We provide also UOP ACC 561 Final Exam and Entire Course question with answers. Best solution available of accounts problem with examples. You can get easy answers of accounting 561 final exam and you can also found information of other subjects.
Uop E Tutors | Acc 561 final exam | Acc 561 final exam questions and answers
1. ACC 561 Final Exam
We provide alsoUOPACC561 Final Examand Entire Course questionwithanswers.Bestsolution
available of accountsproblemwithexamples.Youcangeteasyanswersof accounting561 final exam
and youcan also foundinformationof othersubjects.
ACC 2561 Final Exam has to many tutorial courses are here:
ACC 561 Week 1 :
ACC 561 Week 1 DQ 1
Why are financial statement important to internal users, such as employees, managers,
and directors?
ACC 561 Week 1 DQ 2
Can you think of any reasons why companies may want to maximize profit on its income
statement? What about minimizing profit? What ethical implications may these objectives have?
ACC 561 Week 1 Quiz
41. The proprietorship form of business organization
combines the records of the business with the personal records of the owner.
is classified as a separate legal entity.
must have at least two owners in most states.
generally receives favorable tax treatment relative to a corporation.
45. Most business enterprises in the United States are
government units.
partnerships.
2. proprietorships and partnerships.
corporations.
46. A business organized as a separate legal entity is
government unit.
partnership.
corporation.
proprietor.
57. Which of the following is the best definition of an internal user of accounting
information?
Creditors like banks that use accounting information to evaluate the risk of lending
money.
Managers who use accounting information to plan, organize, and run a business.
Labor unions who use accounting information to examine the ability of the company to
pay increased wages and benefits.
Investors who use accounting information to decide whether to buy or sell stock.
63. Which of the following groups uses accounting information primarily to insure the
entity is operating within prescribed rules?
Labor Unions
Management
Taxing authorities
Regulatory agencies
65. Which of the following groups uses accounting information to determine whether the
company can pay its obligations?
Chief Financial Officer
Creditors
Investors in common stock
Marketing managers
99. Which of the following financial statements is divided into major categories of
operating, investing, and financing activities?
The retained earnings statement.
The statement of cash flows.
The income statement.
The balance sheet.
101. Ending retained earnings for a period is equal to
3. Beginning retained earnings – Net income – Dividends
Beginning retained earnings + Net income – Dividends
Beginning retained earnings – Net income + Dividends
Beginning retained earnings + Net income + Dividends
105. The financial statement that summarizes the changes in retained earnings for a
specific period of time is the
balance sheet.
statement of cash flows.
income statement.
retained earnings statement.
106. To show how successfully your business performed during a period of time, you would
report its revenues and expense in the
balance sheet.
statement of cash flows.
income statement.
retained earnings statement.
116. Which financial statement is prepared first?
Statement of cash flows
Balance sheet
Income statement
Retained earnings statement
117. An income statement shows
revenues, expenses, and net income.
assets, liabilities, and stockholders’ equity.
expenses, dividends, and stockholders’ equity.
revenues, liabilities, and stockholders’ equity.
103. Dawson Corporation has the following information available for 2011:
(in millions)
Issued common stock $45
Retired common stock $65
Paid dividends $75
Net income $130
Beginning common stock
balance
$575
Beginning retained earnings $425
4. blance
Basedin this information, what is Dawson's Common Stock balance at the end of the year?
$685
$195
$630
$555
109. Declaring a cash dividend will
decrease retained earnings.
increase common stock.
decrease common stock.
increase retained earnings.
113. At December 31, 2012 Lowery Company had retained earnings of $2,184,000. During
2012 they issued stock for $98,000, and paid dividends of $34,000. Net income for 2012 was
$402,000. The retained earnings balance at the beginning of 2012 was:
$2,454,000
$1,914,000
$2,552,000
$1,816,000
158. Which of the following organizations issues accounting standards for countries outside
the United States?
FASB
IASB
SEC
GAAP
159. Generally accepted accounting principles
have eliminated all errors in accounting.
are accounting rules that are recognized as a general guide for financial reporting.
are accounting rules formulated by the Internal Revenue Service.
are sound in theory but rarely used in real life.
160. The agency of the United States Government that oversees the U.S. financial markets
is the
Financial Accounting Standards Board.
5. Internal Revenue Service
Security Exchange Commission
International Auditing Standards Committee.
161. What organization issues U.S. accounting standards?
International Accounting Standards Committee.
International Auditing Standards Committee.
Financial Accounting Standards Board.
Security Exchange Commission.
164. Two of the major characteristics that make accounting information useful are
Relevance and Faithful representation.
Comparability and flexibility.
Understandability and consistency.
Verifiability and timeliness.
171. If accounting information has relevance, it is useful in making predictions about
future IRS audits.
foreign currency exchange rates.
the future events of a company.
new accounting principles.
ACC 561 Week 1 WileyPLUS Assignment
WileyPLUS Assignment Week 1 Assignment
Resource: WileyPLUS
Complete the following Week 1 Assignment in WileyPLUS:
• Brief Exercise: 1-7
• Brief Exercise: 1-8
ACC 561 Week 1 Financial Statement Review
Individual Assignment Financial Statement Review
6. Option 1:
1. Select an American corporation.
2. Visit its website and download the Income Statement, Statement of
Stockholders Equity, Balance Sheet, and Statement of Cash Flows.
3. Complete the University of Phoenix Material: Financial Statement Review Worksheet.
4. Submit the completed worksheet, copies of the downloaded financial statements, and a link to
the website. Include all your calculations if applicable.
5. Click the Assignment Files tab to submit your assignment.
Option 2:
1. Create a table that lists each type of financial statements – income statement, balance sheet,
cash flow statement and statement of equity under Column.
2. Add two columns. Column 2 should be labeled "Purpose" and
Column 3 should be labeled "Users".
3. Complete the table. Under Column 2 explain the purpose and content of each statement. Under
Column 3 list the users of each and explain how they would use such statements.
