ACC 561 Final Exam A. DONE

This paperwork ACC 561 Final Exam A. DONE includes answers to these exercises:

1) According to the Financial Executives Institute, one function of controllership is ‘

2) Performance reports _ ‘

3) Budgets ‘

4) Ethical accountants are important to society because ‘

5) According to the Institute of Management Accountants’ Statement of Ethical Professional

Practice, the standard of competence includes:

6) According to the Institute of Management Accountants’ Statement of Ethical Professional

Practice, the standard of objectivity includes _’

7) Which scorecard function is associated with making non-routine decisions?

8) is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies’

9) Launching a new product line is an example of ‘

10) The is also called the statement of financial position’

11) The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when ‘

12) The is not one of the three major financial statements’

13) The use of acquisition cost less depreciation in valuing an asset on the balance sheet is the logical result of the _ accounting convention’

14) The accounting convention of guides the relative sophistication of the accounting system’

15) The accounting convention of means selecting the method of measurement that yields the gloomiest immediate results’

16) The statement of cash flows is used for all of the following except _’

17) The difference between a single and multiple step income statement is that a single step income statement ‘

18) Sylvester Company requires clients to pay in advance for legal services’ One such client made a $4,000 payment on May 1, and Sylvester Company recorded this transaction in the appropriate liability account’ As of May 20, the legal services that the client requested had been completed’ The May 20 accounting entry will:

19) Output measures of both resources and activities are ‘

20) Which of the following is not a cost driver of customer services costs?

21) Which value chain function would include the cost of computer-aided design equipment and cost to develop the prototype of a product?

22) Walnut Corporation sells desks at $480 per desk’ The costs associated with each desk are as follows:

23) Hug Me Company produces dolls’ Each doll sells for $20’00’ Variable costs per unit total

$14’00, of which $6’25 is for direct materials and $5’25 is for direct labor’ If total fixed costs are $435,000, then the break even volume in dollars is ‘

24) If the sales price per unit is $100, the unit variable cost is $75, and total fixed costs are

$150,000, then the break even volume in dollar sales rounded to the nearest whole dollar is

25) of approximating cost functions does not involve the analysis of past costs’ ‘

26) In relation to a cost function, the term reliability means ‘

27) The method of measuring cost functions is the least reliable’

28) is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other

cost objects that caused that activity’

29) The change from traditional costing to activity-based costing may reveal that ‘

30) is an example of the external financial reporting purpose of the cost management systems’

31) models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix’

32) Budgets generate negative feelings if they are ‘

33) budgeting is when budgets are formulated with the active participation of all affected employees

34) Important factors considered by sales forecasters include all of the following except

35) A gives the expected sales under a given set of conditions’

36) The master budget includes forecasts for all of the following except ‘

37) are components of a master budget’

38) The master budget quantifies targets for all of the following except ‘

39) Differences between the static budget and the flexible budget are due to ‘

40) Costs are allocated for all the following purposes except to ‘

41) The use of budgeted service department cost rates protects using departments from

42) Cost allocation base refers to the ‘

43) Murphy Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing’ Maintenance costs are allocated based on

44) Serena Company has two service departments, Maintenance and Personnel, as well as

two production departments, Mixing and Finishing’ Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees’ The following information has been gathered for the current year:

45) Gomez Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing’ Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees’ The following information has been gathered for the current year ‘

46) In absorption costing, costs are separated into the major categories of ‘

47) is another term for variable costing’

48) When the variable costing method is used, fixed factory overhead appears on the income statement as a ‘

49) is the first step in designing a management control system’

50) is (are) the most basic component of a management control system’

51) Identify which of the following is not a characteristic of a management control system’ A’ A management control system motivates individuals throughout the organization to act in

concert’

52) The following information is available for the Peter Company:

53) is a measure of income or profit divided by the investment required to obtain that income or profit’

54) The following information is available for the Peter Company: