121. Use the following information to compute the cost of goods manufactured:     A. $36,650. B. $30,950. C. $30,650. D. $30,350. E. $31,650. 122. The following information pertains to the Hewett Corporation. Calculate the cost of goods sold for the period:     A. $250,000. B. $290,000. C. $242,000. D. $258,000. E. $246,000. 123. Using the information below, calculate the cost of goods manufactured for the period.     A. $553,000. B. $536,000. C. $549,000. D. $527,000. E. $525,000. 124. Using the information below, calculate […]

  151. Treasury stock is classified as:  A. An asset account. B. A contra asset account. C. A revenue account. D. A contra equity account. E. A liability account. 152. The following data were reported by a corporation:    The number of outstanding shares is:  A. 12,000. B. 15,000. C. 17,000. D. 20,000. E. 23,000. 153. Corporations often buy back their own stock:  A. To avoid a hostile take-over. B. To have shares available for a merger or acquisition. C. To […]

    55. Abby believes her company’s overhead costs are driven (affected) by the number of machine hours because the production process is heavily automated. During the period, the company produced 3,000 units of Product A requiring a total of 200 machine hours and 2,000 units of Product B requiring a total of 50 machine hours. What allocation rate should be used if the company incurs […]

  Objective 6.4   1) Financial planning models ________. A) are not used in the budgeting process B) are not useful for sensitivity analysis C) are mathematical representations of the relationships affecting the budget process D) are used for nonfinancial aspects of budgeting   2) Financial planning software packages assist management with ________. A) assigning responsibility to various levels of management B) identifying the target […]

    Multiple Choice Questions   93. Which of the following is not normally a characteristic of a profit rich, cash poor company?  A. Low inventory turnover. B. High accounts receivable turnover. C. High operating income, but low cash flow from operations. D. A long operating cycle. 94. Which of the following is not considered a benefit from budgeting?  A. Limited managerial perspectives. B. Advance warning of problems. C. Better coordination among activities. D. A […]

    98. A bond is issued at par value when: A. The bond pays no interest. B.  The bond is not between interest payment dates. C. Straight line amortization is used by the company. D. The market rate of interest is the same as the contract rate of interest. E. The bond is callable.   99. When a bond sells at a premium:  A. The contract […]

    65. At the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of Florida sells for 45 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain?  A. The price will be unchanged. B. The price will fall to 37 […]

  51) Resources sacrificed on activities undertaken to support individual services are which of the following? 51) ______ A) batch-level costs B) product-sustaining costs C) product-sustaining (service-sustaining) costs D) input unit-level costs E) facility-sustaining costs 52) A division of a company manufactures two products, which are in high demand in the defence industry. Product A is stamped out in a machine press, at the rate […]

  81) Tornado Electronics manufactures stereos. All processing is initiated when an order is received. For April there were no beginning inventories. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Direct Materials are purchased under a just-in-time system. Backflush costing is used with a finished goods trigger point. Additional information is as follows:   Actual conversion costs$232,000 Standard materials costs per unit60 […]

    61. The term _____ describes financing with debt and preferred stock to increase the potential return to the residual common shareholders’ equity.  A. trading on the debt B. trading on the equity C. financial leverage D. equity financing E. none of the above   62. ROCE disaggregates into the following components:   A. Profit Margin for ROCE Ratio x Inventory Turnover Ratio x  Debt Ratio B. Profit Margin for ROCE Ratio x […]