1. (TCO 11) Nonfinancial measures for internal quality performance include all but which of the following? (Points: 3)
2. (TCO 11) _____________________________is a formal means of distinguishing between random and nonrandom variation in an operating process. (Points: 3)
3. (TCO 11) Which of the following is NOT one of the steps in managing bottlenecks under the theory of constraints? (Points: 3)
4. (TCO 11) Design engineering is an example of: (Points: 3)
5. (TCO 11) Regal Products has a budget of $900,000 in 20X6 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $60,000 in variable costs. The new method will require $18,000 in training costs and $120,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units. Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $30,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories. How much will internal failure costs change if the internal product failures are reduced by 50% with the new procedures? (Points: 3)
6. (TCO 12) The amount of time between when a customer places an order for a product or requests a service to when the product or service is delivered to that customer is called (Points: 3)
7. (TCO 12) The costs associated with storage are an example of which cost category? (Points: 3)
8. (TCO 12) The economic order quantity ignores: (Points: 3)
9. (TCO 12) ) The ________ describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers. (Points: 3)
10. (TCO 12) Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $30. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Liberty Celebrations does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year is the estimated total setup cost for the flag displays for the coming year is (Points: 3)
Click here for the solution: Nonfinancial measures for internal quality performance include all but which of the following
Showing posts with label include. Show all posts
Showing posts with label include. Show all posts
Thursday, November 26, 2015
Sunday, September 13, 2015
Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011
E 17-27 Postretirement benefits; components of postretirement benefit expense
Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011:
Service cost 124
Accumulated postretirement benefit obligation, Jan 1 700
Prior service cost AOCI 50
Prior service cost AOCI none
Net gain AOCI (2011 amort, 1) 91
retiree benefits paid (end of year) 87
contribution to health care benefit fund (end of year) 185
Discount rate 7%
Required:
1. Determine the postretirement benefit expense for 2011.
2. Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2011.
Click here for the solution: Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011
Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011:
Service cost 124
Accumulated postretirement benefit obligation, Jan 1 700
Prior service cost AOCI 50
Prior service cost AOCI none
Net gain AOCI (2011 amort, 1) 91
retiree benefits paid (end of year) 87
contribution to health care benefit fund (end of year) 185
Discount rate 7%
Required:
1. Determine the postretirement benefit expense for 2011.
2. Prepare the appropriate journal entries to record the postretirement benefit expense, funding, and retiree benefits for 2011.
Click here for the solution: Data pertaining to the postretirement health care benefit plan of Sterling Properties include the following for 2011
Friday, August 21, 2015
The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT
MULTIPLE CHOICE
1. The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT: (Points : 2)
2. The one cost that would be classified as part of both prime cost and conversion cost would be: (Points : 2)
3. Which of the following is NOT one of the three major customer value propositions discussed in the text? (Points : 2)
4. Which of the following is NOT a period cost? (Points : 2)
5. A plant manufactures several different products. The wages of the maintenance staff in the plant can be classified as a (an): (Points : 2)
6. Consider the following costs incurred in a recent period:
Direct materials $33,000
Depreciation on factory equipment $12,000
Factory janitor's salary $23,000
Direct labor $28,000
Utilities for factory $9,000
Selling expense $16,000
Production supervisor's salary $34,000
Administrative expenses $21,000
What was the total amount of the period costs listed above for the period?
(Points : 2)
7. Which of the following statements refers to management accounting information? (Points : 2)
8. The Institute of Management Accountants (IMA): (Points : 2)
9. Financial accounting: (Points : 2)
10. All of the following are characteristics of a pull production system EXCEPT: (Points : 2)
11. Conversion costs consist of: (Points : 2)
12. ____________ is an example of a line position. (Points : 2)
13. The accounting process is constrained by mandated reporting requirements by all of the following organizations EXCEPT the: (Points : 2)
14. The person MOST likely to use management accounting information is a(n): (Points : 2)
15. Which of the following types of information are used in management accounting? (Points : 2)
16. The Institute of Management Accountants' Standards of Ethical Conduct contains a policy regarding confidentiality that requires that management accountants: (Points : 2)
17. Manufacturing costs include: (Points : 2)
18. Which of the following groups would be LEAST likely to receive detailed management accounting reports? (Points : 2)
19. Which of the following is NOT one of the Institute of Management Accountants' five Standards of Ethical Conduct? (Points : 2)
20. Management accounting information can be used for all of the following except: (Points : 2)
Click here for the solution: The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT
1. The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT: (Points : 2)
2. The one cost that would be classified as part of both prime cost and conversion cost would be: (Points : 2)
3. Which of the following is NOT one of the three major customer value propositions discussed in the text? (Points : 2)
4. Which of the following is NOT a period cost? (Points : 2)
5. A plant manufactures several different products. The wages of the maintenance staff in the plant can be classified as a (an): (Points : 2)
6. Consider the following costs incurred in a recent period:
Direct materials $33,000
Depreciation on factory equipment $12,000
Factory janitor's salary $23,000
Direct labor $28,000
Utilities for factory $9,000
Selling expense $16,000
Production supervisor's salary $34,000
Administrative expenses $21,000
What was the total amount of the period costs listed above for the period?
