Aunt Ethel Cookie

Questions:

a)Determine the activity-cost-driver rate for packaging costs (three points).
b)Using the ABC system, for the sugar cookie, compute the estimated overhead costs per 1,000 cookies (three points).
c)Using the ABC system, for the sugar cookie, compute the estimated operating profit per 1,000 cookies (three points).
d)Using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated overhead costs per 1,000 cookies (three points).
e)Using a traditional system (with direct labor hours as the overhead allocation base) for the sugar cookie, compute the estimated operating profit per 1,000 cookies (3 points).
f)Explain the difference between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? Why? (three points).

Amazon.com with Google and microsoft

Present areas where Amazon.com is competing with Google™ and Microsoft®, and whether competition is a wise strategy.

Agency Problem

 

The separation of ownership and control is often a subject of concern for financial managers. Management decisions are sometimes not acceptable to shareholders. This, in turn, raises conflicts. These conflicts are called agency problems.
For example, a chief executive officer (CEO) may spend a considerable amount of the organization's capital on artwork to decorate the office premises. The shareholders may raise the concern that their investment has been inappropriately invested as decorating the office premises will not yield any financial benefits.

Provide at least two more examples of agency problems. Why does such a conflict develop? Are such conflicts more likely to occur in smaller or larger organizations? Why? What can be done to decrease the likelihood of these conflicts?

advantages and disadvantages of global versus domestic sourcing

Prepare a summary of no less than 1,000 words, accompanied by a flowchart that describes or outlines the steps that occur in a typical sourcing process for a global manufacturing firm. Provide a brief evaluation of the steps as illustrated in your flowchart. Address the challenges and opportunities for insourcing versus outsourcing parts, as well as discuss the advantages and disadvantages of global versus domestic sourcing. Include the following:

- Translating corporate objectives into procurement goals

· - Establishing business unit requirement processes

· - Conducting supply market research

· - Setting material management goals

· - Strategic execution

· - Reciprocity

 

AFN, capital budgeting and capital structure

What is the purpose of "Additional Funds Needed (AFN) equation?

Explain the purpose of Operating and Financial Leverage.

 

Provide a brief explanation on the purpose of Capital Budgeting and why this concept is important to the financial health of a corporation

Provide a brief explanation on the purpose of Capital Structure and Cost of Capital, and how these concepts relate to the financial health of a corporation

Accounting MCQ 24

1 Question: Adjusting entries can be classified as
 
A    Postponements and advances
 
B    Accruals and deferrals
 
C    Deferrals and postponements
 
D    Accruals and advances
   
   
2 Question: Daly Investments purchased an 18-month insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance sheet would report Prepaid Insurance of
 
A    $0 because Prepaid Insurance is reported on the Income Statement
 
B    $1,400
 
C    $2,200
 
D    $3,600

3 Question: Daly Investments purchased an 18-month insurance policy on May 31, 2010 for $3,600. The December 31, 2010 balance sheet would report Prepaid Insurance of
 
A    $0 because Prepaid Insurance is reported on the Income Statement
 
B    $1,400
 
C    $2,200
 
D    $3,600

4 Question: Southwestern City College sold season tickets for the 2010 football season for $160,000. A total of 8 games will be played during September, October and November. Assuming all the games are played, the Unearned Revenue balance that will be reported on the December 31 balance sheet will be
 
A    $0
 
B    $60,000
 
C    $100,000
 
D    $160,000

5 Question: The operating cycle of a company is the average time that is required to go from cash to
 
A    Sales in producing revenues
 
B    Cash in producing revenues
 
C    Inventory in producing revenues
 
D    Accounts receivable in producing revenues

6 Question: The income statement for the month of June, 2010 of Ramirez Enterprises contains the following information:
 
The entry to close Income Summary to Ramirez, Capital includes
 
A    A debit to Revenue for $7,000
 
B    Credits to Expenses totaling $3,600
 
C    A credit to Income Summary for $3,400
 
D    A credit to Ramirez, Capital for $3,400

 7 Question: Joyce's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $50,000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? A
 
A     
 
B     
 
C     
 
D     
   
   
8 Question: All of the following statements about the post-closing trial balance are correct except it
 
A    Shows that the accounting equation is in balance
 
B    Provides evidence that the journalizing and posting of closing entries have been properly completed
 
C    Contains only permanent accounts
 
D    Proves that all transactions have been recorded

9 Question: The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:
 
What is the company's net income for the year ending December 31, 2010?
 
