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NEW QUESTION 35
A company manufactures dining tables. The variable costs per unit are as follows.
Other costs are fixed and include advertising costs of $45,000 per year administrative costs of $55,000 annually and fixed manufacturing overhead of S250.000 per year based on Budgeted production of 10.000 dining tables There was no beginning inventory During the prior year, a total of 10.000 dining tables were manufactured, with 9 000 dining tables sold at $100 each Based on the above information what would be the cost of the ending finished goods inventory under absorption (full) costing?
- A. $100,000.
- B. $45,000.
- C. $80,000.
- D. $70,000.
Answer: D
NEW QUESTION 36
A manufacturing company is considering implementing activity-based costing. Which one of the following statements is a valid consideration when making this change?
- A. Companies that make diverse products are least likely to benefit from activity based costing
- B. Activity-based costing systems may not replace traditional costing systems used for prepar.ng external financial statements.
- C. An activity-based costing system is more costly to maintain than a traditional costing system
- D. In an activity-based costing system, all costs including idle capacity costs, are allocated to products, customers and other costing objects
Answer: C
NEW QUESTION 37
A fitness company produces workout video content and snares it online. The company has subscribers all over the world and its subscriber base has shown steady growth Management has approached a popular workout apparel company to discuss potential sponsorship opportunities. The goal is to impress the potential sponsor by showing the growth in total subscribers over the last 12 months. All of the following would be appropriate options for visualizing this data except a
- A. line graph
- B. bar graph
- C. pie chart
- D. table
Answer: C
NEW QUESTION 38
A company s accounting department is run by only one accountant. Which one of the following can be implemented as a detective control?
- A. Require the accountant to double-check his work
- B. Train another employee to perform bank reconciliations
- C. Train another employee to record journal entries.
- D. Require the accountant to update cash balance regularly
Answer: B
NEW QUESTION 39
Return on investment (ROI) is a performance measure that requires managers to respond to several factors that are under their Influence or control Decisions Intended to influence ROI are often from a short-term perspective and may conflict with the long-term objectives of the organization. This lack of goal congruence can be minimized by
- A. providing the manager with limitations on what can be used to influence the factors involved in computing the ROI.
- B. allowing different minimum returns for different investments.
- C. using the two components of ROI (investment turnover and return on sales) instead of only ROI.
- D. requiring multiple-year measures of ROI and evaluating these results along with the residual incomes from the same periods.
Answer: D
NEW QUESTION 40
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