Chapter 1 Managerial Accounting and the Business Environment（管理会计概论）
Pre-test Lesson 1
1、Management accounting is concerned with providing information to managers, the people _____an organization who direct and control its operations? A、inside B、outside C、all of the above D、none of the above
2、Financial accounting primarily summarizes ____ financial transactions, while management accounting has a strong ____orientation. A、Future; Future B、Future; Past C、Past; Future D、Past; Past
3、With the fast changing globalized economy, Management Accounting plays an important role in supporting managers to make quick and relevant decisions.
4、Only large organization has managers. Managers must be responsible for planning, directing and motivating personnel, controlling operations and making informed decision making.
5、The ________________is an ethical code issued by Institute of Management Accountants (IMA) of the United States and a revised version was published in July 2017.
Chapter 3 Cost Behavior：Analysis and Use（成本性态及其应用）
1、BMW, the renowned automobile manufacturing corporation, spends a big deal of money every year on production. Which of the following statement is true about cost classification? A、Total cost of steering wheel is variable to the number of cars produced. B、Cost per unit of steering wheel is variable to the number of cars produced. C、Total cost of salary paid every year to each supervisor who work exclusively on the X5 line is variable to the number of cars produced D、Total cost of salary paid every year to the cleaning is variable to the number of cars produced
2、Which of the following statement is incorrect with regard to least-squares regression method? A、R squared, which is a measure of the “goodness of fit”, varies from 0% to 100%, and the higher the percentage the better. B、The regression errors are the vertical deviations from the data points to the regression line. C、The basic goal of this method is to fit a straight line to the data that minimizes the sum of the squared errors. D、The least-squares regression method can be used to analyze mixed costs even if there Is no linear relationship between the X and Y variables
3、Which of the following methods provides the most accurate results in cost estimation? A、Least-squares regression method B、High-low method C、Scatter-graph method D、Account Analysis method
4、In July, BigBurgers Inc. served 5,000 burgers and was billed $500 for electricity by the utility company. In August, the company served 5,500 burgers and the electricity bill was $520. Using the high/low method, what is the fixed cost of electricity per month? A、$20 B、$300 C、$320 D、$520
5、Which of the following belong to discretionary fixed costs? There may be more than one correct answer. A、Insurance costs B、Advertising C、Depreciation on buildings and equipment D、Research and development costs
6、A cost driver is a measure of what causes the incurrence of variable costs.
7、Production volume is the only activity base within companies.
8、Total fixed cost is proportional to the activity level within the relevant range, however, at per unit level, fixed cost remains unchanged.
9、A manufacturing company will often have many variable costs associated with the manufacture and distribution of its products to customers.
10、In engineering approach, each account under consideration is classified as variable and fixed based on the analyst’s prior knowledge about how costs behave. This approach is limited in value in the sense that it glosses over the fact that some accounts may have both fixed and variable components.
11、Account analysis approach is particularly useful to estimate mixed costs when no past experience is available concerning activity and costs.
12、Offshoring may help reduce operating costs for core business functions without relying on 3rd party suppliers.
13、A least squares regression method is a quick and easy way to isolate the fixed and variable components of a mixed cost.
14、The first step of high-low method is to choose the data points pertaining to the highest and lowest activity levels.
15、High-low method uses all of the data points in estimating cost behavior. The basic goal of this method is to fit a straight line to the data that minimizes the sum of the squared errors.
Chapter 4 Cost-Volume-Profit Analysis（本量利分析）
1、Which of the following assumptions is incorrect in cost-volume-profit analysis? A、Selling price is constant. B、Costs are linear and can be accurately divided into variable and fixed elements. Unit variable cost and unit fixed costs remain constant. C、In multiproduct companies, the sales mix is constant. D、In manufacturing companies, inventories do not change.
2、Which of the following statements is not true about CVP analysis? A、CVP analysis is a tool that assists managers in understanding the relationship between revenues and costs and the effect of a change in either of these variables on the bottom line. B、CVP analysis makes assumptions about the behavior of costs and applies those assumptions indefinitely even though these behaviors hold only for a period of time. C、Decisions regarding what product to produce and what selling price and cost structure to use can all be made with the assistance of effective CVP analysis. D、CVP analysis assumes the ratio of products will vary at different level of sales.
3、Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. 2,100 cups are sold each month on average. What is the CM Ratio for Coffee Klatch? A、1.319 B、0.758 C、0.242 D、4.139
4、Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. How many cups of coffee would have to be sold to attain target profits of $2,500 per month？ A、3,363 cups B、2,212 cups C、1,150 cups D、4,200 cups
5、Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. 2,100 cups are sold each month on average. What is the break-even sales dollars? A、$1,300 B、$1,715 C、$1,788 D、$3,129
6、Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $1.49 and the average variable expense per cup is $0.36. The average fixed expense per month is $1,300. 2,100 cups are sold each month on average. What is the margin of safety expressed in cups? A、3,250 cups B、950 cups C、1,150 cups D、2,100 cups
7、At Coffee Klatch the average selling price of a cup of coffee is $1.49, the average variable expense per cup is $0.36, the average fixed expense per month is $1,300 and an average of 2,100 cups are sold each month. If sales increase by 20%, by how much should net operating income increase? A、30.0% B、20.0% C、22.1% D、44.2%
8、RBC Corporation currently has a negative contribution margin. Which of the following statements is true? A、It can break even by increasing its sales volume. B、It can achieve a positive operating profit by reducing its fixed costs. C、It can improve profits by decreasing its variable cost per unit. D、It can improve profits by decreasing its selling price.
