Question 1. Which of the following is not a characteristic of Managerial Accounting?
a. Emphasis on individual projects within the organization.
b. Doesn't conform to GAAP
c. Uses projections and estimates as well as historical information.
d. Assists managers in making planning and controlling decisions
e. None of the other answers
Question 2. Taggart Industries spend $475,000 to pour a concrete pad near their largest factory location in the hopes of settling a new air compressor but the contract for the cmpressor fell though and the piece of equipment wasn't purchased.
Two months later Taggart decided to use the pad for a new group of refuse containers. The cost of the concrete pad in consideration of the new refuse containers is a ____________.
a. Sunk Cost
b. Opportunity Cost
c. Out-of-Pocket Cost.
d. None of the other answers
Question 3. Which of the following items would be included in the Investing section of the Statement of Cash Flows?
a. Cash inflows received from the issuance of common stock by the company
b. Cash inflows resulting from the sale of property, plant, and equipment
c. Cash receipts from sales of goods or services
d. Cash outflows to other suppliers/vendors for goods or services
e. None of the other answers
Question 4. Which of the following manufacturers is most likely to operate a job cost shop as opposed to a processs costing facility?
a. An assembly line for Ford Motor Company
b. A small architectural firm with two owner/operators who thorougly evaluate each assignment before taking it on for profitability
c. A food processing plant that purchases, processes, and packages frozen school lunches for the city of Meridian Mississippi.
d. None of the other answers
Question 5. Livingston/Stone Outdoorwear reported on their most current financial statement a wonderful year with Total Sales of $9.8 million dollars and Sales Returns and allowances of $1 million even. Cost of good sold for the company was $5.4 million and net income for the period was $3.5 million. What would have been the profit margin for Livingston/Stone during this period?
a. 39.77 %
b. 35.71%
c. 97.14%
d. None of the other answers