Question :

Vertical analysis is also known as

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Star Corporation had net income of $320,000 and paid dividends to common stockholders of $80,000 in 2012. The weighted average number of shares outstanding in 2012 was 50,000 shares. Star Corporation's common stock is selling for $30 per share on the New York Stock Exchange.
 
Star Corporation's payout ratio for 2012 is

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West Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $75,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of West Company's working capital?

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When performing vertical analysis, the base amount for administrative expense is generally

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Wagon Department Store had net credit sales of $16,000,000 and cost of goods sold of $15,000,000 for the year. The average inventory for the year amounted to $2,000,000. The average number of days in inventory during the year was

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Comparisons of data within a company are an example of the following comparative basis:

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Parker Hardware Store had net credit sales of $8,000,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The receivables turnover was

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Net income does not appear in the numerator of the

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The function that pertains to keeping the activities of the enterprise on track is

Student Answer:

controlling.

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Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called?

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Product costs are also called

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The reporting standard for external financial reports is

If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct?

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When the company assigns factory labor costs to jobs, the direct labor cost is debited to

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During 2012, Tanner Manufacturing expected Job No. 26 to cost $450,000 of overhead, $500,000 of materials, and $300,000 in labor. Tanner applied overhead based on direct labor cost. Actual production required an overhead cost of $840,000, $825,000 in materials used, and $330,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

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A copy of the materials requisition slip would not include the:

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In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

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The two major steps in the flow of costs are

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Which of the following is not included in factory labor costs?

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Sonoma Winery has fixed costs of $15,000 per year. Its warehouse sells wine with variable costs of 80% of its unit selling price. How much in sales does Sonoma need to break even per year?

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The contribution margin ratio increases when

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Dolce Company is planning to sell 400,000 hammers for $3 per unit. The contribution margin ratio is 20%. If Dolce will break even at this level of sales, what are the fixed costs?

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Paulsen Company sells 100,000 units for $13 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?

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Brown Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During March, 1,000 drives were sold. Fixed costs for March were $4.90 per unit for a total of $4,900 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Brown Company?

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Norman Company sells MP3 players for $60 each. Variable costs are $40 per unit, and fixed costs total $90,000. What sales are needed by Norman to break even?

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How much sales are required to earn a target net income of $160,000 if total fixed costs are $200,000 and the contribution margin ratio is 40%?

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An activity index might be referred to as a cost

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Which is the true statement?

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The production budget shows that expected unit sales are 80,000. The total required units are 90,000. What are the required production units?

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Maddux Manufacturing estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.

Cash collections for the third quarter are budgeted at

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A company budgeted unit sales of 204,000 units for January, 2012 and 240,000 units for February, 2012. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2011, how many units should be produced in January, 2012 in order for the company to meet its goals?

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If a company has adopted continuous budgeting, the budget will show plans for

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Damask Industries makes and sells widgets. The company is in the process of preparing its Selling and Administrative Expense Budget for the month. The following budget data are available:

Expenses are paid in the month incurred. If the company has budgeted to sell 80,000 widgets in October, how much is the total budgeted selling and administrative expenses for October?

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Which one of the following is not a benefit of budgeting?

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The culmination of preparing operating budgets is the

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An appropriate activity index for a college or university for budgeting faculty positions would be the

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Budget reports should be prepared

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A responsibility report for a profit center will

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In the formula for ROI, idle plant assets are

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The activity index used in preparing the flexible budget

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A flexible budget depicted graphically

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Casey Stetson is the Bottle Division manager and her performance is evaluated by executive management based on Division ROI. The current controllable margin for Bottle Division is $92,000. Its current operating assets total $420,000. The division is considering purchasing equipment for $80,000 that will increase sales by an estimated $20,000, with annual depreciation of $20,000. If the equipment is purchased, what will happen to the return on investment for the division?

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Which one of the following will not increase return on investment?

 universities.

 governmental agencies.

 charitable organizations.

 all of these.

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Gant Co. manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July, 2,000 units were produced using 4,200 hours at $18.30 per hour. The labor quantity variance was

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The final decision as to what standard costs should be is the responsibility of

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The total variance is $35,000. The total materials variance is $14,000. The total labor variance is twice the total overhead variance. What is the total overhead variance?

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ToolTime has a standard of 2 hours of labor per unit, at $18 per hour. In producing 2,000 units, ToolTime used 3,850 hours of labor at a total cost of $70,455. ToolTime's labor quantity variance is

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What does the controllable variance measure?

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Budgeted overhead for Mengotti Company at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead volume variance is

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Keller Company has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 6,000 pounds, although the standard quantity allowed for the output was 5,400 pounds.

Keller Company's total materials variance is

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The standard number of hours that should have been worked for the output attained is 6,000 direct labor hours and the actual number of direct labor hours worked was 6,300. If the direct labor price variance was $3,150 unfavorable, and the standard rate of pay was $9 per direct labor hour, what was the actual rate of pay for direct labor?

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Book value of old equipment is considered to be a

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Which of the following stages of the management decision-making process is improperly sequenced?

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It costs Mackey Company $22 of variable and $15 of fixed costs to produce one Panini press which normally sells for $57. A foreign wholesaler offers to purchase 1,000 Panini presses at $35 each. Mackey would incur special shipping costs of $5 per press if the order were accepted. Mackey has sufficient unused capacity to produce the 1,000 Panini presses. If the special order is accepted, what will be the effect on net income?

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A company is considering eliminating a product line. The fixed costs currently allocated to the product line will be allocated to other product lines upon discontinuance. If the product line is discontinued,

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A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to

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Allen Company manufactures kitchen utensils. Bowden Company has approached Allen with a proposal to sell the company spatulas at a price of $100,000 for 100,000 units. Alllen is currently making the spatulas in its own factory. The following costs are associated with this part of the process when 100,000 spatulas are produced:

The manufacturing overhead consists of $36,000 of costs that will be eliminated if the components are no longer produced by Allen. From Allen's point of view, how much is the incremental cost or savings if the spatulas are bought instead of made?