9、Darth Company sells three products. Sales and contribution margin ratios for the three products follow: Product X Y Z Sales in euros €20,000 €40,000 €80,000 Contribution margin ratio 35% 40% 15% Given these data, what is the contribution margin ratio for the company as a whole? A、25% B、30% C、35% D、40%
10、The traditional format of income statement is helpful to managers in judging the impact on profits of changes in selling price, cost, or volume.
11、The margin of safety is the volume or dollars of sales at which profit is zero.
12、The margin of safety helps management assess how far above or below the target profit the company is currently operating.
13、The contribution margin is defined as the amount remaining from sales revenue after manufacturing costs have been deducted.
14、In CVP graph, the break-even point is where the total revenue and total expenses lines intersect.
15、CM ratio, the contribution margin ratio is calculated by dividing the total contribution margin by total sales.
Chapter 6 Cost Allocations of Service Departments（辅助部门费用的归集和分配）
1、Which of the following department does not belong to operating department？ A、The production departments at Gree Group B、The Surgery Department at Zhejiang Hospital C、The Accounting School at University of Finance and Economics D、The auditing department in KPMG
2、Which of the following statement is not the reason why Service department costs are charged to operating departments？ A、to encourage operating departments to wisely use service department resources. B、to provide operating departments with more complete cost data for making decisions. C、to help measure the profitability of service departments. D、to create an incentive for service departments to operate efficiently.
3、Which of the following methods of allocating service department costs results in the most accurate product cost? A、Direct method B、Step method C、Reciprocal method D、Activity-based costing method
4、Answer Questions 10, 11, and 12, using the following information about Spacer Company: Custodial Cutting Assembly services Cafeteria department department Departmental costs € 50,400 € 28,000 € 120,000 € 200,000 Square metres occupied 500 1,000 4,000 5,000 Number of employees 10 15 75 100 Machine-hours 10,000 15,000 Service department costs are allocated to producing departments as follows: the costs of custodial services are allocated on the basis of square metres of space occupied, and the costs of the cafeteria are allocated on the basis of number of employees. The departmental costs for the cutting and the assembly departments are overhead costs. Predetermined overhead rates in the cutting and assembly departments are based on machine-hours. Assume that the company uses the direct method of allocation. What would be the amount of cafeteria service costs allocated to the assembly department? A、€16,000 B、€16,800 C、€17,500 D、€28,000
5、Assume that the company uses the direct method of allocation. What would be the predetermined overhead rate in the cutting department? A、€3.44 B、€12.80 C、€15.44 D、€16.00
6、Assume that the company uses the step method of allocation with cafeteria services allocated first. What would be the amount of cafeteria service costs allocated to the cutting department? A、€12,000.00 B、€10,500.00 C、€11,351.35 D、€12,444.44
7、The central purposes of the organization are carried out in the operating departments.
8、The direct method partially recognizes the services provided by a service department to other service departments.
9、In step-down method, the allocation sequence usually begins with the service department that provides the greatest amount of service to other service departments.
10、No matter which method is used, any amount of the allocation base attributable to the service department whose cost is being allocated is always ignored.
11、The step-down method provides the most accurate modeling of the service patterns.
12、The reciprocal cost for each service department is its direct cost plus its share, based on the proportion of service units consumed, of the direct costs of the other service departments.
13、The step-down method provides for the allocation of a service department’s costs to other service departments, as well as to operating departments.
14、In direct method, each service department assigns its own costs to operating departments plus the costs that have been allocated to it from other service departments.
15、While the reciprocal method only allocates forward and never backwards, the step-down method allocates service department costs in both directions.
Chapter 7 Activity-Based Costing（作业成本法）
1、Which of the following statements best describes a cost driver? A、It is a variable that causes an activity to increase or decrease. B、It is always based on direct labour-hours. C、It is used for manufacturing and merchandising activities only. D、It changes during the operating cycle.
