Managerial Accounting Exam 3 – Flashcards

Which of the following best describes a "sunk cost"?

A "relevant cost" is best described by which of the following?

Fixed costs that do NOT differ between two alternatives are

Which of the following is a sunk cost?

Fixed costs that may be avoided in the future are referred to as

The format of the income statement most useful in decision-making is which of the following?

In a special sales order decision, the special price must exceed the variable cost of filling the order. In other words, the special order must have

In a special sales order decision, incremental fixed costs that will be incurred if the special order is accepted are considered to be

Managers should consider all of the following when deciding whether to accept a special order, EXCEPT

A manager should always reject a special order if

Which would be consideration for making special orders?

The cost-plus price is described by which of the following?

Target total cost is described by which of the following?

Managers must consider which of the following when pricing a product or service?

Which of the following pairs are characteristics of price-takers

Which of the following pairs are characteristics of price-setters?

Stockholders' expectations of company profits are affected by which of the following?

Which of the following describes the products and services of companies that are price-setters?

Big-box retailers such as Lowe's are considered price-takers because

Methods for a company to meet target total cost and the profit goals if the current cost of the product is higher than the target cost include which of the following?

Unavoidable fixed costs are

Common fixed costs that are allocated between departments are generally

Fixed costs that are allocated among all departments are known as

A company's manager would consider which of the following in deciding whether to discontinue its electronics product line?

All of the following are considerations for discontinuing a product of product line, EXCEPT

Fixed costs that continue to exist even after a product line is discontinued are called

Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income?

If $27,000 of fixed costs will be eliminated by discontinuing the Fashion line, how will operating income be affected?

Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $26,000 per year, how will operating income be affected?

Assuming the Fashion line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Fashion line is used to increase the production of Hiking boots by and additional 250%, how will operating income be affected?

All of the following are product mix considerations EXCEPT

The contribution margin per unit of constraint is calculated as

Companies with production constraints are irrelevant fixed costs will be most profitable when they maximize production of the product with the highest

The factor that restricts production of sale of a product is which of the following?

A "sales mix" is best described by which of the following?

Which of the following could be a constraint for selling a product?

All of the following are outsourcing consideration EXCPET

Managers should consider which of the following when deciding whether to outsource a product or service?

In a sell or process further decision, the company should process further if

Which of the following would be a consideration for "sell as is or process further" decisions?

Budgets are used to accomplish all of the following tasks, EXCEPT

Strategic planning is beneficial because the organization can

A rolling budget is a budget that

Most companies use _______ when the managers develop budgets each year.

Which of the following is a potential disadvantage of participative budgeting?

Managers may intentionally build slack into the budget

All of the following are functions of the budget committee EXCEPT

Which of the following should the organization use to initiate a budget?

Which of the following is an advantage of zero-based budgeting?

The _________ budget is component in a financial budget

The ______ budget is a component in a financial budget

The ______ budget is a component in a financial budget

The ______ budget is a component in an operating budget.

Which of the following alternatives reflects the proper order of preparing components of the master budget?

Which of the following is an advantage of the budgeting process?

Regarding the budgeting process, which of the following statements is TRUE?

Which of the following is a benefit to an organization that implements a budget?

Which of the following budgets is the cornerstone of the master budget?

Which of the following terms is useful because it compares "actual" revenues and expenses against "budgeted" revenues and expenses?

"The comprehensive budget" is best described by which of the following terms?

The _____ budget begins with the number of units to be sold.

Which of the following budgets or financial statements is part of the operating budgets?

The _____ is a plan that shows the units to be sold and the projected selling price and is also the starting point in the budgeting process.

Which of the following is NOT included in the operating budget?

In preparing the operating budget, the first step is preparing the

On the production budget, the number of units to be produced is computed as

On the direct labor budget, the total quantity of direct labor hours needed is computed as

On the direct materials budget, the total quantity of direct materials needed is computed as

The _____ budget is the only budget stated ONLY in units, NOT dollars

Which of the following budgets usually shows separate sections for fixed and variable costs?

A company sells goods and offers credit terms of "net 30 days." What does this reveal to the company that sold the goods?

Which of the following items is a component of a cash payment budget?

Which of the following types of cash outlays contains its own budget?

