing activities as a source of funds.

C. In investing activities as a use of funds.

D. In financing activities as a source of funds.

E. In financing activities as a use of funds.

 

 

default image
July 1, 2023
    

 

106.A company's income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plant assets, $4,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses increased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A. $156,600.

B. $141,000.

C. $96,600.

D. $148,600.

E. $88,600.

107.A company's income statement showed the following: net income, $124,000 and depreciation expense, $30,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; and accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.    

A. $118,000.

B. $159,200.

C. $123,200.

D. $148,800.

E. $178,000.

108.Use the following information and the indirect method to calculate the net cash provided or used by operating activities: 

A. $69,900.

B. $108,900.

C. $93,900.

D. $85,700.

E. $81,600.

109.In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: 

A. $120,000.

B. $71,000.

C. $70,000.

D. $24,000.

E. $110,000.

110.In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available: 

A. $120,000.

B. $60,000.

C. $70,000.

D. $80,000.

E. $130,000.

111.A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:    

A. $50,000.

B. $5,000.

C. $45,000.

D. Zero. This is an operating activity.

E. Zero. This is a financing activity.

112.A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:   

A. $45,000.

B. $5,000.

C. $17,000.

D. $28,000.

E. $40,000.

113.A machine with a cost of $130,000, current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The amount(s) that should be reported in the operating section of the statement of cash flows is:   

A. $17,000.

B. $4,000.

C. $57,000.

D. $21,000.

E. $22,000.

114.A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:    

A. ($3,000).

B. $60,000.

C. ($57,000).

D. $7,000.

E. ($7,000).

115.Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Addam's statement of cash flows?   

A. In operating activities as a source of funds.

B. In investing activities as a source of funds.

C. In investing activities as a use of funds.

D. In financing activities as a source of funds.

E. In financing activities as a use of funds.

 

 

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