2、Which of the following is not a batch-level activity? A、Inspecting the product prior to inserting it in the packaging B、Loading the automatic labelling machine with address labels for shipping orders C、Preparation of shipping documents for an order with a minimum order size of 50 units D、Setting up the duplicating machine to generate copies of the product from a master mould
3、A company that provides packing services has an activity-based costing system with three activity cost pools: scheduling, packing boxes, and setting up machinery. The activity rates are $6 per appointment scheduled, $1.50 per box packed, and $5 per machine set-up. If a customer requires one scheduled service call and has 50 boxes to pack using two different machines, how much cost would be assigned to the job for the customer by the activity-based costing system? A、$12.50 B、$85.00 C、$86.00 D、$91.00
4、Margot Window Coverings Ltd. is preparing its annual profit plan. As part of this process, budgeted material handling costs of $70,000 will be allocated to each of Margot’s product lines based on the following data: Draperies Blinds Units produced 500 500 Material moves per product line 3 9 Direct labour-hours per unit 140 140 Under activity-based costing, where the cost driver is the material moves, what would be the material handling costs traced to one set of draperies? A、$11.67 B、$35.00 C、$70.00 D、$100.00
5、What are the factors that need to be considered in customer profitability analysis with the use of ABC? There may be more than one answer. A、Customer groups B、Growth potential C、Customer loyalty and industry’s barrier of entry D、Customer lifetime value
6、What are the limitations of ABC？ There may be more than one answer. A、Substantial resources required to implement and maintain B、Resistance to unfamiliar numbers and reports C、Desire to fully allocate all costs to products D、Potential misinterpretation of unfamiliar numbers
7、ABC is a good replacement to our traditional cost system
8、ABC is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore affect “fixed” as well as variable costs
9、ABC assigns both manufacturing costs and non-manufacturing costs to products
10、ABC assigns all manufacturing costs to products and uses more cost pools
11、ABC usually relies on volume measures such as direct labor hours or machine hours to allocate all overhead costs to products
12、In Activity Based Costing, a cost pool is a cost bucket in which costs related to a single activity measure are accumulated
13、Activity-based costing is more likely to result in major differences from traditional costing systems for firms that produce one product rather than multiple products
14、Duration driver is the simple count of the number of times an activity occurs.
15、A company can use ABC for external reporting because it conforms to GAAP.
Chapter 8 Job-Order Costing（分批法）
Test- Lesson 8
1、Which of the following is not the reason why we must allocate overhead costs to jobs? A、It is easy and necessary to actually trace overhead costs to a particular job. B、Manufacturing overhead also includes a number of different costs and it would be very difficult to gather all of them together in time to charge them to a particular job. C、Many types of overhead are fixed in nature even though output fluctuates during the period. D、It is difficult to actually trace overhead costs to a particular job.
2、On January 1, 20X7, Laut Company’s work-in-progress account had a balance of $36,000. During the year, direct materials costing $70,000 were placed into production. Direct labour cost for the year was $120,000. The predetermined overhead rate for the year was set at 150% of direct labour cost. Actual overhead costs for the year totalled $180,000. Jobs costing $380,000 to manufacture (according to their job sheets) were completed during the year. What would the balance in the work-in-progress inventory account be on December 31, 20X7? A、$16,000 B、$26,000 C、$30,000 D、$36,000
3、Which of the following statements is not correct? A、When materials are requisitioned from raw materials inventory, we debit work in process for both direct materials and indirect materials. B、The cost of direct labor is debited to Work in Process account, while the indirect labor is debited to the Manufacturing Overhead account. C、Additional manufacturing overhead amounts are debited to the manufacturing overhead account. D、The manufacturing overhead account is a clearing account.
4、Which of the following companies may benefit from using job order costing systems？ A、Commercial Aircraft China B、Tata Consultancy Company C、Hong Kong Aircraft Engineering D、Kang-shi-fu Instant Noodles Company
5、Which of the following statements is true? There may be more than one correct option A、The job cost sheet is used by the accounting department to track the direct and indirect costs associated with a given job. B、A job number uniquely identifies each job. C、Direct material, direct labor and manufacturing overhead costs are accumulated for each job. D、The job cost sheet is a subsidiary ledger to the Work in Process account.
6、Which of the following statements is true? There may be more than one correct option A、In a job-order costing system, costs are accumulated by individual jobs. B、In a job-order costing system, average unit costs are computed by each job. C、In a job-order costing system, direct materials and direct labor are traced directly to each job as the work is performed. D、The job cost sheet is used by the accounting department to track the direct and indirect costs associated with a given job.
7、A company would use a job order costing system when identical products are produced each period.
8、We need to compute predetermined overhead rates and estimated overhead costs, rather than actual overhead costs are used in the job-order costing process.
9、Manufacturing overhead includes direct materials, direct labor and other manufacturing costs.
10、Over-applied overhead exists when the amount of overhead applied to jobs during the period using the predetermined overhead rate is less than the total amount of overhead actually incurred during the period.
11、Once a sales order has been received and a production order issued, the Production Department prepares a materials requisition form to specify the type, quantity, and total cost of materials.
12、To facilitate the allocation of manufacturing overhead to each job, we calculate a predetermined overhead rate after the period begins. The rate is calculated by dividing the total actual manufacturing overhead for the coming period by the actual total units of the allocation base.
