Misc. Accounting Questions

Misc. Accounting Questions

1. Value-added costs equal standard quantity times non-value-added costscurrently attainable standardsstandard priceactual price2. As a general rule, an investigation of a variance should be undertaken only if the anticipated benefits are greater than zeroanticipated benefits are greater than the expected costsvariance is negativevariance is positive3. Which of the following statements is true regarding a long-range quality report? This report measures trends of quality costs over timeThis report measures interim progress towards the zero-defect goal.This report measures actual costs of quality compared to budgeted costs of quality for a period of time.This report measures actual costs of quality versus what quality costs would be at an ideal or targeted zero-defect standard4. Which of the following equations measures the total budget variance? AQ ??? (AP SP)SP ??? (AQ SQ)SQ ??? (AP SP)(AQ ??? AP) (SQ ??? SP)5. An activity output measure is: the number of outputs from a processthe cost of the activity measuredthe effort expended to identify root causesthe number of times an activity is performed6. An example of a prevention cost is: field testingquality auditsreinspectionrepair costs7. Which of the following is an example of a non-value-added manufacturing activity? assemblyschedulingfinishingassembling8. A quality report that compares current actual quality costs with budgeted quality costs for the future is the: interim quality performance reportone-year quality performance reportmultiple-period quality trend reportlong-range quality performance report9. The number of units that can be produced in a given period of time is called: velocitycycle timeturnoverefficiency10. Which of the following is a value-added activity? movinginspectionprocessingwaiting11. Price/rate variances focus on the differences between actual and standard inputs multiplied by actual prices.actual and standard unit prices of an input multiplied by the actual quantity of inputsactual and standard inputs multiplied by standard pricesactual and standard unit prices of an input multiplied by the budgeted quantity of inputs12. For non-value-added activities that are unnecessary, the standard quantity is: onezeroactual quantity minus standard priceactual quantity plus standard price13. The costs of a consumer complaint department are: external failure costsinternal failure costsappraisal costsprevention costs14. At the beginning of 2011, Peters Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the companys products: Theoretical annual capacity 2,000Actual production 1,800Production hours available 500Actual conversion cost per hour $71) The theoretical velocity per hour is: 2) What is the ideal conversion cost per unit?15. Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labor for the 100 units of Product AA are as follows:Materials: Standard ActualStandard: 200 pounds at $3.00 per pound $600 Actual: 220 pounds at $2.85 per pound $627Direct labor: Standard: 400 hours at $15.00 per hour 6,000 Actual: 368 hours at $16.50 per hour 6,0721)What is the material usage variance for Bender Corporation? 2) What is the material price variance for Bender Corporation?16. At the beginning of the year, Grant Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:Preceding Year Current YearSales $3,000,000 $3,000,000 Quality training 3,000 4,500 Material inspections 7,500 12,000 Scrap 60,000 45,000 Rework 120,000 75,000 Product inspection 15,000 30,000 Product warranty 105,000 82,500 1)For the current year, prevention costs are what percentage of sales? 2) For the current year, appraisal costs are what percentage of sales? 3) For the current year, internal failure costs are what % of sales?4)For the current year, external failure cost are what % of sales?


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