1.       Last year, Smith Company sold 10,000 units of its only product. If sales increase by 15% in the current…

1.       Last year, Smith Company sold 10,000 units of its only product. If sales increase by 15% in the current year, how will unit variable cost and unit fixed cost be affected?

5 points   

Question 2

1.      When calculating a labor variance if the standard rate exceeds the actual rate this would be a ________ variance.

5 points   

Question 3

1.      According to the Institute of Management Accountants Statement of Ethical Professional Practice, which of the following is NOT included:

5 points   

Question 4

1.      An employee is dissatisfied with the resolution of an ethical conflict at his place of employment. According to the Institute of Management Accountants, the employee’s next step should be to:

5 points   

Question 5

1.      Ecology Company sells a biodegradable product called Run-All and has the following sales on account for the first four months of the current year:

                                                Jan                   Feb                  March              April

Sales in units:                            2,000               2,000               3,000               4,000

The company is preparing a cash budget for April only. Based on past history accounts are collected 50% in the current month, 20% from the prior month, and 20% from 2 months back.  Ten percent is considered uncollectible. How much cash will be collected in April?

5 points   

Question 6

1.      Ace Company wants to give their managers the greatest amount of responsibility over their department’s accounting.  Which of the following responsibility centers would accomplish that goal?

5 points   

Question 7

1.       The two basic types of cost accounting systems are:

5 points   

Question 8

1.       Kent Computers manufactures computer parts for 3 different models of computers: laptops, desktops, and mainframes in 3 different departments.  They are looking for a way to allocate the cost of electricity used by the manufacturing plant. Which of the following would be the most appropriate activity base?

5 points   

Question 9

1.      A company is considering purchasing a machine for $21,200. The machine will generate an after-tax net income of $4,100 per year. What is the payback period for the new machine?

5 points   

Question 10

1.      The following information describes a company’s usage of direct labor in a recent period. The direct labor efficiency variance is:

Actual hours used:                                            41,000

Actual rate per hour                                          $14

Standard rate per hour                                      $13

Standard hours for units produced                     43,000

5 points   

Question 11

1.      A retail store has three departments, 1, 2, and 3, and does general advertising that benefits all departments. Advertising expense totaled $41,000 for the year, and departmental sales were as follows. Which department would be allocated the highest amount of the advertising expense if the activity base is sales?

Sales:                         Department 1               $101,000

                                    Department 2               $212,750

                                    Department 3               $157,750

5 points   

Question 12

1.      At Flint Company, the unit sales price is $84; the unit variable cost is $62 and fixed costs total 2,400. What is the break-even in units?

5 points   

Question 13

1.       When making a decision to accept additional production work a manager needs to look closely at which of the following:

5 points   

Question 14

1.      When using just-in-time (JIT) inventory, which of the following accounts may be eliminated?

5 points   

Question 15

1.      The purpose of just-in-time (JIT) manufacturing is to eliminate?

5 points   

Question 16

1.      When preparing a budget, the first budget to be prepared is the _______ budget.

5 points   

Question 17

1.      When using activity based costing method overhead allocation is typically based on:

5 points   

Question 18

1.       In business decision-making, managers typically examine the two fundamental factors of:

5 points   

Question 19

1.       A company is considering a new project that will cost $19,000. This project would result in additional annual revenues of $6,000 for the next 5 years and the company has already paid for $2,000 for permit fees. The $2,000 cost is an example of a(n):

5 points   

Question 20

1.       Which of the following would most likely use a process cost system?