4. Click the Assignment Files tab to submit your assignment.
ACC 561 Week 1 Complete
DQ 1.Why are financial statement important to internal users, such as employees, managers, and
directors?
DQ 2.Can you think of any reasons why companies may want to maximize profit on its income
statement? What about minimizing profit? What ethical implications may these objectives have?
WileyPLUS Assignment Week 1 Practice Quiz
Resource: WileyPLUS
Complete the Week 1 Practice Quiz in WileyPLUS.
7. WileyPLUS Assignment Week 1 Assignment
Resource: WileyPLUS
Complete the following Week 1 Assignment in WileyPLUS:
• Brief Exercise: 1-7
• Brief Exercise: 1-8
Individual Assignment Financial Statement Review
Option 1:
1. Select an American corporation.
2. Visit its website and download the Income Statement, Statement of
Stockholders Equity, Balance Sheet, and Statement of Cash Flows.
3. Complete the University of Phoenix Material: Financial Statement Review Worksheet.
4. Submit the completed worksheet, copies of the downloaded financial statements, and a link to
the website. Include all your calculations if applicable.
5. Click the Assignment Files tab to submit your assignment.
Option 2:
1. Create a table that lists each type of financial statements – income statement, balance sheet,
cash flow statement and statement of equity under Column.
2. Add two columns. Column 2 should be labeled "Purpose" and
Column 3 should be labeled "Users".
3. Complete the table. Under Column 2 explain the purpose and content of each statement. Under
Column 3 list the users of each and explain how they would use such statements.
4. Click the Assignment Files tab to submit your assignment.
ACC 561 Week 2 :
8. ACC 561 Week 2 DQ 1
Last week we discussed how different stakeholders (managers, investors, lenders,
public) use financial statements. This week we will focus on financial ratios. Do you
What factors would you consider when comparing the ratios of two companies? How
can we make financial ratio comparisons a more successful process?
ACC 561 Week 2 DQ 2
What factors would you consider when comparing the ratios of two companies? How
can we make financial ratio comparisons a more successful process?
ACC 561 Week 2 Quiz
115. The relationship between current assets and current liabilities is important in
evaluating a company's
marketvalue.
solvency.
profitability.
liquidity.
116. Which of the following is a measure of liquidity?
Debtto equityratio
Profitmargin
Workingcapital
Earningsper shar
117. Current assets divided by current liabilities is known as the
capital structure.
workingcapital
currentratio.
profitmargin.
9. 88. Danner Corporation reported net sales of $600,000, $680,000, and
$800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the
base year, what percentage do 2013 sales represent of the base?
33%
133%
75%
113%
89 .An analyzing financial statements, horizontal analysis is a
theory.
requirement.
tool.
principle.
101. Comparative balance sheets
are usuallypreparedforatleastone year.
are usuallypreparedforatleasttwoyears.
do notshowboth dollaramountandpercentage changes.
do notshowa comparisonof total stockholders'equity.
102. Assume the following cost of goods sold data for a company:
2013 $1,500,000
2012 1,200,000
2011 1,000,000
If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to
2013?
50%
67%
150%
20%
105. Comparisons of data within a company are an example of the following comparative
basis:
Intercompany.
Interregional.
Industryaverages.
Intracompany.
123. The following schedule is a display of what type of analysis?
10. Amount Percent
Current assets $100,000 25%
Property, plant, and
equipment
300,000 75%
Total assets $400,000 100%
Horizontal analysis
Differential analysis
Vertical analysis
Ratioanalysis
129. A common measure of profitability is the
currentratio.
debtto total assets.
currentcash debtcoverage ratio.
returnon commonstockholders'equityratio.
134. Which one of the following would be considered a long-term solvency ratio?
Returnon total assets
Currentcash debtcoverage ratio
Debtto total assetsratio
Receivablesturnover
137. The current ratio is
calculated bydividingcurrentliabilitiesbycurrentassets.
usedto evaluate acompany'sliquidityandshort-termdebtpayingability.
usedto evaluate acompany'ssolvencyandlong-termdebtpayingability.
calculatedbysubtractingcurrentliabilitiesfromcurrentassets.
121.Richards, Inc. has the following income statement (in millions):
RICHARDS, INC.
Income Statement
For the Year Ended December 31, 2012
Net Sales $180
Cost of Goods Sold 60
Gross Profit 120
Operating Expenses 75
Net Income $ 45
Using vertical analysis, what percentage is assigned to net income?
A.100%
11. B.75%
C.25%
D.None of the above.
ACC 561 Week 2 Ratio Analysis Assignment
Individual Assignment Ratio Analysis Assignment
Please go to Yahoo Finance (finance.yahoo.com).
Under the "Quote Lookup" please search for Kellogg Company.
On the left bar you will be able to access the Income Statement and
Balance Sheet for the company.
Option 1:
Calculate the current ratio, profit margin and debt/equity ratio. Explain your interpretation of
each.
Option 2:
Prepare a 500-word paper that responds to the following questions (please use a question /
answer format):
1. Has the profit increased or decreased from 2012 to 2013 and by how much?
2. What is the percentage increase or decrease in selling general and administrative expenses?
3. What is the percentage increase or decrease in net income?
4. Based on your answers above, what conclusion can you draw regarding the firm's financial
performance?
ACC 561 Week 2 Financial Statement Analysis
Individual Assignment Financial Statement Review
1. Select an American corporation.
12. 2. Visit its website and download the Income Statement, Statement of Stockholders Equity,
Balance Sheet, and Statement of Cash Flows.
3. Complete the University of Phoenix Material: Financial Statement Review Worksheet.
4. Submit the completed worksheet, copies of the downloaded financial statements, and a link to
the website. Include all your calculations if applicable.
5. Click the Assignment Files tab to submit your assignment.
ACC 561 Week 2 Complete
DQ 1.Last week we discussed how different stakeholders (managers, investors, lenders, public)
use financial statements. This week we will focus on financial ratios. Do you believe some ratios
(solvency, profitability, liquidity) are more relevant to some stakeholders? Would you expect
other groups such as vendors or clients to use the ratios as well?