13、Predetermined overhead rates that rely upon estimated data are often used because actual overhead costs for the period are not known until the end of the period, thus inhibiting the ability to estimate job costs during the period.
14、Read the information below and answer the following two questions SuperBrite Company applies manufacturing overhead on the basis of direct labour hours. On December 31, the company had underapplied overhead in the amount of $20,000. The company estimated that it would incur 220,000 direct labour-hours during the year. The actual number of direct labour-hours was 200,000. The cost of goods manufactured for the year included $440,000 for manufacturing overhead. There was no job in process at the beginning of the year or at the end of the year. What is the amount of manufacturing overhead cost the company would have estimated at the beginning of the year?
15、What is the amount of actual overhead cost incurred？
Chapter 9 Process Costing（分步法）
1、In a particular process, Material G is added when a batch is 60% complete. Conversion costs are added uniformly throughout the process. Assuming that the process is 70% complete, would conversion costs and Material G be included in the computation of equivalent units for ending work in progress? A、Conversion costs Material G No No B、Conversion costs Material G No Yes C、Conversion costs Material G Yes Yes D、Conversion costs Material G Yes No
2、Which of the following statements about a process costing system is incorrect? A、In a process costing system, there is a work-in-progress account for each processing department. B、In a process costing system, equivalent units are separately computed for materials and for conversion costs. C、In a process costing system, overhead can be under- or overapplied, just as in job-order costing. D、In a process costing system, materials costs are traced to units of products.
3、Colby Company has a process costing system in which the weighted-average method is used. The company adds all materials at the beginning of the process in the moulding department, which is the first of two stages of its production process. Information concerning the materials used in the moulding department during March is as follows: Materials Units costs Work in progress at March 1 22,000 € 15,480 Units started during March 90,000 € 46,120 Units completed and transferred to next department during March 100,000 What was the materials cost of the work-in-progress inventory at March 31? A、€ 1,100 B、€ 5,500 C、€ 6,600 D、€ 12,100
4、Which of the following statements about a process costing system is incorrect? A、The flow of costs through the manufacturing accounts is basically the same for process and job-order costing. B、Direct materials, direct labor and manufacturing overhead are added to Work in Process. C、When work in process is completed, the costs are transferred to Finished Goods.. D、When finished goods are sold, the costs are transferred to Ending Inventory
5、Which of the following is incorrect about cost flows and journal entries of Labor Costs in Process Costing? A、Direct labor is transferred from the Salaries and Wages Payable account into the manufacturing overhead account B、Direct labor costs are debited to the appropriate departmental Work in Process account depending upon where the labor was added to the production process. C、Indirect labor costs are debited to Manufacturing Overhead. D、Salaries and Wages Payable is credited for the corresponding amounts.
6、Which of the following companies would be likely to use process costing rather than job-order costing? There may be more than one correct answer. A、Scott Paper Company for Kleenex. B、Architects. C、Heinz for ketchup. D、Caterer for a wedding reception.
7、Which of the following belongs to manufacturing overhead for a manufacturer enterprise? A、Factory equipment depreciation B、Factory utility expenses C、Factory equipment rents D、property taxes and insurance costs
8、Job-order and process costing are similar in that they both deal with assigning materials, labor and overhead to products as a way to calculate the unit product cost.
9、Equivalent units are the product of the number of partially completed units and the percentage completion of those units.
10、The flow of costs through the manufacturing accounts is basically the same for process and job-order costing
11、A process costing system is best used by companies that produce many units of different product
12、When we use the FIFO method we make no distinction between work done in the prior period and work done in the current period
13、When using the weighted-average method, equivalent units of production will always be equal to the units completed and transferred out plus the equivalent units remaining in ending work in process inventory
14、When finished products are sold to the customer, the costs of these products are transferred from finished goods inventory to cost of goods sold
15、Process costing systems trace and apply manufacturing costs to jobs
Chapter 10 Master Budget（全面预算）
1、Which of the following statement is not true? A、The master budget consists of a number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals. B、The master budget culminates in a cash budget, a budgeted income statement, and a budgeted balance sheet. C、The first step of budgeting for any type of organizations in any industry is to budget for the operation process. D、Although operational budgets are adapted according to the industries, the preparation for budgeted income statement, cash and balance sheet are very similar.
