管理会计示范性双语课件习题01
管理会计示范性双语课件习题07
管理会计示范性双语课件习题07CHAPTER 7MANAGEMENT ACCOUNTING AND CONTROLSYSTEMS: ASSESSING PERFORMANCE OVER THEVALUE CHAINTRUE/FALSE1. A system is in control if it is on the path to achieving its strategicobjectives.a. Trueb. False2. For the process of control to have meaning, the organization must beable to identify and correct out-of-control situations.a. Trueb. False3. The same basic control process applies to all industries.a. Trueb. False4. One key difference in the control process lies in determining the mostappropriate types of performance measures for each company.a. Trueb. False5. The control function in management accounting focuses on discipliningemployees who do not meet targeted production levels.a. Trueb. False6. The scope of a well-designed management accounting and controlsystem should be on manufacturing rather than on the entire value chain.a. Trueb. False7. A well-designed management accounting and control system shouldprovide a consistent framework across the organization and yet allow flexibility to accommodate the local needs of each division.a. Trueb. False8. Total-life-cycle costing manages costs along the entire value chain.a. Trueb. False9. Deciding how to allocate organizational resources over the life cycle isprimarily determined during the manufacturing stage.a. Trueb. False10. The proportion of costs incurred during each stage of the product lifecycle varies by industry.a. Trueb. False11. Deciding how to allocate resources over the life cycle is usuallydecided once at the beginning of the design phase.a. Trueb. False12. To be profitable, a company must generate revenues to cover costsincurred throughout the entire value chain.a. Trueb. False13. By some estimates, 10-15% of product’s total life costs are committedduring the research, development, and engineering cycle.a. Trueb. False14. Spending more on the design phase of a new product usually reducessubsequent product-related costs.a. Trueb. False15. One goal of target costing is to design costs out of products during theresearch, development, and engineering stage of the product life cycle.a. Trueb. False16. Target costing starts by estimating expected product costs.a. Trueb. False17. Suppliers play a key role in the success of target costing.a. True18. Supply chain management may result in buyers and suppliers sharinginformation about each other’s companies.a. Trueb. False19. Guiding the target costing process is a cross-functional team made upof individuals from within and from outside the organization.a. Trueb. False20. One concern of target costing is that even though the target cost mightbe met, increased development time may cause the product to come late to market.a. Trueb. False21. Target costing uses the total-life-cycle concept by making it a key goalto minimize the cost of ownership.a. Trueb. False22. Target costing is a comprehensive approach to profit planning and costmanagement.a. Trueb. False23. Kaizen costing offers more opportunity to affect change than targetcosting.b. False24. Employee burnout is a problem for Kaizen costing but not for targetcosting.a. Trueb. False25. The goal of target costing is to reduce costs through small, incrementalchanges.a. Trueb. False26. Kaizen costing assumes engineers and managers possess the bestknowledge to improve processes and reduce costs.a. Trueb. False27. Kaizen costing requires relevant financial results to be shared withfront-line employees.a. Trueb. False28. Environmental costing computes the cost effects an organization hason the environment.a. Trueb. False29. Benchmarking partners should be within the same industry.a. TrueMULTIPLE CHOICE30. Which BEST describes the control function in a managementaccounting and control system?a. MACS seeks out areas that are out-of-control for correctiveaction.b. MACS achieves cost reduction targets that are continuallyadjusted downward.c. MACS guides and motivates employees to achieve organizationalobjectives.d. MACS ensures performance standard goals are being met.31. For the process of control to have meaning and credibility, the BESTresponse is:a. the organization must have the ability to correct situations that itidentifies as out-of-controlb. a consistent framework must be applied globally across theorganizationc. reports need to be generated that are both timely and accurated. information must be gathered about the best practices of others32. Which of the following is NOT true regarding a control system?a. A control system includes developing organizational objectivesand executing a plan for implementation.b. A control system includes monitoring the current level ofperformance and comparing it to the planned level of performance.c. The same performance measures apply to all organizations.d. The basic control process applies to all organizations.33. The process of keeping an organization in control consists of thefollowing five stages:a. research and development, design, manufacturing, marketing, andserviceb. research and development, design, manufacturing, distribution,and disposalc. planning, design, manufacturing, marketing, and benchmarkingd. planning, execution, monitoring, evaluation, and correcting34. A management accounting and control system is in control if it is onthe path:a. to achieving its strategic objectivesb. to implementing a planc. to developing objectivesd. to measuring performance35. Which BEST describes the purpose of a management accounting andcontrol system (MACS)?a. A MACS defines the value chain and identifies nonvalue-activities for a business.b. A MACS helps decision makers determine whether strategies andobjectives are being met.c. A MACS offers a system of controls to ensure employees aremeeting predetermined standards.d. A MACS provides a signal for management attention whenareas are out-of-control.36. A well-designed management accounting and control system assessesperformance:a. primarily in the actual production processb. primarily in the research, development, and engineering cyclec. primarily in the post-sales service and disposal cycled. over the entire value chain of activities37. The two major categories of technical considerations for amanagement accounting and control system are:a. design and accuracyb. relevance and scopec. service and timely informationd. development and flexibility38. Relevance of information includes providing all of the followingEXCEPT:a. the most accurate information possibleb. a global framework that can be applied uniquely to eachor unitc. feedback on performance measures in a timely fashiond. different costing methods for each division39. The scope of management accounting and control system technicalconsiderations should include:a. the performance of suppliersb. design activitiesc. the actual production processd. All of the above are correct.40. Information is relevant if:a. it can be applied in a flexible mannerb. it is inaccuratec. it is inconsistentd. it is late41. By some estimates, 80% to 85% of a product’s total life costs arecommitted by decisions made during the __________ cycle.a. research, development, and engineeringb. manufacturingc. post-sale service and disposald. operating42. The characteristic of a management accounting and control system thatallows employees to customize applications for local decisions isreferred to as being:a. timelyb. flexiblec. accurated. in control43. The characteristic of a management accounting and control system thatmeans the language used and the technical methods applied do notconflict within various parts of the organization is referred to as being:a. in controlb. accuratec. consistentd. Kaizen44. For most products, the majority of costs are incurred during the:a. research, development, and engineering cycleb. manufacturing cyclec. post-sale service and disposal cycled. operating cycle45. Facilities layout and just-in-time manufacturing help reduce costsincurred during the:a. research, development, and engineering cycleb. manufacturing cyclec. post-sale service and disposal cycled. operating cycle46. Total-life-cycle costing is the name given to:a. a method of cost planning to reduce manufacturing costs totargeted levelsb. the process of examining each component of a product todetermine whether its cost can be reducedc. the process of managing all costs along the value chaind. a system that focuses on reducing costs during the manufacturingcycle47. Deciding how to allocate resources over the life cycle usually is:a. decided once at the beginning of the design phaseb. not known until the beginning of the manufacturing cyclec. part of product developmentd. an iterative process over the life of the product48. Total-life-cycle costing is the process of managing costs within:a. research, development, and engineering, manufacturing, andpost-sale service and disposalb. market research, product design, and product developmentc. planning, monitoring, and correctingd. timeliness, consistency, and flexibility49. The service cycle consists of the following stages:a. market research, product design, and product developmentb. research, development, and engineering, manufacturing, and post-sale service and disposalc. selling price, target profit, and target costd. rapid growth, transition, and maturity50. An understanding of total-life-cycle costs can lead to:a. additional costs during the manufacturing cycleb. less need for the evaluation of opportunity costsc. cost effective product designs that are easier to serviced. mutually beneficial relationships between buyers and sellers51. Emerging customer needs are assessed and ideas generated for newproducts during the __________ stage of research, development, and engineering.a. market researchb. product designc. product developmentd. service52. Total-life-cycle costing is particularly important when:a. the development period for research, development, andengineering is short and inexpensiveb. there are significant nonproduction costsc. most costs are locked in during productiond. a low percentage of costs are incurred before any revenues arereceived53. The best chance of incorporating engineering flexibility is during the:a. research, development, and engineering cycleb. manufacturing cyclec. post-sale service and disposal cycled. operating cycle54. One goal of __________ is to design costs out of products in theresearch, development, and engineering stage.a. cost-plus pricingb. target costingc. Kaizen costingd. traditional costing55. __________ starts with estimated product costs and next determinesthe estimated selling price.a. Standard costingb. Target costingc. Kaizen costingd. Traditional costing56. __________ starts with estimated product costs and next adds theexpected profit margin.a. Cost-plus pricingb. Target costingc. Kaizen costingd. Standard costing57. All of the following are true regarding target costing EXCEPT that:a. improvements are implemented in small, incremental amountsb. customer input is collected continually throughout the targetcosting processc. input is requested from suppliers and distributorsd. a key goal is to minimize costs over the product’s useful life58. All of the following are associated with target costing EXCEPT:a. value engineeringb. target reduction ratesc. supply-chain managementd. cross-functional teams59. Concerns about target costing include all EXCEPT that:a. attention may be diverted away from other company goalsb. excessive pressure is put on suppliersc. development time may decreased. burnout of design engineers occurs60. Target costing differs from traditional costing in all of the followingways EXCEPT:a. target costing collects market research continually throughout thetarget costing process rather than as a single eventb. target costing uses the total-life-cycle concept to minimizeownership costsc. traditional costing spends less time on product specification anddesignd. traditional costing uses cross-functional teams to guide theprocess61. Target costing is:a. used for short-term pricing decisionsb. one form of cost-plus pricingc. where the selling price estimate is based on the customers’perceived value of the productd. where the relevant costs are all variable costs62. Relevant costs for target pricing include:a. variable manufacturing costsb. variable manufacturing and variable nonmanufacturing costsc. all fixed costsd. all future costs, both variable and fixed63. Place the following steps for the implementation of target costing inorder:A = Derive a target costB = Develop a target selling priceC = Perform value engineeringD = Determine target profit margina. B D A Cb. B A D Cc. A D B Cd. A B C D64. Value engineering may result in all of the following EXCEPT:a. improved product designb. changes in materials specificationsc. increases in the quantity of nonvalue-added cost driversd. the evaluation of all business functions within the value chain65. To design costs out of products is a goal of:a. cost-plus pricingb. target costingc. kaizen costingd. peak-load costing66. The product strategy in which companies first determine the price atwhich they can sell a new product and then design a productthat can be produced at a low enough cost to provide adequate operating income is referred to as:a. cost-plus pricingb. target costingc. kaizen costingd. full costingTHROUGH 70.After conducting a market research study, Schultz Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $60. The annual target sales volume for interior doors is 20,000. Schultz has a 20% expected return on sales target.67. What are target sales revenues?a. $960,000b. $2,000,000c. $1,200,000d. None of the above is correct.68. What is the target profit margin?a. $240,000b. $300,000c. $192,000d. $180,00069. What is the target cost?a. $900,000b. $960,000c. $1,260,000d. $1,008,00070. What is the target cost for each interior door?a. $48b. $58c. $60d. $45THROUGH 73.Dennis’ TV currently sells small televisions for $180. It has costs of $140.A competitor is bringing a new small television to market that will sell for $150. Management believes it must lower the price to $150 to compete in the market for small televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the ma rket. Dennis’ sales are currently 100,000 televisions per year.71. What is the change in profit margin if Marketing is correct and onlythe sales price is changed?a. $1,100,000b. $300,000c. $(1,100,000)d. $(2,900,000)72. What is the new target cost if profit margin is 25% of sales?a. $37.50b. $45.00c. $112.50d. $135.0073. What is the target cost if the company wants to maintain its sameprofit margin and Marketing is correct?a. $112.50b. $113.64c. $123.34d. $140.0074. __________ focuses on reducing costs during the manufacturingstage.a. Cost-plus pricingb. Target costingc. Kaizen costingd. Traditional costing75. All below are true regarding Kaizen costing EXCEPT that:a. cost-variance analysis compares target Kaizen costs with actualcost reduction amountsb. cost reductions apply to all variable costsc. workers are assumed to have the best knowledge to improveprocesses and reduce costsd. cost reduction targets are set and applied on an annual basis76. Concerns about Kaizen costing include:a. radical process improvementsb. excessive pressures are put on employeesc. focus is on the overall systemd. grace periods may be granted77. All of the following are associated with Kaizen costing EXCEPT:a. target reduction rateb. supply-chain managementc. cost reductions during manufacturingd. small monthly cost reductionsTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 78AND 79.Dan and Donna Enterprises are using the Kaizen approach to budgeting for 2005. The budgeted income statement for January 2005 is as follows: Sales (84,000 units) $500,000Less: Cost of goods sold 300,000Gross margin 200,000Operating expenses (includes $50,000 of fixed costs) 150,000 Operating income $ 50,000Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.78. What is budgeted cost of goods sold for March 2005?a. $294,030b. $294,000c. $300,000d. $297,00079. What is budgeted gross margin for March 2005?a. $196,020b. $198,000c. $204,020d. $205,97080. Environmental costing includes all below EXCEPT:a. target reduction ratesb. selecting suppliers with matching environmental philosophiesc. disposing of waste productsd. addressing post-sale disposal issues81. Benchmarking partners:a. have to be of equal sizeb. are most likely to be industry leadersc. have to be within the same industryd. have to trust each other。
(完整版)管理会计课后习题学习指导书习题答案(第一章)