DQ 2.What factors would you consider when comparing the ratios of two companies? How can
we make financial ratio comparisons a more successful process?
WileyPLUS Assignment Week 2 Practice Quiz
Resource: WileyPLUS
Complete the Week 2 Practice Quiz in WileyPLUS.
Individual Assignment Ratio Analysis Assignment
Please go to Yahoo Finance (finance.yahoo.com).
Under the "Quote Lookup" please search for Kellogg Company.
On the left bar you will be able to access the Income Statement and
Balance Sheet for the company.
Option 1:
Calculate the current ratio, profit margin and debt/equity ratio. Explain your interpretation of
each.
13. Option 2:
Prepare a 500-word paper that responds to the following questions (please use a question /
answer format):
1. Has the profit increased or decreased from 2012 to 2013 and by how much?
2. What is the percentage increase or decrease in selling general and administrative expenses?
3. What is the percentage increase or decrease in net income?
4. Based on your answers above, what conclusion can you draw regarding the firm's financial
performance?
Individual Assignment Financial Statement Review
1. Select an American corporation.
2. Visit its website and download the Income Statement, Statement of Stockholders Equity,
Balance Sheet, and Statement of Cash Flows.
3. Complete the University of Phoenix Material: Financial Statement Review Worksheet.
4. Submit the completed worksheet, copies of the downloaded financial statements, and a link to
the website. Include all your calculations if applicable.
5. Click the Assignment Files tab to submit your assignment.
ACC 561 Week 3 :
ACC 561 Week 3 DQ 1
How can costing errors decrease your company's profitability? What can you do to
prevent them?
14. ACC 561 Week 3 DQ 2
While the text presents job and processing costing systems as virtual "polar extremes,"
there are many situations where it may be best for a company to use a hybrid system
that combines attributes of both systems. Describe such a situation and discuss how
the hybrid system may be better than either pure job or pure process systems.
ACC 561 Week 3 Quiz
37.A major purpose of cost accounting is to
measure, record, and report product costs.
classify all costs as operating or nonoperating.
measure, record, and report period costs.
provide information to stockholders for investment decisions.
38. The two basic types of cost accounting systems are
job order and process cost systems.
job order and batch systems.
process cost and batch systems.
job order and job accumulation systems.
39. A process cost systemwould most likely be used by a company that makes
breakfast cereal.
motion pictures.
college graduation announcements.
repairs to automobiles.
40. Which of the following would be accounted for using a job order cost system?
The refining of petroleum.
The production of automobiles.
The production of personal computers.
The construction of a new campus building.
45.The flow of costs in a job order cost system
measures product costs for a set time period.
generally follows a LIFO cost flow assumption.
15.
involves accumulating manufacturing costs incurred and assigning the accumulated costs
to work done.
cannot be measured until all jobs are complete.
60. The entry to record the acquisition of raw materials on account is
Raw Materials Inventory Accounts Payable
Work in Process Inventory Accounts Payable
Manufacturing Overhead Raw Materials Inventory Accounts Payable
Accounts Payable Raw Materials Inventory
73. Time tickets should be approved by
the payroll department.
the audit committee.
co-workers.
the employee's supervisor.
89. The labor costs that have been identified as indirect labor should be charged to
salary expense.
manufacturing overhead.
the individual jobs worked on.
direct labor.
90. Manufacturing overhead is applied to each job
at the time when the overhead cost is incurred.
by means of a predetermined overhead rate.
only if the overhead costs can be directly traced to that job.
at the end of the year when actual costs are known.
38. A process cost accounting systemis most appropriate when
individual products are custom made to the specification of customers.
a variety of different products are produced, each one requiring different types of
materials, labor, and overhead.
the focus of attention is on a particular job or order.
similar products are mass-produced.
43. Which of these best reflects a distinguishing factor between a job order cost systemand
a process cost system?
16. The time period each covers.
The number of work in process accounts.
The manufacturing cost elements included.
The detail at which costs are calculated.
47. In process cost accounting, manufacturing costs are summarized on a
manufacturing cost sheet.
process order cost sheet.
job order cost sheet.
production cost report.
49. In a process cost system, product costs are summarized:
on job cost sheets.
on production cost reports.
when the products are sold.
after each unit is produced.
136. Which of the following is considered a difference between a job order cost and a
process cost system?
Documents used to track costs.
The manufacturing cost elements.
The accumulation of the costs of materials, labor, and overhead.
The flow of costs.
35. The costs that are easiest to trace directly to products are
direct materials and direct labor.
direct labor and overhead.
direct materials and overhead.
None of the above; all three costs are equally easy to trace to the product
36. Often the most difficult part of computing accurate unit costs is determining the proper
amount of _________ to assign to each product, service, or job.
direct materials
overhead
direct materials and direct labor
direct labor
49. The last stepin activity-based costing is to
compute the activity-based overhead rate per cost driver.
identify the cost driver that has a strong correlation to the activity cost pool.
17. identify and classify the major activities involved in the manufacture
of specific products.
assign manufacturing overhead costs for each activity cost pool to products.
50. The first step in activity-based costing is to
compute the activity-based overhead rate per cost driver.
identify the cost driver that has a strong correlation to the activity cost pool.
identify and classify the major activities involved in the manufacture of specific products.
assign manufacturing overhead costs for each activity cost pool to products.
51. A well-designed activity-based costing systemstarts with
assigning manufacturing overhead costs for each activity cost pool to products.
computing the activity-based overhead rate.
analyzing the activities performed to manufacture a product.
identifying the activity-cost pools.
53.An example of an activity cost pool is
machine hours.
setting up machines.
number of setups.
number of inspections.
ACC 561 Week 3 Costing Systems Assessment
Individual Assignment Costing Systems Assessment
Please review the information for Parlex Corporation on Page 836,
Chapter 15 of your textbook (under Activity BYP15-3).
