Day 32 Flashcards
What cost is deducted from revenues of a manufacturing company in order to determine gross margin, but not deducted from revenues to determine contribution margin?
Fixed Manufacturing
Under Absorption, all fixed and variable manufacturing overhead is COGS
Under Contribution, fixed Manufacturing overhead is treated as a period cost
MCQ-08538
The COSO Cube is visually structured such that:
The organizational structure is shown in a 3rd dimension
MCQ-00381
Not under a standard cost system, how is normal spillage and abnormal spillage treated?
Normal spillage - is considered a necessary cost of production and is a product (Inventoriable) cost
Abnormal spillage - is considered unnecessary and a period cost
MCQ-03630
What is accurate when a firms WACC is at its lowest when the debt to equity ratio is 4:1?
A higher ratio of 4:1 means equity holders will require a higher return
MCQ-07775
What concept can be best used to understand oligopoly behavior?
Game theory model
MCQ-08366
According to COSO, what is an example of top level review as a control activity?
MGMT reviewing the actual performance of a wide scale marketing plan and comparing it to benchmark goals
MCQ-08906
Under monopolistic competition, strategic plans focus on
Maintaining market share and planning for enhanced product differentiation
MCQ-03485
What are examples of responsibility accounting?
- Investment center
- Cost center
- Profit center
Note: Product center does not refer to any responsibility or decision center
MCQ-04207
What is the order of budget preparation?
- Sales
- Production
- Direct Materials purchases
- Cash disbursements
MCQ-05829
What is the most effective means to avoid overhedging?
Acquire the minimum amount required to hedge known transactions
MCQ-03804
Variations between business cycles are most likely attributable to:
Duration and intensity
MCQ-06986
