• Q : Practitioners of management accounting-financial management....
    Accounting Basics :

    The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management states that significant ethical issues should be discussed first with an immediate superior unles

  • Q : Problem based on return on assets....
    Accounting Basics :

    Shore Company reported income before extraordinary items of $25,000, total liabilities of $150,000, and total stockholders' equity of $100,000. The return on assets was

  • Q : Book-value per share of the common stock....
    Accounting Basics :

    At the end of 20B, Storage Company reported outstanding common stock (par $20) of $300,000. Total liabilities were $440,000 and total assets were $860,000. The company had no preferred stock. The bo

  • Q : What is perots return on equity....
    Accounting Basics :

    Perot Company had income before interest and taxes of $120,000. Interest expense for the period was $17,000 and income taxes amounted to $28,500. The average stockholders' equity was $680,000. What

  • Q : Book-value per share of common stock....
    Accounting Basics :

    At the end of 20B, Storage Company reported outstanding common stock (par $20) of $300,000. Total liabilities were $440,000 and total assets were $860,000. The company had no preferred stock. The bo

  • Q : What is perot return on equity....
    Accounting Basics :

    Perot Company had income before interest and taxes of $120,000. Interest expense for the period was $17,000 and income taxes amounted to $28,500. The average stockholders' equity was $680,000. What

  • Q : What is able price-earnings ratio....
    Accounting Basics :

    The Able Company had net income of $47,500 and earnings per share of $3.17 during 20B. On December 31, 20B, the stock had a market price of $18.50 per share. What is Able's price/earnings ratio?

  • Q : Authority to make decisions concerning the costs....
    Accounting Basics :

    Fairmont Inc. uses an accounting system that charges costs to the manager who has been delegated the authority to make decisions concerning the costs.

  • Q : Collections for sales on account follow....
    Accounting Basics :

    Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's sales are collected in the month

  • Q : How many units should be produced during the month....
    Accounting Basics :

    Pardee Company plans to sell 12,000 units during the month of August. If the company has 2,500 units on hand at the start of the month, and plans to have 2,000 units on hand at the end of the month,

  • Q : Budgeted change in inventory levels over the month....
    Accounting Basics :

    The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December. The company's cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchand

  • Q : Expected cash disbursements during the month....
    Accounting Basics :

    ABC Company has a cash balance of $9,000 on April 1. The company must maintain a minimum cash balance of $6,000. During April expected cash receipts are $45,000. Expected cash disbursements during t

  • Q : Budgeted selling and administrative expenses....
    Accounting Basics :

    The Stacy Company makes and sells a single product, Product R. Budgeted sales for April are $300,000. Gross Margin is budgeted at 30% of sales dollars. If the net income for April is budgeted at $40

  • Q : Experience an unfavorable labor rate variance....
    Accounting Basics :

    Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance?

  • Q : Standard labor hours allowed....
    Accounting Basics :

    If the actual labor hours worked exceed the standard labor hours allowed, what type of variance will occur?

  • Q : Recognizing a direct material price variance....
    Accounting Basics :

    If a company follows a practice of isolating variances at the earliest point in time, what would be the appropriate time to isolate and recognize a direct material price variance?

  • Q : Unfavorable materials quantity variance concept....
    Accounting Basics :

    Actual production in November was 3,100 units of Titactium. There was a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, o

  • Q : Standard direct material cost for cloth per unit....
    Accounting Basics :

    The cost of the cloth is $3 per yard. The standard direct material cost for cloth per unit of finished product is:

  • Q : Problem based on materials price variance....
    Accounting Basics :

    The Porter Company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 Unfavo

  • Q : What are the actual hours worked....
    Accounting Basics :

    Lab Corp. uses a standard cost system. Direct labor information for Product CER for the month of October follows:What are the actual hours worked?

  • Q : Problem on amount of total overhead cost....
    Accounting Basics :

    What amount of total overhead cost would have been applied to production for the month of April?

  • Q : The standard hours allowed for october....
    Accounting Basics :

    Hart Company's labor standards call for 500 direct labor hours to produce 250 units of product. During October the company worked 625 direct labor hours and produced 300 units. The standard hours al

  • Q : Amount of overhead cost that the company applied to work....
    Accounting Basics :

    The amount of overhead cost that the company applied to work in process for October was

  • Q : Equipments net present value....
    Accounting Basics :

    A piece of equipment has a cost of $20,000. The equipment will provide cost savings of $3,500 each year for ten years, after which time it will have a salvage value of $2,500. If the company's disco

  • Q : Problem on net present value of machine....
    Accounting Basics :

    The Whitton Company uses a discount rate of 16%. The company has an opportunity to buy a machine now for $18,000 that will yield cash inflows of $10,000 per year for each of the next three years. Th

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