第一章课后习题一、思考题1.从管理会计定义的历史研究中你有哪些思考和想法？答：从管理会计定义的历史研究中我发现，管理会计的概念是随着历史的发展不断完善的，因为在历史进程中，人们会发现原有概念的不足，进而不断去修改完善，这才有了现在的管理会计。
这也启发了我们，要善于发现问题，去思考，解决问题。
2.经济理论对管理会计的产生和发展有哪些重要影响？你从中得到了什么启示？答：社会经济的发展和经济理论的丰富，使得管理会计的理论体系逐渐完善，内容更加丰富，逐步形成了预测、决策、预算、控制、考核、评价的管理会计体系。
由于市场竞争的日趋激烈，人们认识到对外部环境的准确决策就是不可能的，企业的计划必须以外部环境的变化为基础，更加留心市场变化的动态，更加密切关注竞争对手。
与此相适应，战略管理的理论有了长足的发展。
这启示了我们，要细心观察，因地制宜，适应变化莫测的外部环境，进行自身调整。
同时，实践出真知，只有经过了实践考验理论才是好理论。
3.科学管理理论对现代管理会计有哪些重要影响？这些影响在管理会计的不同发展阶段是如何表现的？答：现代管理科学为管理会计的形成奠定了一定的基础。
在以成本控制为基本特征的管理会计阶段，古典组织理论特别是科学管理理论的出现促使现代会计分化为财务会计和管理会计，现代会计的管理职能得以表现出来。
该阶段，管理会计以成本控制为基本特征，以提高企业的生产效率和工作效率为目的，其主要内容包括标准成本、预算控制、差异分析。
在以预测、决策为基本特征的管理会计阶段，以标准成本制度为主要内容的管理控制继续得到了强化并有了新的发展。
责任会计将行为科学的理论与管理控制的理论结合起来，不仅进一步加强了对企业经营的全面控制（不仅仅是成本控制），而且将责任者的责、权、利结合起来，考核、评价责任者的工作业绩，从而极大地激发了经营者的积极性和主动性。
社会经济的发展和经济理论的丰富，使得管理会计的理论体系逐渐完善。
4.什么是价值链分析？价值链分析的目的是什么？答：价值链分析是指将一个企业的经营活动分解为若干战略性相关的价值活动，每一种价值活动都会对企业的相对成本产生影响，进而成为企业采取差异化战略的基础。
{财务管理财务会计}管理会计示范性双语讲义习题
{财务管理财务会计}管理会计示范性双语讲义习题CHAPTER1MANAGEMENTACCOUNTING:INFORMATIONTHATCREATESVALUE TRUE/FALSE1.Managementaccountinggathersshort-term,long-term,financial,andnonfinancialinformation.a.Trueb.False2.Managementaccountinginformationgenerallyreportsontheorganizationas awhole.a.Trueb.Falsepanieshavetofollowstrictguidelineswhendesigningamanagementacco untingsystem.a.Trueb.False4.Agoodmanagementaccountingsystemisintendedtomeetspecificdecision-makingneedsatalllevelsintheorganization.a.Trueb.False5.Duringthehistoryofmanagementaccounting,innovationsweredevelopedto addressthedecision-makingneedsofmanagers.a.Trueb.False6.Akeyelementinanyorganization’sstrategyistoidentifyitstargetcustomersandtodeliverwhatthosetargetcustomerswant.a.Trueb.False7.Thevaluepropositionhasonlytwoelements:costandquality.a.Trueb.False8.Qualityisthedegreeofconformancebetweenwhatthecustomerispromisedan dwhatthecustomerreceives.a.Trueb.False9.Recently,thedemandforimprovedmanagementaccountingandcontrolinfor mationwithinmanufacturingfirmshasalsooccurredinserviceorganizations.a.Trueb.False10.Recently,thepetitiveenvironmentforbothmanufacturingandservicepanies hasbeefarmorechallenginganddemanding.a.Trueb.False11.Servicepaniesareverysimilartomanufacturingpaniesinmayways,includingt hefactthatmanyemployeeshavedirectcontactwithcustomers.a.Trueb.False12.Sensitivitytotimelinessandqualityofserviceisespeciallyimportanttoservice organizations.b.Falseernmentandnonprofitorganizations,aswellasprofit-seekingenterprises,arefeelingthepressuresforimprovedperformance.a.Trueb.False14.Managementaccountinginformationallowsmanagerstopareactualandpla nnedcostsandtoidentifyareasandopportunitiesforprocessimprovement.a.Trueb.False15.Managementaccountingcanprovideinformationoncustomersatisfaction.a.Trueb.False16.ROI(returnoninvestment)binestwoprofitabilitymeasurestoproduceasingle measureofdepartmentalordivisionalperformance.a.Trueb.False17.Around1920,centralizedcontrolofdecentralizedoperationswasacplishedb yhavingcorporatemanagersreceivefinancialreportsaboutdivisionaloperation sandprofitability.a.Trueb.False18.Inthelate1990s,littleinterestorattentionwaspaidtoevaluatingmanagement ’sappropriategovernanceandstrategychoices.b.False19.Financialinformationidentifiesandexplainstheunderlyingproblems.a.Trueb.False20.Managementaccountingmeasurescanprovideadvancewarningsofproble ms.a.Trueb.False21.Customersatisfactionisanexampleoffinancialinformation.a.Trueb.False22.Operatingprofitisanexampleofnonfinancialinformation.a.Trueb.Falseanizationalleadershipplaysacriticalroleinfosteringanorganization’s c ultureofhighethicalstandards.a.Trueb.Falsermationisneverneutral;justtheactofmeasuringandreportinginformatio naffectstheindividualsinvolved.a.Trueb.False25.Boundarysystemsarealwaysstatedinpositivetermsthatoutlinemaximumsta ndardsofbehavior.a.Trueb.FalseMULTIPLECHOICE26.Managementaccountinghelpsapanyachieve:a.itsstrategicobjectivesb.itsoperationalobjectivesc.controlandalsosupportsperformanceevaluationd.Alloftheabovearecorrect.27.Whichofthefollowingtypesofinformationareusedinmanagementaccounti ng?a.financialinformationb.nonfinancialinformationrmationfocusedonthelongtermd.Alloftheabovearecorrect.28.Managementaccounting:a.focusesonestimatingfuturerevenues,costs,andothermeasurestoforecastacti vitiesandtheirresultsb.providesinformationaboutthepanyasawholec.reportsinformationthathasoccurredinthepastthatisverifiableandreliabled.providesinformationthatisgenerallyavailableonlyonaquarterlyorannualbasi s29.Whichofthefollowingdescriptorsrefertomanagementaccountinginformati on?a.Itisverifiableandreliable.b.Itisdrivenbyrules.c.Itispreparedforshareholders.d.Itprovidesreasonableandtimelyestimates.30.Whichofthefollowingstatementsreferstomanagementaccountinginformat ion?a.Therearenoregulationsgoverningthereports.b.Thereportsaregenerallydelayedandhistorical.c.Theaudiencetendstobestockholders,creditors,andtaxauthorities.d.Thescopetendstobehighlyaggregate.31.Managementaccountinginformationincludes:a.tabulatedresultsofcustomersatisfactionsurveysb.thecostofproducingaproductc.thepercentageofunitsproducedthatisdefectived.Alloftheabovearecorrect.32.ManagementaccountingreportsMOSTlikelyincludeinformationabout:a.customerplaintsinefortheyearc.totalassetsd.Alloftheabovearecorrect.33.ThepersonMOSTlikelytousemanagementaccountinginformationisa(n):a.bankerevaluatingacreditapplicationb.shareholderevaluatingastockinvestmenternmentaltaxingauthorityd.assemblydepartmentsupervisor34.WhichofthefollowingisNOTafunctionofamanagementaccountingsystem?a.strategicplanningb.financialreportingc.operationalcontrold.productcosting35.FinancialaccountingprovidesthePRIMARYsourceofinformationfor:a.decisionmakinginthefinishingdepartmentb.improvingcustomerservicec.preparingtheinestatementforshareholdersd.planningnextyear’soperatingbudget36.Financialaccounting:a.focusesonthefutureandincludesactivitiessuchaspreparingnextyear'soperati ngbudgetb.mustplywithGAAP(generallyacceptedaccountingprinciples)c.reportsincludedetailedinformationonthevariousoperatingsegmentsoftheb usinesssuchasproductlinesordepartmentsd.ispreparedfortheuseofdepartmentheadsandotheremployees37.ThepersonMOSTlikelytouseONLYfinancialaccountinginformationisa:a.factoryshiftsupervisorb.vicepresidentofoperationsc.currentshareholderd.departmentmanager38.Theaccountingprocessisconstrainedbymandatedreportingrequirementsb yallofthefollowingorganizationsEXCEPTthe:a.InternalRevenueService(IRS)b.InstituteofManagementAccountants(IMA)c.FinancialAccountingStandardsBoard(FASB)d.SecuritiesandExchangeCommission(SEC)forpaniesthatarepubliclytraded39.Historically:a.inthebeginningofthe20th century,theGuildskeptdetailedrecordsofrawmateri alsandlaborcostsasevidenceofproductqualityb.inmedievalEngland,thebasicsofmodernmanagementaccountingemergedw ithstandardsformaterialuse,employeeproductivity,andbudgetsc.inthelate19th century,railroadmanagersimplementedlargeandplexcostingsy stemstoputethecostofdifferenttypesoffreightd.from1400-1600,largeandintegratedpaniessuchasDuPontandGeneralMotors,developed waystomeasurereturnoninvestment40.Ingeneral,itwasnotuntilthe1970sthatmanagementaccountingsystems:a.wereimprovedbecauseofdemandsbytheFASBandtheSECb.stagnatedandprovedinadequatec.startedtodevelopinnovationsincostingandperformance-measurementsystemsduetointensepressurefromoverseaspetitorsd.startedtoaddressthedecision-makingneedsofmanagers41.Allsuccessfulorganizationsmustidentifyandunderstandtheir:a.weaknessesb.petitionc.strategyd.definitionofquality42.Akeyelementofanyorganization’sstrategyisidentifying:a.itspotentialshareholdersb.itstargetcustomersc.petitor’sproductsd.employeeneeds43.Whatanorganizationtriestodelivertocustomersiscalleditsvalueproposition ,whichincludestheelementsof:a.costandqualityb.cost,quality,andfunctionalityandfeaturesc.cost,quality,functionalityandfeatures,andserviced.cost,quality,functionalityandfeatures,service,andindustrystandards44.Thepricepaidbythecustomer,giventheproductfeaturesandpetitor’sprices ,isreferredtoasthe__________elementofthevalueproposition.a.costb.industrystandardsc.qualityd.service45.Thedegreeofconformancebetweenwhatthecustomerispromisedandwhatt hecustomerreceivesisreferredtoasthe__________elementofthevaluepropositio n.a.costb.industrystandardsc.qualityd.service46.Theperformanceoftheproduct,forexample,amealinarestaurantprovidesth edinerwiththelevelofsatisfactionexpectedforthepricepaid,isreferredtoasthe__ ________elementofthevalueproposition.a.functionalityandfeaturesb.industrystandardsc.qualityd.service47.Howthecustomeristreatedatthetimeofthepurchaseisanexampleofthe_____ _____elementofthevalueproposition.a.functionalityandfeaturesb.industrystandardsc.qualityd.service48.Managementaccountingprovides:rmationontheefficiencyoffactorylaborrmationonthecostofservicingmercialcustomersrmationontheperformanceofanoperatingdivisiond.Alloftheabovearecorrect.49.WhichofthefollowinggroupswouldbeLEASTlikelytoreceivedetailedmanag ementaccountingreports?a.stockholdersb.customerservicerepresentativesc.productionsupervisord.vicepresidentofoperations50.Topexecutivesofamulti-plantfirmareLEASTlikelytousemanagementaccountinginformation:a.tosupportdecisionsthatresultinlong-termconsequencesb.toevaluatetheperformanceofindividualplantsc.forstrategicplanningd.foroperationalcontrol51.ManagersofservicedepartmentsneedallofthefollowinginformationEXCEPT:a.efficiencydataonworkperformanceb.qualitydataonworkperformancec.profitabilitydataofthewholepanyd.profitabilitydataoftheservicedepartmentrmationMOSTus efultothe employeewhoassembles thefurnitureincludes:a.adailyreportparingtheactualtimeittooktoassembleapieceoffurnituretothest andardtimeallowedb.amonthlyreportontheportionoffurniturepiecesassembledwithdefectsc.thenumberoffurniturepiecessoldthismonthd.revenueperemployeermationMOSTus efultothe topexecutive includes:a.individualjobsummariesofmaterialsusedb.monthlyfinancialreportsonthepany’sprofitabilitybyproductlinec.timereportssubmittedbyeachemployeed.scheduleddowntimeforroutinemaintenanceonmachines54.AquarterlyreportdisclosingdecliningmarketshareinformationisMOSTusef ulto:a.afront-lineemployeeb.themanagerofoperationsc.thechiefexecutiveofficerd.theaccountingdepartment55.Aweeklyreportparingmachinetimeusedtoavailablemachinetimeisinformat ionMOSTusefulto:a.afront-lineemployeeb.themanagerofoperationsc.thechiefexecutiveofficerd.theaccountingdepartment56.Adailyreportonthenumberofqualityunitsassembledbyeachemployeeisinf ormationMOSTusefulto:a.afront-lineassemblyworkerb.theaccountingdepartmentc.thechiefexecutiveofficerd.thepersonneldepartment57.WhichofthefollowingwouldbeLEASThelpfulforatopmanagerofapany?a.profitabilityreportofthepanyrmationtomonitorhourlyanddailyoperationsc.numberofcustomerplaintsd.operatingexpensesummaryreportedbydepartment58.Recently,increaseddemandformanagementaccountinginformationhasbeen:a.primarilyfrommanufacturingfirmsb.primarilyfromserviceorganizationsc.fromboththemanufacturingandtheserviceindustriesd.anillusion;infact,thedemandformanagementaccountinghaschangedverylitt le59.Managementaccountingcanplayacriticalroleintheserviceindustrybecause ofallthefollowingreasonsEXCEPT:a.firmsmustbeespeciallysensitivetothetimelinessandqualityofcustomerservic eb.manyemployeeshaveverylittlecontactwithcustomersc.customersimmediatelynoticedefectsandadelayinserviced.dissatisfiedcustomersmayneverreturn60.Historically,theNEGLECTofmanagementaccountingintheserviceindustryw asaresultof:a.nonpetitiveenvironmentsb.globalcustomerdemandsc.theswitchtofreemarketeconomiesd.aninfluxofhigher-qualityandlower-pricedproductsfromoverseas61.Currently,managementaccountinginformationwithingovernmentandnon profitorganizationsisingreaterdemandbecause:a.publicandprivatedonorsaredemandingaccountabilityb.citizensarerequestingresponsiveandefficientperformancefromtheirgoverni ngunitsc.morenonprofitorganizationsarepetingforlimitedfundsd.Alloftheabovearecorrect.62.Currently,pressuresforimprovedcostandperformancemeasurementsarebe ingfeltby:a.nonprofitorganizationsernmentalagenciesc.profit-seekingenterprisesd.Alloftheabovearecorrect.63.Financialaccountinginformation:a.providesasignalthatsomethingiswrongb.identifieswhatiswrongc.explainswhatiswrongd.simplysummarizesinformationbutgivesnoindicationthatanythingiswrong64.Decentralizedresponsibilityreferstoallowinglower-levelmanagerstodoallofthefollowingEXCEPT:a.makedecisionswithoutseekinghigherapprovalb.takeadvantageoflocalopportunitiesc.makeperiodicfinancialreportstoupper-managementd.pursueindividualobjectiveseventhoughtheymaynotcontributetotheentirepany65.Thereturnoninvestment(ROI)performancemeasureuses__________toevalua tetheperformanceofoperatingdivisions.a.asinglenumberb.fournumbersc.fivenumbersd.tennumbers66.Thereturnoninvestment(ROI)performancemeasurebines__________toprod uceameasureofdepartmentalperformance.a.twoprofitabilitymeasuresb.twocapitalutilizationmeasuresc.oneprofitabilitymeasureandonecapitalintensitymeasured.twoprofitabilitymeasuresandtwocapitalintensitymeasures67.Allofthefollowingaretrueregardingthereturnoninvestment(ROI)formulade velopedatDupontEXCEPTthat:a.itisthesolemeasuretop-managementutilizestoevaluatewhichdivisionshouldreceiveadditionalcapitalb.itallowspaniestohavecentralizedcontrolwithdecentralizedresponsibilityc.itproducesameasureofdivisionalperformanced.itequals(Operatingine/Sales)x(Sales/Investment) THEFOLLOWINGINFORMATIONAPPLIESTOQUESTIONS68AND69. Thefollowinginformationpertainstothreedivisions: FlowersShrubsTreesSales$15,000$28,000$120,000Operatingine$2,000$2,000$6,000Investment$22,000$40,000$100,00068.WhatisthereturnoninvestmentfortheShrubDivision?a.2.00%b.5.00%c.7.14%d.70.00%69.WhichdivisionismoreprofitablebasedonROI?a.Flowersb.Shrubsc.Treesd.BothFlowersandShrubsareequallymoreprofitablethanTrees.70.Tohelpevaluatemanagement’sappropriategovernanceandstrategicchoic es,organizationshavecalledonmanagementaccountantstodevelop:a.internalcontrolsystemstoprotectassetsfromtheftb.measurestomonitorpliancewithbehaviorthatisconsistentwiththeorganizati on’sbesti nterestsc.systemstoevaluateprofitabilityd.reportstohighlightvariancesfromamountsplanned71.ManagementaccountinginformationisBESTdescribedas:a.providingasignalthatsomethingiswrongb.identifyingandhelpingtoexplainwhatiswrongc.simplysummarizinginformation,butgivingnoindicationthatanythingiswron gd.measuringoverallorganizationalperformance72.Forimprovingoperationalefficienciesandcustomersatisfaction,nonfinancia linformationis:a.criticalb.helpfulc.infrequentlyusedd.unnecessary73.Nonfinancialinformationmightbeusedto:a.improvequalityb.reducecycletimesc.satisfycustomerneedsd.Alloftheabovearecorrect.74.Theactofsimplymeasuringandreportinginformation:a.focusestheattentionofemployeesonthoseprocessesb.divertstheemployee’sattentiontootheractivitiesc.disprovesthesaying“Whatgetsmeasuredgetsmanaged.”d.hasnoeffectonemployeebehavior75.WhichstatementbelowisFALSE?a.“Whatgetsmeasuredgetsmanaged.”b.Peoplereacttomeasurements.c.Employeesspendmoreattentiononthosevariablesthatarenotgettingmeasur ed.d.“IfIcan’tmeasureit,Ican’tmanageit.”76.Whenachangeisintroduced,employeestendto:a.embracethechangeb.beindifferenttothechangec.exhibitnochangeinbehaviord.resistthechange77.TheintroductionofanewmanagementsystemisMOSTlikelytomotivateUNW ANTEDemployeebehaviorwhenitisusedfor:a.evaluationb.planningc.decisionmakingd.coordinatingindividualefforts78.ManagementaccountantsareMOSTlikelytofeeloutsidepressuretofavorabl yinfluencethenumbersfavorablywhentheinformationisusedfor:a.budgetingb.pensationandpromotionsc.continuousimprovementd.productcosting79.FosteringacultureofhighethicalstandardsincludesallofthefollowingEXCEP T:a.followingthegoodexamplesetbyseniormanagementb.municatingtoemployeesabeliefsystemthatinspiresandpromotesmitmentto theorganization’scorevaluesc.followingthegeneralexamplessetbyfront-lineemployeesd.municatingtoallemployeesaboundarysystemthatstateswhatactionswillnot betolerated80.TheInstituteofManagementAccountants(IMA):a.isaprofessionalorganizationofmanagementaccountantsb.isaprofessionalorganizationoffinancialaccountantsc.issuesstandardsformanagementaccountingd.issuesstandardsforfinancialaccountingCRITICALTHINKING/ESSAY81.Describemanagementaccountingandfinancialaccounting.82.Whatisthepurposeofmanagementaccounting?83.Brieflydescribehowmanagersmakeuseofmanagementaccountinginformat ion.84.Describethevaluepropositionandtheelementsthatpriseit.85.Isfinancialaccountingormanagementaccountingmoreusefultoanoperatio nsmanager?Why?86.Whatrolehastheincreasinglypetitivebusinessenvironmentplayedinthedev elopmentofmanagementaccounting?87.Describereturnoninvestment(ROI).Whywasitdeveloped?Whenwasitdevel oped?88.Givetwoexamplesoffinancialinformationandnonfinancialinformation.89.Discussthepotentialbehaviorimplicationsofperformanceevaluation.CHAPTER1SOLUTIONSMANAGEMENTACCOUNTING:INFORMATIONTHATCREATESVALUETRUE/FALSE LO11.aLO12.bLO13.bLO14.aLO15.aLO26.aLO27.bLO28.aLO39.aLO310.aLO311.bLO312.aLO313.aLO314.aLO315.aLO416.bLO417.aLO518.aLO519.bLO520.aLO521.b LO522.bLO623.aLO624.aLO625.bMULTIPLECHOICELO126.dLO127.dLO128.aLO129.dLO130.aLO131.dLO132.aLO133.dLO134.bLO135.cLO136.bLO137.cLO138.bLO139.cLO140.cLO241.cLO242.bLO243.cLO244.aLO245.cLO246.aLO247.dLO348.d LO349.a LO350.d LO351.c LO352.a LO353.b LO354.c LO355.b LO356.aLO357.bLO358.cLO359.bLO360.aLO361.dLO362.dLO463.aLO464.dLO465.aLO466.cLO467.aLO468.bLO469.aLO570.bLO571.bLO572.aLO573.dLO674.aLO675.cLO676.dLO677.aLO678.bLO679.cLO680.aMULTIPLECHOICE68.