A combined cash budget includes all of the following EXCEPT

"Capital expenditures budget" is best described by which of the following concepts?

_____ is a what-if technique that ask what a result will be if a predicted amount is NOT achieved or if an underlying assumption changes.

"Combined cash budget" is best described by which of the following?

Which of the following is an example of a financial budget?

A manager considers all of the following when he or she prepares the cash budget EXCEPT

The final step in the preparation of the financial budget is the preparation of which of the following?

Distribution corporation collects 30% of a month's sales in the month of sale, 60% in the month following sales, and 10% in the second month following sale. Budgeted sales for the upcoming four months are: $110,000, $100,000, $300,000, $160,000. The amount of cash that will be collected in July is budgeted to be

Einstein Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $20,000. Budgeted cash receipts are $84,000, while budgeted cash disbursements are $66,000. Einstein Company wants to have an ending cash balance of $60,000. The excess (deficiency) of cash available over disbursements for the month would be

Roman Company is preparing a cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $42,000. Budgeted cash receipts are $105,000, while budgeted cash disbursements are $125,000. Roman Company wants to have an ending cash balance of $46,000. How much would Roman Company need to borrow to achieve its desired ending cash balance?

June sales were $7,000 while projected sales for July and August were $8,800 and $9,000, respectively. All credit sales are collected in the month following the sale. Sales are 60% credit and 40% cash. What are the total expected collections for July?

Purchases in May were $60,000, while expected purchases for June and July are $70,000 and $91,000, respectively. All purchases are paid 40% in the month of purchase and 60% in the following month. At what amount are June payments for purchases budgeted?

When Doubletree Hotel in Oregon created a "green" floor, it saw decreased housekeeping costs, laundry costs, and personal consumables costs. This situation is an example of which type of reason to implement sustainable initiatives?

_________ may include shareholders, bankers, special interest groups, employees, policy makers, customers, suppliers, or community members.

Which of the following is a reason an organization would pursue sustainability?

Environmental sustainability is the primary concern of which of the following types of organizations?

There are several reasons an organization might pursue sustainable initiatives. "A legislative act requires retailers to take-back old batteries and electronic devices for recycling or reuse." This situation is an example of which type of reason to implement sustainable initiatives?

There are several reasons an organization might pursue sustainable initiatives. At one organization, employees approached management about implementing green practices throughout the business. This situation is an example of which type of reason to implement sustainable initiatives?

There are several reasons an organization might pursue sustainable initiatives. "An automobile manufacturer has committed to being the market leader in fuel economy with every new vehicle developed. "This is an example of which type of reason to implement sustainable initiatives?

There are several reasons an organization might pursue sustainable initiatives. "A national hotel chain instituted a paper-saving program that reduced the cost of office paper purchased by 20% annually." This situation is an example of which type of reason to implement sustainable initiatives?

For maximum effectiveness sustainable strategies are often implemented at which stage of an organization's value chain?

A common definition of ______ is the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Which of the following items does NOT represent physical information in an environmental management accounting system?

Which of the following items is most likely to be found on an environmental management accounting report?

Which of the following organizations has developed the G4 Guildlines?

Which of the following items represent monetary information in an environmental management accounting system?

Which of the following items do NOT represent monetary information in an environmental management accounting system?

Which of the following items represent physical information in an environmental management accounting system?

Which of the following items does NOT represent physical information in environmental management accounting system?

What are the three elements of the "triple bottom line"?

Which of the following organization are continually working to develop and improve environmental reporting standards?

The cost to a corporation's image and goodwill as a result of an oil spill would be categorized as what type of costs by an environmental management accounting system (EMA)?

The cost to install equipment to reduce the emissions of a coal-fired power plant would be categorized as what type of cost by an environmental management accounting system (EMA)?

The cost of fabric to produce reusable grocery bags would be categorized as what type of cost by and environmental management accounting system (EMA)?

The cost incurred by a manufacturer of lawn mowers to develop a method to reduce carbon dioxide emissions from its products would be categorized as what type of cost by an environmental management accounting system (EMA)?

The cost of monitoring pollutants in the waste-water discharged from a manufacturing plant would be categorized as what type of cost by an environmental management accounting system (EMA)?