2、Which of the following is not true about operational budget? A、Budget sales equal budgeted selling price multiplied with budgeted sales in units. B、After we have budgeted our sales, we must make sure the production budget is adequate to meet the forecasted sales and to provide for the desired ending inventory. C、Desired ending inventory in last month becomes beginning inventory in this month D、The first step in preparing the production budget is to prepare Direct Materials Budget
3、Which of the following types of manufacturing costs are not included in the overhead budget? A、Supervision and maintenance costs B、Direct labour and direct materials costs C、Electricity costs D、Amortization and indirect labour costs
4、Read the information and answer the following three questions. Silifone Manufacturing Company has the following sales budget: Month (in €000) January 500 February 400 March 550 April 450 May 500 June 470 The cash collection schedule of sales has been as follows: 70% of sales collected in month of sale 20% of sales collected in month following sale 5% of sales collected in second month following sale 5% of sales is uncollectible What is the ending balance of accounts receivable for May, assuming the uncollectible balance is written off after the second month? A、€150,000 B、€172,500 C、€195,000 D、€205,000
5、What are the cash collections for March, 20X7? A、€465,000 B、€490,000 C、€515,000 D、€550,000
6、At the end of August there was $180,000 in inventory. At the end of September there was $190,000 in inventory. During August, $100,000 was paid to suppliers for purchases made in August and $10,000 was paid for purchases made prior to August. September’s cost of goods sold was $420,000. The company pays for 80% of a month’s purchases in the month of the purchase and pays 20% in the month following the purchase. What is the total amount of cash disbursements made in September for purchases? A、€344,000 B、€353,000 C、€361,000 D、€369,000
7、A company has the following incomplete production budget data for the first quarter: January February March Expected unit sales 1,000 3,000 4,000 In the previous December, ending inventory was 100 units, which was the minimum required, at 10% of projected sales units in the coming month. What is the expected production in February? A、3,000 units B、3,100 units C、3,400 units D、3,600 units
8、Which of the following statement is true? There may be more than one correct answer. A、To make sure that a budget program will be successful, top management must be enthusiastic and committed to the budget process B、To make sure that a budget program will be successful, top management must not use the budget to blame employees when something goes wrong C、To make sure that a budget program will be successful, budget targets should be challenging but achievable D、To make sure that a budget program will be successful, top management must look into any differences between actual results and budget, and employees must be blamed when something goes wrong
9、Which of the following statement is true about budgeted income statement? There may be more than one correct answer. A、The sales revenue for the budgeted income statement comes from the sales budget. B、The cost of goods sold, on a per unit basis, for the budgeted income statement, comes from the ending finished goods inventory budget. C、The selling and administrative expenses for the budgeted income statement come from the S & A budget. D、The interest expense for the budgeted income statement comes from the production budget.
10、A budget is a detailed quantitative plan for acquiring and using financial and other resources over a specified forthcoming time period.
11、Planning involves developing objectives and preparing various budgets to achieve those objectives
12、Budgeting is the act of preparing a budget, while budgetary control is the use of budgets to control an organization’s activities
13、To be effective, a good budgeting system must provide for both planning and control
14、Operating budget for a manufacturer consists of sales budget, ending inventory budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget as well as selling and administrative expense budget
15、Ending balance of retained earnings is based on beginning balance plus net income and deduct dividends paid
Chapter 11 Flexible Budgets and Performance Analysis（弹性预算及业绩分析）
Test- Lesson 11
1、Read the information and answer the following 5 questions. Larry’s Lawn Service provides lawn care in a planned community where all lawns are approximately the same size. At the end of May, Larry prepared his June budget based on mowing 500 lawns. Since all of the lawns are similar in size, Larry felt that the number of lawns mowed in a month would be the best way to measure overall activity for his business. At the end of June, Larry actually mowed 600 lawns. flexible budget format for Larry’s Lawn Service Number of lawns(Q) Revenue/Cost Fomulas Revenue 75Q Expenses Wages and Salaries 5000+30Q Gasoline and supplies 9Q Equipment maintenance 3Q Office and Shop Utilities 1000 Office and shop rent 2000 Equipment Depreciation 2500 Insurance 1000 What should the total wages and salaries cost be in a flexible budget for 600 lawns? A、$18,000 B、$20,000 C、$23,000 D、$25,000
2、What should the revenue be in a flexible budget for 600 lawns? A、$41,250 B、$45,000 C、$48,750 D、$52,500
3、What should the total expenses be in a flexible budget for 600? A、$34,600 B、$36,200 C、$36,700 D、$38,200
4、What should the net operating income be in a flexible budget for 600 lawns? A、$6,650 B、$8,300 C、$10,550 D、$11,600
5、What is the net operating income activity variance for Larry’s if planned number of lawn is 500, while actually 600 lawns were mowed? A、1,200 F B、1,650 F C、3,300 F D、3,500 F
6、If the actual level of activity differs from what was planned, it would be misleading to evaluate performance by comparing actual costs to the static, unchanged planning budget.
7、A flexible is suitable for planning and is valid for only the planned level of activity.
8、To flex a budget, total variable costs change in direct proportion to changes in activity, while total fixed costs remain unchanged within a specified activity range.
9、Flexible budgets help managers control costs and improve performance evaluation
10、Revenue variances are labeled unfavorable when actual revenues exceed budgeted revenues, and they are labeled favorable when actual revenues are less than budgeted revenues.
11、Part of the discrepancy between the budgeted net operating income and the actual net operating income, which is because the actual level of activity is higher than the planned activity, is called activity variance.