$2,000/$40,000=5.00%69.$2,000/$22,000=9.09%;$2,000/$40,000=5.00%;$6,000/$100,000=6.00%CRITICALTHINKING/ESSAYLO181.Describemanagementaccountingandfinancialaccounting.Solution:Managementaccountingprovidesinformationtointernaldecisionma kersofthebusinesssuchastopexecutives.Itspurposeistohelpmanagerspredicta ndevaluatefutureresults.Reportsaregeneratedoftenandareusuallybrokendo wnintosmallerreportingdivisionssuchasdepartmentorproductline.Therearen orulestobepliedwithsincethesereportsareforinternaluseonly. Financialaccountingprovidesinformationtoexternaldecisionmakerssuchasinv estorsandcreditors.Itspurposeistopresentafairpictureofthefinancialcondition ofthepany.Reportsaregeneratedquarterlyorannuallyandreportonthepanyasa whole.ThefinancialstatementsmustplywithGAAP(generallyacceptedaccounti ngprinciples).ACPAaudits,orverifies,thattheGAAParebeingfollowed.LO182.Whatisthepurposeofmanagementaccounting?Solution:Managementaccountinggathersshort-termandlong-termfinancialandnonfinancialinformationtoplan,coordinate,motivate,improv e,control,andevaluatesuccessfactorsofanorganization.Managementaccounti ngconvertsdataintousableinformationthatsupportsstrategic,operational,and controldecisionmaking.LO183.Brieflydescribehowmanagersmakeuseofmanagementaccountinginformat ion.Solution:Managersuseaccountinginformationforthreebroadpurposes.ONE:Toplanbusinessoperationsthatincludespreparingstrategiesandbudgets anddeterminingthepricesandcostsofproductsandservices.Apanymustknowt hecostofeachproductandservicetodecidewhichproductstoofferandwhethert oexpandordiscontinueproductlines.TWO:Tocontrolbusinessoperationsthatincludesparingactualresultstothebud getedresultsandtakingcorrectiveactionwhenneeded.THREE:Toevaluateperformance.LO284.Describethevaluepropositionandtheelementsthatpriseit.Solution:Thevaluepropositioniswhatanorganizationtriestodelivertoitstargetc ustomers–itdefinestheorganizationalstrategy. Thefourelementsarecost,quality,functionalityandfeatures,andservice. •Cost isthepricepaidbythecustomer,giventheproductfeaturesandpetitor’s prices.•Quality isthedegreeofconformancebetweenwhatthecustomerispromiseda ndwhatthecustomerreceives.•Functionalityandfeatures referstotheperformanceoftheproduct.Forexamp le:Amealinarestaurantprovidesthedinerwiththelevelofsatisfactionexpectedfo rthepricepaid.•Service isalloftheotherelementsoftheproduct.Forexample:Howthecustom eristreatedatthetimeofthepurchase.LO385.Isfinancialaccountingormanagementaccountingmoreusefultoanoperatio nsmanager?Why?Solution:Managementaccountingismoreusefultoanoperationsmanagerbeca usemanagementaccountingreportsoperatingresultsbydepartmentorunitrath erthanforthepanyasawhole,itincludesfinancialaswellasnonfinancialdatasuch ason-timedeliveriesandcycletimes,anditincludesquantitativeaswellasqualitativedat asuchasthetypeofreworkthatwasneededondefectiveunits.LO386.Whatrolehastheincreasinglypetitivebusinessenvironmentplayedinthedev elopmentofmanagementaccounting?Solution:Thepetitiveenvironmenthaschangeddramatically.Therehasbeenade regulationmovementinNorthAmericaandEuropeduringthe1970sand1980sth atchangedthegroundrulesunderwhichservicepaniesoperated.Inaddition,org anizationsencounteredseverepetitionfromoverseaspaniesthatofferedhigh-qualityproductsatlowprices.Therehasbeenanimprovementofoperationalcont rolsystemssuchthatinformationismorecurrentandprovidedmorefrequently.T henatureofworkhaschangedfromcontrollingtoinforming.Firmsareconcerned aboutcontinuousimprovement,employeeempowerment,andtotalquality.No nfinancialinformationhasbeeacriticalfeedbackmeasure.Finally,thefocusofma nyfirmsisnowonmeasuringandmanagingactivities.LO487.Describereturnoninvestment(ROI).Whywasitdeveloped?Whenwasitdevel oped?Solution:ROI=(operatingine/sales)x(sales/investment) TheROImeasurebinesaprofitabilitymeasure(operatingine/sales)withacapitali ntensitymeasure(sales/investment)toprovideasinglemeasureofdepartmental anddivisionalperformance. ROIwasdevelopedintheearlydecadesofthe1900ssothatseniormanagersatmul ti-divisionaldiversifiedcorporations,suchasDuPontandGeneralMotors,couldeva luatetheoperatingperformanceoftheirdecentralizeddivisions.LO588.Givetwoexamplesoffinancialinformationandnonfinancialinformation. Solution:Financialinformationincludesamountsthatcanbeexpressedindollara mountssuchassales,netine,andtotalassets.Italsoincludesratiospreparedusing financialinformationsuchasincreaseinsales,return-on-sales,andreturn-on-investment. Nonfinancialinformationincludesmeasuresthatarenotexpressedindollaramo unts.Forexample,nonfinancialmeasuresofcustomersatisfactionincludethenu mberofrepeatcustomersorrankedestimatesofsatisfactionlevels.Nonfinancial measuresofproductionqualityincludepercentofon-timedeliveries,thenumberofdefects,productionyield,andcycletimes.LO689.Discussthepotentialbehaviorimplicationsofperformanceevaluation.Solution:Asmeasurementsaremadeonoperationsand,especially,onindividual sandgroups,thebehavioroftheindividualsandgroupsareaffected.Peoplereactt othemeasurementsbeingmade.Theywillfocusonthosevariablesorthebehavior beingmeasuredandspendlessattentiononvariablesandbehaviorthatarenotm easured.Inaddition,ifmanagersattempttointroduceorredesigncostandperfor mancemeasurementsystems,peoplefamiliarwiththeprevioussystemwillresist. Managementaccountantsmustunderstandandanticipatethereactionsofindivi dualstoinformationandmeasurements.Thedesignandintroductionofnewmea surementsandsystemsmustbeacpaniedwithananalysisofthelikelyreactionstot heinnovations.感谢阅读多年企业管理咨询经验，专注为企业和个人提供精品管理方案，企业诊断方案，制度参考模板等欢迎您下载，均可自由编辑。
管理会计示范性双语课件习题02
CHAPTER 2COST MANAGEMENT CONCEPTS AND COST BEHAVIOR TRUE/FALSE1. There is no single definition of cost.a. Trueb. False2. The role of the management accountant is to tailor the cost calculation to fit the currentdecision situation.a. Trueb. False3. A cost that is useful for one decision may not be useful information for another decision.a. Trueb. False4. In most organizations, managing nonmanufacturing costs as well as manufacturing costs isimportant for financial success.a. Trueb. False5. The cost of a customized machine only used in the production of a single product would beclassified as a direct cost.a. Trueb. False6. The wages of a plant supervisor would be classified as a period cost.a. Trueb. False7. The classification of product and period costs is particularly valuable in managementaccounting.a. Trueb. False8. For external reporting, generally accepted accounting principles require that costs beclassified as either flexible or capacity-related costs.a. Trueb. False9. Knowing whether a cost is a period or a product cost helps to estimate total cost at a newlevel of activity.a. Trueb. False10. Flexible costs are always direct costs.a. Trueb. False11. Capacity-related costs vary with the level of production or sales volume.a. Trueb. False12. Currently, most personnel costs are classified as capacity-related costs.a. Trueb. False13. Some capacity-related costs might be classified as direct manufacturing costs.a. Trueb. False14. Capacity-related costs depend on the resources used, not the resources acquired.a. Trueb. False15. Break-even point is NOT an important concept since the goal of business is to make aprofit.a. Trueb. False16. To perform cost-volume-profit analysis, a company must be able to separate costs intocapacity-related and flexible components.a. Trueb. False17. Cost-volume-profit analysis may be used for single-product and multiproduct analysis.a. Trueb. False18. Selling price per unit is $30, flexible cost per unit is $15, and capacity-related cost per unitis $10. When this company operates above the break-even point, the sale of one more unit will increase net income by $5.a. Trueb. False19. A company with sales of $100,000, flexible costs of $70,000, and capacity-related costs of$50,000 will reach its break-even point if sales are increased by $20,000.a. Trueb. False20. In multiproduct situations when the sales mix shifts toward the product with the lowestcontribution margin, the break-even quantity will decrease.a. Trueb. False21. The opportunity cost of a resource is zero if there is excess capacity of that resource.a. Trueb. False22. When a firm maximizes profits it will simultaneously minimize opportunity costs.a. Trueb. False23. Even when the only constraint limiting production is machine time, a company should bemost concerned with maximizing contribution margin per unit.a. Trueb. False24. The time over which a decision maker can adjust capacity is referred to as the short run.a. Trueb. False25. For general customers, the price charged for a product must cover its long-run cost to theorganization.a. Trueb. False26. In recent years, capacity-related costs have increased as a proportion of total manufacturingcosts.a. Trueb. False27. Machine setup costs are usually classified as a business-sustaining activity.a. Trueb. False28. The benefits of classifying activities using the broader framework of unit-related, batch-related, product-sustaining, customer-sustaining, and business-sustaining activities are there are generally more costs that are directly traceable to cost objects.a. Trueb. False29. Product life-cycle costing helps organizations decide whether a new product should belaunched.a. Trueb. FalseMULTIPLE CHOICE30. An example of a cost object is:a. a productb. a customerc. a departmentd. All of the above are correct.31. Manufacturing costs include:a. machinery used inside of the factoryb. research and development costsc. costs of dealing with customers after the saled. general and administrative costs32. Manufacturing costs include all of the following EXCEPT:a. costs incurred inside the factoryb. both direct and indirect costsc. both flexible and capacity-related costsd. both product and period costs33. Nonmanufacturing costs:a. include only capacity-related costsb. seldom influence financial success or failurec. include the cost of selling, distribution, and after-sales costs for customersd. are considered by GAAP to be an element of product costs34. Product costs:a. include administrative and marketing costsb. are particularly useful in financial accountingc. are expensed in the accounting period manufacturedd. are also referred to as nonmanufacturing costs35. For external reporting:a. costs are classified as either product or period costsb. costs reflect current valuesc. there are no prescribed rules since no one is exactly sure how the investors andcreditors will use these numbersd. expenses include amounts that reflect current and future benefits36. Product costs are expensed on the income statement when:a. raw materials for the product are purchasedb. raw materials are requisitioned for the productc. the product completes the manufacturing processd. the product is sold37. Depreciation of plant facilities is classified as a(n):a. direct material costb. direct labor costc. indirect manufacturing costd. general and administrative cost38. The cost of inventory reported on the balance sheet may include the cost of all thefollowing EXCEPT:a. advertisingb. wages of the plant supervisorc. depreciation of the factory equipmentd. parts used in the manufacturing process39. A plant manufactures several different products. The wages of the plant supervisor can beclassified as a:a. direct costb. product costc. flexible costd. nonmanufacturing cost40. Period costs:a. are treated as expenses in the period they are incurredb. are directly traceable to productsc. include direct labord. are also referred to as indirect manufacturing costs41. Which of the following is NOT a period cost?a. marketing costsb. general and administrative costsc. research and development costsd. manufacturing costs42. Advertising is an example of a _________ cost expensed on the income statement in theaccounting period incurred.a. directb. manufacturingc. periodd. product43. (CMA adapted, June 1992) The terms "direct cost" and "indirect cost" are commonlyused in cost accounting. Classifying a cost as either direct or indirect depends upon:a. the behavior of the cost in response to volume changesb. whether the cost is expended in the period in which it is incurredc. whether the cost can be related readily to resources consumed for a cost objectd. whether an expenditure is unavoidable because it cannot be changed regardless of anyaction taken44. Indirect manufacturing costs:a. can be traced to the product that created the costsb. may have a cause-and-effect relationship with capacity rather than with individualunits of productionc. generally include the cost of material and the cost of labord. are included in period costs45. A manufacturing plant produces two product lines: football equipment and hockeyequipment. An indirect cost for the hockey equipment line is the:a. material used to make the hockey sticksb. labor to bind the shaft to the blade of the hockey stickc. shift supervisor for the hockey lined. plant supervisor46. A manufacturing plant produces two product lines: football equipment and hockeyequipment. Direct costs for the football equipment line are the:a. beverages provided daily in the plant break roomb. monthly lease payments for a specialized piece of equipment needed to manufacturethe football helmetc. salaries of the clerical staff that work in the company administrative officesd. utilities paid for the manufacturing plantTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 47 THROUGH 53.The Bowley Company manufactures several different products. Unit costs associated with product ICT101 are as follows:Direct materials $ 60Direct labor 10Flexible manufacturing support costs 18Capacity-related manufacturing support costs 32Sales commissions (2% of sales) 4Administrative salaries 16Total $14047. Total product costs associated with product ICT101 are:a. $ 50b. $ 88c. $120d. $14048. Total period costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5249. Total flexible costs associated with product ICT101 are:a. $18b. $22c. $88d. $9250. Total capacity-related costs associated with product ICT101 are:a. $16b. $32c. $48d. $5251. Total nonmanufacturing costs associated with product ICT101 are:a. $ 4b. $16c. $20d. $5252. Total manufacturing costs associated with product ICT101 are:a. $70b. $88c. $120d. $14053. Direct manufacturing costs associated with product ICT101 are:a. $70b. $88c. $92d. $10854. Cost behavior refers to:a. how costs react to a change in the level of activityb. whether a cost is incurred in a manufacturing, merchandising, or service companyc. classifying costs as either product or period costsd. whether a particular expense has been ethically incurred55. Which statement is FALSE?a. All flexible costs are direct costs.b. Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.c. All capacity-related costs are indirect costs.d. Direct costs may be flexible or capacity-related.56. An understanding of the underlying behavior of costs helps in all of the followingEXCEPT:a. sales volume can be better estimatedb. costs can be better estimated as volume expands and contractsc. true costs of processes can be better evaluatedd. process inefficiencies can be better identified and, as a result, improved57. Capacity-related costs:a. may be either direct or indirect costsb. vary with production or sales volumec. include parts and materials used to manufacture a productd. can be adjusted in the short run to meet actual demands58. Capacity-related costs depend on:a. the amount of resources usedb. the amount of resources acquiredc. the volume of productiond. the volume of sales59. Currently, most companies consider annual labor costs as:a. a capacity-related costb. a flexible costc. an opportunity costd. a period cost60. Which of the following does NOT describe a flexible cost?a. Flexible cost are always indirect costs.b. Flexible costs increase in total when the actual level of activity increases.c. Flexible costs include most personnel costs and depreciation on machinery.d. Flexible costs can always be traced directly to the cost object.61. Cost-volume-profit analysis is used PRIMARILY by management:a. as a planning toolb. for control purposesc. to establish a target net income for next yeard. to attain extremely accurate financial results62. Contribution margin equals revenues minus:a. product costsb. period costsc. flexible costsd. capacity-related costs63. The break-even point is the level at which revenues:a. equal capacity-related costsb. equal flexible costsc. equal capacity-related costs minus flexible costsd. equal flexible costs plus capacity-related costs64. The break-even point is:a. total costs divided by flexible costs per unitb. contribution margin per unit divided by revenue per unitc. capacity-related costs divided by contribution margin per unitd. (capacity-related costs plus flexible costs) divided by contribution margin per unit65. Cost-volume-profit analysis assumes all of the following EXCEPT:a. all costs are purely flexible or capacity relatedb. units manufactured equal units soldc. total flexible costs remain the same over the relevant ranged. total capacity-related costs remain the same over the relevant range66. All of the following are assumed in a cost-volume-profit analysis EXCEPT:a. a constant product mixb. capacity-related costs increase when activity increasesc. revenue per unit does not change as volume changesd. all costs can be classified as either capacity-related or flexible67. In multiproduct situations, when sales mix shifts toward the product with the highestcontribution margin, then:a. total revenues will decreaseb. breakeven quantity will increasec. total contribution margin will decreased. operating income will increaseTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 THROUGH 71. Karen’s Kraft Korner, Inc., sells a single product. This year, 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of flexible costs, and $12,000 of capacity-related costs.68. Contribution margin per unit is:a. $4.00b. $4.29c. $6.00d. None of the above is correct.69. Break-even point in units is:a. 2,000 unitsb. 3,000 unitsc. 5,000 unitsd. None of the above is correct.70. The number of units that must be sold to achieve $60,000 of profits is:a. 10,000 unitsb. 11,666 unitsc. 12,000 unitsd. None of the above is correct.71. If sales increase by $25,000, profits will increase by:a. $10,000b. $15,000c. $22,200d. an unknown amountTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 72 THROUGH 74.Mr. Paul’s Company sells several products for an average price of $20 per unit and the average flexible costs per unit are as follows:Direct material $4.00Direct labor $1.60Indirect manufacturing costs $0.40Selling commissions $2.00Mr. Paul’s annual capacity-related costs total $96,000.72. The contribution margin per unit is:a. $6b. $8c. $12d. $1473. The number of units that Mr. Paul’s must sell each year to break even is:a. 8,000 unitsb. 12,000 unitsc. 16,000 unitsd. an unknown amount74. The number of units that Mr. Paul’s must sell annually to make a profit of $144,000 is:a. 12,000 unitsb. 18,000 unitsc. 20,000 unitsd. 30,000 unitsTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 75 THROUGH 79.The following information is for Barnett Corporation:Product X Product YRevenue per unit: $10.00 $15.00Flexible cost per unit: $ 2.50 $ 5.00Total capacity-related costs: $50,00075. If the sales mix consists of two units of Product X and one unit of Product Y, what is therevenue per unit of average product?a. $10.00b. $11.66c. $13.33d. $15.0076. If the sales mix consists of two units of Product X and one unit of Product Y, what is thebreak-even point?a. 1,000 units of Y and 2,000 units of Xb. 1012.5 units of Y and 2,025 units of Xc. 2012.5 units of Y and 4,025 units of Xd. 2,000 units of Y and 4,000 units of X77. What is the operating income, assuming actual sales total 150,000 units, and the sales mixis two units of Product X and one unit of Product Y?a. $1,200,000b. $1,250,000c. $1,750,000d. None of the above is correct.78. If the sales mix shifts to one unit of Product X and two units of Product Y, then theweighted-average contribution margin will:a. increase per unitb. stay the samec. decrease per unitd. be undeterminable79. If the sales mix shifts to one unit of Product X and two units of Product Y, then the break-even point will:a. increaseb. stay the samec. decreased. be undeterminable80. Opportunity cost(s):a. of a resource with excess capacity is zerob. should be maximized by organizationsc. are recorded as an expense in the accounting recordsd. are most important to financial accountants81. A recent college graduate has the choice of buying a new auto for $20,000 or to invest themoney for four years with a 12% expected rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is:a. $2,400b. $11,740c. $20,000d. There is no opportunity cost for this decision.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 82 THROUGH 86. Brenda’s Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply:Model X Model Y Model Z Selling price $50 $60 $70Direct materials 6 6 6Direct labor ($12 per hour) 12 12 24Flexible support costs ($4 per machine hour) 4 8 8Capacity-related costs 10 10 1082. Which model has the greatest contribution per unit?a. Model Xb. Model Yc. Model Zd. both Models X and Y83. Which model has the greatest contribution per machine hour?a. Model Xb. Model Yc. Model Zd. both Models Y and Z84. If there is excess capacity, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models X and Y85. If there is a machine breakdown, which model is the most profitable to produce?a. Model Xb. Model Yc. Model Zd. both Models Y and Z86. How can Brenda encourage her salespeople to promote the more profitable model?a. Put all sales persons on salary.b. Provide higher sales commissions for higher priced items.c. Provide higher sales commissions for items with the greatest contribution margin perconstrained resource.d. Both (b) and (c) are correct.87. Which statement is FALSE? Short run costs:a. are actually flexible costsb. affect long-run capacityc. are included in the calculation of long-run costsd. increase when one more unit is produced or served88. To sustain the profitability of a product, the list price of a product must cover its:a. flexible costsb. capacity-related costsc. indirect costsd. long-run costs89. Compared to the early 1900s, __________ costs now comprise a much higher share of totalproduct costs.a. direct laborb. direct materialsc. flexibled. capacity-related90. In recent years, the manufacturing cost structure has changed as a result of:a. greater automationb. better customer servicec. the proliferation of multiple productsd. All of the above are correct.91. Cost distortion is common in conventional costing systems because:a. of the recent change in cost structureb. the number of products being manufactured is increasingc. capacity-related costs are allocated using a volume measured. capacity-related costs create higher risks for a company92. Costs that must be allocated to products for external reporting purposes include:a. selling and marketing costsb. direct material and direct labor costsc. the cost of equipment used to manufacture several different productsd. All of the above are correct.93. The benefits of classifying activities using the broader framework of unit, batch, product,customer, and business-sustaining activities are that there are generally more costs:a. directly traceable to cost objectsb. treated as indirect costsc. arbitrarily allocated to cost objectsd. There is no major difference regarding costs.94. For budgeting purposes, product-sustaining activity costs should be:a. allocated to individual unitsb. allocated to individual customersc. assigned directly to individual product linesd. assigned directly to individual batches95. Which of the following activities is a unit-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced96. Which of the following activities is a batch-related activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced97. Which of the following activities is a product-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. quality inspections of 2% of the items producedd. obtaining patents and regulatory approval for each product produced98. Which of the following activities is a business-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced99. Which of the following activities is a customer-sustaining activity?a. preparing and filing the annual tax return for the organizationb. machine setups for each production runc. making sales callsd. obtaining patents and regulatory approval for each product produced100. Product life-cycle costing:a. is useful for external reportingb. is primarily a planning toolc. includes manufacturing costs but not the cost of research and developmentd. assumes product related costs are incurred evenly over the product’s lifetime101. Companies want to ensure that product revenues cover the product’s:a. manufacturing costsb. manufacturing and distribution costsc. developing, supporting, and abandoning costsd. manufacturing, distribution, developing, supporting, and abandoning costs102. More attention is being devoted to the product development and planning phase because:a. abandonment includes significant costsb. of the need to better understand the relevant costsc. during this phase of the product-life cycle, revenues finally begin to cover long-runcostsd. during this phase of the product-life cycle, price competition becomes intense 103. One of the primary motivations for considering costs other than manufacturing and distribution costs is so that:a. these costs can be amortized over the life of the productb. costs can be more evenly distributed over the pr oduct’s life cyclec. planners can develop reasonable estimates of the costs associated with new productsd. if price competition becomes intense the selling price can be rationalizedEXERCISE/PROBLEM104. Winfield Manufacturing Company produces several different products. Classify each of their following costs as direct materials, direct labor, indirect manufacturing costs, or nonmanufacturing costs.a. Production supervisory salaries.b. Controller's office supplies.c. Executive office heat and air conditioning.d. Executive office security personnel.e. Factory heat and air conditioning.f. Supplies used in small quantities, such as glue, to complete assembly work.g. Power to operate factory equipment.h. Parts used in assembly.i. Wages of the assembly-line workers.j. Property taxes on office buildings for sales staff.k. Depreciation on furniture for sales staff.l. Salaries of top executives in the company.m. Wages of the finishing department workers.n. Sales commissions.o. Sales personnel office rental.105. Stephanie’s Stuffed Animals reported the following:Revenues $1,000Flexible manufacturing costs $ 200Flexible nonmanufacturing costs $ 230Capacity-related manufacturing costs $ 150Capacity-related nonmanufacturing costs $ 140Required:a. Compute contribution margin.b. Compute gross margin.c. Compute operating income.106. In 2005, Grant Company has sales of $800,000, flexible costs of $200,000, and capacity-related costs of $300,000. In 2006, Grant Company expects annual property taxes todecrease by $15,000.Required:a. Calculate operating income and the break even point for 2005.b. Calculate the break even point for 2006.107. Sunshine, Inc., sells a single product. The company's most recent income statement is given below.Sales (4,000 units) $120,000Less flexible expenses (68,000)Contribution margin 52,000Less capacity-related expenses (40,000)Net income $ 12,000Required:a. Contribution margin per unit is $ _______________ per unitb. If sales are doubled to $240,000,total flexible costs will equal $ _______________c. If sales are doubled to $240,000,total capacity-related costs will equal $ _______________d. If 10 more units are sold, profits will increase by $ _______________e. Compute how many units must be sold to break even. # _______________f. Compute how many units must be soldto achieve a profit of $20,000. # _______________ 108. Jeffrey’s, Inc., sells a single product. The company's most recent income statement is given below.Sales $200,000Less flexible expenses (120,000)Contribution margin 80,000Less capacity-related expenses (50,000)Net income $ 30,000Required:a. Contribution margin ratio is __________ %b. Break-even point in total sales dollars is $ _______________c. To achieve $40,000 in net income, sales must total $ _______________d. If sales increase by $50,000, net income will increase by $ _______________109. Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products:X YSelling price per unit $36 $24Flexible cost per unit 28 12Total capacity-related costs $234,000 Required:Assume the sales mix is 3 units of X for every unit of Y:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units of both X and Y?110. Bob’s Te xtile Company sells shirts for men and boys. The average selling price and flexible cost for each product are as follows:Men’s BoysSelling price $28.80 $24.00Flexible cost $20.42 $16.80Total capacity-related costs $38,400Required:Assume t he sales mix is 2 men’s shirts for each boy’s shirt:a. What is the revenue per unit of average product, the weighted average flexible cost,and the contribution margin per unit of average product?b. What is the break-even point in units for each type of shirt?c. What is the operating income, assuming sales total 9,000 shirts?111. Charlie’s Chairs manufactures two models, Standard and Premium. Weekly demand is estimated to be 120 units of the Standard Model and 70 units of the Premium Model. Only 420 machine hours are available per week. The following per unit data apply:Standard PremiumContribution margin per unit $12 $15Number of machine hours required 2 3Required:a. For each model, compute the contribution per machine hour.b. To maximize weekly production profits, how many machine hours would yourecommend of each model? How many units of each model?c. If there are 500 machine hours available per week (instead of only 420 machine hoursper week), how many chairs of each model shoul d Charlie’s produce to maximizeprofits?。
管理会计双语练习题