Prepare a 1000-word paper or a 5-slide power point presentation that addresses the following
questions:
(a) Parlex management discusses the job order cost system employed by their company. What
are several advantages of using the job order approach to costing? What are the disadvantages of
the system?
(b) Contrast the products produced in a job order environment, like Parlex, to those produced
when process cost systems are used.
18. (c) Would Parlex benefit from a hybrid system? Why or why not?
ACC 561 Week 3 Learning Team Assignment
Learning Team Assignment
Access BYP17-2 activity on Ideal Manufacturing (Page 935 of Chapter 17).
Complete the attached Excel spreadsheet.
Submit your completed excel spreadsheet using the Assignments Tab.
ACC 561 Week 3 Complete
DQ 1.How can costing errors decrease your company's profitability? What can you do to prevent
them?
DQ 2.While the text presents job and processing costing systems as virtual "polar extremes,"
there are many situations where it may be best for a company to use a hybrid system that
combines attributes of both systems. Describe such a situation and discuss how the hybrid
system may be better than either pure job or pure process systems.
WileyPLUS Assignment Week 3 Practice Quiz
Resource: WileyPLUS
Complete the Week 3 Practice Quiz in WileyPLUS.
Individual Assignment Costing Systems Assessment
Please review the information for Parlex Corporation on Page 836,
Chapter 15 of your textbook (under Activity BYP15-3).
Prepare a 1000-word paper or a 5-slide power point presentation that addresses the following
questions:
(a) Parlex management discusses the job order cost system employed by their company. What
are several advantages of using the job order approach to costing? What are the disadvantages of
the system?
19. (b) Contrast the products produced in a job order environment, like Parlex, to those produced
when process cost systems are used.
(c) Would Parlex benefit from a hybrid system? Why or why not?
Learning Team Assignment
Access BYP17-2 activity on Ideal Manufacturing (Page 935 of Chapter 17).
Complete the attached Excel spreadsheet.
Submit your completed excel spreadsheet using the Assignments Tab.
ACC 561 Week 4 :
ACC 561 Week 4 DQ 1
What are some important elements of the break-even (BE) analysis? What type of
decisions can you take using BE?
ACC 561 Week 4 DQ 2
Class, what are some examples of fixed and variable costs in your organizations? Do
you believe a company can benefit from having a cost structure that would focus on one
type of costs over another (for instance, a cost structure that would comprise 80% of
variable costs and 20% of fixed costs or vice-versa)?
ACC 561 Week 4 Quiz
39. A variable cost is a cost that
may or may not be incurred, depending on management's discretion.
occurs at various times during the year.
varies in total in proportion to changes in the level of activity.
20. varies per unit at every level of activity.
42. An increase in the level of activity will have the following effects on unit costs for
variable and fixed costs:
Unit Variable Cost Unit Fixed Cost
Increases Decreases
Remains constant Remains constant
Decreases Remains constant
Remains constant Decreases
43. A fixed cost is a cost which
remains constant per unit with changes in the level of activity.
remains constant in total with changes in the level of activity.
varies inversely in total with changes in the level of activity.
varies in total with changes in the level of activity.
86. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each
flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed
costs for March were $2 per unit for a total of $1,000 for the month. How much is the
contribution margin ratio?
80%
20%
30%
70%
87.Contribution margin
is calculated by subtracting total manufacturing costs per unit from sales revenue per unit.
equals sales revenue minus variable costs.
is always the same as gross profit margin.
excludes variable selling costs from its calculation.
100. The equation which reflects a CVP income statement is
Sales + Fixed costs = Variable costs + Net income.
Sales – Variable costs + Fixed costs = Net income.
Sales – Variable costs – Fixed costs = Net income.
Sales = Cost of goods sold + Operating expenses + Net income.
21. 104.A company sells a product which has a unit sales price of $5, unit
variable cost of $3 and total fixed costs of $150,000. The number of units
the company must sell to break evenis
50,000 units.
30,000 units.
75,000 units.
300,000 units.
93. Only direct materials, direct labor, and variable manufacturing overhead costs are
considered product costs when using
variable costing.
absorption costing.
product costing.
full costing.
96. Under absorption costing and variable costing, how are fixed manufacturing costs
treated?
Absorption Variable
Period Cost Period Cost
Product Cost Product Cost
Period Cost Product Cost
Product Cost Period Cost
121. Management may be tempted to overproduce when using
absorption costing, in order to increase net income.
absorption costing, in order to decrease net income.
variable costing, in order to increase net income.
variable costing, in order to decrease net income.
ACC 561 Week 4 WileyPLUS Assignment
WileyPLUS Assignment Week 4 Assignment
Resource: WileyPLUS
Complete the following Week 4 Assignment in WileyPLUS:
• Exercise 15-5
22. • Exercise 16-3
• Exercise 17-1
ACC 561 Week 4 Learning Team Reflection
Learning Team Reflection
Managerial accounting is all about making informed decisions. Cost volume- profit (CVP)
analysis is one of the most powerful tools available for managers to crunch numbers, gain a
thorough understanding of a situation, and perform a what-if analysis.
Write a paper of no more than 750 words or a 5-slide power point presentation in which you
discuss the activities and learning this week and share how CVP analysis may be helpful to an
entrepreneur starting a new business.
Provide at least three situations or strategic decisions that may be reached using CVP analysis.
Click the Assignment Files tab to submit your assignment.
ACC 561 Week 4 Complete
DQ 1.What are some important elements of the break-even (BE) analysis? What type of
decisions can you take using BE?
DQ 2.Class, what are some examples of fixed and variable costs in your organizations? Do you
believe a company can benefit from having a cost structure that would focus on one type of costs
over another (for instance, a cost structure that would comprise 80% of variable costs and 20%
of fixed costs or vice-versa)?
WileyPLUS Assignment Week 4 Practice Quiz
Resource: WileyPLUS
Complete the Week 4 Practice Quiz in WileyPLUS.
