Day 40

Question 1

Under FIFO, the Equivalent Units of Production are composed of what 3 elements?

Answer 1

1. The completion of units on hand at the beg.
2. The units started and completed during the period
3. The units partially completed at the end of the period

MCQ-03640

Question 2

The best basis upon which cost standards should be set to measure controllable production inefficiencies is:

Answer 2

Engineering standards based on attainable performance

MCQ-04154

Question 3

Equation: Breakeven Point in units

Answer 3

= Total Fixed Costs / Contribution Margin Per Unit

Contribution Margin = Selling Price - Costs

MCQ-05847

Question 4

What budget provides information for the preparation of Owners Equity section of a budgeted balance sheet?

Answer 4

Budgeted Income Stmt

Produces anticipated accrual basis net Income and is adding the beginning owners equity

MCQ-05568

Question 5

The segment margin of an investment center after deducting the Imputed Interest on the assets is known as:

Answer 5

Residual Income

MCQ-03440

Question 6

What change would result in the highest present value for a series of cash flows?

Answer 6

$100 decrease in taxes each year

MCQ-05852

Question 7

If ABC company’s bonds are currently relating 8% in the marketplace, why would the firm’s cost of debt be lower?

Answer 7

Interest is deductible for tax purposes

Bc Int. Exp. Is a tax deduction, the cost to ABC is lower than the market trails rate on debt

MCQ-03425

Question 8

A Static Budget contains what amounts?

Answer 8

Budgeted Costs for Budgeted Output

A Static Budget is based on costs at one output level

MCQ-07096

Question 9

If tax rates are expected to decrease, the WACC will:

Answer 9

Increase, because the after tax cost of debt will increase

MCQ-07791