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What is the focus of a sell or process further decision? incremental revenue. incremental cost. both incremental revenue and incremental cost. neither incremental revenue nor incremental cost.

Question 2.2. If actual costs are greater than standard costs, what does this constitute? A normal variance. An accounting system error. An favorable variance. An unfavorable variance.

Question 3.3. The total variance is $35,000. The total materials variance is $8,000. The total labor variance is twice the total overhead variance. What is the total overhead variance? $4,500 $8,000 $9,000 $13,500

Question 4.4. A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4.25 per pound. Last month, 1,500 pounds of direct materials were purchased for $5,700. What was the direct materials price variance for last month? $5,700 favorable. $675 favorable. $338 favorable. $675 unfavorable.

Question 5.5. What is a capital budgeting technique which takes into consideration the time value of money? (Points : 2) the annual rate of return approach. the return on stockholders' equity approach. the payback approach. the net present value method.

Question 6.6. What should the direct materials quantity standard do? exclude unavoidable waste. exclude quality considerations. allow for normal spoilage. always be expressed as an ideal standard.

Question 7.7. In incremental analysis, what is analyzed? only costs are analyzed. only revenues are analyzed. both costs and revenues may be analyzed. both costs and revenues that stay the same between alternate courses of action will be analyzed.

Question 8.8. The per-unit standards for direct labor are 1.5 direct labor hours at $15 per hour. If in producing 2,300 units, the actual direct labor cost was $46,000 for 3,000 direct labor hours worked, what is the total direct labor variance? $2,300 unfavorable. $5,750 favorable. $5,750 unfavorable. $6,750 unfavorable.

Question 9.9. In a make-or-buy decision, how are opportunity costs considered? They are added to the make total cost. They are deducted from the make total cost. They are added to the buy total cost. The are ignored.

Question 10.10. What is the total materials variance equal to?) the materials price variance the difference between the materials price variance and materials quantity variance the product of the materials price variance and the materials quantity variance the sum of the materials price variance and materials quantity variance

Question 11.11. What does a company's cost of capital refers to? (Points : 2) the rate management expects to pay on all borrowed and equity funds. the total cost of a capital project. the cost of printing and registering common stock shares. the rate of return earned on total assets.

Question 12.12. The standard quantity allowed for the units produced was 4,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $475 favorable. Each unit uses 1 pound of materials. How many units were actually produced? 4,310 4,500 4,690 11,725

Question 13.13. A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost? The book value of the old equipment Depreciation expense on the old equipment The loss on the disposal of the old equipment The current disposal price of the old equipment

Question 14.14. If a company must expand capacity to accept a special order, what would you presume would happen? There would be an increase in unit variable costs. There would be no increase in fixed costs. There would be an increase in variable and fixed costs per unit. There would be an increase in fixed costs.

Question 15.15. The per-unit standards for direct materials are 2 gallons at $3 per gallon. Last month, 5,600 gallons of direct materials that actually cost $16,200 were used to produce 3,000 units of product. What was the direct materials quantity variance for last month? $1,200 unfavorable. $1,200 favorable. $2,800 unfavorable. $9,000 unfavorable.

Question 16.16. What happens to theopportunity cost of an alternate course of action that is relevant to a make-or-buy decision? It is subtracted from the "Make" costs. It is added to the "Make" costs. It is added to the "Buy" costs. It does not affect the opportunity cost

Question 17.17. The following information was taken from the annual manufacturing overhead cost budget of Moen Company. Variable manufacturing overhead costs $69,300 Fixed manufacturing overhead costs $41,580 Normal production level in labor hours 23,100 Normal production level in units 5,775 Standard labor hours per unit 4 During the year, 5,500 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. What is Moen's controllable overhead variance? $1,980 U. $5,820 U. $7,800 U. $16,500 U.

Question 18.18. Bish Company had an investment which cost $270,000 and had a salvage value at the end of its useful life of zero. If Bish's expected annual net income is $16,200, what is the annual rate of return? 6% 8.3% 12% 16.7%

Question 19.19. What is the conceptually superior approach to capital budgeting? a discounted cash flow method the payback method the annual rate of return method Average investment

Question 20.20. A cost that cannot be changed by any present or future decision is what? an incremental cost. an opportunity cost. a sunk cost. a variable cost.

Question 21.21. In the Elise Company, contribution margin per unit is $33 for Product S and $25 for Product T. Product S requires 3 machine hours and Product T requires 4 machine hours. What is the contribution margin per unit of limited resource for each product? S T $11.00 $6.25 $8.25 $8.33 $22.00 $12.50 $12.50 $12.50

Question 22.22. The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 1,700 units, the actual direct labor cost was $48,000 for 3,000 direct labor hours worked, what was the total direct labor variance? $1,700 unfavorable. $3,000 favorable. $3,000 unfavorable. $3,400 unfavorable.

Question 23.23. Budgeted overhead for Mangini Company at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In April, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. What is the overhead controllable variance? $2,000 favorable $5,000 favorable $10,000 favorable $10,000 unfavorable

Question 24.24. If an unprofitable segment is eliminated what happens? It is impossible for net income to decrease. Fixed expenses allocated to the eliminated segment will be eliminated. Variable expenses of the eliminated segment will be eliminated. It is impossible for net income to increase.

Question 25.25. What is the capital budgeting processused for? It is used in sell or process further decisions. It is used for determining how much capital stock to issue. It is used for making capital expenditure decisions. It is used for eliminating unprofitable product lines.

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