Read the questions and answer of given question:
1. A static budget enables a company to examine projected income over a range of sales levels.
True
False
2. Foreign currency exchange rates refer to the relative values of the currencies of different countries.
True
False
3. Low inflation rates are called hyperinflation.
True
False
4. Top-down budgets involve all levels of an organization working to achieve the organization's goal.
True
False
5. An unfavorable variance results when the actual price (or quantity) is less than the standard price (or quantity) for materials or labor.
True
False
6. Failure costs are incurred to identify poor-quality products (or services) before a customer receives the goods or services.
True
False
7. Quality costs are limited to companies that manufacture tangible products.
True
False
8. Operating assets is Sales - (cost of goods sold + other operating expenses).
True
False
9. The balanced scorecard has key performance criteria in four categories: financial, customer satisfaction, innovation and learning, and internal business.
True
False
10. Transfer pricing involves setting appropriate selling prices for goods or services when the seller is external to the company.
True
False
11. A market-based transfer pricing policy requires buyers and sellers to transfer goods based on externally verifiable prices.
True
False
12. Investment center managers are only held accountable for costs.
True
False
13. Just-in-time manufacturing is a production system that pulls products through the manufacturing process on the basis of market demand.
True
False
14. Cycle time is the number of minutes that pass between units leaving the final assembly area.
True
False
15. Bottlenecks represents the number of units completed by a process in a given period of time.
True
False
16. A manufacturing cell is a group of related machines, typically arranged in a straight line.
True
False
17. The theory of constraints states that by identifying a constraint, such as a bottleneck, that exists in the processing of a good or service and taking corrective steps, the process will be improved.
True
False
18. Processes within service organizations do not contain bottlenecks that affect lead time and throughput.
True
False
19. Operational capital investment decisions affect all or a considerable part of a company's operations, have uncertain lives, and require large investments.
True
False
20. The cost of capital is the interest rate that results in the present value of cash inflows from an investment.
True
False
21. The payback period is the average accounting income a project generates per period divided by the amount of the investment in the project.
True
False
22. Internal control systems are based on the theory that workers do not always behave in ways that are in the best interests of their company or its owners.
True
False
23. Payroll and other expenses are susceptible to manipulation.
True
False
24. Which of the following trends in the new business environment is concerned with the length of time it takes to develop, manufacture, and deliver a product?
TQM
just-in-time (JIT)
time-based competition
flexible manufacturing
25. Traditional management accounting information
focuses entirely on cost drivers
never focuses on cost drivers
does not focus enough on cost drivers
is useless in decision making.