BACC 531 Midterm MBA | exam prep QUESTIONS AND ANSWERS
Terms in this set (400)
Managerial accounting A focus on activities that occur at the top
activity comprises a set of organizational level is not a supporting objective.
tools, systems and
perspectives that add
value to an organization
by supporting five major
objectives. Which one of
these is not a supporting
objective?
If the total cost of The difference between alternative A and
alternative A is $50,000 alternative B total costs is the differential cost.
and the total cost of
alternative B is
$34,000, then $16,000 is
termed the:
Compton Inc. has a Raw materials purchased = Raw materials used − (change in
beginning materials Raw material balances) =
inventory balance for May $128,900 − ($27,500 − $28,750) = $130,150.
of $27,500, and an ending
balance for May of
$28,750.
Materials used during the
month were
$128,900. As a result, what
is the cost of materials
purchased during the
month?
,The capacity concept that Practical capacity allows for normal occurrences such as
allows for normal downtime and fatigue.
occurrences such as
machine downtime and
employee fatigue is known
as:
Rainier Industries has Raw Raw materials purchased = Raw materials used − (change in
materials inventory on Raw material balances) =
January 1, 20x8 of $32,500 $135,000 − ($32,500 − $26,700) = $129,200.
and Raw materials
inventory on December 31,
20x8 of $26,700. If raw
materials used during the
year were $135,000 what
was the amount of raw
materials purchased during
the year?
The true statement about It is true that fixed costs change on a per-unit basis
cost behavior is that: and are constant in total as activity changes.
,Dorsett Technologies had Cost of Goods sold = Cost of Goods manufactured +
finished goods inventory on Change in Finished goods balances = $385,000 +
January 1, 20X8 of $29,300 ($29,300 − $24,100) = $390,200.
and finished goods
inventory on December 31,
20X8 of $24,100. If the cost
of goods manufactured for
the year was $385,000,
what was the cost of goods
sold for the year?
Beckett Industries has the Materials used + Direct Labor + Overhead Applied = $170,000
following beginning and + $200,000 + (70% ×
ending inventories for the $200,000) = $510,000.Total manufacturing costs + WIP Beg Inv.
month of April. − WIP End Inv. =
April 1April 30Direct
$510,000 + $145,000 − $171,000 = $484,000.
materials $67,000
$62,000 Work-in-process
145,000 171,000
Finished goods 85,000
78,000 Production data
for the month of April is:
Direct labor$200,000
Actual overhead
132,000 Direct materials
purchased 163,000
Transportation in 4,000
Purchase Returns and
Allowances 2,000
Beckett uses one
overhead control account
and charges overhead to
production at 70% of
direct labor cost. The
company does not
formally recognize over-or
underapplied overhead
until year- end.
, What is Beckett's cost of
goods transferred to
finished goods inventory
for April?
The salary that is The salary sacrificed is an opportunity cost.
sacrificed by a college
student who pursues a
degree full time is a(n):
Which of the following Property taxes are not considered to be a direct cost.
would not be considered a
direct cost with respect to
the service department of
a new car dealership?
What is the most Powerful and relatively low-cost technology has
important factor that has allowed companies to put their data to work in
allowed companies to understanding the value chain.
move from recording data
to analyze it in order to
gain significant insight into
the entire value chain of an
organization?
Which of the following is Preparing financial statements is not a typical treasurer's
not a function of the function.
treasurer?
The upper limit on the Theoretical capacity is the upper limit of production, if
production of goods and everything works perfectly.
services if everything
works perfectly is known
as:
Managerial accounting focuses primarily on the
Managerial accounting:
needs of personnel within the organization.
Terms in this set (400)
Managerial accounting A focus on activities that occur at the top
activity comprises a set of organizational level is not a supporting objective.
tools, systems and
perspectives that add
value to an organization
by supporting five major
objectives. Which one of
these is not a supporting
objective?
If the total cost of The difference between alternative A and
alternative A is $50,000 alternative B total costs is the differential cost.
and the total cost of
alternative B is
$34,000, then $16,000 is
termed the:
Compton Inc. has a Raw materials purchased = Raw materials used − (change in
beginning materials Raw material balances) =
inventory balance for May $128,900 − ($27,500 − $28,750) = $130,150.
of $27,500, and an ending
balance for May of
$28,750.
Materials used during the
month were
$128,900. As a result, what
is the cost of materials
purchased during the
month?
,The capacity concept that Practical capacity allows for normal occurrences such as
allows for normal downtime and fatigue.
occurrences such as
machine downtime and
employee fatigue is known
as:
Rainier Industries has Raw Raw materials purchased = Raw materials used − (change in
materials inventory on Raw material balances) =
January 1, 20x8 of $32,500 $135,000 − ($32,500 − $26,700) = $129,200.
and Raw materials
inventory on December 31,
20x8 of $26,700. If raw
materials used during the
year were $135,000 what
was the amount of raw
materials purchased during
the year?
The true statement about It is true that fixed costs change on a per-unit basis
cost behavior is that: and are constant in total as activity changes.
,Dorsett Technologies had Cost of Goods sold = Cost of Goods manufactured +
finished goods inventory on Change in Finished goods balances = $385,000 +
January 1, 20X8 of $29,300 ($29,300 − $24,100) = $390,200.
and finished goods
inventory on December 31,
20X8 of $24,100. If the cost
of goods manufactured for
the year was $385,000,
what was the cost of goods
sold for the year?
Beckett Industries has the Materials used + Direct Labor + Overhead Applied = $170,000
following beginning and + $200,000 + (70% ×
ending inventories for the $200,000) = $510,000.Total manufacturing costs + WIP Beg Inv.
month of April. − WIP End Inv. =
April 1April 30Direct
$510,000 + $145,000 − $171,000 = $484,000.
materials $67,000
$62,000 Work-in-process
145,000 171,000
Finished goods 85,000
78,000 Production data
for the month of April is:
Direct labor$200,000
Actual overhead
132,000 Direct materials
purchased 163,000
Transportation in 4,000
Purchase Returns and
Allowances 2,000
Beckett uses one
overhead control account
and charges overhead to
production at 70% of
direct labor cost. The
company does not
formally recognize over-or
underapplied overhead
until year- end.
, What is Beckett's cost of
goods transferred to
finished goods inventory
for April?
The salary that is The salary sacrificed is an opportunity cost.
sacrificed by a college
student who pursues a
degree full time is a(n):
Which of the following Property taxes are not considered to be a direct cost.
would not be considered a
direct cost with respect to
the service department of
a new car dealership?
What is the most Powerful and relatively low-cost technology has
important factor that has allowed companies to put their data to work in
allowed companies to understanding the value chain.
move from recording data
to analyze it in order to
gain significant insight into
the entire value chain of an
organization?
Which of the following is Preparing financial statements is not a typical treasurer's
not a function of the function.
treasurer?
The upper limit on the Theoretical capacity is the upper limit of production, if
production of goods and everything works perfectly.
services if everything
works perfectly is known
as:
Managerial accounting focuses primarily on the
Managerial accounting:
needs of personnel within the organization.
