Bus 475 Final Exam

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  • Topic: Marketing, Balance of payments, Current account
  • Pages : 29 (5266 words )
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  • Published : April 22, 2012
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1) A well-designed activity-based costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products

C. computing the activity-based overhead rate
D. identifying the activity-cost pools

2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________. A. have been approved for use by the managements of business firms B. have been approved by the Internal Revenue Service

C. have substantial authoritative support

D. are proven theories of accounting

3) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr.Totals $58,000 $48,000 $34,000 $44,000 To enter the net income (or loss) for the period into the above worksheet requires an entry to the __________. A. income statement credit column and the balance sheet debit column B. income statement debit column and the balance sheet credit column C. income statement debit column and the income statement credit column D. balance sheet debit column and the balance sheet credit column

4) These are selected account balances on December 31, 2008. Land (location of the corporation's office building)$150,000 Land (held for future use)225,000
Corporate Office Building900,000
Inventory300,000
Equipment675,000
Office Furniture150,000
Accumulated Depreciation450,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $1,425,000
B. $1,950,000

C. $2,400,000

D. $1,650,000

5) The first step in activity-based costing is to __________. A. identify the cost driver that has a strong correlation to the activity cost pool B. assign manufacturing overhead costs for each activity cost pool to products

C. identify and classify the major activities involved in the manufacture of specific products

D. compute the activity-based overhead rate per cost driver

6) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? A. 2,133 units

B. 4,600 units

C. 6,200 units

D. $25,600

7) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March? A. $8,250

B. $5,250

C. $750

D. $4,500

8) These are selected account balances on December 31, 2008. Land (location of the corporation's office building)$100,000 Land (held for future use)150,000
Corporate Office Building600,000
Inventory200,000
Equipment450,000
Office Furniture100,000
Accumulated Depreciation300,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $950,000
B. $1,300,000

C. $1,600,000

D. $1,100,000

9) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income StatementBalance Sheet Dr.Cr.Dr.Cr.Totals$58,000$48,000$34,000$44,000 Closing entries are necessary for __________. A. permanent or real accounts only

B. permanent accounts only

C. both permanent and temporary accounts

D. temporary accounts only

10) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? A. The western division’s vice...
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