Q1. Which is not reported as an operating activity on a cash flow statement prepared using the indirect method?

a. Decreases in inventories

b. Proceeds from the sales of investments

c. Interest expense

d. Increases in Accounts Payable

Q2. When it comes to developing an EMA system, there are hardly any reference tools available for environmental management accountants; thus, organizations are still working to discover what information they need and how it can be reported in an accurate, appropriate and relevant manner. This scenario is an example of which type of EMA implementation challenge?

a. Historical orientation of accounting

b. Communication issues

c. Newness of EMA

d. Hidden Cost

Q3. Which of the following is the excess of the selling price per unit of a product over the variable cost of obtaining and selling each unit?

a. gross margin

b. unit contribution margin

c. net income

d. operating income

Q4. Outdoor Creations sells its patio heaters for $300 each. Its variable cost is $220 per heater. Fixed costs are $40,000 per month for volumes up to 1,000 patio heaters. Over 1,000 heaters, monthly fixed costs are $62,000. What is the budgeted operating income at a level of 1,300 heaters per month?

a. $ 42,000

b. $104,000

c. $328,000

d. $ 64,000

Q5. All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

a. True

b. False

Q6. Cost of goods sold is debited and finished goods inventory is credited for:

a. purchase of goods on account.

b. transfer of goods to the finished goods storeroom.

c. the sale of goods to a customer.

d. transfer of materials into work in process inventory.

Q7. In a process costing system, the figure of WIP inventories:

a. equals the number of products produced.

b. equals the number of production departments.

c. equals the number used in a job cost system.

d. cannot equal the number of parts used in the product

Q8. Swisser Vase Company manufactures and sells vases. Great Products Company has offered Swisser Vase $16 per vase for 5,000 vases. Swisser Vase's normal selling price is $28 per vase. The net manufacturing cost per vase is $18 and consists of variable costs of $14 per vase and fixed overhead costs of $4 per vase. (NOTE: Assume excess capacity and no effect on regular sales.)

How much are the expected increase (decrease) in revenues and expenses from the special sales order?

a. Expected increase (decrease) in revenues $80,000; expected increase (decrease) in expenses $90,000

b. Expected increase (decrease) in revenues $80,000; expected increase (decrease) in expenses $70,000

c. Expected increase (decrease) in revenues $80,000; expected increase (decrease) in expenses $20,000

d. Expected increase (decrease) in revenues $140,000; expected increase (decrease) in expenses $70,000

Q9. The assignment of direct and indirect materials to cost objects reduces:

a. finished goods inventory.

b. manufacturing overhead.

c. raw materials inventory.

d. work in process inventory.

Q10. Dell's payroll department preparing its budget based upon payroll expenses would be a(n):

a. cost center.

b. investment center.

c. profit center.

d. revenue center.

Q11. An interior designer spends 30 hours working with client #140 during April. Her basic annual salary is $60,000, while her annual salary plus benefits totals $90,000 per year. She typically works 40 hours a week for 50 weeks each year. Evaluate the hourly cost to the firm that employs her?

a. $ 30

b. $1,350

c. $ 43

d. $ 45

Q12. Wesley Corporation charged Job 110 with $12,000 of direct materials and $13,500 of direct labor. Allocation for manufacturing overhead is 80% of direct labor costs. What is the net cost of Job 110?

a. $10,800

b. $42,375

c. $36,300

d $25,500

Q13. The ________ section from the statement of cash flows includes loans to others and collections on loans.

a. investing

b. financing

c. operating

d. None of the above

Q14. Belton Company currently sells its products for $25 per unit. Management is contemplating a 20% increase in the sale price for the next year. Variable costs are currently 30% of sales revenue and are not expected to change next year. Fixed expenses are $150,000 per year.

Determine the breakeven point in units at the current sale price?

a. 6,667 units

b. 8,571 units

c. 10,650 units

d. 20,000 units