The cost of water used to cool steel beams at a steel mill would be categorized as what type of cost by an environmental management accounting system (EMA)?

The system used for the identification, collection, analysis, and use of monetary and physical information is known as?

Which of the following is a challenge an organization would face in implementing an environmental management accounting system?

An organization faces many challenges when implementing an environmental accounting (EMA) system. Which of the following inherent challenges must an organization overcome when the costs associated with hazardous materials disposal are combined with other overhead costs in its accounting system?

An organization faces many challenges when implementing an environmental accounting (EMA) system. Which of the following inherent challenges must and organization overcome because its technical staff and accounting staff are in two separate locations, using two separate information systems?

An organization faces many challenges when implementing an environmental accounting (EMA) system. Which of the following inherent challenges is an accountant facing when he is having difficulty finding literature regarding "best practices" for environmental accounting?

In a(n) ______ center, managers are accountable to BOTH revenues and costs

A manager is ONLY accountable for expenses in a(n) ________ center.

To evaluate the performance of a(n) _______, a top manager is responsible for revenues, costs, and the efficient use of the assets invested in the division.

Management by _______ is the practice that directs executive attention to large budget variances.

Which term below best fits "a part, segment, or subunit of a company whose manager is accountable for specified activities"?

The human resources department for Kohl's Department Stores may be classified as a(n)

Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence?

Lubrizol is a large chemical company that specializes in producing lubricants. Lubrizol was acquired in 2011 for $9 billion by investment holding company Berkshire Hathaway. Lubrizol may be classified as a(n)

The reservations department that has self-contained sales operations at a car rental chain may be classified as a(n)

The convenience store that is responsible for its own revenues, costs, and is owned by national convenience store chain may be classified as a(n)

All of the following are potential advantages of decentralization EXCEPT

Which type of variance cause operating income to be lower than the budgeted operating income?

A performance report of a _______ will only include revenues generated by the center.

With ______, managers look at the size of the variances between actual results and budgeted amounts to determine which variances a manager should investigate.

Which of the following is the operating income an investment center generates before subtracting common fixed costs that are allocated to the center?

The performance evaluation of a profit center is typically based on its

What is the Top Hat Division's sales margin?

What is the Top Hat Division's capital turnover?

What is the Top Hat Division's Return on Investment?

What is the Top Hat Division's Residual income?

Which of the following is NOT a valid strategy for determining a transfer price?

Which of the following is FALSE?

The difference between the actual revenues and expenses and the master budget is known as a

The ______ is the optimum budget to managers that plan revenues and expenses at different sales volumes.

With regard to a static budget instead of a flexible budget, which of the following is TRUE?

With regard to flexible budgets, which of the following statements is TRUE?

A flexible budget is a budget prepared for a different level of volume than that which was originally anticipated

Another name for a static budget is a flexible budget.

In a flexible budget, total fixed costs do NOT change as production volume changes

Southern instruments makes calculators for business applications. The budgeted selling price is $120 per calculator, the variable rate is $98 per calculator and budgeted fixed costs are $150,000 per month. What is the budgeted operating income for 15,000 calculators sold in a month?

The balanced scorecard considers only financial performance measures.

Financial performance measures are known as lag indicators. A lag indicator is a performance measure that predicts FUTURE performance.

Customer satisfaction, operational efficiency, employee excellence, and financial profitability are often measured as critical factors in the balanced scorecard approach.

The ultimate purpose of the balanced scorecard is to give management a balanced, comprehensive view of the company's performance.

KPI in the Balanced Scorecard stands for Knowledge Profitability Index

The four perspectives of the balanced scorecard include all of the following EXCEPT

The _______ perspective of the balanced scorecard helps managers answer the question, "How do we look to shareholders?"

The _____ of the balanced scorecard focuses on continuing to improve and create value.

The ______ of the balanced scorecard focuses on determining if customers are satisfied.

The ______ of the balanced scorecard focuses on how to determine the company's "climate for action"

Return on investment and revenue may be examples of

The number of employee suggestions implemented and percentage of the sales force with access to real-time inventory levels may be examples of the

The number of warranty claims may be an example of the

Customer satisfaction ratings may be an example of the

New product development time may be an example of the