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Unformatted text preview: ACC 221 Cost Accounting Exam 1 Name:__________________________________________________________________ Instructions for Part 1: Indicate the response you believe is the most correct for the multiple choice (MC) questions by circling the appropriate letter to indicate your answer. No partial credit can be earned on multiple choice questions. Therefore, choose your answers carefully. Only choose one response for MC questions, indicating two selections will invalidate your answer. Instructions for Part 2: You will be given a problem question. When attempting a problem, please be sure your handwriting is legible. No points will be earned of illegible work. Enter your answers to problem immediately following the problem and in the worksheet provided. Part 1: Multiple Choice: (3 points each, total of 90 points) 1. Which of the following is true regarding the theory of constraints? A) The theory of constraints does not apply to companies with multiple products because of capacity measurement difficulties. B) In any profit-seeking company, there must be at least one constraint. C) Constraints or bottlenecks stop organizations from selling an infinite number of units or services. D) both B and C above. 2. Process Reengineering includes all of the following steps except: A) constructing a diagram flowcharting the current process. B) redesigning the process. C) elimination of non-value-added activities. D) elimination of all constraints. 3. Ideally, how many units should be produced in a just-in-time manufacturing system? A) budgeted customer demand for the current week. B) budgeted customer demand for the following week. C) actual customer demand for the current week. D) maximum production capacity for the current week. 4. A detailed financial plan for the future is known as a: A) budget. B) performance report. C) organization chart. D) segment. 1 5. Compared to financial accounting, managerial accounting places more emphasis on: A) the flexibility of information. B) the precision of information. C) the timeliness of information. D) both A and C above. 6. Decentralization means the delegation of decision-making authority throughout an organization by allowing managers at various operating levels to make key decisions relating to their own area of responsibility. A) True B) False 7. Depreciation on a personal computer used in the marketing department of a manufacturing firm would be classified as: A) a product cost that is fixed with respect to the company's output. B) a period cost that is fixed with respect to the company's output. C) a product cost that is variable with respect to the company's output. D) a period cost that is variable with respect to the company's output....
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- Spring '08
- Cost Accounting