管理会计双语练习题一、True/False QuestionsFor each of the following, circle the T or the F to indicate whether the statement is true or false.1 Managerial accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers inside the business organization.Product costs are selling expenses that appear on the income statement.Management accounting reports provide a means of monitoring , evaluating and rewardingperformance.Product costs are offset against revenue in the period in which the related products are sold, rather than the period in which the costs are incurred. Manufacturing overhead is considered an indirect cost, since overhead costs generally cannot betraced conveniently and directly to specific units of product.Overhead application rates allow overhead to be assigned at the beginning of a period to help setprices.Pepsi Cola would most likely use a job order costing system.Activity-based costing tracks cost to the activities that consume resources.Activity based costing uses multiple activity bases to assign overhead costs to units of production.10 The two steps required in Activity Based Costing are 1) Identify separate activity cost pools and)allocate each cost pool to the product using an appropriate cost driver11 The new manufacturing environment is characterized by its shift toward labor intensive productionand declining manufacturing overhead costs.1A cost driver is an activity base that is highly correlated with manufacturing overhead costs.1In ABC, only one cost driver should be used in applying overhead.1As companies become more automated overhead costs decrease and direct labor costs increase.1An equivalent unit measures the percentage of acompleted units cost that is present in a partially finished unit.1Costs do not flow through a process cost system in the same sequence as actual products movethrough the assembly process.1Non-value added activities are those that do not add to a product's desirability.1Target costing centers on new product and service development as opposed to managing the valuechain for existing products.1In the target costing process, target price is computed by adding the desired profit margin to the targetproduct cost.20 Target cost equals target price plus profit margin.21 Variable costs which increase in total amount in direct proportion to an increase in output represent aconstant amount per unit of output.2Any business which operates at less than capacitywill have larger fixed costs than variable costs. With variable costs, the cost per unit varies with changes in volume.2The contribution margin is the difference between total revenue and fixed costs.2The volume of output which causes fixed costs to be equal in amount to variable costs is called thebreak-even point.2Any business which operates at less than capacity will have larger fixed costs than variable costs. Margin of safety is the dollar amount by which actual sales volume exceeds the break-even salesvolume.2Life cycle costing considers all potential resources used by the product over its entire life. 2Economies of scale can be achieved by using facilities more intensively.30 The break-even point is the level of activity at which operating income is equal to cost of goods sold.1 Contribution margin ratio is equal to contribution margin per unit divided by unit sales price.3Opportunity cost is the benefit that could havebeen obtained by pursuing an alternate course ofaction.3All incremental revenue or incremental costs are relevant.3Sunk costs are relevant to decisions about replacing plant assets.3In determining whether to scrap or to rebuild defective units of product, the cost already incurred inproducing the defective units is not relevant. 3In making a decision, management will look thoroughly at both relevant and irrelevant data.33.Responsibility margin is useful in evaluating the consequences of short-run marketing strategies, while contribution margin is more useful in evaluating long-term profitability.3The transfer price is the dollar amount used in recording sales to primary customers.3Under variable costing, fixed manufacturing costs are treated as period costs, rather than product costs.40 The transfer price is the dollar amount usedin recording sales to primary customers.41 Variable costing treats all fixed manufacturing costs as expenses of the current period. 4In full costing when production rises above the amount of sales, some of the fixed costs will remain in inventory.4Return on Investment tells us how much earnings can be expected for the average investeddollar.4Capital turnover can be improved by reducing invested capital while keeping sales constant.4The value chain consists of only those activities that increase the selling price of a product as it is distributed to a customer.4Residual income is calculated by subtracting the minimum acceptable return on the average investedcapital from the operating income.二、Multiple Choice QuestionsChoose the best answer for each of the following questions and insert the identifying letter in the space provided.1.Costs that are traceable to a particular unitand are inventoriable are calledA) Period costs B) Product costs C) Overhead costsD) Job costs2. .Determine the amount of manufacturing overhead given the following information:a. Depreciation on a factory building $2,400b. Telephone expense in factory office750c. Telephone expense in sales showroom850d. Factory foreman’s salary000e. Maintenance for factory`00f. Maintenance for sales showroom80A) $4,010 B) $9,800C) $8,950D) $10,54024.Goods that are still in the production process would be in which account?A) Materials inventory B) Work-in-process inventory C)Finished goods inventory D)Cost of goods sold29.The principal difference between managerial accounting and financial accounting is that managerial accountinginformation is:A) Prepared by managers.B) Intended primarily for use by decision makers inside the business organization.C) Prepared in accordance with a set of accounting principles developed by the Institute of Certified Managerial Accountants.D) Oriented toward measuring solvency rather than profitability.30.Management accounting systems are designed to assist organizations in the performance of all of the followingfunctions except:A) The assignment of decision-making authority over company assets.B) Planning and decision-making.C) Monitoring, evaluating and rewarding performance.D) The preparation of income tax returns.35.In comparison with a financial statement prepared in conformity with generally accepted accounting principles, amanagerial accounting report is less likely to: A) Focus upon the entire organization as the accounting entity. B) Focus upon future accounting periods.C) Make use of estimated amounts. D) Be tailored to the specific needs of an individual decision maker.4.If the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will bethe likely effect on net income of the period in which the error occurs?A) Net income will be overstated. B) Net income will be understated.C) Net income will be unaffected. D) Net income will be understated only if inventory levels rise.5.Manufacturing overhead is best described as:A) All manufacturing costs other than direct materials and direct labor.B) All period costs associated with manufacturing operations.C) Indirect materials and indirect labor.D) All operating expenses other than sellingexpenses and general and administrative expenses.43.Underapplied overhead at the end of a month:A) Results when actual overhead costs are less than amounts applied to work in process.B) Indicates a poorly designed cost accounting system.C) Is represented by a debit balance remaining in the Manufacturing Overhead account.D) Is represented by a credit balance remaining in the Manufacturing Overhead account.58.The account Work-in-Process InventoryA) Consists of completed goods that have not yet been soldB) Consists of goods being manufactured that are incompleteC) Consists of materials to be used in the production processD) Consists of the cost of new materials used, labor but not overhead.66.Red Star Company uses a job order cost system. Overhead is applied to jobs on the basis of direct laborhours.During the current period, Job No.8was charged $400 in direct materials, $450 in direct labor, and $180 in manufacturing overhead. If direct labor costs an average of $1per hour, the company's overhead application rate is:A) $per direct labor hour. B) $per direct labor hour.C) $1per direct labor hour. D) $20 per direct labor hour.24.The best cost system to use for a company producing a continuous stream of similar items would be aA) Job order system B) Process costing system C) Production costing systemD) No cost system is required when jobs are similar64.Ken Gorman’s Company uses a job order cost system and has established a predetermined overhead application ratefor the current year of 150% of direct labor cost, based on budgeted overhead of $900,000 and budgeted direct labor cost of $600,000. Job no. 1 was chargedwith direct materials of $30,000 and with overhead of $24,000.The total cost of job no. 1:A) Is $54,000. B) Is $70,000. C)Is $90,000. D) Cannot be determined without additional information.27.Equivalent units of production areA) A measure representing the percentage of a unit's cost that has been completed.B) May be computed separately for each input added during productionC) May be assigned to beginning work-in-process or ending work-in-processD) All of the above27.Equivalent units of production areA) A measure representing the percentage of a unit's cost that has been completed.B) May be computed separately for each input added during productionC) May be assigned to beginning work-in-process or ending work-in-processD) All of the above21.Process costing would be suitable forA) Automobile repairB) Production of television sets C) Boat building D) Kitchen remodeling Use the following to answer questions5-76:Riverview Company's budget for the coming year includes $6,000,000 for manufacturing overhead, 100,000 hours of direct labor, and00,000 hours of machine time.75. Refer to the above data. If Riverview applies overhead using a predetermined rate based on machine-hours,what amount of overhead will be assigned to a unit of output which requires 0.machine hours and 0.2labor hours to complete?A) $6.00. B) $15.00.C) $21.00.D) Some other amount.76. Refer to the above data. If Riverview applies overhead using a predetermined rate based on labor-hours, whatamount of overhead will be assigned to a unit of output which requires 0.machine hours and 0.2labor hours to complete?A) $6.00. B) $15.00. C) $21.00.D) Some otheramount.21.Process costing would be suitable forA) Automobile repairB) Production of television sets C)Boat buildingD)Kitchen remodeling21.Which one of the following is not one of the basic procedures related to ABC?A) Identify the activity.B) Create an associated activity cost pool.C) Transact identified cost centers. D) Calculate the cost per unit of activity.23.Examples of value-adding activities include all of the following except:A) Product design. B) Assembly activities.C) Machinery set-up activities. D) Establishing efficient distribution channels.26.Just-in-time manufacturing systems are also known as:A) Supply push systems. B)Supply pull systems.C)Demand push systems. D) Demand pull systems.28.Target costing is directed toward:A) Reducing the activity costs associated with existing products.B) Identifying the amount by which the costs of existing products must be reduce to achieve a target profitmargin.C) The creation and design of products that will provide adequate profits.D) The improvement of existing production processes by eliminating non-value adding activities.30.During which element of manufacturing cycle time is value added to products?A) Storage and waiting time. B) Processing time.C) Movement time. D) Inspection time.33.Four categories of costs associated with product quality are:A) External failure, internal failure, prevention, and carrying.B) External failure, internal failure, prevention, and appraisal.C) External failure, internal failure, training, and appraisal.D) Warranty, product liability, prevention, and training.41.During cycle time, value is added only duringA) Processing time. B) Storage and waiting time.C) Movement time. D) Inspection time.26.A semivariable cost:A) Increases and decreases directly and proportionately with changes in volume.B) Changes in response to a change in volume, but not proportionately.C) Increases if volume increases, but remains constant if volume decreases.D) Changes inversely in response to a change in volume.27.Which of the following is an example of a fixed cost for an airline?A) Depreciation on the corporate headquarters.B) Fuel costs.C) Income taxes expense. D) Passengers' meals.28.In order to calculate break-even sales units, fixed costs are divided by:A) Contribution margin per unit. B) Contribution margin percentage.C) Target operating income. D) Sales volume.29.A company's relevant range of production is:A) The production range from zero to 100% of plant capacity.B) The production range over which CVP assumptions are valid.C) The production range beyond the break-even point.D) The production range that covers fixed but not variable costs.30.The break-even point in a cost-volume-profit graph is always found:A) At0% of full capacity.B) At the sales volume resulting in the lowest average unit cost.C) At the volume at which total revenue equals total variable costs.D) At the volume at which total revenue equals total fixed costs plus total variable costs.32.The contribution ratio is computed as:A) Sales minus variable costs, divided by sales.B) Fixed costs plus variable costs, divided by sales.C) Sales minus fixed costs, divided by sales. D)Sales divided by variable costs.33.In comparison to selling a product with a low contribution margin ratio, selling a product with a high contributionmargin ratio always:A) Requires less dollar sales volume to cover a given level of fixed costs.B) Results in a greater margin of safety.C) Results in higher operating income. D) Results in a higher contribution margin per unit sold.36.How will a company's contribution margin be affected by an investment in equipment that increases fixed costs inorder to achieve a reduction in direct labor cost?A) Contribution margin will increase.B) Contribution margin will fall.C) Contribution margin will either increase or decrease depending on the relative magnitudes of the changesin fixed and variable costs. D) Contribution margin will remain the same.43.If a product sells for $10, variable costs are$and fixed costs are $400,000 what would total sales have to be inorder to break-even?A) $160,000B) $166,66C) $1,000,000 D) $266,66746.If unit sales prices are $10 and variable costs are $per unit how many units would have to be sold to break even iffixed costs equal $12,000?A) $1,200B) $2,000C) $3,000D) $2,80062.A company with an operating income of $65,000 and a contribution margin ratio of5% has a margin of safety of:长江大学国际学院2011-2012学年度第1学期《管理会计学》试卷考试方式：闭卷满分：100分时间：2小时姓名：学号：班级：专业：考生注意：1、所有考题请回答在考卷指定位置上；2、请考生务必把专业、班级、学号及姓名填写在试卷上。
管理会计习题1
管理会计习题1一、名词解释（每小题2分，共8分）1．成本习性2．现金流量3．经济订货点4．利润中心二、填空题（每空1分，共10分）1．标准成本按其标准的制定依据可将其划分为____和____。
2．经营杠杆是指存在____的前提条件下，使____大于____的一种现象。
3．在不考虑期初存货的前提下，当____时，变动成本制度下的利润计量结果比完全成本制度下的利润计量结果要大；当____时，两种成本制度下的利润计量结果正好相反。
4．制造成本是指与产品制造活动密切相关的费用支出，其主要构成项目表现为____、____和____。
三、单项选择题（每小题1分，共10分）1．管理会计与财务会计最本质的区别在于（）A．服务对象B．会计原则C．会计方法D．会计假设2．下列（）成本项目属于半固定成本范畴A．仓储用房屋租金B．直接人工C．固定资产直线法计算的折旧D．租赁设备的使用费3．贡献毛益率与变动成本率之间的关系为（）A．两者相等B．前者大于后者C．两者之和等于1D．后者大于前者4．高低点法与回归直线法在进行成本预测时所体现的差异是（）A．区分成本性质B．考虑历史数据时间范围C．成本预测假设D．选用历史数据的标准5．在标准成本制度下，成本差异应定期地转入（）帐户中A．本年利润B．生产成本C．利润分配D．制造费用6．非弹性预算法编制的预算主要是（）A．固定性制造费用B．变动性制造费用C．维修费用D．直接材料7．已知利率为8%的1元复利现值系数如下：那么，6年后取得4000元的现值应为（）A．4000×0.926×6B．4000×0.794×2C．4000×0.681×0.926D．不能确定8．为防止因素不确定可能导致的缺货而建立的储备是（）A．季节性储备B．保险储备C．周转储备D．生产性储备9．就短期决策而言，下列（）属于相关成本A．机会成本B．不可避免成本C．沉落成本D．历史成本10．按实际机器小时确定的固定性制造费用分配数和按标准机器小时确定的固定性制造费用分配数之差为（）A．预算差异B．生产能力利用差异C．效率差异D．能量差异四、多项选择题（正确答案错选、多选或少选均不得分。
管理会计双语版总结PPT
第四页，共七十三页。
Chapter 3 :Determining Costs of Products
Job order costing
Direct material : trace Direct labor : trace Manufacturing overhead : allocate
Cost pool and allocation base Actual cost system vs. normal cost system Over-apply vs. under-apply
Three formulas (page 136)
Sensitivity analysis
8 第九页，共七十三页。
CVP Equations
Sales – Variable Costs – Fixed Costs = target profit
(SP/unit * units) – (VC/unit * units) – FC = target profit
Chapter 1: Introduction
Why management accounting? Origin and evolution of management
accounting Contrasting financial and management
accounting Ethical standards for management
Accounting rate of return
17
第十八页，共七十三页。
Chapter 9 : The Operating Budget
Different approaches to budgeting
《管理会计》英文版课后习题答案
