ACCT 2301 Final Exam Flashcards

What would a project's profitability index be if the project has an internal rate of return which is equal to the company's discount rate?

The present value of an investment is affected by which of the following?

In preparing the operating budget, the first step is preparing the

A favorable direct materials price variance and an unfavorable direct materials quantity variance might indicate which of the following?

Using a discount rate of 3%, which of the following is correct for determining the present value of the gift?

The type of standard that provides allowances for normal amounts of waste and inefficiency in the production process is referred to as a(n)

All of the following are responsibility centers except

A performance report compares actual revenue and expenses with _____________ revenues and expenses.

A product line should NOT be discontinued if the contribution margin lost is

Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a revenue center?

Which product costing system would be better for custom-order products?

Toshiba Corporation makes computer chips. Toshiba Corporation would be classified as a

Regarding activity-based costing systems, which of the following statements is true?

Using account analysis, what type of cost is an electric bill that charges a flat monthly fee plus a charge for each kilowatt hour of electricity used?

Using ________ may cause a manager to reject a project that may be profitable to the company as a whole.

In deciding whether to outsource, managers must consider

A favorable direct labor efficiency variance and an unfavorable direct labor rate variance might indicate which of the following?

In the basic flow of inventory through a manufacturing system, which of the following occurs second in the job costing system?

By multiplying ________ and then subtracting fixed costs, managers can quickly forecast the operating income.

A combined cash budget includes all of the following except

If the variable cost per unit decreases while the sales price per unit and total fixed costs remain constant, which of the following statements is true?

Variable costs are described by which of the following statements?

Which of the following is an example of a period cost when manufacturing products?

All else being equal, a company would choose to invest in a capital asset if which of the following is true?

In the equation y = $7.20x + $790, 'x' represents

Which of the following statements is correct concerning product costs?

How do you calculate allocated manufacturing overhead to a certain job?

Which of the following condition(s) favors using departmental overhead rates in place of a plantwide overhead rate?

The breakeven point may be defined as the number of units a company must sell to do which of the following?

With respect to total fixed costs, which of the following statements is true?

Company A has a higher margin of safety while Company B has a lower margin of safety. Company A would be considered ________ Company B when considering only margin of safety.

Which of the following is relevant when deciding whether to drive or fly home for semester break?

If manufacturing overhead has been underallocated during the period, then which of the following is true?

Activity-based costing (ABC) generally causes the least amount of cost distortion among products because indirect costs are allocated to the products based on

Which of the following is a result of cost distortion?

Which of the following is not part of the operating budget?

A factory janitor's wages would be classified as ________ when determining the cost of a manufactured product.

The following are all methods of analyzing capital investments except

A company would consider all of the following in computing the IRR of an investment, except

Which of the following is an advantage of the budgeting process?

Managers should consider all of the following when deciding whether to accept a special order, except

All of the following are advantages of using standard costs and variances except

What will happen to the net present value (NPV) of a project if the discount rate is increased from 8% to 10%?

Which type of company typically produces its own inventory?

How do fixed costs react in total and on a per unit basis?

An annuity is best described as which of the following statements?

Which of the following is a characteristic of a capital asset?

Regarding capital rationing decisions for capital assets, which of the following is true?

The formula for calculating the accounting rate of return for a capital asset is

The term _________ is best described as 'a stream of equal installments made at equal time intervals.'

Management by exception would dictate that the manager investigate which of the following variances?

A(n) __________ cost is a cost whose total amount changes in direct proportion to a change in volume.

Which of the following represents the total mixed cost equation?

Most companies use __________ when the lower level management develops budgets each year.

Which of the following budgets is the cornerstone of the master budget?

The standard cost of direct labor per unit is calculated by

Which of the following is relevant when deciding to replace old equipment with new?

How do you calculate allocated manufacturing overhead to a certain job?

______________ is designed to meet the needs of internal decision makers.

Which of the following statements is true?

On a CVP graph, the total cost line intersects the total revenue line at which of the following points?

Sales above the breakeven point indicate a _____________ whereas sales below the breakeven point indicate a _____________

To find the sales revenue needed to breakeven, the formula used could be

Managers can quickly forecast the total contribution margin by multiplying the

Which element of the value chain would depreciation on a factory be classified as?

Controllable costs include all the following except

A cost benchmark is valid only if the standards are

What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs?

Strategic planning is beneficial because the organization can

Which of the following is an example of an industry that would use a process costing rather than a job costing system?

If jobs have been under-costed underallocation of manufacturing overhead, then Cost of Goods Sold (COGS) is too low and which of the following corrections must be made?

Which of the following does activity-based costing consider to be the fundamental cost object?

Using account analysis, what type of cost are utilities if you are charged $45 for the first 400 kilowatt hours, $100 for 401-600 kilowatt hours, and $165 + or - for 601-900 kilowatt hours?

In the equation y = $11.75x + $550, what does $550 represent?

Despite the proliferation of technology, managerial accountants are still needed to provide professional judgment in which of the following areas?

Using product cost information to determine sales prices is an example of

Managers must consider which of the following when pricing a product or service?

An 'opportunity cost' is best described by which of the following?

The convenience store that is responsible for its own revenues, costs, and is owned by a national convenience store chain may be classified as a(n)

Management by ____________ is the practice that directs executive attention to large budget variances.

Which of the following is used as the equation's numerator when computing the accounting rate of return for a capital asset?

The term is described as a 'formal means of analyzing long-range investment alternatives.'

The _____________ capital budgeting method uses accrual accounting, rather than net cash flows, as a basis for calculations.

Which of the following items would be considered a capital asset?

Which of the following types of companies has raw materials, work in process, and finished goods inventory?

Which of the following items is not used when calculating the cost of goods manufactured?

Budget committees include all of the following people except

Managers may intentionally build slack into the budget

The unit contribution margin is computed by

A company's margin of safety is computed as

When deciding whether or not to adopt standard costs and perform variance analysis, management should do which of the following?

How is the fixed overhead budget variance calculated?

Which of the following is used as the equation's denominator when computing the accounting rate of return for a capital asset?

'A measure of profitability computed by dividing the average annual operating income by the amount of the investment' is best described by which of the following terms?

Which of the following is a weakness of the internal rate of return (IRR)?

The capital budgeting model considers both profitability and the time value of money.

When management reviews product sales reports to set goals and objectives and then evaluates the results of sales operations against the plan and performance results, which of management's three primary responsibilities is fulfilled?