How is performance evaluated for a profit center? a. Actual costs incurred compared to budgeted costs. b. Actual segment margin compared to budgeted segment margin. c. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment. d. None of the above.
How is performance evaluated for a profit center? a. Actual costs incurred compared to budgeted costs. b. Actual segment margin compared to budgeted segment margin. c. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment. d. None of the above.
April Corporation developed the following per-unit standards for its product: 2 pounds of direct materials at $3.75 per pound. Last month, 2,000 pounds of direct materials were purchased for $7,600. The direct materials price variance for last month was: a. $3,800 favorable. b. $200 favorable. c. $100 unfavorable. d. $2
Golf Specialities (GS) is a Belgian company which manufacture head covers. GS is currently making 500 tiger head covers at 3.50 euros, which includes both variables and allocated fixed cost. GS sell to distributors for 4.25 euros. A distributor from Japan (Kojo) wants to purchase 100 tiger head covers per week from GS and sel
Contingent workers are assuming a greater role in today's organization. With that as a background, discuss compensation and benefit issues associated with the following workers: part-time, temporary, independent workers, and flexible/telecommuting. What impact may these changes have on an organization's compensation plan?
Contrast the principle difference between executive pay and non-executive pay, including a discussion on controversies associated with the growing disparity between executive and non-executive compensation packages.
During the week ending on August 6th, the following activity took place: - 2390 machine hrs were worked - 11400lbs of raw materials were purchased for inventory at a total cost of $70,680 - 3,800 cases of finished products were produced - 6,720 labor hrs were worked at an average rate of $12.25 per hr - $8,126 actual varia
Listed below are specific control policies and procedures prescribed by Hamilton Company. Identify the components of internal control to which each policy or procedure relates. For each item, identify one other policy or procedure for that internal control component that is not on the preceding list. - Management is alert
1) Which one is false? a) corporate income tax is an expense, not a distribution of the profits to the government b) non taxable revenue causes permanent differences between pretax accounting income and taxable income c) In general, temporary differences are resulted from timing difference between GAAP and tax regulations
The first "target" is in a mature industry. The target is held by two brothers who each have 5 million shares of stock. This company has a free cash flow of 20 million and its WACC is 11%. The free cash flow is estimated to grow at a constant rate of 5%. The company has 100 million of marketable securities, 200 million of deb
What are the company's total assets at the end of its most recent annual reporting period? What are the total assets at the end of the previous annual reporting period? How much cash and cash equivalents did the company have at the end of its most recent annual reporting period?
Summer Company's static budget is based on a planned activity level of 25,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 20,000 units and one based on 30,000. The company actually produced and sold 29,000 units. In evaluating its performance, ma
An important reason for imposing a minimum cash balance in the cash budget is: a. it provides a cushion that absorbs forecast errors b. it provides extra funds for managers to spend c. it makes the balance sheet look better d. all of the above
Ming Company is considering two alternatives. Alternative A will have sales of $150,000 and costs of $100,000. Alternative B will have sales of $180,000 and costs of $120,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income.
Select three revenue sources in public budgeting. Summarize each revenue source and describe which fund the source should fall under or be tracked in. Income taxes are usually collected by...
Mary Garcia, who is 25 years old, wishes to retire with $1,000,000 when she is 45. To accomplish this Mary is going to ask her grandmother for a "nest egg." Assuming she invests the money her grandmother gives her in a mutual fund that is expected to earn 10%, how much money must she get from Granny if she hopes to meet her earl
Fixed costs are really variable. The more you produce the smaller the unit cost of production. Is this statement correct?
The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.20 per unit. During June, 28,000 units of direct materials are purchased at a cost of $5.83 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B. Compute the total materials variance and
(TCO D) The management of Drummer Corporation is considering dropping product D84L. Data from the company's accounting system appear below. Sales $800,000 Variable Expenses $440,000 Fixed Manufacturing Expenses $248,000 Fixed Selling and Administrative Expenses $184,000 All fixed expenses of the company are full
(TCO D) Ferro Wares is a division of a major corporation. The following data are for the latest year of operations. Sales $33,040,000 Net Operating Income $1,453,760 Average Operating Assets $8,000,000 The company's minimum required rate of return 18% Required: i. What is the division's ROI? ii. What is the
Mr. Jones wants to buy Smithon Manufacturing because it is very profitable. Right now it has 30 shareholders but no single majority shareholder. It is a C corporation with a fiscal year-end of December 1. In order for Mr. Jones to buy this company, he will need to invest a lot of money in new manufacturing equipment, which means
Justification for the method of determining periodic deferred tax expense is base on the concept of: a) matching of periodic expense to periodic revenue b) objectivity in the calculation of periodic expense c) recognition of assets and liabilities d) consistency of tax expense measurements with actual tax planning st
What statement best describes some of the general characteristics of Accounting Information Systems? a) All AIS systems are uniform since all businesses must deal with the same issues b) AIS systems generally have similar capabilities; however, the applications implemented for a particular business are generally modified t
In the current recession, many firms are dropping product lines in an attempt to reduce losses. What are some of the factors managers should consider before making this decision? Is it possible that dropping a money losing product may backfire on a firm?
Atlantic Corporation, a calendar-year taxpayer, has $120,000 of accumulated E & P deficit as of January 1. Atlantic's current E & P is $40,000. The corporation makes a $50,000 distribution to its shareholders. (Shareholders have stock basis of $60,000.. How is the $50,000 distribution to the shareholders characterized by the sha
In a multi-state business where the firms sell products to other firms for the same price, how can transfer pricing be best structured in order to minimize state income taxes?
1. Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 2,000 Units 4,000 Units Indirect Labor $10,000 $20,000 Supervisory Salaries 5,000 5,000 Maintenance
Please see attached. ______________________________________________________________________________________________________________ 1. Brad and Kate received $9,500 for rent from Mike and Janet, who are renting their home in California. Brad and Kate did not use this property for personal use. The rent covers eight months
Lager Corp. produces and supplies automotive manufactures with the mechanisms used to adjust the positions of front seating units. Several competitors have recently entered the market, and management is concerned that the quality of the company's current products may be surpassed by the quality of the new competitors' products.
Prepare journal entries associated with changes due to errors. How do they relate to the practice of accounting and its uses in business?