110.In a process operation, the direct labor of a production department includes:    A.All labor used exclusively by that department, even if the labor is not applied to the product itself. B.All labor used exclusively by that department, but only if the labor is applied to the product itself. C.All labor for that department, including labor for services that help more than one production department, […]

    51. Which of the following debt management ratios is the most inclusive for measuring the degree to which a company relies on outsiders for financing? A. Debt to equity ratioB. Times interest earned ratioC. Long-term debt to equity ratioD. Long-term debt to total assets ratio   52. Below are selected financial data for Bouquet, Inc.   2012 2011 Total liabilities $1,205,000 $952,000 Common stock 250,000 225,000 Additional paid-in capital 150,000 […]

    41.The Boyle Company estimated that April sales would be 150,000 units with an average selling price of $6.00. Actual sales for April were 149,000 units and average selling price was $6.12.The sales revenue flexible budget variance was:    A. $6,120 favorable.   B. $6,000 unfavorable.   C. $17,880 favorable.   D. $17,880 unfavorable.     42.The Boyle Company estimated that April sales would be 150,000 units with an […]

    104. Refer to the information above. Book value per share of common stock (rounded to the nearest penny) is:  A. $30.20 per share. B. $28.20 per share. C. $31.80 per share. D. $38.20 per share.     105. The following two items are disclosed in the stockholders’ equity section of Riverside Corporation’s December 31, 2009, balance sheet:    If the company had reacquired 700 shares of treasury stock in […]

  61) What is the Machining Department’s allocation of both service departments respectively if their complete reciprocated cost were $375,000 for Plant Maintenance and $100,000 for Data Processing? 61) ______ A) $281,250 and $12,500 B) $337,500 and $200,000 C) $337,500 and $12,500 D) $131,250 and $84,375 E) $112,275 and $74,468 62) What is the Capping Department’s total cost if both service departments are allocated using […]

  Multiple Choice Questions  30.Which of the following is not a commonly used cost accounting system?    A. Manufacturing yield costing.   B. Job order costing.   C. Process costing.   D. Activity-based costing.         31.An effective cost accounting system should match processes that consume resources with the associated _____ in order to maintain competitive advantage. Select the best answer to complete the sentence.    A. Sales   B. Shareholders […]

    71. Which of the following are advantages of using the plantwide overhead rate method?A.  The use of cost pools is considerably more accurate than other overhead allocations.B.  The necessary information is readily available.C.  It is more accurate than traditional overhead allocations.D.  Each department has its own overhead rate and its own allocation base.E.  It takes into account that when products differ in batch […]

21.The going concern assumption is not applied to   a. companies about to file for bankruptcy. b. companies that have been in existence for more than one year. c. companies that have sustained losses for the previous two years. d. companies that have been in existence for less than a year.       22.The going concern assumption helps solve the   a. continuity issue. […]

      Short Answer Questions   The cost accountant for Sherman’s Co. prepared the following monthly performance report relating to the Production Department.     103. Compute the amounts that should be included for each of the following in a flexible budget prepared at an 11,000-unit level of production: a. Direct materials: $_____________ b. Direct labor: $_____________ c. Fixed manufacturing overhead: $_____________ 104. Assume that a […]

    49.Which of the following statements is not correct?    A. The entry to record the issuance of a promissory note includes a credit to Interest Payable for the amount of interest that will accrue on the note until it is paid at maturity.   B. The Notes Payable account is always debited or credited for the face value of a note.   C. The entry to record […]