WileyPLUS Assignment Week 4 Assignment
Resource: WileyPLUS
Complete the following Week 4 Assignment in WileyPLUS:
23. • Exercise 15-5
• Exercise 16-3
• Exercise 17-1
Learning Team Reflection
Managerial accounting is all about making informed decisions. Cost volume- profit (CVP)
analysis is one of the most powerful tools available for managers to crunch numbers, gain a
thorough understanding of a situation, and perform a what-if analysis.
Write a paper of no more than 750 words or a 5-slide power point presentation in which you
discuss the activities and learning this week and share how CVP analysis may be helpful to an
entrepreneur starting a new business.
Provide at least three situations or strategic decisions that may be reached using CVP analysis.
Click the Assignment Files tab to submit your assignment.
ACC 561 Week 5 :
ACC 561 Week 5 DQ 1
Many upper level managers consider the budget to be a living document. What do they
mean by this and do you agree with their assertion? Why? Why not?
ACC 561 Week 5 DQ 2
How would you conduct a variance analysis at work? How can it help you or your
company?
ACC 561 Week 5 Quiz
37. Why are budgets useful in the planning process?
Theyenable the budgetcommitteetoearntheirpaycheck.
Theyprovide managementwithinformationaboutthe company'spastperformance.
Theyhelpcommunicate goalsandprovide abasisforevaluation.
Theyguarantee the companywill be profitable if itmeetsitsobjectives.
24. 44. A common starting point in the budgeting process is
a cleanslate,withnoexpectations.
expectedfuture netincome.
past performance.
to motivate the salesforce.
48. Which of the following statements about budget acceptance in an organization is true?
The most widelyacceptedbudgetbythe organizationisthe one preparedbytopmanagement.
Budgetsare hardlyeveracceptedby anyone excepttopmanagement.
The most widelyacceptedbudgetbythe organizationisthe one preparedbythe department
heads.
Budgetshave a greaterchance of acceptance if all levelsof managementhave providedinput
intothe budgetingprocess.
38. What is budgetary control?
The processof providinginformationonbudgetdifferencestolowerlevel managers
Anothername fora flexible budget
The degree towhichthe CFO controlsthe budget
The use of budgetsincontrollingoperations
44. The comparison of differences between actual and planned results
isdone by the external auditors.
appearson the company'sexternal financial statements.
isusuallydone orallyindepartmental meetings.
appearson periodicbudgetreports.
45. A static budget
shouldnotbe preparedina company.
isuseful inevaluatingamanager'sperformance bycomparingactual variable costsandplanned
variable costs.
showsplannedresultsatthe original budgetedactivitylevel.
ischangedonlyif the actual level of activityisdifferentthanoriginallybudgeted.
93. A responsibility report should
showonlythose coststhat a manager can control.
onlyshowvariable costs.
onlybe preparedat the highestlevel of managerial responsibility.
be preparedinaccordance withgenerallyacceptedaccountingprinciples.
25. 99. Which responsibility centers generate both revenues and costs?
Onlyprofitcenters
Profitandcost centers
Cost andinvestmentcenters
Investmentandprofitcenters
100. The linens department of a large department store is
an investmentcenter.
not a responsibilitycenter.
a profitcenter.
a cost center.
39. What is a standard cost?
The total numberof unitstimesthe budgetedamountexpected
Anyamountthat appearson a budget
The amount managementthinksshouldbe incurredtoproduce agoodor service
The total amountthat appearson the budgetforproductcosts
48. Using standard costs
increasesclerical costs.
makesemployeesless"cost-conscious."
provides abasisfor evaluatingcostcontrol.
makesmanagementbyexceptionmore difficult.
80.Unfavorable materials price and quantity variances are generally the responsibility of
the
Price Quantity
Productiondepartment Purchasingdepartment
Productiondepartment Productiondepartment
Purchasingdepartment Purchasingdepartment
Purchasingdepartment Productiondepartment
ACC 561 Week 5 WileyPLUS Assignment
WileyPLUS Assignment Week 5 Assignment
Resource: WileyPLUS
26. Complete the following Week 5 Assignment in WileyPLUS:
• Brief Exercise 18-8
• Brief Exercise 18-10
• Brief Exercise 18-11
• Brief Exercise 19-16
• Exercise 19-17
• Brief Exercise 21-1
• Brief Exercise 21-4
ACC 561 Week 5 Budgeting Assignment
Individual Assignment Budgeting Assignment
Compare and contrast each of the following budgets:
1. Master
2. Sales
3. Cash
4. Production
Explain how each budget can be used, what decisions may be derived from it and what
information does each one include.
You can submit your assignment in the following formats:
• Essay paper
• Table
• Mind map
• Chart
27. ACC 561 Week 5 Learning Team Assignment
Learning Team Assignment
Team Budget Analysis Simulation Exercise
Please discuss with your teammates the business case below from your textbook - Exercise
BYP20-1, page 1072.
The grade provided for this assignment will be based on your participation (frequency and
quality) in the discussions. To obtain full credit, you should post a minimum of four substantive
posts during the week on a minimum of two separate days. Each post should be substantive and
provide insight on one of the three questions posted at the end of the exercise (a to c). The idea
of the assignment is that you can work on a "team" environment to find solutions to these
questions.
At the end of your discussions, the team should select five top ideas to revise the existing
budgeting process and write a brief, one page "memo" to your boss (instructor) outlining these
selected ideas.
Your grade will be based on:
Participation (four posts, two days): 4 points
Results Memo: 1 point
Additional instructions:
• Ensure your posts reflect on any of the suggested questions (a to c).
• Your deliverable should be presented in a "memo" format addressed to your boss.
• Work on the team discussions assuming you are in a real-life work environment.
• Remember that your grade will be mostly based on the quality of your discussions.
DECISION MAKING ACROSS THE ORGANIZATION
BYP20-1 Palmer Corporation operates on a calendar-year basis. It begins the annual budgeting
process in late August when the president establishes targets for the total dollar sales and net
income before taxes for the next year.
