Day 45

Question 1

Japan experienced an earthquake and damaged an auto manufacturers plant. As a result a US parts manufacturers workers were laid off bc the demand for US parts in Japan vanished. This is an example of what?

Answer 1

Global Sourcing Complications - is the use of worldwide supply chain

MCQ-07045

Question 2

Target Costing requires:

Answer 2

Knowledge of the selling price as a “given” so that production costs can be determined

The objective is to set a tragedy cost allowed to ensure both profitability per unit and total sales volume

MCQ-07756

Question 3

According to COSO, an effective approach to monitoring ICs include the following steps:

Answer 3

“SOD”
Separate Ongoing Evaluations & Communicate Deficiencies

1. Assessing and reporting results, including following up on corrective actions
2. Designing and executing monitoring procedures that are prioritized based on risk to achieve organizational objectives
3. Establish a foundation for monitoring

MCQ-08293

Question 4

What is true regarding variety and price of products produced in a monopolistic competitive industry vs perfect competition?

Answer 4

Monopolistic competitive industry produces a greater variety of products at higher costs per unit

MCQ-04310

Question 5

When deciding between two potential cost drivers using regression analysis, the best cost driver to use is the one with:

Answer 5

The higher R squared

R Squared represents the coefficient of determination

The higher the number = the better “fit” of the regression line

MCQ-1113

Question 6

In determining the cash flows for an investment, the depreciation tax savings (Shield) is equal to:

Answer 6

The Depreciation times the Tax Rate

MCQ-08866

Question 7

What is a limitation of Activity Based Costing system?

Answer 7

The expense of obtaining cost data is relatively high

ABC anticipates increased cost pools and increased allocation bases

MCQ-07000

Question 8

Having identified their mission, overall strategy, and critical success factors, organization’s often review internal and external factors that will contribute to their success. This analysis is called

Answer 8

SWOT Analysis

MCQ-03750

Question 9

What are the three methods used to estimate the cost of Retained earnings?

Answer 9

1. CAPM
2. Discounted Cash Flow
3. Bond Yield Plus Risk Premium

MCQ-07776

Question 10

The use of standard costs in the budgeting process signifies which type of budget?

Answer 10

Flexible Budget

Note: Standard cost per unit can be used to adjust the Flexible Budget to the actual volume

MCQ-03828

Question 11

Define: Pareto Diagrams

Answer 11

They display the individual and cumulative frequency of quality issues, defects, or problems

Combine the elements of Histogram of Quality displayed in order from most to least frequent in a line graph that displays the cumulative occurrence of problems

MCQ-06776