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NEW QUESTION 44
MJC Co. is considering adopting a variable costing system using variable costing rather than absorption costing will be more advantageous to MJC because the variable costing system

  • A. focuses on gross profit as the best indicator of a company’s ability to cover its expenses
  • B. allows the financial statements released to internal users to agree with the GAAP financial statements issued for external use
  • C. assigns all costs of manufacturing to products in order to properly match cost of production with revenues
  • D. more readily provides data needed for cost/volume/profit analyses done by management

Answer: D

 

NEW QUESTION 45
One major output of an accounting information system’s financing cycle is a summary of

  • A. forecasted cash needs
  • B. actual operating cash inflows
  • C. current cash balances.
  • D. actual operating cash outflows

Answer: A

 

NEW QUESTION 46
A manufacturing company is setting a standard number of labor hours for a product Management creates a draft standard and asks for employees’ feedback. Which one of the following statements best represents the type of standard that is being set?

  • A. A participative standard because the employees will more likely view the standard as reasonable.
  • B. An authoritative standard because management still will ensure the standard fits the strategy
  • C. An authoritative standard because the employees helped to determine the standard
  • D. A participative standard because It includes management’s Input to determine the standard.

Answer: A

 

NEW QUESTION 47
Redstone, inc’s budget indicated that it expected to sell 30.000 units of Product A and 90.000 units of Product B Budgeted unit contribution margins were $4 for Product A and $22 for Product B Redstone’s actual sales were 28.000 units of Product A and 72.000 units of Product B with actual unit contribution margins of $3 25 and S23 50. respectively. Redstone’s sales-mix variance was

  • A. $60,750 unfavorable
  • B. $78,000 unfavorable.
  • C. $64,800 unfavorable
  • D. $54,000 unfavorable

Answer: D

 

NEW QUESTION 48
A building materials retailer uses a LIFO method of valuing its inventory. The company has just introduced a new product. The following is the activity for the first month of this new product.
* Purchase of 3,000 units on the 2nd of the month at $5.00.
* Purchase of 6,000 units on the 12th of the month at $4.80.
* Purchase of 2,000 units on the 31st of the month at $5 60.
* Sales of the product were 4,000 units on the 20th of the month.
Using the periodic method, the ending value of the inventory would be

  • A. $34,200.
  • B. $35,000.
  • C. $35, 800.
  • D. $35,200.

Answer: D

 

NEW QUESTION 49
……

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