Question 1) A bookstore at a university would be considered as
A) Cost Center (B) Profit Center (C) Investment Center (D) Revenue Center
Question 2) A Corporation purchase bicycles from a British manufacturer at a price of 35,000 British Pounds on 15 November 2005, payment due in 60 days . Using the following exchange rates compute the gain or loss from currency fluctuations that troy should recognize in 2005 and 2006.
Nov. 15, 2005……………………….$1.70 per British pound
Dec 31, 2005…………………………$1.75 per British pound
Jan 15, 2005………………………….$1.73 per British pound
A)$1,750 loss in 2005; $700 gain in 2006. (B) No gain or loss in 2005; $1,050 loss in 2006 (C) $1,750 gain in 2005; $1,050 gain in 2006 (D) No gain or loss in 2005; $1,050 in 2006
Question 3) Job cost sheets will include.
A) All raw material purchase (B) Actual overhead (C) Direct labor applied to production (D) Selling cost
Question 4) Cost that are traceable to a particular unit and are inventoriable are called:
A) Period Cost (B) Product Cost (C) Overhead Cost (D) Job Cost
Question 5) Incremental Cost can be defined as
A) Cost that are expected to increase regardless of the course of action chosen (B) the difference between cost incurred under alternative course of action (C) Cost incurred in the past (D) Cost that are irrelevant in decision making
Question 6) Equivalent full units of production represent units of:
A) Finished goods inventory (B) Units of works in process inventory (C) Work performed during the period (D) Sales generated during the period
Question 7) Which of the following is not one of the balance score card lens
A) Financial Perspective (B) Learning and growth perspective (C) Production perspective (D) Business process perspective
Question 8) Value added activities include
A) Setting up Machinery (B) Storing direct material (C) Employees idle time (D) Product design
Question 9) Which is an example of joint products
A) Sugar and Beef (B) Pens and eraser (C) Granulated coal and methyl alcohol (D) Iron and Plastic
Ref to the following to answer questions 10-12
Big Boys Inc. produces bird seeds. All direct material used in the production process are added at the beginning of the manufacturing process. Labor and overhead are added evenly thereafter, as each unit is mixed and packaged. Big Blue sky uses process costing and had the following units production information available for the month of June and July ;
June July
Number of units in beginning work process inventory 0 150
Number of units started during the month 600 800
Total number of units transferred to finish goods 450 700
The units remaining in work in process at the end of June were 30% complete. During the month of July, all of the beginning works in process units were completed and units remaining in work in process at the end of the month were 60% complete
Question 10) Refer to the above information. The month of June, the number of equivalent units of direct material produced was:
A) 600 (B) 450 (C) 440 (D) Some other amount
Question 11)Refer to the above information. The month of July, the number of equivalent units of direct materials produced was;
A) 600 (B) 700 (C) 900 (D) 800
Question 12) Ref to the above information. The month of June, the numbers of equivalent units of labor and overhead produced were:
A) 600 (B) 450 (C) 495 (D) 440
Question 13) Of the following activities preformed by a manufacturer of roller blades, which are value-adding
A) Inspection of direct materials upon receipt from supplier (B) Storage of direct material until needed for production (C) Transfer of direct material to appropriate points on the assembly line (D) None of the above are value-adding activities
Question 14) There is an unfavorable labor efficiency variance when:
A) Actual hours are greater than standard hours. (B) Actual are less than standard hours (C) The standard rate per hour is greater than the actual rate per hour. (D) the standard rate per hour is less than the actual rate per hour.
Question 15) In a short run, the greatest increase in profitability will result from increasing sales in those profit centers with the.
A) Highest performance margins (B) lowest traceable fixed cost (C) Highest contribution ratios (D) Highest responsibility margins