Practice_E1 - BUS 21 Spring 2007 Practice Question 1. The...

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BUS 21 Spring 2007 Practice Question 1. The function of management that compares planned results to actual results is known as: a. planning. b. directing and motivating. c. controlling. d. decision making. 2. Management accounting focuses primarily on providing data for: a. internal uses by managers. b. external uses by stockholders and creditors. c. external uses by the Internal Revenue Service. d. external uses by the Securities and Exchange Commission. 3. 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. 4. When carrying out their planning activities, managers obtain feedback to ensure that the plan is actually carried out and is appropriately modified as circumstances change. a. True b. False 5. The delegation of decision making to lower levels in an organization is known as: a. the planning and control cycle. b. controlling. c. decentralization. d. none of these. 6. After careful planning, Jammu Manufacturing Corporation has decided to switch to a just-in-time inventory system. At the beginning of this switch, Jammu has 30 units of product in inventory. Jammu has 2,000 labor hours available in the first month of this switch. These hours could produce 500 units of product. Customer demand for this first month is 400 units. If just-in-time principles are correctly followed, how many units should Jammu plan to produce in the first month of the switch? a. 370 400-30 = 370 b. 400 c. 430 d. 470 7. According to the Theory of Constraints, improvement efforts should usually be focused on: a. work centers that are not constraints. b. the work center that is the constraint. c. the work center with the highest total cost. d. the work center with the most obsolete equipment.
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For Questions 8 and 9 consider these numbered captions: 1. Fixed Factory overhead 5. Direct materials purchased 2. Variable Factory overhead 6. Direct materials used 3. Total factory overhead 7. Beginning work in process 4. Direct labor 8. Beginning finished goods 8. "Prime" costs would include: Direct labor, direct material a. 3, 4, 6, 7, 8 b. 3 only c. 4, 6 d. 1, 2, 4, 5 e. 4 only 9. "Conversion" costs would include: Direct labor and manufacturing overhead. a. 7, 8 b. 4 only c. 1, 2, 3 d. 2, 4 e. 3, 4 10. Which of the following best describes the concept mentioned? a. A direct cost is not a traceable cost. b. All product costs are prime costs of a product. c. Product costs are all variable costs. d. An indirect cost is difficult to trace to a specific product. 11. Property taxes on a company's factory building would be classified as a(n): a. product cost. b.
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Practice_E1 - BUS 21 Spring 2007 Practice Question 1. The...

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