12、An activity variance arises solely due to the difference in the level of activity included in the planning budget and the actual level of activity.
13、The fixed costs in the flexible budget are the same as the planning budget because they do not change in response to changes in the activity level within the relevant range.
14、An activity variance is the difference between what the total revenue should have been, given the actual level of activity for the period, and the actual total revenue.
15、flexible budget allows us to isolate activity variances and revenue and spending variances.
Chapter 12 Standard Costs and Variances（标准成本及差异分析）
1、Which of the following statement is not true? A、Standards should be designed to encourage efficient future operations, not just a repetition of past inefficient operations. B、The standard quantity per unit for direct materials should reflect the amount of material required for each unit of finished product, as well as an allowance for unavoidable waste, spoilage, and other normal inefficiencies. C、The price standard for variable manufacturing overhead comes from the variable portion of the predetermined overhead rate. D、The standard rate per hour for direct labor includes only wages earned.
2、Which one of the following variances is most controllable by the production control supervisor? A、Material price variance B、Material quantity variance C、Variable overhead spending variance D、Fixed overhead budget variance
3、The Haney Company has a standard costing system. Variable manufacturing overhead is assigned to production on the basis of direct labour-hours. The following data are available for January: Actual variable manufacturing overhead € 25,500 Actual direct labour-hours worked 5,800 Variable overhead spending variance € 600 favourable Variable overhead efficiency variance € 2,475 unfavourable What were the standard hours allowed for January production? A、5,250 hours B、5,425 hours C、5,800 hours D、5,975 hours
4、Answer the following four questions. Haliburton Mills, Inc. is a large producer of men’s and women’s clothing. The company uses standard costs for all of its products. The standard costs and actual costs for a recent period are given below (Exhibit 1) for one of the company’s product lines (per unit of product): During this period, the company produced 4,800 units of product. A comparison of standard and actual costs for the period on a total cost basis is given below (Exhibit 2). There was no inventory of materials on hand to start the period. During the period, 21,120 metres of material were purchased and used in production. The denominator level of activity for the period was 6,860 hours. Exhibit 1 Exhibit 2 What is the direct material price variance for the period? A、$5,280 F B、$5,280 U C、$6,912 F D、$6,912 U
5、What is the direct material quantity variance for the period? A、$5,280 F B、$5,280 U C、$6,912 F D、$6,912 U
6、What is the direct labor rate variance? A、$2,352 F B、$2,352 U C、$4,320 F D、$4,320 U
7、What is the direct labor efficiency variance? A、$2,352 F B、$2,352 U C、$4,320 F D、$4,320 U
8、Which of the following is not true? There are more than one answer. A、Most companies compute the materials price variance when materials are used. B、They calculate the materials quantity variance after materials are purchased in production. C、Delaying the computation of the price variance until the materials are used would result in less timely variance reports. D、Computing the price variance when the materials are purchased allows materials to be carried in the inventory accounts at their standard cost
9、Revenue and spending variances can be decomposed into two parts, a part measuring how well resources were used and another part measuring how well the acquisition prices of those resources were controlled.
10、In managerial accounting, two types of standards are commonly used by manufacturing, service, and not-for-profit organizations: Quantity standards and Price standards.
11、Price standards specify how much of an input should be used to make a product or provide a service.
12、Manufacturing companies often have highly developed standard costing systems that establish quantity and price standards for each separate product’s material, labor and overhead inputs.
13、Standards are not determined by using available references that estimate the time needed to perform a given task, or by relying on time and motion studies.
14、Setting price and quantity standards require the combined expertise of everyone who has responsibility for purchasing and using inputs.
15、In order to be more productive and efficient at work, any cost variances should be brought to the attention of management.
Chapter 13 Performance Measurement （绩效考核与评价）
1、Which of the following statement is incorrect? A、A contribution format should be used because it separates fixed from variable costs and it enables the calculation of a contribution margin. B、The contribution margin is especially useful in decisions involving temporary uses of capacity, such as special orders. C、Traceable fixed costs should be separated from common fixed costs to enable the calculation of a segment margin. D、A common fixed cost of a segment is a fixed cost that is incurred because of the existence of the segment.