The sales target is given first to the marketing department. The marketing manager formulates a
sales budget by product line in both units and dollars. From this budget, sales quotas by product
line in units and dollars are established for each of the corporation's sales districts. The
28. marketing manager also estimates the cost of the marketing activities required
to support the target sales volume and prepares a tentative marketing expense
budget.
The executive vice president uses the sales and profit targets, the sales budget by product line,
and the tentative marketing expense budget to determine the dollar amounts that can be devoted
to manufacturing and corporate office expense. The executive vice president prepares the budget
for corporate expenses. She then forwards to the production department the product-line sales
budget in units and the total dollar amount that can be devoted to manufacturing.
The production manager meets with the factory managers to develop a manufacturing plan that
will produce the required units when needed within the cost constraints set by the executive vice
president.
The budgeting process usually comes to a halt at this point because the production department
does not consider the financial resources allocated to be adequate.
When this standstill occurs, the vice president of finance, the executive vice president, the
marketing manager, and the production manager meet together to determine the final budgets for
each of the areas. This normally results in a modest increase in the total amount available for
manufacturing costs and cuts in the marketing expense and corporate office expense budgets.
The total sales and net income figures proposed by the president are seldom changed. Although
the participants are seldom pleased with the compromise, these budgets are final. Each executive
then develops a new detailed budget for the operations in his or her area.
None of the areas has achieved its budget in recent years. Sales often run below the target.
When budgeted sales are not achieved, each area is expected to cut costs so that the president's
profit target can be met. However, the profit target is seldom met because costs are not cut
enough.
In fact, costs often run above the original budget in all functional areas (marketing, production,
and corporate office).
The president is disturbed that Palmer has not been able to meet the sales and profit targets.
He hired a consultant with considerable experience with companies in
Palmer's industry. The consultant reviewed the budgets for the past 4 years. He concluded that
the product line sales budgets were reasonable and that the cost and expense budgets were
adequate for the budgeted sales and production levels.
Instructions
29. (a) Discuss how the budgeting process employed by Palmer
Corporation contributes to the failure to achieve the president's sales and
profit targets.
(b) Suggest how Palmer Corporation's budgeting process could be revised to correct the
problems.
(c) Should the functional areas be expected to cut their costs when sales volume falls below
budget? Explain your answer.
ACC 561 Week 5 Complete
DQ 1.Many upper level managers consider the budget to be a living document. What do they
mean by this and do you agree with their assertion? Why? Why not?
DQ 2.How would you conduct a variance analysis at work? How can it help you or your
company?
WileyPLUS Assignment Week 5 Practice Quiz
Resource: WileyPLUS
Complete the Week 5 Practice Quiz in WileyPLUS.
WileyPLUS Assignment Week 5 Assignment
Resource: WileyPLUS
Complete the following Week 5 Assignment in WileyPLUS:
• Brief Exercise 18-8
• Brief Exercise 18-10
• Brief Exercise 18-11
• Brief Exercise 19-16
• Exercise 19-17
30. • Brief Exercise 21-1
• Brief Exercise 21-4
Individual Assignment Budgeting Assignment
Compare and contrast each of the following budgets:
1. Master
2. Sales
3. Cash
4. Production
Explain how each budget can be used, what decisions may be derived from it and what
information does each one include.
You can submit your assignment in the following formats:
• Essay paper
• Table
• Mind map
• Chart
Learning Team Assignment
Team Budget Analysis Simulation Exercise
Please discuss with your teammates the business case below from your textbook - Exercise
BYP20-1, page 1072.
The grade provided for this assignment will be based on your participation (frequency and
quality) in the discussions. To obtain full credit, you should post a minimum of four substantive
posts during the week on a minimum of two separate days. Each post should be substantive and
provide insight on one of the three questions posted at the end of the exercise (a to c). The idea
of the assignment is that you can work on a "team" environment to find solutions to these
questions.
At the end of your discussions, the team should select five top ideas to revise the existing
budgeting process and write a brief, one page "memo" to your boss (instructor) outlining these
selected ideas.
31. Your grade will be based on:
Participation (four posts, two days): 4 points
Results Memo: 1 point
Additional instructions:
• Ensure your posts reflect on any of the suggested questions (a to c).
• Your deliverable should be presented in a "memo" format addressed to your boss.
• Work on the team discussions assuming you are in a real-life work environment.
• Remember that your grade will be mostly based on the quality of your discussions.
DECISION MAKING ACROSS THE ORGANIZATION
BYP20-1 Palmer Corporation operates on a calendar-year basis. It begins the annual budgeting
process in late August when the president establishes targets for the total dollar sales and net
income before taxes for the next year.
The sales target is given first to the marketing department. The marketing manager formulates a
sales budget by product line in both units and dollars. From this budget, sales quotas by product
line in units and dollars are established for each of the corporation's sales districts. The
marketing manager also estimates the cost of the marketing activities required to support the
target sales volume and prepares a tentative marketing expense budget.
The executive vice president uses the sales and profit targets, the sales budget by product line,
and the tentative marketing expense budget to determine the dollar amounts that can be devoted
to manufacturing and corporate office expense. The executive vice president prepares the budget
for corporate expenses. She then forwards to the production department the product-line sales
budget in units and the total dollar amount that can be devoted to manufacturing.
The production manager meets with the factory managers to develop a manufacturing plan that
will produce the required units when needed within the cost constraints set by the executive vice
president.
The budgeting process usually comes to a halt at this point because the production department
does not consider the financial resources allocated to be adequate.
When this standstill occurs, the vice president of finance, the executive vice president, the
marketing manager, and the production manager meet together to determine the final budgets for
each of the areas. This normally results in a modest increase in the total amount available for
manufacturing costs and cuts in the marketing expense and corporate office expense budgets.
The total sales and net income figures proposed by the president are seldom changed. Although
32. the participants are seldom pleased with the compromise, these budgets are
final. Each executive then develops a new detailed budget for the operations
in his or her area.
None of the areas has achieved its budget in recent years. Sales often run below the target.