(Points : 2)
7. Which of the following statements refers to management accounting information? (Points : 2)
8. The Institute of Management Accountants (IMA): (Points : 2)
9. Financial accounting: (Points : 2)
10. All of the following are characteristics of a pull production system EXCEPT: (Points : 2)
11. Conversion costs consist of: (Points : 2)
12. ____________ is an example of a line position. (Points : 2)
13. The accounting process is constrained by mandated reporting requirements by all of the following organizations EXCEPT the: (Points : 2)
14. The person MOST likely to use management accounting information is a(n): (Points : 2)
15. Which of the following types of information are used in management accounting? (Points : 2)
16. The Institute of Management Accountants' Standards of Ethical Conduct contains a policy regarding confidentiality that requires that management accountants: (Points : 2)
17. Manufacturing costs include: (Points : 2)
18. Which of the following groups would be LEAST likely to receive detailed management accounting reports? (Points : 2)
19. Which of the following is NOT one of the Institute of Management Accountants' five Standards of Ethical Conduct? (Points : 2)
20. Management accounting information can be used for all of the following except: (Points : 2)
Click here for the solution: The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT
Tuesday, August 18, 2015
Sometimes compensation packages include bonuses designed to provide performance incentives to employees
P 13-5 Bonus compensation; algebra
Sometimes compensation packages include bonuses designed to provide performance incentives to employees. The difficulty a bonus can cause accountants is not an accounting problem, but a math problem. The complication is that the bonus formula sometimes specifies that the calculation of the bonus is based in part on the bonus itself. This occurs anytime the bonus is a percentage of income because expenses are components of income, and the bonus is an expense.
Regalia Fashions has an incentive compensation plan through which a division manager receives a bonus equal to 10% of the division’s net income. Division income in 2011 before the bonus and income tax was $150,000. The tax rate is 30%.
Click here for the solution: Sometimes compensation packages include bonuses designed to provide performance incentives to employees
Sometimes compensation packages include bonuses designed to provide performance incentives to employees. The difficulty a bonus can cause accountants is not an accounting problem, but a math problem. The complication is that the bonus formula sometimes specifies that the calculation of the bonus is based in part on the bonus itself. This occurs anytime the bonus is a percentage of income because expenses are components of income, and the bonus is an expense.
Regalia Fashions has an incentive compensation plan through which a division manager receives a bonus equal to 10% of the division’s net income. Division income in 2011 before the bonus and income tax was $150,000. The tax rate is 30%.
Click here for the solution: Sometimes compensation packages include bonuses designed to provide performance incentives to employees
Sunday, July 12, 2015
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following
P8-27A Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts receivable $145,000
Allowance for uncollectible accounts (credit balance) 3,500
Dec 28 During the last quarter of 2012, MTMC completed the following selected transactions:
Dec 31 Wrote off accounts receivable as uncollectible: Regan, Co., $1,300; Owen Mac, $900; and Rain, Inc., $700.
Recorded uncollectible account expense based on the aging of accounts receivable, as follows:
Age of Accounts
Accounts receivable 1–30 Days 31–60 Days 61–90 Days Over 90 Days
$165,000 $97,000 $ 37,000 $14,000 $ 17,000
Estimated percent uncollectible 35% 0.3% 3% 30%
Requirements
1. Journalize the transactions.
2. Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance.
3. Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2012 balance sheet. Use the three line reporting format.
Click here for the solution: At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following
At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following:
Accounts receivable $145,000
Allowance for uncollectible accounts (credit balance) 3,500
Dec 28 During the last quarter of 2012, MTMC completed the following selected transactions:
Dec 31 Wrote off accounts receivable as uncollectible: Regan, Co., $1,300; Owen Mac, $900; and Rain, Inc., $700.
Recorded uncollectible account expense based on the aging of accounts receivable, as follows:
Age of Accounts
Accounts receivable 1–30 Days 31–60 Days 61–90 Days Over 90 Days
$165,000 $97,000 $ 37,000 $14,000 $ 17,000
Estimated percent uncollectible 35% 0.3% 3% 30%
Requirements
1. Journalize the transactions.
2. Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance.
3. Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2012 balance sheet. Use the three line reporting format.
Click here for the solution: At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following
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