3.4   Apply the CVP model in decision making and explain how sensitivity analysis can help managers both identify and manage risk.   1) Sensitivity analysis may be used to determine how a result will change if the original data are changed or if the original results are not achieved.   2) Margin of safety measures the difference between budgeted revenues and break-even revenues.   […]

  81. McAdd Industries is considering whether to continue making part MPG 411 or buying the part from a supplier. The supplier can sell the needed number of parts (47,000 projected) to McAdd for an amount that is above the company’s current cost to manufacture it. If McAdd decides to purchase the parts from its supplier, it will be able to reconfigure the manufacturing floor in […]

  84) Factory Supplies had a balance of $14,873 on January 1, 2012. During 2012, supplies were purchased on July 15 for $7,510 and on October 9, for $3,679. Requisition sheets completed during the year indicated that $9,458 of supplies had been used by the workers during the year. Determine the ending balance in the Factory Supplies account.   85) Indicate if the following transactions […]

  11) What type of cost is the result of an event that results in multiple products simultaneously? A) byproduct cost B) joint cost C) main cost D) separable cost E) split off cost   12) Costs which are assignable beyond the split off point at which individual products emerge are called A) byproduct cost. B) joint cost. C) main cost. D) separable cost. E) […]

    68. A variant of fiscal-year budgeting whereby a twelve-month projection into the future is maintained at all times is termed:  A. flexible budgeting B. continuous budgeting C. zero-based budgeting D. master budgeting   69. Scott Manufacturing Co.’s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 12,000 units of production, a flexible budget would show:  […]

  71) Which denominator-level concept results in the highest amount of fixed manufacturing overhead costs per unit of ending inventory? 71) ______ A) master budget utilization B) flexible budget equalization C) normal capacity utilization D) theoretical capacity E) practical capacity 72) CCRA effectively eliminates the use of certain denominator-level concepts through its income tax rulings. The eliminated concept(s) for tax purpose is(are) 72) ______ A) […]

    71. Which of the following approaches to job design focuses on job satisfaction as the major outcome of interest?  A. Motivational approach B. Mechanistic approach C. Biological approach D. Perceptual-motor approach According to “Job Characteristics Model.”, when the core job characteristics are high, individuals will have a high level of internal work motivation. This is expected to result in higher quantity and quality of work as well as […]

129.Using the accounts receivable aging method, estimated uncollectible accounts are $50,000. If the balance of the Allowance for Uncollectible Accounts is an $18,000 debit before adjustment, what is the balance after adjustment?   a. $18,000 b. $50,000 c. $68,000 d. $32,000       130.The balance of Accounts Receivable, net of the allowance account, is $35,000 before the write-off of a $2,800 account. What is […]

    58. Which of the following would not be considered an adjusting entry?     A. A Above. B. B Above. C. C Above. D. D Above.     59. In which of the following situations would an adjusting entry be made at the end of January to record an accrued expense?  A. Ramona’s Nursery purchased playground equipment on January 1 with an estimated useful life of six years. B. On January 25, […]

    101. The following unit data were assembled for the assembly process of the Super Co. for the month of June. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO process.      Units Beginning work in process (60% complete)   5,000 Units started in September   51,000 Ending work […]