Consider the following costs:
Depreciation on factory equipment.
Factory janitors salary.
Utilities for factory.
Production supervisors salary.
Business Income, Deductions, and Accounting Methods
True / False Questions
1. The Internal Revenue Code authorizes deductions for trade or business activities if the
expenditure is "ordinary and necessary".
2. Business activities are
1. A direct material quantity standard generally includes an allowance for waste.
Level: Easy LO: 1 Ans: T
2. Practical standards allow for normal machine downtime and employee rest periods.
Level: Easy LO: 1 Ans: T
Chapter 7. Taxes and Credits
Determine a taxpayer's regular tax liability and identify tax issues associated with the process.
Compute a taxpayer's alternative minimum tax liability and describe the tax characteristics
(Key Question) Why does the Federal Reserve require commercial banks to have
reserves? Explain why reserves are an asset to commercial banks but a liability to the
Federal Reserve Banks. What are excess reserves? How do you calculate the am
(Key Question) What is the basic determinant of (a) the transactions demand and (b) the
asset demand for money? Explain how these two demands can be combined graphically
to determine total money demand. How is the equilibrium interest rate in the mon
Investments by owners, comprehensive income.
(also possible would be revenues and gains).
Distributions to owners.
(Note to instructor: net effect is to reduce equity
Chapter 11 Flexible Budgets and Overhead Analysis
True/False Questions 1. A key feature of a flexible budget is that actual results can be compared to budgeted costs at the same level of activity. Ans: True AACSB: Reflective Thinking AICPA BB: Critical Th
Chapter 10 Standard Costs and the Balanced Scorecard
True/False Questions 1. Ideal standards do not allow for machine breakdowns and other normal inefficiencies. Ans: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Le
Chapter 5 Cost Behavior: Analysis and Use
True/False Questions 1. Within the relevant range, a change in activity results in a change in total variable cost and the per unit fixed cost. Ans: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICP
Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which
has a standard cost of $1.45 per unit. During May, the company purchased 12,000 units of the
part for a total of $18,000. Also during May, the company manufactu
Managerial Accounting Final Exam Spring 2008 Name: _ Pledge: _ On my honor I have neither given or received help on this exam. I understand that any violation of the University Honor Policy will result in an automatic zero on this exam, and that I will be
(Key Question) Assume that a hypothetical economy with an MPC of .8 is experiencing
severe recession. By how much would government spending have to increase to shift the
aggregate demand curve rightward by $25 billion? How large a tax
The Challenges of
Starting a Business
Individual who identifies a business
opportunity and assumes the risk of
creating and running a business to take
advantage of it.
Three Characteristics of
and Keeping Quality
All actions that an
takes to attract,
Functions of Money
Store of value
Medium of Exchange
Managing for Business
Individual in an organization who is
responsible for making a group of
people more effective and efficient.
Process of setting
best way to
The Role of accounting
the results to
Parties who are
interested in the
1. Baaca Corporation has provided the following production and total cost data for two
levels of monthly production volume. The company produces a single product.
The best estimate of the total variable manufacturing cost per unit is:
First, calculate the
Chapter 12 Segment Reporting and Decentralization
True/False Questions 1. Allocating common fixed costs to segments on segmented income statements reduces the usefulness of such statements. Ans: True AACSB: Reflective Thinking AICPA BB: Critical Thinking
J. J. Johnson has decided to supplement his income by selling beehives. He expects to sell
25,000 hives in 20x9. He ended 20x8 with 2,500 completed hives in inventory and would like to
complete operations in 20x9 with at least 2,800 completed hives in inv