When budgeted sales are not achieved, each area is expected to cut costs so that the president's
profit target can be met. However, the profit target is seldom met because costs are not cut
enough.
In fact, costs often run above the original budget in all functional areas (marketing, production,
and corporate office).
The president is disturbed that Palmer has not been able to meet the sales and profit targets.
He hired a consultant with considerable experience with companies in
Palmer's industry. The consultant reviewed the budgets for the past 4 years. He concluded that
the product line sales budgets were reasonable and that the cost and expense budgets were
adequate for the budgeted sales and production levels.
Instructions
(a) Discuss how the budgeting process employed by Palmer
Corporation contributes to the failure to achieve the president's sales and profit targets.
(b) Suggest how Palmer Corporation's budgeting process could be revised to correct the
problems.
(c) Should the functional areas be expected to cut their costs when sales volume falls below
budget? Explain your answer.
ACC 561 Week 6 :
ACC 561 Week 6 DQ 1
Can you provide some examples of sunk, opportunity and erosion costs?
ACC 561 Week 6 DQ 2
33. Can you think of one situation where you can use and apply incremental
analysis at home or work? Explain briefly the situation and how you would
conduct the analysis.
ACC 561 Week 6 Quiz
38. A major accounting contribution to the managerial decision-making process in
evaluating possible courses of action is to
provide relevant revenue and cost data about each course of action.
determine the amount of money that should be spent on a project.
decide which actions that management should consider.
assign responsibility for the decision.
45. In incremental analysis,
only costs are analyzed.
only revenues are analyzed.
both costs and revenues may be analyzed.
both costs and revenues that stay the same between alternate courses of action will be
analyzed.
46. Incremental analysis is most useful
as a replacement technique for variance analysis.
in evaluating the master budget.
in developing relevant information for management decisions.
in choosing between the net present value method and the internal rate of return method.
53. It costs Ross Co. $24 of variable and $10 of fixed costs to produce one bathroom scale
which normally sells for $70. A foreign wholesaler offers to purchase 2,000 scales at $30
each. Ross would incur special shipping costs of $2 per scale if the order were accepted.
Ross has sufficient unused capacity to produce the 2,000 scales. If the special order is
accepted, what will be the effect on net income?
$8,000 decrease
$12,000 decrease
$60,000 increase
$8,000 increase
69. Carter, Inc. can make 100 units of a necessary component part with the following costs:
Direct Materials $120,000
34. Direct Labor 20,000
Variable Overhead 60,000
Fixed Overhead 40,000
If Carter purchases the component externally, $30,000 of the fixed costs can be avoided. At
what external price for the 100 units is the company indifferent between making or
buying?
$170,000
$200,000
$230,000
$240,000
79. Mink Manufacturing is unsure of whether to sell its product assembled or unassembled.
The unit cost of the unassembled product is $60 and Mink would sell it for $130. The cost
to assemble the product is estimated at $42 per unit and the company believes the market
would support a price of $170 on the assembled unit. What decision should Mink make?
Process further, the company will be better off by $28 per unit.
Sell before assembly, the company will be better off by $40 per unit.
Sell before assembly, the company will be better off by $2 per unit.
Process further, the company will be better off by $58 per unit.
90. A company decided to replace an old machine with a new machine. Which of the
following is considered a relevant cost?
Depreciation expense on the old equipment
The loss on the disposal of the old equipment
The book value of the old equipment
The current disposal price of the old equipment
ACC 561 Week 6 WileyPLUS Assignment
WileyPLUS Assignment Week 6 Assignment
Resource: WileyPLUS
Complete the following Week 6 Assignment in WileyPLUS:
35. • Exercises: 20-3
• Exercises: 22-1
• Brief Exercise 23-3
• Brief Exercise 23-4
• Brief Exercise 23-6
ACC 561 Week 6 Complete
DQ 1.Can you provide some examples of sunk, opportunity and erosion costs?
DQ 2.Can you think of one situation where you can use and apply incremental analysis at home
or work? Explain briefly the situation and how you would conduct the analysis.
WileyPLUS Assignment Week 6 Practice Quiz
Resource: WileyPLUS
Complete the Week 6 Practice Quiz in WileyPLUS.
WileyPLUS Assignment Week 6 Assignment
Resource: WileyPLUS
Complete the following Week 6 Assignment in WileyPLUS:
• Exercises: 20-3
• Exercises: 22-1
• Brief Exercise 23-3
• Brief Exercise 23-4
• Brief Exercise 23-6
WileyPLUS Assignment Final Examination
Resource: WileyPLUS
36. Complete the Final Examination in WileyPLUS. Results are auto graded and
sent to your instructor.
ACC 561 Week 6 Final Exam
49.Which of the following is an advantage of corporations relative to partnerships and sole
proprietorships?
Lowertaxes.
Harder to transferownership.
Most commonform of organization.
Reducedlegal liabilityforinvestors.
64. The group of users of accounting information charged with achieving the goals of the
business is its
auditors.
creditors.
managers.
investors.
110. Which of the following financial statements is concerned with the company at a point
in time?
Income statement.
Balance sheet.
RetainedEarningsstatement.
Statementof cashflows.
112. An income statement
presentsthe revenuesandexpensesforaspecificperiodof time.
summarizesthe changesinretainedearningsforaspecificperiodof time.
reportsthe assets,liabilities,andstockholders’equityata specificdate.
37. reportsthe changesin assets,liabilities,andstockholders’equityovera
periodof time.
118. The most important information needed to determine if companies can pay their
current obligations is the
netincome forthisyear.
relationship betweencurrentassetsandcurrentliabilities.
projectednetincome fornextyear.
relationshipbetweenshort-termandlong-termliabilities.
124. A liquidity ratio measures the
short-termabilityof acompanyto payits maturingobligationsandtomeetunexpectedneeds
for cash.
percentage of total financingprovidedbycreditors.
income or operatingsuccessof acompany overa periodof time.
abilityof a companyto survive overalongperiodof time.