2、Consider the following data: Return on investment (ROI) 17% Sales €140,000 Average operating assets €80,000 Minimum required rate of return 15% Profit margin 10% What is the residual income? A、€2,000 B、€12,000 C、€13,600 D、€14,000
3、The following data pertain to Turk Company’s operations last year: Sales € 900,000 Net operating income 36,000 Contribution margin 150,000 Average operating assets 180,000 Shareholders’ equity 100,000 Property, plant and equipment 120,000 If the residual income for the year was €18,000, what was the minimum required rate of return? A、10% B、15% C、20% D、36%
4、Read the information and answer the following two questions. Fruta Division, one of the investment centres of Wholesale Fruits Inc., had net operating income in 20X6 of €324,000. The average assets employed by Fruta during 20X6 were €1,800,000. In January of 20X7, the division manager of the Fruta Division retired after 15 years to start a bookkeeping business. The chief executive officer (CEO) of Wholesale Fruits appointed you as the new division manager of Fruta. After assuming your new position, you discovered that most of Fruta’s manufacturing equipment needed to be replaced. You also found out that, at the end of 20X7, the previous division manager had disposed of some of the plant and equipment. In order to increase efficiency, you made a large investment to replace the obsolete equipment and to update the facilities. In 20X7, on a total of €4,000,000 of average assets employed, the division reported net operating income of €680,000. The CEO of Wholesale Fruits uses return on investment (ROI) to evaluate the performance of his division managers. He feels that your performance in running Fruta is not as good as the previous manager’s since the 20X7 ROI is much lower than it was in 20X6. What is the ROI for Fruta in 20X6? A、15% B、16% C、17% D、18%
5、What is the ROI for Fruta in 20X7? A、17% B、19% C、21% D、23%
6、What are the advantages of decentralization? A、It enables top management to concentrate on strategy, higher-level decision-making, and coordinating activities. B、It acknowledges that lower-level managers have more detailed information about local conditions that enable them to make better operational decisions. C、It enables lower-level managers to quickly respond to customers. D、It provides lower-level managers with the decision-making experience they will need when promoted to higher level positions.
7、A decentralized organization does not confine decision-making authority to a few top executives
8、There may be a lack of coordination among autonomous managers. The balanced scorecard can help reduce this problem by communicating a company’s strategy throughout the organization
9、The manager of a cost center has control over costs, revenue as well as investment funds
10、Profit center managers are often evaluated by comparing actual profit to targeted or budgeted profit
11、Investment center managers are often evaluated using return on investment (ROI) or residual income.
12、A segmented income statement using the traditional net income format can be used to reflect decentralized performance in individual segment
13、Traceable fixed costs of one segment may be a common fixed cost of another segment.
14、An investment center’s performance is often evaluated using a measure called return on investment (ROI). ROI is defined as net operating income divided by average operating assets
15、Most companies use the net book value, which means acquisition cost less accumulated depreciation of depreciable assets, to calculate average operating assets. With this approach, ROI does not grow automatically over time, rather it stays constant
Chapter 14 Relevant Cost and Decision Making （相关成本与企业经营决策）
1、Which of the following statement is incorrect? A、A future cost that does not differ between alternatives is never a relevant cost. B、Avoidable costs are relevant costs. Unavoidable costs are irrelevant costs. C、A relevant cost is a cost that differs between alternatives. D、Sunk costs are relevant costs
2、Which of the following is not true about joint costs? A、The term joint cost is used to describe costs incurred up to the split-off point. B、Joint costs are common costs incurred to simultaneously produce a variety of end products. C、Joint costs are irrelevant in decisions regarding what to do with a product from the split-off point forward. D、Joint costs should be allocated to end products for decision making purposes.
3、Warson Ltd. is considering closing its Alberta division. Which of the following would not be relevant to the closure decision? A、The salary of the branch manager to be transferred B、Contribution margin on lost sales C、Site cleanup costs D、All variable costs
4、The Carter Company makes products A and B in a joint process from a single input, R. During a typical production run, 50,000 units of R yield 20,000 units of A and 30,000 units of B at the split-off point. Joint production costs total €90,000 per production run. The unit selling price for A is €4 and for B is €3.80 at the split-off point. However, B can be processed further at a total cost of €60,000 and then sold for €7.00 per unit. In a decision between selling B at the split-off point and processing B further, which of the following items is not relevant? A、The €60,000 cost to process B beyond the split-off point B、The portion of the €90,000 joint production cost allocated to B C、The €3.80 unit sales price of B at the split-off point D、The €7 unit selling price for B after further processing
5、What are the advantages of Vertical Integration? There may be more than one correct answer. A、Business risk will be decreased. B、An integrated company may be able to ensure a smoother flow of parts and materials for production than a nonintegrated company. C、Some companies feel that they can control quality better by producing their own parts and materials. D、Integrated companies realize profits from the parts and materials that they choose to make instead of buy.
6、What qualitative factors should be considered in keep-or-drop decision? There may be more than one correct answer. A、The impact on employee morale due to jobs lost B、The impact on the company’s reputation because of the loss C、The loss of customers who purchase more than one product and now will go to another supplier who can fill their complete order D、The ability to use idle facilities
7、An avoidable cost is a cost that can be eliminated, in whole or in part, by choosing one alternative over another
8、A sunk cost is a cost that has already been incurred and cannot be avoided regardless of what a manager decides to do
9、Costs that are relevant in one decision situation may not be relevant in another context.
10、When two or more products are produced from a common input these products are known as by products
11、With respect to sell or process further decisions, it is profitable to continue processing a joint product after the split-off point so long as incremental processing costs incurred after the split-off point exceeds the incremental revenue from such processing
12、The decision to drop an old segment or add a new one is going to hinge primarily on the impact the decision will have on net operating income.
