Appendix B, C Flashcards
Abnormal spoilage is…
Sales commissions are…
Not an inventoriable cost
Not an inventoriable cost
Materials quantity usage variance equation
Materials quantity usage variance =
Units produced x [standard material/unit] x [standard price/Ib]
Which of the following techniques effectively measures improvements in product quality as a result of internal failure costs?
Tracking the number of products reworked
The cost of debt most frequently is measured as…
Actual interest rate minus tax savings
Increasing the reliability of financial reporting and compliance with applicable laws and regulations is…
Not a COSO effective approach to monitoring internal control
Adopting Integration of systems is…
An effective long term solution
What should be used to calculate joint costs?3
(Units produced x selling price/unit) - separable costs
A company’s web server has been overwhelmed with a sudden surge of false requests that caused the server to crash. The company has most likely been the target of…
Denial of service attack
In calculating the payback period when there is $30,000 a year in cash flow, $5,000 a year in operating expenses and $2,000 in depreciation and payback is 4 years, what is multiplied by 4 years?
$30,000 - ($5,000 - $2,000)
A new clock in clock out system for employees would be least likely to change…
Errors in employee’s overtime computation
Which of the following is most useful when risk is being prioritized?
Expected value
Maintain redundant systems for instant availability to assure flow of transactions…
In e-commerce on continuous basis
If marginal propensity to consume is 0.8 how does government spending affect GDP?
1/.2 x expenditure
Which of the following methods should be used if capital rationing needs to be considered when comparing capital projects?
Profitability index
According to COSO, which of the following is a compliance objective?
To maintain a safe level of carbon dioxide emissions during production