165. The convention of consistency refers to consistent use of accounting principles
throughoutthe accountingperiods.
amongfirms.
withinindustries.
amongaccountingperiods.
90.Horizontal analysis is also known as
commonsize analysis.
linearanalysis.
vertical analysis.
trendanalysis.
92. Horizontal analysis is a technique for evaluating a series of financial statement data
over a period of time
to determine whichitemsare inerror.
38. that has beenarrangedfromthe highestnumbertothe lowestnumber.
to determine the amountand/orpercentageincreaseordecrease thathas
takenplace.
that has beenarrangedfromthe lowestnumbertothe highestnumber.
111. Vertical analysis is a technique that expresses eachitem in a financial statement
as a percentof a base amount.
indollarsand cents.
startingwiththe highestvalue downtothe lowestvalue.
as a percentof the iteminthe previousyear.
41. Process costing is used when
the productionprocessiscontinuous.
costs are to be assignedtospecificjobs.
productionisaimedatfillingaspecificcustomerorder.
dissimilarproductsare involved.
43. An important feature of a job order cost systemis that each job
mustbe similartopreviousjobscompleted.
has itsowndistinguishingcharacteristics.
mustbe completedbefore anew jobisaccepted.
consistsof one unitof output.
49. In a process cost system, product costs are summarized:
on jobcost sheets.
on productioncostreports.
whenthe productsare sold.
aftereach unitisproduced.
33. An activity that has a direct cause-effect relationship with the resources consumed is
a(n)
overheadrate.
39. productactivity.
cost driver.
cost pool.
40. Activity-based costing
allocatesoverheadtomultiple activitycostpools,anditthenassignsthe activitycostpoolsto
productsand servicesbymeansof cost drivers.
assignsactivitycostpoolstoproducts andservices,thenallocatesoverheadbacktothe activity
cost pools.
accumulatesoverheadinone costpool,then assignsthe overheadtoproductsandservicesby
meansof a cost driver.
allocatesoverheaddirectlytoproductsandservicesbasedonactivitylevels.
40. A cost which remains constant per unit at various levels of activity is a
mixedcost.
fixedcost.
manufacturingcost.
variable cost.
105. The break-even point is where
total salesequal total variable costs.
total variable costsequal total fixedcosts.
total salesequal total fixedcosts.
contributionmarginequalstotal fixedcosts.
109. Fixed costs are $600,000 and the contribution margin per unit is $150. What is the
break-even point?
$1,500,000
$4,000,000
1,500 units
4,000 units
40. 94. When a company assigns the costs of direct materials, direct labor,
and both variable and fixed manufacturing overhead to products, that
company is using
productcosting.
operationscosting.
absorptioncosting.
variable costing.
122. If a division manager's compensation is based upon the division's net income, the
manager may decide to meet the net income targets by increasing production when using
variable costing,inordertoincrease netincome.
variable costing,inordertodecrease netincome.
absorptioncosting,inordertoincrease netincome.
absorptioncosting,inordertodecrease netincome.
50. An unrealistic budget is more likely to result when it
has beendevelopedbyall levelsof management.
has beendevelopedinabottomup fashion.
has beendevelopedinatop downfashion.
isdevelopedwithperformance appraisalusagesinmind.
39. A major element in budgetary control is
the valuationof inventories.
the preparationof long-termplans.
approval of the budgetby the stockholders.
the comparisonof actual resultswithplannedobjectives.
43. The purpose of the sales budget report is to
control salescommissions.
control sellingexpenses.
determine whetherincome objectivesare beingmet.
determine whethersalesgoalsare beingmet.
41. 89. The accumulation of accounting data on the basis of the individual
manager who has the authority to make day-to-day decisions about
activities in an area is called
flexible accounting.
staticreporting.
responsibilityaccounting.
masterbudgeting.
142. Variance reports are
external financial reports.
SEC financial reports.
internal reportsformanagement.
all of these.
40. Internal reports that review the actual impact of decisions are prepared by
the controller.
managementaccountants.
factoryworkers.
departmentheads.
42. The process of evaluating financial data that change under alternative courses of action
is called
cost-benefitanalysis.
contributionmarginanalysis.
incremental analysis.
double entryanalysis.
54.Seasons Manufacturing manufactures a product with a unit variable cost of $100 and a
unit sales price of $176. Fixed manufacturing costs were $480,000 when 10,000 units were
produced and sold. The company has a one-time opportunity to sell an additional 1,000
units at $140 each in a foreign market which would not affect its present sales. If the
company has sufficient capacity to produce the additional units, acceptance of the special
order would affect net income as follows:
42. Income wouldincrease by$40,000.
Income woulddecrease by$8,000.
Income would increase by$140,000.
Income wouldincrease by$8,000.
70. Carter, Inc. can make 100 units of a necessary component part with the following costs:
Direct Materials $120,000
Direct Labor 20,000
Variable Overhead 60,000
Fixed Overhead 40,000
If Carter can purchase the component externally for $220,000 and only $10,000 of the fixed
costs can be avoided, what is the correct make-or-buy decision?
Buy andsave $30,000
Make and save $10,000
Buy andsave $10,000
Make and save $30,000
84. A company has a process that results in 15,000 pounds of Product A that can be sold for
$16 per pound. An alternative would be to process Product A further at a cost of $200,000
and then sell it for $28 per pound. Should management sell Product A now or should
Product A be processedfurther and then sold? What is the effect of the action?
Sell now,the companywill be betteroff by$20,000.
Sell now,the companywill be betteroff by$200,000.
Processfurther,the companywill be betteroff by$180,000.
Processfurther,the companywill be betteroff by$20,000.
You can find more information of this website :-
ACC 291 Final Exam
ACC 561 Final Exam
43. BUS 475 Capstone Final Examination Part 1
BUS 475 Capstone Final Examination Part 2
COM 295 Final Exam
COM 537 Final Exam
ECO 365 Final Exam
ECO 372 Final Exam
ECO 561 Final Exam
FIN 370 Final Exam
Visit to site for more details : - http://www.uopetutors.com/