A    $133,000
 
B    $42,000
 
C    $28,000
 
D    $12,000

10 Question: O.K.C. Company collected $8,400 in May of 2010 for four months of service which would take place from October of 2010 through January of 2011. The revenue reported from this transaction during 2010 would be
 
A    0
 
B    $6,300
 
C    $8,400
 
D    $2,010

11 Question: The following information is for Benton Office Supplies:
 
The total dollar amount of assets to be classified as property, plant, and equipment is
 
A    $320,000
 
B    $170,000
 
C    $245,000
 
D    $190,000
   
   
12 Question: Henry-K Company purchased a computer system for $3,600 on January 1, 2010. The company expects to use the computer system for 3 years. It has no salvage value. Monthly depreciation expense on the asset is
 
A    $0
 
B    $100
 
C    $1,200
 
D    $3,600

13 Question: What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,500, and unexpired amounts per analysis of policies of $4,500?
 
A    Debit Insurance Expense, $4,500; Credit Prepaid Insurance, $4,500
 
B    Debit Insurance Expense, $15,500; Credit Prepaid Insurance, $15,500
 
C    Debit Prepaid Insurance, $11,000; Credit Insurance Expense, $11,000
 
D    Debit Insurance Expense, $11,000; Credit Prepaid Insurance, $11,000
   
   
14 Question: The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:
 
The sub-classifications for assets on the company's classified balance sheet would include all of the following except
 
A    Current Assets
 
B    Property, Plant, and Equipment
 
C    Intangible Assets
 
D    Long-term Assets

15 Question: Can financial statements be prepared directly from the adjusted trial balance?
 
A    They cannot. The general ledger must be used
 
B    Yes, adjusting entries have been recorded in the general journal and posted to the ledger accounts
 
C    No, the adjusted trial balance merely proves the equality of the total debit and total credit balances in the ledger after adjustments are posted. It has no other purpose
 
D    They can because that is the only reason that an adjusted trial balance is prepared

16 Question: The following information is for Acme Auto Supplies:
 
The total dollar amount of assets to be classified as current assets is
 
A    220,000
 
B    $150,000
 
C    $300,000
 
D    $180,000


17 Question: A post-closing trial balance is prepared
 
A    After closing entries have been journalized and posted
 
B    Before closing entries have been journalized and posted
 
C    After closing entries have been journalized but before the entries are posted
 
D    Before closing entries have been journalized but after the entries are posted


18 Question: The following information is for Acme Auto Supplies:
 
The total dollar amount of assets to be classified as investments is
 
A    $0
 
B    $150,000
 
C    $80,000
 
D    $180,000
   
   
19 Question: The following selected account balances appear on the December 31, 2010 balance sheet of Chen Co.

Land (location of the corporation's office building)     $150,000
Land (held for future use)     225,000
Corporate Office Building     900,000
Inventory     300,000
Equipment     675,000
Office Furniture     150,000
Accumulated Depreciation     450,000


What is the total amount of property, plant, and equipment that will be reported on the balance sheet?

 
A    $1,950,000
 
B    $1,650,000
 
C    $2,400,000
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D    $1,425,000

20 Question: A post-closing trial balance should be prepared
 
A    Before closing entries are posted to the ledger accounts
 
B    After closing entries are posted to the ledger accounts
 
C    Before adjusting entries are posted to the ledger accounts
 
D    Only if an error in the accounts is detected


                   
21 Question: The balance in the Prepaid Rent account before adjustment at the end of the year is $15,000, which represents three months' rent paid on December 1. The adjusting entry required on December 31 is to
 
A    Debit Rent Expense, $5,000; credit Prepaid Rent, $5,000
 
B    Debit Rent Expense, $10,000; credit Prepaid Rent $10,000
 
C    Debit Prepaid Rent, $5,000; credit Rent Expense, $5,000
 
D    Debit Prepaid Rent, $10,000; credit Rent Expense, $10,000

22 Question: Closing entries
 
A    Are prepared before the financial statements
 
B    Reduce the number of permanent accounts
 
C    Cause the revenue and expense accounts to have zero balances
 
D    Summarize the activity in every account

23 uestion: On January 1, 2010, Masters and Masters Company purchased equipment for $30,000. The company is depreciating the equipment at the rate of $700 per month. The book value of the equipment at December 31, 2010 is
 
A    $0
 
B    $8,400
 
C    $21,600
 
D    $30,000


24 Question: James Corporation purchased a one-year insurance policy in January 2010 for $48,000. The insurance policy is in effect from May 2010 through April 2011. If the company neglects to make the proper year-end adjustment for the expired insurance

 


  A Net income and assets will be understated by $32,000
  B Net income and assets will be overstated by $32,000
  C Net income and assets will be understated by $16,000
  D Net income and assets will be overstated by $16,000

Accounting mcq 20

Baines Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the number of units of Product A Baines must sell to break even.
5,580.
9,300.
5,080.
3,100.
6,200.

2.value:
1.00 points
At Flint Company's break-even point of 9,000 units, fixed costs are $180,000 and variable costs are $540,000 in total. The unit sales price is:
$100.
$80.
$60.
$40.
$20.

