Problem 1. Sarbanes-Oxley legislation is not concerned with:
a) Improving internal control
b) Corporate governance
c) Monitoring of managers
d) Disclosure practices of private companies
Problem 2. Sales total $360,000 when variable costs total $270,000 and fixed costs total $80,000. The break-even point in sales dollars is:
a) $320,000
b) $270,000
c) $90,000
d) $80,000
Problem 3. In a job-costing system, allocation of manufacturing overhead to jobs is a credit to:
a) Work-in-Process Control
b) Manufacturing Overhead Allocated
c) Cash
d) Materials Control
Problem 4. An ABC system will provide benefits when:
a) products make diverse demand on resources due to volume differences.
b) there are no disagreement between the operations staff.
c) management does not want to estimate costs of activity pools.
d) None of the above
Problem 5. The first step in preparing an operations budget is:
a) identify the problems and uncertainties
b) to obtain information
c) make predictions about the future
d) choose among alternatives
Problem 6. A schedule of expected cash receipts and payments is a:
a) cash budget
b) statement of cash flows
c) balance sheet
d) all of the above
Problem 7. Actual results for operating income of $30,000 compared to budgeted operating income of $25,000 results in:
a) Unfavorable static budget variance
b) Favorable static budget variance
c) Favorable flexible budget variance
d) No variance