70.2K

Verified Solution

Link Copied!

Multiple choices of managerial accounting. Need help.

Which of the following statements refers to managerial accounting (as opposed to financial accounting)? a. requires reporting information continuously and has a current or future orientation. b. is not regulated by securities laws. c. is based on estimates that are bounded by relevance and timeliness. d. all of the above statements refer to managerial accounting. 2. Which of the following would not be found or a gross margin formed income statement? a. cost of goods sold b. gross margin c. variable cost d. net income 3. What is the effect on the balances sheet of recording cash payment of $200 for production worker's wages? a. Assets and equity do not change. b. Assets decrease by $200 and equity decrease, by $200 c. Assets increase by $200 and equity increases by $200. d. Assets increase by $200 and equity does not change. 4. A company often incurs unnecessary costs each period because of the excess quantities of inventory. The costs of inventory financing storage, supervision, and obsolescence could most likely be reduced by which of the following practices? a. holding gain inventory b. upstream inventory c. just-in-time inventory d. value-added inventory? Answer question, 5,6 and 7 based on the following information: Wanko Salon Company operates 3 shops in the Tokyo area. The company pays rent of 3,000,000 per year for each shop. The manager of each shop shop is paid a salary of 150,000 per month and all other employees in each shop are paid on an hourly basis. 5. Rent expense relative to the number of shops is classified as. a. variable cost b. fixed cost e. mixed cost d. none of these costs 6. Rent expense relative to the number of customers in a particular shop is classified as. a. variable cost b. fixed cost c. mixed cost d. none of these costs 7. Total salary expenses for a particular shop relative to the number of hours worked is classified as. a. variable cost b. fixed cost c. mixed cost d. none of these costs 8. At break-even point, a. sales would be equal to total costs b. contribution margin would be equal to total fixed costs c. both a and b above d. neither a nor b above. 9. What happens to the breakeven point when the sales price per unit decreases? a. Break-even volume decreases. b. Break-even volume increases. c. Break-even volume stays the same. d. None of the answers is correct. 10. Kitano Company normally produces between 100,000 and 200,000 units each year. Producing more than 200,000 units alters the company's cost structure. For example, fixed costs increase because more space must be rented, and additional supervisors must be hired. The production range between 100,000 and 200,000 is called a. sensitivity range b. leverage range b. relevant range d. none of these ranges 11. Two different costs incurred by Cheng Company exhibit the following cost behavior pattern per unit: Cost #1 and Cost #2 exhibit which of the following cost behavior patterns, respectively? a. fixed/fixed b. variable/variable c. fixed/variable d. variable/fixed Products N and Y are joint products. The costs incurred in producing the two products are Joint materials cost $25,000 Joint processing cost $ 10,000 The process yields 2,000 units of N that can be sold at the split-off point for $10 each and 3,000 units of Y that can sold at the split-off point for $5 each. How much of the total joint cost should be assigned to each unit of assuming that relative sales value is used as the allocation base? a. $7.00 b. $5.00 c. $1.00 d. none of the answers Which of the answers are correct in completing the following statement? Managers must have reliable cost estimates in order to. i) price products ii) evaluate performance iii) control operations iv) prepare financial statements a. i,ii, iii b. ii,iii,iv c. i,ii,iv d. i,ii,iii,iv Which of the answers are correct in completing the following statement? are not cost objects. a. Departments b. Products c. Labor hours d. all of the answers are cost objects

Answer & Explanation Solved by verified expert

See Answer