13、Buff Co. is considering replacing an old machine with a new machine. Carrying amount of old machine is relevant to Buff’s decision (Ignore income tax considerations.)
14、All future costs are relevant in decision making
15、The danger of allocating common fixed costs among product lines of an organization is that such allocations can make a product line appear to be unprofitable, whereas in fact the line may be profitable.
Chapter 15 Capital Budgeting Decision （长期投资决策）
1、Which of the following statement is not true? A、The initial investment in working capital is a cash outflow at the ending of the project for items such as inventories B、Working capital is recaptured at the end of the project when working capital is no longer required C、Depreciation is not a current cash outflow. D、Discounted cash flow methods automatically provide for a return of the original investment, thereby making a deduction for depreciation unnecessary
2、Lester Company has been offered a five year contract to provide component parts for a large manufacturer. At the end of five years the working capital will be released and may be used elsewhere by Lester. Lester Company uses a discount rate of 10%. What’s the net present value of the project? Should the contract be accepted? A、$85,955 Yes B、$85,955 No C、$303,280 Yes D、$303,280 No
3、Decker Company can purchase a new machine at a cost of $104,320 that will save $20,000 per year in cash operating costs. The machine has a 10-year life. Future cash flows are the same every year. What’s the IRR in this example? A、10% B、12% C、14% D、16%
4、The expected annual net cash inflow from a project is $22,000 over the next 5 years. The required investment now in the project is $79,310. What is the internal rate of return on the project? A、10% B、12% C、14% D、Cannot be determined
5、Management at The Daily Grind wants to install an espresso bar in its restaurant. The espresso bar: Costs $140,000 and has a 10-year life. generate annual net cash inflows of $35,000. Management requires a payback period of 5 years or less on all investments. What is the payback period for the espresso bar? A、3 years B、3.5 years C、4 years D、4.5 years
6、Consider the following two investments: Project X Project Y Initial investment $100,000 $100,000 Year 1 cash inflow $60,000 $60,000 Year 2 cash inflow $40,000 $35,000 Year 14-10 cash inflows $0 $25,000 Which project has the shortest payback period? A、Project X B、Project Y C、Cannot be determined D、The same
7、The term capital budgeting is used to describe how managers plan significant cash outlays on projects that have long-term implications, such as the purchase of new equipment and the introduction of new products.
8、The capital budgeting techniques best recognize the time value of money and those involve discounted cash flows.
9、The time value of money concept recognizes that a dollar today is worth more than a dollar a year from now
10、The internal rate of return is a valuation method used to estimate the value of an investment based on its future cash flows
11、The discounted cash flow is the rate promised by an investment project over its useful life
12、The internal rate of return is the discount rate that will result in a net present value of zero
13、The payback method focuses on the payback period, which is the length of time that it takes for a project to recoup its initial cost out of the cash receipts that it generates.
14、The acceptance criteria of the payback method is that if the payback period is more than management’s target or required period, the project would be chosen.
15、A shorter payback period means that one investment is more desirable than another.
Chapter 16 Financial Statement Analysis （财务报表分析）
1、Answer the following three questions. Brickey Electronics is a producer of specialized electronic components. The financial statements are shown as below. What is the Price-Earnings ratio for the year of 2018? A、3.26 B、12.3 C、36.8 D、3
2、What is the current ratio for Year 2018? A、2.21 B、1.03 C、3.26 D、3
3、What is the Times Interest Earned Ratio for Year 2018? A、4.9 B、8.5 C、3.26 D、12.3
4、What are the strengths of Financial Statement Analysis? There may be more than one correct answer. A、It summarizes what has happened during a particular period and provides useful information for decision making B、It provides useful information for decision makers such as top management, stockholders and creditors C、It puts performance into context and makes it easier to understand than absolute measures D、It puts performance into context and looks at changes over time
5、Financial statement analysis assists in assessing the financial health and future prospects of a company by top managers, stockholders, creditors and other stakeholders.
6、The ratio of Earnings per Share expresses the relationship between a stock’s market price per share and its earnings per share.
7、P/E ratio quantifies the percentage of current earnings being paid out in dividends
8、Companies with little opportunities for profitable growth, but with steady earnings, tend to pay out a higher percentage of their cash flow as dividends.
9、The ratio of return on total assets measures the rate of return earned by capital employed
10、Market prices reflect expectations about future earnings and dividends, whereas book value reflects past results
11、Short-term creditors want to be repaid on time, while Long-term creditors concern with a company’s ability to repay its loans over the long run
12、Ample working capital provides some assurance to long-term creditors
13、A large and growing working capital balance may not be a good sign.
14、Current Ratio measures how well a company can meet its obligations without having to liquidate or depend too heavily on inventory
15、Times Interest Earned Ratio measures a company’s ability to provide protection to its long-term creditors