第二章产品成本计算Exercises2–1（指教材上的第2章练习第1题，下同）1. Part #72A Part #172CSteel* $ 12.00 $ 18.00Setup cost** 6.00 6.00Total $ 18.00 $ 24.00*($1.00 ? 12; $1.00 ? 18)**($60,000/10,000)Steel cost is assigned by calculating a cost per ounce and then multiplying this by the ounces used by each part:Cost per ounce= $3,000,000/3,000,000 ounces= $1.00 per ounceSetup cost is assigned by calculating the cost per setup and then dividing this by the number of units in each batch (there are 20 setups per year):Cost per setup = $1,200,000/20= $60,0002. The cost of steel is assigned through the driver tracing using the number of ounces of steel, and the cost of the setups is assigned through driver tracing also using number of setups as the driver.3. The assumption underlying number of setups as the driver is that each part uses an equal amount of setup time. Since Part #72A uses double the setup time of Part #172C, it makes sense to assign setup costs based on setup time instead of number of setups. This illustrates the importance of identifying drivers that reflect the true underlying consumption pattern. Using setup hours [(40 ?10) + (20 ? 10)], we get the following rate per hour:Cost per setup hour = $1,200,000/600= $2,000 per hourThe cost per unit is obtained by dividing each part’s total setup costs by the number of units:Part #72A = ($2,000 ? 400)/100,000 = $8.00Part #172C = ($2,000 ? 200)/100,000 = $4.00Thus, Part #72A has its unit cost increased by $2.00, while Part #172C has its unit cost decreased by $2.00.problems2–51. Nursing hours required per year: 4 ? 24 hours ? 364 days* = 34,944*Note: 364 days = 7 days ? 52 weeksNumber of nurses = 34,944 hrs./2,000 hrs. per nurse = 17.472Annual nursing cost = (17 ? $45,000) + $22,500= $787,500Cost per patient day = $787,500/10,000 days= $78.75 per day (for either type of patient)2. Nursing hours act as the driver. If intensive care uses half of the hours and normal care the other half, then 50 percent of the cost is assigned to each patient category. Thus, the cost per patient day by patient category is as follows:Intensive care = $393,750*/2,000 days= $196.88 per dayNormal care = $393,750/8,000 days= $49.22 per day*$525,000/2 = $262,500The cost assignment reflects the actual usage of the nursing resource and, thus, should be more accurate. Patient days would be accurate only if intensive care patients used the same nursing hours per day as normal care patients.3. The salary of the nurse assigned only to intensive care is a directly traceable cost. To assign the other nursing costs, the hours of additional usage would need to be measured. Thus, both direct tracing and driver tracing would be used to assign nursing costs for this new setting.2–61. Bella Obra CompanyStatement of Cost of Services SoldFor the Year Ended June 30, 2006Direct materials:Beginning inventory $ 300,000Add: Purchases 600,000Materials available $ 900,000Less: Ending inventory 450,000*Direct materials used $ 450,000Direct labor 12,000,000Overhead 1,500,000Total service costs added $ 13,950,000Add: Beginning work in process 900,000Total production costs $ 14,850,000Less: Ending work in process 1,500,000Cost of services sold $ 13,350,000*Materials available less materials used2. The dominant cost is direct labor (presumably the salaries of the 100 professionals). Although labor is the major cost of providing many services, it is not always the case. For example, the dominant cost for some medical services may be overhead (e.g., CAT scans). In some services, the dominant cost may be materials (e.g., funeral services).3. Bella Obra CompanyIncome StatementFor the Year Ended June 30, 2006Sales $ 21,000,000Cost of services sold 13,350,000Gross margin $ 7,650,000Less operating expenses:Selling expenses $ 900,000Administrative expenses 750,000 1,650,000Income before income taxes $ 6,000,0004. Services have four attributes that are not possessed by tangible products: (1) intangibility, (2) perishability, (3) inseparability, and (4) heterogeneity. Intangibility means that the buyers of services cannot see, feel, hear, or taste a service before it is bought. Perishability means that services cannot be stored. This property affects the computation in Requirement 1. Inability to store services means that there will never be any finished goods inventories, thus making the cost of services produced equivalent to cost of services sold. Inseparability simply means that providers and buyers of services must be in direct contact for an exchange to take place. Heterogeneity refers to the greater chance for variation in the performance of services than in the production of tangible products.2–71. Direct materials:Magazine (5,000 ? $0.40) $ 2,000Brochure (10,000 ? $0.08) 800 $ 2,800Direct labor:Magazine [(5,000/20) ? $10] $ 2,500Brochure [(10,000/100) ? $10] 1,000 3,500Manufacturing overhead:Rent $ 1,400Depreciation [($40,000/20,000) ? 350*] 700Setups 600Insurance 140Power 350 3,190Cost of goods manufactured $ 9,490*Production is 20 units per printing hour for magazines and 100 units per printing hour for brochures, yielding monthly machine hours of 350 [(5,000/20) + (10,000/100)]. This is also monthly labor hours, as machine labor only operates the presses.2. Direct materials $ 2,800Direct labor 3,500Total prime costs $ 6,300Magazine:Direct materials $ 2,000Direct labor 2,500Total prime costs $ 4,500Brochure:Direct materials $ 800Direct labor 1,000Total prime costs $ 1,800Direct tracing was used to assign prime costs to the two products.3. Total monthly conversion cost:Direct labor $ 3,500Overhead 3,190Total $ 6,690Magazine:Direct labor $ 2,500Overhead:Power ($1 ? 250) $ 250Depreciation ($2 ? 250) 500Setups (2/3 ? $600) 400Rent and insurance ($4.40 ? 250 DLH)* 1,100 2,250Total $ 4,750Brochure:Direct labor $ 1,000Overhead:Power ($1 ? 100) $ 100Depreciation ($2 ? 100) 200Setups (1/3 ? $600) 200Rent and insurance ($4.40 ? 100 DLH)* 440 940Total $ 1,940*Rent and insurance cannot be traced to each product so the costs are assigned using direct labor hours: $1,540/350 DLH = $4.40 per direct labor hour. The other overhead costs are traced according to their usage. Depreciation and power are assigned by using machine hours (250 for magazines and 100 for brochures): $350/350 = $1.00 per machine hour for power and $40,000/20,000 = $2.00 per machine hour for depreciation. Setups are assigned according to the time required. Since magazines use twice as much time, they receive twice the cost: Letting X = the pro?portion of setup time used for brochures, 2X + X = 1 implies a cost assignment ratio of 2/3 for magazines and 1/3 for brochures.Exercises3–11. Resource Total Cost Unit CostPlastic1 $ 10,800 $0.027Direct labor andvariable overhead2 8,000 0.020Mold sets3 20,000 0.050Other facility costs4 10,000 0.025Total $ 48,800 $0.12210.90 ? $0.03 ? 400,000 = $10,800; $10,800/400,000 = $0.0272$0.02 ? 400,000 = $8,000; $8,000/400,000 = $0.023$5,000 ? 4 quarters = $20,000; $20,000/400,000 = $0.054$10,000; $10,000/400,000 = $0.0252. Plastic, direct labor, and variable overhead are flexible resources; molds and other facility costs are committed resources. The cost of plastic, direct labor, and variable overhead are strictly variable. The cost of the molds is fixed for the particular action figure being produced; it is a step cost for the production of action figures in general. Other facility costs are strictly fixed.3–3High (1,400, $7,950); Low (700, $5,150)V = ($7,950 – $5,150)/(1,400 – 700)= $2,800/700 = $4 per oil changeF = $5,150 – $4(700)= $5,150 – $2,800 = $2,350Cost = $2,350 + $4 (oil changes)Predicted cost for January = $2,350 + $4(1,000) = $6,350problems3–61. High (1,700, $21,000); Low (700, $15,000)V = (Y2 – Y1)/(X2 – X1)= ($21,000 – $15,000)/(1,700 – 700) = $6 per receiving orderF = Y2 – VX2= $21,000 – ($6)(1,700) = $10,800Y = $10,800 + $6X2. Output of spreadsheet regression routine with number of receiving orders as the independent variable:Constant 4512.98701298698Std. Err. of Y Est. 3456.24317476605R Squared 0.633710482694768No. of Observations 10Degrees of Freedom 8X Coefficient(s) 13.3766233766234Std. Err. of Coef. 3.59557461331427V = $13.38 per receiving order (rounded)F = $4,513 (rounded)Y = $4,513 + $13.38XR2 = 0.634, or 63.4%Receiving orders explain about 63.4 percent of the variability in receiving cost, providing evidence that Tracy’s choice o f a cost driver is reasonable. However, other drivers may need to be considered because 63.4 percent may not be strong enough to justify the use of only receiving orders.3. Regression with pounds of material as the independent variable:Constant 5632.28109733183Std. Err. of Y Est. 2390.10628259277R Squared 0.824833789433823No. of Observations 10Degrees of Freedom 8X Coefficient(s) 0.0449642991356633Std. Err. of Coef. 0.0073259640055344V = $0.045 per pound of material delivered (rounded)F = $5,632 (rounded)Y = $5,632 + $0.045XR2 = 0.825, or 82.5%Pounds of material delivered explains about 82.5 percent of the variability in receiving cost. This is a better result than that of the receiving orders and should convince Tracy to try multiple regression.4. Regression routine with pounds of material and number of receiving orders as the independent variables:Constant 752.104072925631Std. Err. of Y Est. 1350.46286973443R Squared 0.951068418023306No. of Observations 10Degrees of Freedom 7X Coefficient(s) 0.0333883151096915 7.14702865269395Std. Err. of Coef. 0.00495524841198368 1.68182916088492V1 = $0.033 per pound of material delivered (rounded)V2 = $7.147 per receiving order (rounded)F = $752 (rounded)Y = $752 + $0.033a + $7.147bR2 = 0.95, or 95%Multiple regression with both variables explains 95 percent of the variability in receiving cost. This is the best result.5–21. Job #57 Job #58 Job #59Balance, 7/1 $ 22,450 $ 0 $ 0Direct materials 12,900 9,900 35,350Direct labor 20,000 6,500 13,000Applied overhead:Power 750 600 3,600Material handling 1,500 300 6,000Purchasing 250 1,000 250Total cost $ 57,850 $ 18,300 $ 58,2002. Ending balance in Work in Process = Job #58 = $18,3003. Ending balance in Finished Goods = Job #59 = $58,2004. Cost of Goods Sold = Job #57 = $57,850problems5–31. Overhead rate = $180/$900 = 0.20 or 20% of direct labor dollars.(This rate was calculated using information from the Ladan job; however, the Myron and Coe jobs would give the same answer.)2. Ladan Myron Coe Walker WillisBeginning WIP $ 1,730 $1,180 $2,500 $ 0 $ 0Direct materials 400 150 260 800 760Direct labor 800 900 650 350 900Applied overhead 160 180 130 70 180Total $ 3,090 $2,410 $3,540 $ 1,220 $ 1,840Note: This is just one way of setting up the job-order cost sheets. You might prefer to keep the detail on the materials, labor, and overhead in beginning inventory costs.3. Since the Ladan and Myron jobs were completed, the others must still be in process. Therefore, the ending balance in Work in Process is the sum of the costs of the Coe, Walker, and Willis jobs.Coe $3,540Walker 1,220Willis 1,840Ending Work in Process $6,600Cost of Goods Sold = Ladan job + Myron job = $3,090 + $2,410 = $5,5004. Naman CompanyIncome StatementFor the Month Ended June 30, 20XXSales (1.5 ? $5,500) $8,250Cost of goods sold 5,500Gross margin $2,750Marketing and administrative expenses 1,200Operating income $1,5505–201. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ? $9.40 = $658 70 ? $9.40 = $658Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $22 1,100.00 20 ? $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ? $6.25 = $437.50 70 ? $6.25 = $437.50Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $6.25 312.50 20 ? $6.25 125.00$ 437.50 $ 437.50Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–41. Overhead rate = $470,000/50,000 = $9.40 per MHr2. Department A: $250,000/40,000 = $6.25 per MHrDepartment B: $220,000/10,000 = $22.00 per MHr3. Job #73 Job #74Plantwide:70 ? $9.40 = $658 70 ? $9.40 = $658Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $22 1,100.00 20 ? $22 440.00$ 1,225.00 $ 752.50Department B appears to be more overhead intensive, so jobs spending more time in Department B ought to receive more overhead. Thus, departmental rates provide more accuracy.4. Plantwide rate: $250,000/40,000 = $6.25Department B: $62,500/10,000 = $6.25Job #73 Job #74Plantwide:70 ? $6.25 = $437.50 70 ? $6.25 = $437.50Departmental:20 ? $6.25 $ 125.00 50 ? $6.25 $ 312.5050 ? $6.25 312.50 20 ? $6.25 125.00$ 437.50 $ 437.50Assuming that machine hours is a good cost driver, the departmental rates reveal that overhead consumption is the same in each department. In this case, there is no need for departmental rates, and a plantwide rate is sufficient.5–51. Last year’s unit-based overhead rate = $50,000/10,000 = $5This year’s unit-based overhead rate = $100,000/10,000 = $10Last Year This YearBike cost:2 ? $20 $ 40 $ 403 ? $12 36 36Overhead:5 ? $5 255 ? $10 50Total $101 $126Price last year = $101 ? 1.40 = $141.40/dayPrice this year = $126 ? 1.40 = $176.40/dayThis is a $35 increase over last year, nearly a 25 percent increase. No doubt the Carsons arenot pleased and would consider looking around for other recreational possibilities.2. Purchasing rate = $30,000/10,000 = $3 per purchase orderPower rate = $20,000/50,000 = $0.40 per kilowatt hourMaintenance rate = $6,000/600 = $10 per maintenance hourOther rate = $44,000/22,000 = $2 per DLHBike Rental Picnic CateringPurchasing$3 ? 7,000 $21,000$3 ? 3,000 $ 9,000Power$0.40 ? 5,000 2,000$0.40 ? 45,000 18,000Maintenance$10 ? 500 5,000$10 ? 100 1,000Other$2 ? 11,000 22,000 22,000Total overhead $50,000 $50,0003. This year’s bike rental overhead rate = $50,000/10,000 = $5Carson rental cost = (2 ? $20) + (3 ? $12) + (5 ? $5) = $101Price = 1.4 ? $101 = $141.40/day4. Catering rate = $50,000/11,000 = $4.55* per DLHCost of Estes job:Bike rental rate (2 ? $7.50) $15.00Bike conversion cost (2 ? $5.00) 10.00Catering materials 12.00Catering conversion (1 ? $4.55) 4.55Total cost $41.55*Rounded5. The use of ABC gives Mountain View Rentals a better idea of the types and costs of activities that are used in their business. Adding Level 4 bikes will increase the use of the most expensive activities, meaning that the rental rate will no longer be an average of $5 per rental day. Mountain View Rentals might need to set a Level 4 price based on the increased cost of both the bike and conversion cost.分步成本法6–11. Cutting Sewing PackagingDepartment Department DepartmentDirect materials $5,400 $ 900 $ 225Direct labor 150 1,800 900Applied overhead 750 3,600 900Transferred-in cost:From cutting 6,300From sewing 12,600Total manufacturing cost $6,300 $12,600 $14,6252. a. Work in Process—Sewing 6,300Work in Process—Cutting 6,300b. Work in Process—Packaging 12,600Work in Process—Sewing 12,600c. Finished Goods 14,625Work in Process—Packaging 14,625 3. Unit cost = $14,625/600 = $24.38* per pair6–21. Units transferred out: 27,000 + 33,000 – 16,200 = 43,8002. Units started and completed: 43,800 – 27,000 = 16,8003. Physical flow schedule:Units in beginning work in process 27,000Units started during the period 33,000Total units to account for 60,000Units started and completed 16,800Units completed from beginning work in process 27,000Units in ending work in process 16,200Total units accounted for 60,0004. Equivalent units of production:Materials ConversionUnits completed 43,800 43,800Add: Units in ending work in process:(16,200 ? 100%) 16,200(16,200 ? 25%) 4,050 Equivalent units of output 60,000 47,8506–31. Physical flow schedule:Units to account for:Units in beginning work in process 80,000Units started during the period 160,000Total units to account for 240,000Units accounted for:Units completed and transferred out:Started and completed 120,000From beginning work in process 80,000 200,000 Units in ending work in process 40,000Total units accounted for 240,0002. Units completed 200,000Add: Units in ending WIP ? Fraction complete(40,000 ? 20%) 8,000Equivalent units of output 208,0003. Unit cost = ($374,400 + $1,258,400)/208,000 = $7.854. Cost transferred out = 200,000 ? $7.85 = $1,570,000Cost of ending WIP = 8,000 ? $7.85 = $62,8005. Costs to account for:Beginning work in process $ 374,400Incurred during June 1,258,400Total costs to account for $ 1,632,800Costs accounted for:Goods transferred out $ 1,570,000Goods in ending work in process 62,800Total costs accounted for $ 1,632,8006–31、Units t0 account for:Units in beginning work in process(25% completed) 10000Units started during the period 70000 Total units to account for 80000 Units accounted forUnits completed and transferred outStarted and completed 50000From beginning work in process 10000 60000 Units in ending work in process(60% completed) 20000 Total units accounted for 80000 2、60000+20000×60%=72000（units）3、Unit cost for materials:（$/unit）Unit cost for convension:（$/unit）Total unit cost:5+1.13=6.13（$/unit）4、The cost of units of transferred out:60000×6.13=367800($)The cost of units of ending work in process:20000×5+20000×20%×1.13=113560($)作业成本法4–21. Predetermined rates:Drilling Department: Rate = $600,000/280,000 = $2.14* per MHrAssembly Department: Rate = $392,000/200,000= $1.96 per DLH*Rounded2. Applied overhead:Drilling Department: $2.14 ? 288,000 = $616,320Assembly Department: $1.96 ? 196,000 = $384,160Overhead variances:Drilling Assembly TotalActual overhead $602,000 $ 412,000 $ 1,014,000Applied overhead 616,320 384,160 1,000,480Overhead variance $ (14,320) over $ 27,840 under $ 13,5203. Unit overhead cost = [($2.14 ? 4,000) + ($1.96 ? 1,600)]/8,000= $11,696/8,000= $1.46**Rounded4–31. Yes. Since direct materials and direct labor are directly traceable to each product, their cost assignment should be accurate.2. Elegant: (1.75 ? $9,000)/3,000 = $5.25 per briefcaseFina: (1.75 ? $3,000)/3,000 = $1.75 per briefcaseNote: Overhead rate = $21,000/$12,000 = $1.75 per direct labor dollar (or 175 percent of direct labor cost).There are more machine and setup costs assigned to Elegant than Fina. This is clearly a distortion because the production of Fina is automated and uses the machine resources much more than the handcrafted Elegant. In fact, the consumption ratio for machining is 0.10 and 0.90 (using machine hours as the measure of usage). Thus, Fina uses nine times the machining resources as Elegant. Setup costs are similarly distorted. The products use an equal number of setups hours. Yet, if direct labor dollars are used, then the Elegant briefcase receives three times more machining costs than the Fina briefcase.3. Overhead rate = $21,000/5,000= $4.20 per MHrElegant: ($4.20 ? 