stion Question 1: Problems of using i

29 Jun stion Question 1: Problems of using i

Question

Question 1: Problems of using investment centers include all of the problems associated with profit centers plus all of the following EXCEPT:

how to identify the assets used by each investment center.

how to assign the responsibility for jointly-used assets such as buildings.

how to determine the value of the assets used by each investment center.

what method to use to depreciate the assets.

Question 2: Financial budgets include the:

capital spending plan.

production plan.

labor hiring and training plan.

expected cash flow statement.

Question 3: Talladega Industries, Inc., (TII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container.

Direct materials = 0.10 lbs (standard qty) $30 per lb (standard price)
Direct Labor = 0.05 (standard qty) $15 (standard price)

During August, TII produced and sold 10,000 containers using 980 pounds of direct materials at an average cost per pound of $32 and 500 direct labor hours at an average wage of $15.25 per hour.

August’s direct material quantity variance was:

$1,960 unfavorable.

$600 favorable.

$1,360 favorable.

None of these is correct.

Q4:________ is a form of earnings management in which expense recognition may be deferred to a future period with the goal of increasing net income in the current period.

Gain sharing

Smoothing

Data falsification

Gaming

Q5: In a decentralized organization:

local-division managers have less control over their business segments.

there are few deviations from the standardized way of doing things.

front-line employees are not trained to respond to changes in the business environment.

decisions are made by the managers most familiar with the problems and opportunities.

q6: Financial analysts use the expected cash flow statement to do all of the following EXCEPT:

plan for when excess cash is generated.

plan for short-term cash investments.

project cash shortages and plan a strategy to deal with the shortages.

project sales.

Q7: The two major categories of technical considerations for a management accounting and control system are:

design and accuracy of information.

relevance of information and scope of system.

service and timely information.

development and flexibility.

Q8: Empowering employees in management accounting and control system design requires all of the following EXCEPT:

allowing employees to participate in decision making.

having highly-motivated employees in every position.

ensuring that employees understand the information they are using and generating.

enabling employees’ comprehension of performance measure computations.

Q9: Managers are often subject to intense pressures from their job circumstances to suspend their ethical judgment, which might include all of the choices below EXCEPT:

requests to tailor information to favor particular individuals or groups.

pressures to ignore questionable or unethical practices.

solicitations for confidential information.

pleas to verify reports or test results.