108. Christmas Express makes wreaths in batch sizes of 12. The cutting & assembly process takes 7 minutes per wreath and the decorating process time is 10 minutes per wreath. It takes 8 minutes to move the wreaths from the cutting & assembly process to the decorating process. (a) Compute the value-added, non-value-added, and the total lead time of the wreath process.(b) Compute the value-added […]

  26) ________ is the ratio of the quantity of output produced to the costs of all inputs used, where the inputs are combined on the basis of current period prices. A) Total factor productivity B) Partial productivity C) Productivity D) Product yield variance E) Manufacturing conversion 27) A disadvantage of total factor productivity over partial productivity is that A) it focuses attention on a […]

  36) Using the abbreviations below, indicate which financial statement(s) would report each of the following line items. Some items may appear on more than one statement.   IS = Income statement OE = Statement of changes in shareholders’ equity BS = Balance sheet CF = Statement of cash flows NONE = the item does not appear on any of the financial statements   Cash […]

  41. Which of the following does not support managerial decisions involving accurate product costing? A. product constraintsB. emphasis of a product lineC. product mixD. product price 42. Pinacle Corp. budgeted $300,000 of overhead cost for 2008. Actual overhead costs for the year were $290,000. Pinacle’s plant-wide allocation base, machine hours, was budgeted at 50,000 hours. Actual machine hours were 40,000. Budgeted units to be produced are 100,000 units. Pinacle’s plant-wide factory […]

  Objective 4.8   1) In the service sector ________. A) direct labor costs are always easy to trace to jobs B) a budgeted direct-labor cost rate may be used to apply direct labor to jobs C) normal costing may not be used D) overhead is generally applied using an actual cost-allocation rate   2) In the service sector, to achieve timely reporting on the […]

  141. Alpha Company has assets of $600,000, liabilities of $250,000, and equity of $350,000. It buys office equipment on credit for $75,000. What would be the effects of this transaction on the accounting equation?  A. Assets increase by $75,000 and expenses increase by $75,000. B. Assets increase by $75,000 and expenses decrease by $75,000. C. Liabilities increase by $75,000 and expenses decrease by $75,000. D. Assets decrease by $75,000 […]

    111. The indirect method of reporting  A. is preferred by the Financial Accounting Standards Board (FASB), Statement of Financial Accounting Standards No. 95, “Statement of Cash Flows” B. shows a reconciliation between net income and cash flow from operations either at the bottom of the statement of cash flows or in a separate note C. reports the amounts of cash received from customers less cash disbursed to […]

  111. Multiple-step income statements:  A. Are required by the FASB. B. Contain more detail than a simple listing of revenues and expenses. C. Are required for the perpetual inventory system. D. List cost of goods sold as an operating expense. E. Can only be used in perpetual inventory systems. 112. Expenses of promoting sales by displaying and advertising merchandise, making sales, and delivering goods to customers are:  A. General and administrative expenses. […]

    131. Claitin Inc. uses large warehouses to store its finished goods ready for sale. After its personnel and auditors conducted a physical inventory of goods on one side of its warehouses, Claitin Inc. transported a portion of the inventory to another part of the warehouse, removing the inventory tags that indicated that the items had already been counted in inventory, and thereby included the […]

  102.A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the variable costs per unit were to decrease to $15 per unit, fixed costs increase to $900,000, and the selling price does not change, break-even point in units would:    A.Increase by 20,000. B.Equal 6,000. C.Increase by 6,000. D.Decrease by 20,000. E.Not change. 103.Forrester […]