500)/3,000 = $0.70 per briefcaseFina: ($4.20 ? 4,500)/3,000 = $6.30 per briefcaseThis cost assignment appears more reasonable given the relative demands each product places on machine resources. However, once a firm moves to a multiproduct setting, using only one activity driver to assign costs will likely produce product cost distortions. Products tend to make different demands on overhead activities, and this should be reflected in overhead cost assignments. Usually, this means the use of both unit- and nonunit-level activity drivers. In this example, there is a unit-level activity (machining) and a nonunit-level activity (setting up equipment). The consumption ratios for each (using machine hours and setup hours as the activity drivers) are as follows:Elegant FinaMachining 0.10 0.90 (500/5,000 and 4,500/5,000)Setups 0.50 0.50 (100/200 and 100/200)Setup costs are not assigned accurately. Two activity rates are needed—one based on machine hours and the other on setup hours:Machine rate: $18,000/5,000 = $3.60 per MHrSetup rate: $3,000/200 = $15 per setup hourCosts assigned to each product:Machining: Elegant Fina$3.60 ? 500 $ 1,800$3.60 ? 4,500 $ 16,200Setups:$15 ? 100 1,500 1,500Total $ 3,300 $ 17,700Units ÷3,000 ÷3,000Unit overhead cost $ 1.10 $ 5.904：Elegant Unit overhead cost：[9000+3000+18000*500/5000+3000/2]/3000=$5.1 Fina Unit overhead cost：[3000+3000+18000*4500/5000+3000/2]/3000=$7.94–51. Deluxe Percent Regular PercentPrice $900 100% $750 100%Cost 576 64 600 80Unit gross profit $324 36% $150 20%Total gross profit:($324 ? 100,000) $32,400,000($150 ? 800,000) $120,000,0002. Calculation of unit overhead costs:Deluxe gularUnit-level:Machining:$200 ? 100,000 $20,000,000$200 ? 300,000 $60,000,000Batch-level:Setups:$3,000 ? 300 900,000$3,000 ? 200 600,000Packing:$20 ? 100,000 2,000,000$20 ? 400,000 8,000,000Product-level:Engineering:$40 ? 50,000 2,000,000$40 ? 100,000 4,000,000Facility-level:Providing space:$1 ? 200,000 200,000$1 ? 800,000 800,000Total overhead $25,100,000 $73,400,000Units ÷100,000 ÷800,000Overhead per unit $251 $91.75Deluxe Percent Regular PercentPrice $900 100% $750.00 100%Cost 780* 87*** 574.50** 77***Unit gross profit $120 13%*** $175.50 23%***Total gross profit:($120 ? 100,000) $12,000,000($175.50 ? 800,000) $140,400,000*$529 + $251**$482.75 + $91.753. Using activity-based costing, a much different picture of the deluxe and regular products emerges. The regular model appears to be more profitable. Perhaps it should be emphasized.4–61. JIT Non-JITSalesa $12,500,000 $12,500,000Allocationb 750,000 750,000a$125 ? 100,000, where $125 = $100 + ($100 ? 0.25), and 100,000 is the average order size times the number of ordersb0.50 ? $1,500,0002. Activity rates:Ordering rate = $880,000/220 = $4,000 per sales orderSelling rate = $320,000/40 = $8,000 per sales callService rate = $300,000/150 = $2,000 per service callJIT Non-JITOrdering costs:$4,000 ? 200 $ 800,000$4,000 ? 20 $ 80,000Selling costs:$8,000 ? 20 160,000$8,000 ? 20 160,000Service costs:$2,000 ? 100 200,000$2,000 ? 50 100,000Total $1,160,000 $340,0 0For the non-JIT customers, the customer costs amount to $750,000/20 = $37,500 per order under the original allocation. Using activity assign?ments, this drops to $340,000/20 = $17,000 per order, a difference of $20,500 per order. For an order of 5,000 units, the order price can be decreased by $4.10 per unit without affecting customer profitability. Overall profitability will decrease, however, unless the price for orders is increased to JIT customers.3. It sounds like the JIT buyers are switching their inventory carrying costs to Emery without any significant benefit to Emery. Emery needs to increase prices to reflect the additional demands on customer-support activities. Furthermore, additional price increases may be needed to reflectthe increased number of setups, purchases, and so on, that are likely occurring inside the plant. Emery should also immediately initiate discussions with its JIT customers to begin negotiations for achieving some of the benefits that a JIT supplier should have, such as long-term contracts. The benefits of long-term contracting may offset most or all of the increased costs from the additional demands made on other activities.4–71. Supplier cost:First, calculate the activity rates for assigning costs to suppliers:Inspecting components: $240,000/2,000 = $120 per sampling hourReworking products: $760,500/1,500 = $507 per rework hourWarranty work: $4,800/8,000 = $600 per warranty hourNext, calculate the cost per component by supplier:Supplier cost:Vance FoyPurchase cost:$23.50 ? 400,000 $ 9,400,000$21.50 ? 1,600,000 $ 34,400,000Inspecting components:$120 ? 40 4,800$120 ? 1,960 235,200Reworking products:$507 ? 90 45,630$507 ? 1,410 714,870Warranty work:$600 ? 400 240,000$600 ? 7,600 4,560,000Total supplier cost $ 9,690,430 $ 39,910,070Units supplied ÷400,000 ÷1,600,000Unit cost $ 24.23* $ 24.94**RoundedThe difference is in favor of Vance; however, when the price concession is considered, the cost of Vance is $23.23, which is less than Foy’s component. Lumus should accept the contractual offer made by Vance.4–7 Concluded2. Warranty hours would act as the best driver of the three choices. Using this driver, the rate is $1,000,000/8,000 = $125 per warranty hour. The cost assigned to each component would be:Vance FoyLost sales:$125 ? 400 $ 50,000$125 ? 7,600 $ 950,000$ 50,000 $ 950,000Units supplied ÷400,000 ÷1,600,000Increase in unit cost $ 0.13* $ 0.59**Rounded$0.075 per unitCategory II: $45/1,000 = $0.045 per unitCategory III: $45/1,500 = $0.03 per unitCategory I, which has the smallest batches, is the most undercosted of the three categories. Furthermore, the unit ordering cost is quite high relative to Category I’s selling price (9 to 15 percent of the selling price). This suggests that something should be done to reduce the order-filling costs.3. With the pricing incentive feature, the average order size has been increased to 2,000 units for all three product families. The number of orders now processed can be calculated as follows:Orders = [(600 ? 50,000) + (1,000 ? 30,000) + (1,500 ? 20,000)]/2,000= 45,000Reduction in orders = 100,000 – 45,000 = 55,000Steps that can be reduced = 55,000/2,000 = 27 (rounding down to nearest whole number)There were initially 50 steps: 100,000/2,000Reduction in resource spending:Step-fixed costs: $50,000 ? 27 = $1,350,000Variable activity costs: $20 ? 55,000 = 1,100,000$2,450,000预算9-4Norton, Inc.Sales Budget For the Coming YearModel Units Price Total SalesLB-1 50,400 $29.00 $1,461,600LB-2 19,800 15.00 297,000WE-6 25,200 10.40 262,080 WE-7 17,820 10.00 178,200 WE-8 9,600 22.00 211,200 WE-9 4,000 26.00 104,000 Total $2,514,080二、1. Raylene’s Flowers and GiftsProduction Budget for Gift BasketsFor September, October, November, and DecemberSept. Oct. Nov. D ec.Sales 200 150 180 250Desired ending inventory 15 18 25 10Total needs 215 168 205 260Less: Beginning inventory 20 15 18 25 Units produced 195 153 187 2352. Raylene’s Flowers and GiftsDirect Materials Purchases BudgetFor September, October, and NovemberFruit: Sept. Oct. Nov.Production 195 153 187? Amount/basket (lbs.) ? 1 ? 1 ?1Needed for production 195 153 187Desired ending inventory 8 9 12Needed 203 162 200Less: Beginning inventory 10 8 9Purchases193 154 190Small gifts: Sept. Oct. Nov.Production 195 153 187 ? Amount/basket (items) ? 5 ? 5 ? 5Needed for production 975 765 935Desired ending inventory 383 468 588Needed 1,358 1,233 1,523Less: Beginning inventory 488 383 468Purchases 870 850 1,055Cellophane: Sept. Oct. Nov.Production 195 153 187。
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管理会计示范性双语课件习题01MANAGEMENT ACCOUNTING: INFORMATION THAT CREATES VALUE TRUE/FALSE1. Management accounting gathers short-term, long-term, financial, and nonfinancialinformation.a. Trueb. False2. Management accounting information generally reports on the organization as a whole.a. Trueb. False3. Companies have to follow strict guidelines when designing a management accountingsystem.a. Trueb. False4. A good management accounting system is intended to meet specific decision-making needsat all levels in the organization.a. Trueb. False5. During the history of management accounting, innovations were developed to address thedecision-making needs of managers.a. Trueb. False6. A key element in any organization’s strategy is to iden tify its target customers and todeliver what those target customers want.a. Trueb. False7. The value proposition has only two elements: cost and quality.a. Trueb. False8. Quality is the degree of conformance between what the customer is promised and what thecustomer receives.a. Trueb. False9. Recently, the demand for improved management accounting and control information withinmanufacturing firms has also occurred in service organizations.a. Trueb. False10. Recently, the competitive environment for both manufacturing and service companies hasbecome far more challenging and demanding.a. Trueb. False11. Service companies are very similar to manufacturing companies in may ways, including thefact that many employees have direct contact with customers.a. Trueb. False12. Sensitivity to timeliness and quality of service is especially important to serviceorganizations.a. Trueb. False13. Government and nonprofit organizations, as well as profit-seeking enterprises, are feelingthe pressures for improved performance.a. Trueb. False14. Management accounting information allows managers to compare actual and planned costsand to identify areas and opportunities for process improvement.a. Trueb. False15. Management accounting can provide information on customer satisfaction.a. Trueb. False16. ROI (return on investment) combines two profitability measures to produce a singlemeasure of departmental or divisional performance.a. Trueb. False17. Around 1920, centralized control of decentralized operations was accomplished by havingcorporate managers receive financial reports about divisional operations and profitability.a. Trueb. False18. In the late 1990s, little interest or attention was paid to eval uating management’sappropriate governance and strategy choices.a. Trueb. False19. Financial information identifies and explains the underlying problems.a. Trueb. False20. Management accounting measures can provide advance warnings of problems.a. Trueb. False21. Customer satisfaction is an example of financial information.a. Trueb. False22. Operating profit is an example of nonfinancial information.a. Trueb. False23. Organizational leadership plays a critical role in fostering an organization’s culture of highethical standards.a. Trueb. False24. Information is never neutral; just the act of measuring and reporting information affects theindividuals involved.a. Trueb. False25. Boundary systems are always stated in positive terms that outline maximum standards ofbehavior.a. Trueb. FalseMULTIPLE CHOICE26. Management accounting helps a company achieve:a. its strategic objectivesb. its operational objectivesc. control and also supports performance evaluationd. All of the above are correct.27. Which of the following types of information are used in management accounting?a. financial informationb. nonfinancial informationc. information focused on the long termd. All of the above are correct.28. Management accounting:a. focuses on estimating future revenues, costs, and other measures to forecast activitiesand their resultsb. provides information about the company as a wholec. reports information that has occurred in the past that is verifiable and reliabled. provides information that is generally available only on a quarterly or annual basis29. Which of the following descriptors refer to management accounting information?a. It is verifiable and reliable.b. It is driven by rules.c. It is prepared for shareholders.d. It provides reasonable and timely estimates.30. Which of the following statements refers to management accounting information?a. There are no regulations governing the reports.b. The reports are generally delayed and historical.c. The audience tends to be stockholders, creditors, and tax authorities.d. The scope tends to be highly aggregate.31. Management accounting information includes:a. tabulated results of customer satisfaction surveysb. the cost of producing a productc. the percentage of units produced that is defectived. All of the above are correct.32. Management accounting reports MOST likely include information about:a. customer complaintsb. net income for the yearc. total assetsd. All of the above are correct.33. The person MOST likely to use management accounting information is a(n):a. banker evaluating a credit applicationb. shareholder evaluating a stock investmentc. governmental taxing authorityd. assembly department supervisor34. Which of the following is NOT a function of a management accounting system?a. strategic planningb. financial reportingc. operational controld. product costing35. Financial accounting provides the PRIMARY source of information for:a. decision making in the finishing departmentb. improving customer servicec. preparing the income statement for shareholdersd. planning next year’s operating budget36. Financial accounting:a. focuses on the future and includes activities such as preparing next year's operatingbudgetb. must comply with GAAP (generally accepted accounting principles)c. reports include detailed information on the various operating segments of the businesssuch as product lines or departmentsd. is prepared for the use of department heads and other employees37. The person MOST likely to use ONLY financial accounting information is a:a. factory shift supervisorb. vice president of operationsc. current shareholderd. department manager38. The accounting process is constrained by mandated reporting requirements by all of thefollowing organizations EXCEPT the:a. Internal Revenue Service (IRS)b. Institute of Management Accountants (IMA)c. Financial Accounting Standards Board (FASB)d. Securities and Exchange Commission (SEC) for companies that are publicly traded39. Historically:a. in the beginning of the 20th century, the Guilds kept detailed records of raw materialsand labor costs as evidence of product qualityb. in medieval England, the basics of modern management accounting emerged withstandards for material use, employee productivity, and budgetsc. in the late 19th century, railroad managers implemented large and complex costingsystems to compute the cost of different types of freightd. from 1400-1600, large and integrated companies such as DuPont and General Motors,developed ways to measure return on investment40. In general, it was not until the 1970s that management accounting systems:a. were improved because of demands by the FASB and the SECb. stagnated and proved inadequatec. started to develop innovations in costing and performance-measurement systems dueto intense pressure from overseas competitorsd. started to address the decision-making needs of managers41. All successful organizations must identify and understand their:a. weaknessesb. competitionc. strategyd. definition of quality42. A key element of any organization’s strategy is identifying:a. its potential shareholdersb. its target customersc. competitor’s productsd. employee needs43. What an organization tries to deliver to customers is called its value proposition, whichincludes the elements of:a. cost and qualityb. cost, quality, and functionality and featuresc. cost, quality, functionality and features, and serviced. cost, quality, functionality and features, service, and industry standards44. The price paid by the customer, given the product features and competitor’s prices, isreferred to as the __________ element of the value proposition.a. costb. industry standardsc. qualityd. service45. The degree of conformance between what the customer is promised and what the customerreceives is referred to as the __________ element of the value proposition.a. costb. industry standardsc. qualityd. service46. The performance of the product, for example, a meal in a restaurant provides the diner withthe level of satisfaction expected for the price paid, is referred to as the __________element of the value proposition.a. functionality and featuresb. industry standardsc. qualityd. service47. How the customer is treated at the time of the purchase is an example of the __________element of the value proposition.a. functionality and featuresb. industry standardsc. qualityd. service48. Management accounting