CHAPTER 12 QUIZ
1. An extraordinary item appears on the income statement before the section on
2. In determining earnings per share when a preferred stock has dividends in arrears, only
the current year's dividend is de
1. Return on investment indicates the profitability that can be expected from one dollar of
2. To increase return on sales, a manager could decrease cost of goods sold while increasing
3. Capital turnover
A portion of the stockholders' equity section from the balance sheet of Walland Corporation
appears as follows:
Preferred stock, 9% cumulative, $50 par, 31,000 shares authorized,
issued, and outstanding
1. In cost-volume-profit analysis, the volume index is always stated in units.
2. Costs which increase in total amount in direct proportion to an increase in output are
called variable costs.
3. Variable costs are usually tra
11. Economies of scale can be achieved by using facilities more intensively.
12. The break-even point is the level of activity at which operating income is equal to cost of
13. The contribution margin is the amoun
Prepare Regal Flair Enterprises's responsibility income statement for the current month.
Report the responsibility margin for each product line and income from operations for the
company as a whole. Also include columns showing all dollar amounts as pe
1. An increase in an activity base must cause an increase in actual overhead costs incurred
for that base to be considered a cost driver.
2. Activity-based costing uses multiple activity bases to assign overhead costs to units of
1. The number of shares a corporation may issue is specified in the articles of corporation
and approved by the Securities and Exchanges Commission.
2. When a stockholder sends in a proxy statement to a corporation he or she owns stock
CHAPTER 8 FLEXIBLE BUDGETS, OVERHEAD COST VARIANCES, AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or serv
7-22 (15 min.) Materials and manufacturing labor variances. Actual Costs Incurred (Actual Input Qty. Actual Price) $200,000 Flexible Budget (Budgeted Input Qty. Allowed for Actual Output Budgeted Price) $225,000
Actual Input Qty. Budgeted
CHAPTER 15 ALLOCATION OF SUPPORT-DEPARTMENT COSTS, COMMON COSTS, AND REVENUES 15-1 The single-rate (cost-allocation) method makes no distinction between fixed costs and variable costs in the cost pool. It allocates costs in each cost pool to cost objects
CHAPTER 4 JOB COSTING 4-26 (20-30 min.) Job costing; actual, normal, and variation of normal costing.
1. Actual direct cost rate for professional labor $744,000 Actual indirect cost rate = 15,500 hours $960,000 Budgeted direct cost rate = for professional
CHAPTER 3 COST-VOLUME-PROFIT ANALYSIS NOTATION USED IN CHAPTER 3 SOLUTIONS SP: VCU: CMU: FC: TOI: Selling price Variable cost per unit Contribution margin per unit Fixed costs Target operating income
3-1 Cost-volume-profit (CVP) analysis examines the beha
CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-1 A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity, and a department. 2-2 Dir
MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-36 (30 min.) Cash budget, fill in the blanks, chapter appendix.
Quarters I Cash balance, beginning Add receipts Collections from customers Total cash available for needs Deduct disbursements Direct materials P