Regression *ysis:
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1 .A successful responsibility accounting reporting system is dependent upon:
A A reasonable separation of costs into their fixed and variable components since fixed costs is not controllable and must be eliminated from the responsibility report. B The correct allocation of controllable variable costs. C Identification of the management level at which all costs are controllab...
2 .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.
3 .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.
4 .Conversion costs do not include:
A Indirect materials. B Indirect labor. C Direct materials. D Direct labor.
5 .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...
7 .Probability (risk) analysis is:
A Used only for situations in which the summation of probability weights is greater than one. B Incompatible with sensitivity analysis. C Used only for situations involving five or fewer possible outcomes. D An extension of sensitivity analysis.
8 .A couple filed a joint return in prior tax years. During the current tax year, one spouse died. The couple has no dependent children. What is the filing status available to the surviving spouse for the first subsequent tax year?
A Surviving spouse. B Head of household. C Single. D Married filing separately.
9 .In which of the following situations may taxpayers file as married filing jointly?
A Taxpayers who were legally separated but lived together for the entire year. B Taxpayers who were divorced during the year. C Taxpayers who were married but lived apart during the year. D Taxpayers who were married but lived under a legal separation agreement at the end of the year.
10 .In Year 1, Smith, a divorced person, provided over one half the support for his widowed mother, Ruth, and his son, Clay, both of whom are U.S. citizens. During Year 1, Ruth did not live with Smith. She received $9,000 in Social Security benefits. Clay, a 25-year-old full-time graduate student, and his wife lived with Smith. Clay had no income but filed a joint return for Year 1, owing an additional $500 in taxes on his wife's income. How many exemptions was Smith entitled to claim on his Year 1 tax return?
A 1 B 2 C 3 D 4
