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NEW QUESTION # 30
Cat Hats Inc. produces lines of headwear for cats. They have been asked by a local animal shelter to produce a special order for dogs. Below is a special order differential analysis prepared by their managerial accountant. Using this information, what would be the result of accepting the special order?
- A. A differential profit of ($700)
- B. A differential profit of ($550)
- C. A differential contribution margin of $700
- D. A differential contribution margin of $550
Answer: B
NEW QUESTION # 31
Which row correctly identifies the calculation to establish standard costs for direct materials, direct labor, and factory overhead?
- A. Row 3
- B. Row 4
- C. Row 1
- D. Row 2
Answer: B
NEW QUESTION # 32
You are the Controller for Healthcare Technology LLC, and you have been tasked with evaluating an upgraded enterprise resource planning system. Which of the following details would be relevant to your decision-making process?
- A. The company's revenues increased by $14,000,000 over the past twelve months
- B. A vendor replaced a member of its board of directors
- C. A customer's sales are growing rapidly
- D. The company needs a cloud-based document storage system
Answer: D
NEW QUESTION # 33
Which of the following statements is a true statement about flexible budgets?
- A. Selling and administrative expenses are reported in the flexible budget
- B. Cost variance analysis is an integral part of preparing a flexible budget
- C. The flexible budget is prepared before the master budget to assist with planning
- D. The actual number of units sold is irrelevant to a flexible budget
Answer: A
NEW QUESTION # 34
Using this data, what is the contribution margin?
- A. $625,000
- B. $326,000
- C. $365,000
- D. $121,000
Answer: B
NEW QUESTION # 35
SJ Candles manufactures two types of candles. Soy candles require three times the number of labor hours as paraffin candles to produce. If SJ wishes to maximize the limited number of direct labor available to them, which of the following calculations will guide them in their planning?
- A. Contribution margin per unit of constraint
- B. Equivalent units for direct materials
- C. Free cash flow
- D. Inventory turnover ratio
Answer: A
NEW QUESTION # 36
A potential lender is investigating Wyatt Corporation's leverage. This is select balance sheet data for Wyatt Corporation as of December 31. What is the company's debt to assets ratio?
- A. 74%
- B. 14%
- C. 23%
- D. 86%
Answer: B
NEW QUESTION # 37
Valley Manufacturing uses a process costing system. Which of the following journal entries would correctly record $3,180 of manufacturing overhead to the assembly department?
- A.
- B.
- C.
- D.
Answer: D
NEW QUESTION # 38
Which of the following would be a measure of managerial accounting?
- A. The balance sheet
- B. Statement of cash flows
- C. Total liabilities as of June 1
- D. Capital budget
Answer: D
NEW QUESTION # 39
Myer Inc. achieved their goal of reducing their employee turnover rate by 15%. Which of the following perspectives of their balanced scorecard is most likely to include this measure?
- A. Internal business process
- B. Customer satisfaction
- C. Financial performance
- D. Learning and growth
Answer: D
NEW QUESTION # 40
Ladron Candies uses activity-based costing to allocate variable factory overhead costs. Which of the following statements best represents the excerpted activity data for indirect materials?
Indirect Materials:
- A. There is a $500 unfavorable efficiency variance
- B. There is a $1,000 unfavorable efficiency variance
- C. There is a $500 favorable spending variance
- D. There is a $1,000 favorable spending variance
Answer: C
NEW QUESTION # 41
Thompson Dental is deciding between two lease options for a new copier. They anticipate making 22,500 copies spread evenly over the course of the year. Which of the following options should they choose if they want to save the most money on an annual basis, and how much money will they save?
Option 1: Monthly lease: $225, Included copies: 1,500/month, Additional copies: $0.15 per copy Option 2: Monthly lease: $250, Included copies: 1,800/month, Additional copies: $0.02 per copy
- A. Option 2; $357 annual savings
- B. Option 1; $16 annual savings
- C. Option 2; $189 annual savings
- D. Option 1; $300 annual savings
Answer: A
NEW QUESTION # 42
Wycliff Corp. had an immaterial credit balance of $1,250 in the manufacturing overhead account after $21,750 was applied to the WIP inventory account. To close the manufacturing overhead account at the end of the period, assuming no further transactions took place, what should Wycliff do?
- A. Debit manufacturing overhead $1,250; credit cost of goods sold $1,250
- B. Debit cost of goods sold $20,500; credit manufacturing overhead $20,500
- C. Debit cost of goods sold $1,250; credit manufacturing overhead $1,250
- D. Debit manufacturing overhead $20,500; credit cost of goods sold $20,500
Answer: C
NEW QUESTION # 43
Coffee Beanz, Inc. currently maintains decentralized operations. The CEO is evaluating whether the company should centralize their operations. Which of the following situations would make centralized operations more beneficial than decentralized?
- A. Decreasing revenues have created a demand for decreasing expenses
- B. The company is adding five new product lines in the next year
- C. Additional employees are necessary to manage an increase in production
- D. The company just opened a new factory in another state
Answer: A
NEW QUESTION # 44
You are the financial accountant for Antioch Ski Resort. Managers have been promised end-of-year bonuses if profits for the year increase by 10%. At the end of the year, you determine that profits increased by only 8%, and the managers ask you to "fudge the numbers a bit" so they can still receive their bonuses. What should you do?
- A. Check whether the company has a policy on resolving ethical conflicts
- B. Resign from the company
- C. Consider inflating the profits for the year, since it is only a 2% difference
- D. Report the managers to the CEO
Answer: A
NEW QUESTION # 45
SJ Candles manufactures paraffin and soy candles. They have fixed costs of $120,000 and a constant level of sales. Using this sales data, what is the total number of candles that must be sold in order to break-even?
- A. 30,000 candles
- B. 4,800 candles
- C. 20,000 candles
- D. 9,677 candles
Answer: C
NEW QUESTION # 46
SJ Candles is performing a cost-volume-profit analysis to prepare for year 2. Fixed costs are expected to remain the same as year 1, but variable costs per unit are expected to increase by 10%. They plan to keep the same sales price but want to know what level of sales must be achieved in year 2 to maintain the same operating profit.
- A. $398,350
- B. $282,700
- C. $424,050
- D. $405,789
Answer: D
NEW QUESTION # 47
This is the balance sheet for Swinney Services. Using trend analysis, what does this information tell us about the trends for current assets and current liabilities?
- A. Current assets increased at a rate nearly 6x higher than current liabilities
- B. Current assets increased at a rate nearly 10x higher than current liabilities
- C. Current assets increased at a rate nearly 2x higher than current liabilities
- D. Current assets increased at a rate nearly 4x higher than current liabilities
Answer: B
NEW QUESTION # 48
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