A successful responsibility accounting reporting system is dependent upon:
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1 .The relevance of a particular cost to a decision is determined by:
A Potential effect on the decision. B Riskiness of the decision. C Number of decision variables. D Accuracy of the cost.
2 .There are a variety of ways of classifying costs of an object as either fixed or variable. The most accurate method is considered to be:
A The high-low method. B The account analysis method. C The regression analysis method. D The engineering method.
3 .Anderson Corporation budgeted sales of 6,250 at $12 per unit but achieved sales of 5,000 at $15 per unit. Anderson would compute a selling price variance of:
A $3,750 B $0 C $18,750 D $15,000
4 .The only sales variance listed below that does not use contribution margin to compute results is:
A Sales volume variance B Market size variance C Market share variance D Sales price variance
5 .The performance measurement tool generally associated with the display of information evaluating multiple dimensions of business outcomes is referred to as the:
A Kaizen B Market value added C Return on Investment D Balanced scorecard
7 .According to COSO, which of the following is a compliance objective?
A To maintain material price variances within published guidelines. B To maintain a safe level of carbon dioxide emissions during production. C To maintain adequate staffing to keep overtime expense within budget. D To maintain accounting principles that conforms to GAAP.
8 .Quality programs normally include a number of techniques to find and analyze problems. The technique commonly used to rank and analyze the individual and cumulative causes of defects is called a:
A Pareto Diagram B Value Chain Analysis. C Control Chart. D Fishbone Diagram.
9 .Conversion costs do not include:
A Indirect materials. B Indirect labor. C Direct materials. D Direct labor.
10 .Cost drivers are:
A A mechanical basis, such as machine hours, computer time, size of equipment, or square footage of factory, used to assign to activities. B Activities that cause costs to increase as the activity increases. C Accounting measurements used to evaluate whether or not performance is proceeding accordin...