provides:a. information on the efficiency of factory laborb. information on the cost of servicing commercial customersc. information on the performance of an operating divisiond. All of the above are correct.49. Which of the following groups would be LEAST likely to receive detailed managementaccounting reports?a. stockholdersb. customer service representativesc. production supervisord. vice president of operations50. Top executives of a multi-plant firm are LEAST likely to use management accountinginformation:a. to support decisions that result in long-term consequencesb. to evaluate the performance of individual plantsc. for strategic planningd. for operational control51. Managers of service departments need all of the following information EXCEPT:a. efficiency data on work performanceb. quality data on work performancec. profitability data of the whole companyd. profitability data of the service department52. A national company manufactures a line of modern furniture. Information MOST useful tothe employee who assembles the furniture includes:a. a daily report comparing the actual time it took to assemble a piece of furniture to thestandard time allowedb. a monthly report on the portion of furniture pieces assembled with defectsc. the number of furniture pieces sold this monthd. revenue per employee53. A national company manufactures a line of modern furniture. Information MOST usefulto the top executive includes:a. individual job summaries of materials usedb. monthly financial reports on the company’s profitability by product linec. time reports submitted by each employeed. scheduled downtime for routine maintenance on machines54. A quarterly report disclosing declining market share information is MOST useful to:a. a front-line employeeb. the manager of operationsc. the chief executive officerd. the accounting department55. A weekly report comparing machine time used to available machine time is informationMOST useful to:a. a front-line employeeb. the manager of operationsc. the chief executive officerd. the accounting department56. A daily report on the number of quality units assembled by each employee is informationMOST useful to:a. a front-line assembly workerb. the accounting departmentc. the chief executive officerd. the personnel department57. Which of the following would be LEAST helpful for a top manager of a company?a. profitability report of the companyb. information to monitor hourly and daily operationsc. number of customer complaintsd. operating expense summary reported by department58. Recently, increased demand for management accounting information has been:a. primarily from manufacturing firmsb. primarily from service organizationsc. from both the manufacturing and the service industriesd. an illusion; in fact, the demand for management accounting has changed very little59. Management accounting can play a critical role in the service industry because of all thefollowing reasons EXCEPT:a. firms must be especially sensitive to the timeliness and quality of customer serviceb. many employees have very little contact with customersc. customers immediately notice defects and a delay in serviced. dissatisfied customers may never return60. Historically, the NEGLECT of management accounting in the service industry was a resultof:a. noncompetitive environmentsb. global customer demandsc. the switch to free market economiesd. an influx of higher-quality and lower-priced products from overseas61. Currently, management accounting information within government and nonprofitorganizations is in greater demand because:a. public and private donors are demanding accountabilityb. citizens are requesting responsive and efficient performance from their governingunitsc. more nonprofit organizations are competing for limited fundsd. All of the above are correct.62. Currently, pressures for improved cost and performance measurements are being felt by:a. nonprofit organizationsb. governmental agenciesc. profit-seeking enterprisesd. All of the above are correct.63. Financial accounting information:a. provides a signal that something is wrongb. identifies what is wrongc. explains what is wrongd. simply summarizes information but gives no indication that anything is wrong64. Decentralized responsibility refers to allowing lower-level managers to do all of thefollowing EXCEPT:a. make decisions without seeking higher approvalb. take advantage of local opportunitiesc. make periodic financial reports to upper-managementd. pursue individual objectives even though they may not contribute to the entirecompany65. The return on investment (ROI) performance measure uses __________ to evaluate theperformance of operating divisions.a. a single numberb. four numbersc. five numbersd. ten numbers66. The return on investment (ROI) performance measure combines __________ to produce ameasure of departmental performance.a. two profitability measuresb. two capital utilization measuresc. one profitability measure and one capital intensity measured. two profitability measures and two capital intensity measures67. All of the following are true regarding the return on investment (ROI) formula developed atDupont EXCEPT that:a. it is the sole measure top-management utilizes to evaluate which division shouldreceive additional capitalb. it allows companies to have centralized control with decentralized responsibilityc. it produces a measure of divisional performanced. it equals (Operating income/Sales) x (Sales/Investment)THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 68 AND 69.The following information pertains to three divisions:Flowers Shrubs TreesSales $15,000 $28,000 $120,000Operating income $2,000 $2,000 $6,000Investment $22,000 $40,000 $100,00068. What is the return on investment for the Shrub Division?a. 2.00%b. 5.00%c. 7.14%d. 70.00%69. Which division is more profitable based on ROI?a. Flowersb. Shrubsc. Treesd. Both Flowers and Shrubs are equally more profitable than Trees.70. To help evaluate management’s appropriate governance and strategic choices,organizations have called on management accountants to develop:a. internal control systems to protect assets from theftb. measures to monitor compliance with behavior that is consistent with theorganization’s best interestsc. systems to evaluate profitabilityd. reports to highlight variances from amounts planned71. Management accounting information is BEST described as:a. providing a signal that something is wrongb. identifying and helping to explain what is wrongc. simply summarizing information, but giving no indication that anything is wrongd. measuring overall organizational performance72. For improving operational efficiencies and customer satisfaction, nonfinancial informationis:a. criticalb. helpfulc. infrequently usedd. unnecessary73. Nonfinancial information might be used to:a. improve qualityb. reduce cycle timesc. satisfy customer needsd. All of the above are correct.74. The act of simply measuring and reporting information:a. focuses the attention of employees on those processesb. diverts the employee’s attention to other activitiesc. disproves the saying “What gets measured gets managed.”d. has no effect on employee behavior75. Which statement below is FALSE?a. “What gets measured gets managed.”b. People react to measurements.c. Employees spend more attention on those variables that are not getting measured.d. “If I can’t measure it, I can’t manage it.”76. When a change is introduced, employees tend to:a. embrace the changeb. be indifferent to the changec. exhibit no change in behaviord. resist the change77. The introduction of a new management system is MOST likely to motivate UNWANTEDemployee behavior when it is used for:a. evaluationb. planningc. decision makingd. coordinating individual efforts78. Management accountants are MOST likely to feel outside pressure to favorably influencethe numbers favorably when the information is used for:a. budgetingb. compensation and promotionsc. continuous improvementd. product costing79. Fostering a culture of high ethical standards includes all of the following EXCEPT:a. following the good example set by senior managementb. communicating to employees a belief system that inspires and promotes commitmentto the organization’s core valuesc. following the general examples set by front-line employeesd. communicating to all employees a boundary system that states what actions will notbe tolerated80. The Institute of Management Accountants (IMA):a. is a professional organization of management accountantsb. is a professional organization of financial accountantsc. issues standards for management accountingd. issues standards for financial accountingCRITICAL THINKING/ESSAY81. Describe management accounting and financial accounting.82. What is the purpose of management accounting?83. Briefly describe how managers make use of management accounting information.84. Describe the value proposition and the elements that comprise it.85. Is financial accounting or management accounting more useful to an operations manager?Why?86. What role has the increasingly competitive business environment played in thedevelopment of management accounting?87. Describe return on investment (ROI). Why was it developed? When was it developed?88. Give two examples of financial information and nonfinancial information.89. Discuss the potential behavior implications of performance evaluation.CHAPTER 1 SOLUTIONSMANAGEMENT ACCOUNTING: INFORMATION THAT CREATES VALUETRUE/FALSELO1 1. a LO1 2. b LO1 3. b LO1 4. a LO1 5. aLO2 6. a LO2 7. b LO2 8. a LO3 9. a LO3 10. a LO3 11. b LO3 12. a LO3 13. a LO3 14. a LO3 15. a LO4 16. b LO4 17. a LO5 18. a LO5 19. b LO5 20. aLO5 21. b LO5 22. b LO6 23. a LO6 24. a LO6 25. b MULTIPLE CHOICELO1 26. dLO1 27. dLO1 28. aLO1 29. dLO1 30. aLO1 31. dLO1 32. aLO1 33. dLO1 34. bLO1 35. cLO1 36. bLO1 37. cLO1 38. bLO1 39. cLO1 40. cLO2 41. cLO2 42. bLO2 43. cLO2 44. aLO2 45. cLO2 46. aLO2 47. dLO3 48. dLO3 49. aLO3 50. dLO3 51. cLO3 52. aLO3 53. bLO3 54. cLO3 55. bLO3 56. aLO3 57. bLO3 58. cLO3 59. bLO3 60. aLO3 61. dLO3 62. dLO4 63. aLO4 64. dLO4 65. aLO4 66. cLO4 67. aLO4 68. bLO4 69. aLO5 70. bLO5 71. bLO5 72. aLO5 73. dLO6 74. aLO6 75. cLO6 76. dLO6 77. aLO6 78. bLO6 79. cLO6 80. aMULTIPLE CHOICE68. $2,000 / $40,000 = 5.00%69. $2,000 / $22,000 = 9.09%; $2,000 / $40,000 = 5.00%; $6,000 / $100,000 = 6.00%CRITICAL THINKING/ESSAYLO181. Describe management accounting and financial accounting.Solution: Management accounting provides information to internal decision makers of the business such as top executives. Its purpose is to help managers predict and evaluate future results. Reports are generated often and are usually broken down into smaller reportingdivisions such as department or product line. There are no rules to be complied with since these reports are for internal use only.Financial accounting provides information to external decision makers such as investors and creditors. Its purpose is to present a fair picture of the financial condition of thecompany. Reports are generated quarterly or annually and report on the company as awhole. The financial statements must comply with GAAP (generally accepted accounting principles). A CPA audits, or verifies, that the GAAP are being followed.LO182. What is the purpose of management accounting?Solution: Management accounting gathers short-term and long-term financial andnonfinancial information to plan, coordinate, motivate, improve, control, and evaluatesuccess factors of an organization. Management accounting converts data into usableinformation that supports strategic, operational, and control decision making.LO183. Briefly describe how managers make use of management accounting information.Solution: Managers use accounting information for three broad purposes.ONE: To plan business operations that includes preparing strategies and budgets anddetermining the prices and costs of products and services. A company must know the cost of each product and service to decide which products to offer and whether to expand ordiscontinue product lines.TWO: To control business operations that includes comparing actual results to thebudgeted results and taking corrective action when needed.THREE: To evaluate performance.84. Describe the value proposition and the elements that comprise it.Solution: The value proposition is what an organization tries to deliver to its targetcustomers – it defines the organizational strategy.The four elements are cost, quality, functionality and features, and service.•Cost is the price paid by the customer, given the product features and competitor’s prices.•Quality is the degree of conformance between what the customer is promised and what the customer receives.•Functionality and features refers to the performance of the product. For example: A meal in a restaurant provides the diner with the level of satisfaction expected for the price paid.•Service is all of the other elements of the product. For example: How the customer is treated at the time of the purchase.LO385. Is financial accounting or management accounting more useful to an operations manager?Why?Solution: Management accounting is more useful to an operations manager becausemanagement accounting reports operating results by department or unit rather than for the company as a whole, it includes financial as well as nonfinancial data such as on-timedeliveries and cycle times, and it includes quantitative as well as qualitative data such as the type of rework that was needed on defective units.LO386. What role has the increasingly competitive business environment played in thedevelopment of management accounting?Solution: The competitive environment has changed dramatically. There has been aderegulation movement in North America and Europe during the 1970s and 1980s thatchanged the ground rules under which service companies operated. In addition,organizations encountered severe competition from overseas companies that offered high-quality products at low prices. There has been an improvement of operational controlsystems such that information is more current and provided more frequently. The nature of work has changed from controlling to informing. Firms are concerned aboutcontinuous improvement, employee empowerment, and total quality. Nonfinancialinformation has become a critical feedback measure. Finally, the focus of many firms is now on measuring and managing activities.87. Describe return on investment (ROI). Why was it developed? When was it developed?Solution: ROI = (operating income / sales) x (sales / investment)The ROI measure combines a profitability measure (operating income / sales) with a capital intensity measure (sales / investment) to provide a single measure of departmental anddivisional performance.ROI was developed in the early decades of the 1900s so that senior managers at multi-divisional diversified corporations, such as DuPont and General Motors, could evaluate the operating performance of their decentralized divisions.LO588. Give two examples of financial information and nonfinancial information.Solution: Financial information includes amounts that can be expressed in dollar amounts such as sales, net income, and total assets. It also includes ratios prepared using financial information such as increase in sales, return-on-sales, and return-on-investment.Nonfinancial information includes measures that are not expressed in dollar amounts. For example, nonfinancial measures of customer satisfaction include the number of repeatcustomers or ranked estimates of satisfaction levels. Nonfinancial measures of production quality include percent of on-time deliveries, the number of defects, production yield, and cycle times.LO689. Discuss the potential behavior implications of performance evaluation.Solution: As measurements are made on operations and, especially, on individuals and groups, the behavior of the individuals and groups are affected. People react to themeasurements being made. They will focus on those variables or the behavior beingmeasured and spend less attention on variables and behavior that are not measured. In addition, if managers attempt to introduce or redesign cost and performance measurement systems, people familiar with the previous system will resist. Management accountants must understand and anticipate the reactions of individuals to information andmeasurements. The design and introduction of new measurements and systems must be accompanied with an analysis of the likely reactions to the innovations.。