Mod 47 Wrong Answers

Question 1

Which of the following is an output of a financial planning model?

Answer 1

Projected financial statements

Question 2

Which of the following is a quantitative approach used to develop sales forecasts based on analysis of consumer behavior?

Answer 2

Markov techniques

Question 3

A forecasting technique gat is a combination of he last forecast and the last observed value is called…

Answer 3

Exponential smoothing

Question 4

When production levels are expected to increase within a relevant range and a flexible budget is used, what effect would be anticipated with respect to variable costs per unit…

Answer 4

No change

Question 5

Under the 2 variance method for analyzing overhead, which of the following variances consists of both variable and fixed overhead elements?

Answer 5

Controllable (budget) variance

Question 6

Which of the following variances would be useful in calling attention to a possible short term problem in the control of overhead costs?

Answer 6

Spending variance

Question 7

When actual sales are less than budget, would Lanta usually report favorable variances on variable food costs and fixed supervisory salaries?

Answer 7

Variable food costs only

Question 8

The goal of transfer pricing to provide segment managers with incentive to maximize profits of their divisions is…

Answer 8

Is a false statement

Question 9

The master budget contains…

Answer 9

The operating budget

Question 9

Wages earned by machine operators should be categorized as…2

Answer 9

1 direct labor

2 controllable by machine operators’ foreman

Question 9

Which of the following standard costing variances would be least controllable by a production supervisor?

Answer 9

Overhead volume

Question 9

Based on potential sales of 500 units per year, a new product has estimated traceable costs of $990,000. What is the target price to obtain a 15% profit margin on sales? 3 steps

Answer 9

X = target price
Revenue - cost = profit
500x - $990,000 = 0.15(500x)

Question 9

Each unit of finished product contains 2 yards of direct material.
There is 20% direct material spoilage.
Cost of direct material = $3/yard.
How do you calculate the. Standard direct material cost per unit of finished product? 3 steps

Answer 9

Input quantity - spoilage = output amount
X. -0.2X. = 2 yards
Solve for x and multiply by $3