41) A revision of an estimate which will extend the asset’s useful life is called a change in accounting: A) theory. B) policy. C) procedure. D) estimate. 42) When an asset is fully depreciated: A) the total depreciation is equal to the accumulated depreciation, and the asset has reached the end of its actual useful life. B) the book value is equal to the […]
51. Which of the following is a reconciling item when reconciling the bank balance to the correct balance? A. Canceled checksB. Outstanding checksC. NSF checksD. Error in company record 52. In the reconciliation of a bank statement, deposits in transit should be: A. added to the unadjusted balance per the company’s records.B. subtracted from the unadjusted balance per the company’s records.C. added to the unadjusted bank statement balance.D. subtracted from the unadjusted bank statement […]
81. The Marx Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2010, and mature on January 1, 2014. The total interest expense related to these bonds for the year ended December 31, 2010 is A. $1,000 B. $3,000 C. $9,000 D. 12,000 82. On January 1, […]
41) Eliminating non-value added activities by reducing their cost drivers, is referred to as, 41) ______ A) value engineering. B) value-added activity base pricing. C) cost incurrence costing. D) value-added pricing. E) price engineering. 42) When are a product’s direct materials cost most likely to be locked in? 42) ______ A) when the bill for the materials is paid B) when materials are received […]
5) The seller of a product has no idle capacity and can sell all it can produce at $33 per unit. Outlay cost is $9. What is the opportunity cost, assuming the seller sells internally? A) $6 B) $12 C) $24 D) $33 6) In analyzing transfer prices, the: A) buyer will not willingly purchase a product for less than the incremental costs […]
66. An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale? A. $12,750 gain B. $600 gain C. $600 loss D. $9,250 loss 67. Held to maturity securities A. are reported at fair market value B. include stocks as well as bonds C. may be reported as current […]
101. In estimating the amount of uncollectible accounts the accountant (1) estimates the amount of uncollectible accounts that will likely occur over time in connection with sales of each period and (2) makes an entry debiting Bad Debt expense and crediting Allowance for Uncollectible Accounts. The name of this procedure is/are the A. percentage-of-sales. B. aging-of-accounts-receivable. C. direct write-off. D. indirect write-off. E. tax accounting. 102. A debit balance […]
21) The following information pertains to Brian Stone Corporation: Beginning fixed manufacturing overhead in inventory$60,000 Ending fixed manufacturing overhead in inventory45,000 Beginning variable manufacturing overhead in inventory$30,000 Ending variable manufacturing overhead in inventory14,250 Fixed selling and administrative costs$724,000 Units produced5,000 units Units sold4,800 units What is the difference between operating incomes under absorption costing and variable costing? A) $750 B) $7,500 […]
61. The Kaumajet Factory produces two products – table lamps and desk lamps. It has two separate departments – finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours. If the budget estimates that a table lamp will require 2 hours of finishing […]
171. The process of transferring the journal entries to the accounts is known as A. postingB. updatingC. journalizingD. summarizing 172. The posting process will include the transfer of the following information from the journal to the account. A. date, amount (debit or credit)B. date, amount (debit or credit), journal page numberC. amount (debit or credit), account numberD. date, amount (debit or credit) account number 173. The post reference columns are used to trace transactions from the journal […]
16) The partial productivity of overhead resources can be measured by considering the cost driver as ________.
A) budgeted input
B) the denominator
C) the fixed input
D) the numerator
17) Which of the following statements is true of productivity measures?
A) Partial productivity and total factor productivity measures never work best together.
B) Partial productivity explicitly considers gains from using fewer physical inputs as well as substitution among inputs.
C) All productivity measures are physical measures lacking financial content.
D) Total factor productivity considers the trade-offs across various inputs based on current input prices.
18) ________ is an example of a total factor productivity measure.
A) The number of units produced per month
B) The number of units produced per machine hour
C) The number of units produced per labor hour
D) The number of units produced per dollar of input cost
19) Total factor productivity explicitly considers gains from using fewer physical inputs as well as substitution among inputs.
20) Partial productivity and total factor productivity measures work best together because both measures have the same kind of strengths and weaknesses.
21) One problem with total factor productivity revolves around the measurement of combined productivity of all inputs.
22) Productivity describes the relationship between different quantities of inputs consumed and the quantities of output produced.
23) Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of remote control units for televisions, radios, and stereo components:
20112012
Remote control units produced and sold80,000100,000
Direct manufacture labor-hours12,00013,200
Direct materials used (sets)80,600100,500
Direct manufacture cost per hour$18$20
Direct materials cost per set$31$32
Required:
a.What is the partial productivity of direct materials for each year?
b.What is the partial productivity of direct manufacturing labor for each year?
c.Did each area improve between 2011 and 2012? Explain.
d.What will be the projected direct material and labor needs for 2013 if remote control units increase by 12,000 units, assuming Power Company applies the constant returns to scale technology?
24) Grader Company manufactures road graders. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a paver:
20112012
Units produced and sold6,8005,600
Direct manufacture labor-hours136,000115,200
Direct materials used (tons)29,00024,400
Direct manufacture cost per hour$21$22
Direct materials cost per ton$431$443
Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor for each year?
c.What is the total factor productivity for each year?
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