3.value:
1.00 points
Winthrop Manufacturing produces a product that sells for $50.00. Fixed costs are $260,000 and variable costs are $24.00 per unit. Winthrop can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute break-even point in dollars with the purchase of the new machine.
$460,000.
$500,000.
$521,923.
$480,000.
$440,678.

4.value:
1.00 points
The least-squares regression method is:
The only identify cost estimation method allowed by GAAP.
A statistical method to identify cost behavior.
A cost estimation method that only uses the two extreme values.
A graphical method to identify cost behavior.
An algebraic method to identify cost behavior.

5.value:
1.00 points
In Davis Corporation's most recent fiscal year, the company reported pretax earnings of $215,000.
Fixed costs totaled $325,800, the unit selling price of the firm's only product was $60, and the variable costs per unit were 40% of the selling price. Based on this information, the firm's break-even point in units was:
15,023 units.
13,575 units.
9,050 units.
8,750 units.
13,750 units.

6.value:
1.00 points
The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation's income tax rate is 40%, compute the number of units that must be sold in order to achieve a target pretax income of $130,000. (Do not round intermediate calculations.)

sales(50000units) $1,000,000
Costs:
direct materials $270,000
direct labor 240,000
fixed factory overhead 100,000
variable factory overhead 150,000
fixed marketing costs 110,000
variable marketing costs 50,000 920,000
Pretaxt income $80,000

50,000.
81,250.
58,621.
36,207.
53,165.

7.value:
1.00 points
A statistical method for deriving an estimated line of cost behavior is the:
High-low method.
Least-squares regression method.
Composite method.
Scatter diagram method.
CVP charting method.

8.value:
1.00 points
A cost-volume-profit chart is also known as a(n)
Margin of safety chart.
Sales chart.
Break-even chart.
Operating leverage chart.
Operating profit chart.

9.value:
1.00 points
Dunkin Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Dunkin company management targets an annual after-tax income of $843,750. The company is subject to a 25% income tax rate. Compute the dollar sales to earn the target after-tax net income.
$5,050,000.
$5,043,750.
$5,640,000.
$4,890,000.
$4,327,500.


10.value:
1.00 points
Baines Brothers manufactures and sells two products, A and Z in the ratio of 4:2. Product A sells for $75; Z sells for $95. Variable costs for product A are $35; for Z $40. Fixed costs are $418,500. Compute the contribution margin per composite unit.
$240.
$300.
$330.
$285.
$270.

11.value:
1.00 points
A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm's total fixed costs are $1,612,000. Selling prices and cost information for both products follow. What is the firm's break-even point in units of A and B?

31,000 of A and 62,000 of B.
31,000 of A and 31,000 of B.
10,333 of A and 20,667 of B.
62,000 of A and 31,000 of B.
36,167 of A and 72,333 of B.




12.value:
1.00 points
In cost-volume-profit analysis, the unit contribution margin is:
Sales price per unit less cost of goods sold per unit.
Sales price per unit less total variable cost per unit.
Sales price per unit less unit total cost per unit.
The same as the contribution margin ratio.
Sales price per unit less unit fixed cost per unit.

13.value:
1.00 points
Ginger Company's product has a contribution margin per unit of $11.25 and a contribution margin ratio of 22.5%. What is the selling price of the product?
$20.
$30.
$50.
$40.
$5.

14.value:
1.00 points
The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be (Do not round intermediate calculations):

$262,500.
$172,420.
$275,862.
$310,115.
$150,000.

15.value:
1.00 points
A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. What is the break-even point in dollar sales?
$6,000.
$420,000.
$1,200,000.
$646,154.
$2,100.




16.value:
1.00 points
Camden Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:
Unit sales price $7 $4 $6
unit variable costs $3 $2 $3
Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is (round to the nearest thousand):
$629,000.
$20,000.
$289,000.
$400,000.
$740,000.

17.value:
1.00 points
Select cost information for Winfrey Enterprises is as follows:

Based on this information:
Both direct materials and rent expense are variable costs.
Utilities expense is a mixed cost and rent expense is a variable cost.
Utilities expense is a mixed cost and rent expense is a fixed cost.
Direct materials is a fixed cost and utilities expense is a mixed cost.
Both direct materials and utilities expense are mixed costs.

18.value:
1.00 points
If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is:
$440,000.
$190,000.
$24,000.
$250,000.
$60,000.













19.value:
1.00 points
Wayward Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $300 and has a unit contribution margin of $105; the Adult model sells for $850 and has a unit contribution margin of $450; and the Recreational model sells for $1,000 and has a unit contribution margin of $500. The company's sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm's annual fixed costs total $6,500,000, calculate the firm's break-even point in sales dollars.
$13,000,000.
$12,750,000.
$12,900,050.
$12,750,625.
$13,250,000.

20.value:
1.00 points
A line on a scatter diagram that is intended to reflect the past relation between cost and volume is the:
Break-even line.
Standard cost line.
Estimated line of cost behavior.
Margin of safety line.
Contribution margin line.