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9-A well designed responsibility center will include thefollowing types except for: Select one:

(a.) cost center (b.) revenue center (c). proftit center (d.)investment center (e.) diversification center

10- Segmented reporting can be made by all except:Selectone:

a. division

b. product or product line

c. outsourcing agents

d. service center

e. sales person

11.

Rate of Return on Investment (ROI) breaks down into margin andturnover which reveals where enhancing actions can be taken in thefollowing:

Select one:

a. improve margin

b. improve turnover

c. improve both margin and turnover

d. all of the above

e. none of the above

12-

Improving Economic Value Added (EVA) can be achieved by:

Select one:

a. invest capital in high-performing projects

b. use less capital

c. increase profit without using more capital

d. all of the above

e. none of the above

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Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

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Related questions

1.A time interest earned ratio of 0.90 to 1 means:

A. The time the firm will default on its interest payment.

B. That net income is less than the interest expense.

C. That the cash flow is less than the net income

D. That the cash floe exceed the net income

E. None of the answer are correct.

2. Statements in which all items are expressed only in relativeterms (percentages on base) are termed;

A. Vertical Statement

B. Horizontal statement

C. Funds Statements

D. Common-sized statements

E. None of the answer are correct

3. A manufacturing firm would begin preparation of its masterbudget by constructing a:

A. Sales budget

B. Product budget

C. Cash Budget

D. Capital Budget

E. Set of pro-forma financial statements.

4. For a company that uses responsibility center accounting,which of the following costs is least likely to appear on aperformance report of an assembly-line supervisor.

A. Direct material used

B. Departmental Supplies

C. Assembly-line labor

D. Repairs and maintenance

E. Assembly-line facilities depreciation

5. which of the folling methods ignores the fact thar someservice department provide service to other service department;

a. Direct Method

B. Indirect method

C. Step down method

D. Reciprocal method

E. Dual cost allocation method

6.A division's return on investment may be improved byincreasing:

A. Cost of goods sold

B. Sales margin and cost of capital

C. Sales revenue and cost of capital

D. Capital turnover or sale margin

E. Capital turnover or cost of capital

7.Which of the following ratios would generally be used toevaluate a firms overall liquidity position

A. Working Capital

B. Current Ratio

C. Acid test ratio

D. Cash ratio

E. Inventory turnover in days.

8.Flexiable budgets reflect a comapny's anticipated costs basedon variations in;

A. Activity levels

B. Inflation rates

C. managers

D. anticipated capital acquistions

E. standards

9.When the quantity of material purchased is not equal to thequantity of material used, most companies base the calculation ofthe material quantity variance on the :

A. quantity of direct material purchased

B. Quantity of direct material spoiled

C. quantity of direct material that should have been used inacheiving actual production

D quantity of direct material actual used.

1

10. Which of the following costs should be ignored choosingamong alternatives?

A. Opportunity costs

B. Sunk costs

C. Out of pocket costs

D. Differential costs

E. None of these.

11. Which of the foll should have the strongest casue and effectrelationship with overhead cost;

A. Cost followers

B. Non value added cost

C. Cost drivers

D. Value added cost

E. Unit of output

12. Equivalent unit calculation are necessary to allocatemanaufacturing cost between:

A. Units completed and ending work in process

B.Beginning work in process and units completed

C. Unit sold and eding work in process

D. Cost of goods manufactured and beginnining work inprocess

E. Cost of goods manufactured and cost of goods sold.

1. Bookworm Publishers publishes books, and they have gatheredthe following data for the month of October:

Data

Cash on 10/1

$7,900

Expected Cash Collections

$350,000

Direct Materials Cash Disbursements

$68,000

Direct Labor Cash Disbursements

$45,000

MOH Cash Disbursements

$41,500

Operating Expenses Cash Disbursements

$93,000

Capital Expenditures Cash Disbursements

$132,000

Bookworm Publishers requires an ending cash balance of at least$5,000 and can borrow from a line of credit in $1,000 increments.How much cash is available for October?

A. $357,900
B. $350,000
C. $5,000
D. $277,400

2.Dandy's Fun Park is evaluating the purchase of a new game tobe located on its Midway. Dandy's has narrowed their choices downto two: the Wacky Water Race game and the Whack-A-Mole game.Financial data about the two choices follows.

Wacky Water Race

Whack-A-Mole

Investment

$28,000

$15,000

Useful life

8

8

Estimated annual net cash inflows for 8 years

$10,000

$5,000

Residual value

$4,000

$5,000

Depreciation method

straight-line

straight-line

Required rate of return

10%

12%

What is the net present value of the Whack-A-Mole game?

Present Value of $1

Periods

4%

6%

8%

10%

12%

1

0.962

0.943

0.926

0.909

0.893

2

0.925

0.890

0.857

0.826

0.797

3

0.889

0.840

0.794

0.751

0.712

4

0.855

0.792

0.735

0.683

0.636

5

0.822

0.747

0.681

0.621

0.567

6

0.790

0.705

0.630

0.564

0.507

7

0.760

0.665

0.583

0.513

0.452

8

0.731

0.627

0.540

0.467

0.404

Present Value of Annuity of $1

Periods

4%

6%

8%

10%

12%

1

0.962

0.943

0.926

0.909

0.893

2

1.886

1.833

1.783

1.736

1.690

3

2.775

2.673

2.577

2.487

2.402

4

3.630

3.465

3.312

3.170

3.037

5

4.452

4.212

3.993

3.791

3.605

6

5.242

4.917

4.623

4.355

4.111

7

6.002

5.582

5.206

4.868

4.564

8

6.733

6.210

5.747

5.335

4.968
A. ($11,860)
B. $25,350
C. ($25,350)

D. $11,860

3. Everyone Deserves to Smile mobile dentist office budgeted for4,355 patient visits a year. Everyone Deserves to Smile actuallysaw 4,500 patients during the year, and they have provided thefollowing data:

Fixed Portion for Budget

Variable Portion per Patient Visit forBudget

Actual Results

Revenue

$71

$410,800

Personnel Expenses

$70,000

$68,000

Medical Supplies

$10

$38,400

Occupancy Expenses

$9,000

$1.50

$19,000

Admin Expenses

$18,000

$0.75

$19,850

Based on the given information, what is the flexible budgetvariance for revenue?

A. $91,300 Favorable
B. $91,300 Unfavorable
C. $10,295 Favorable
D. $10,295 Unfavorable

4. Stockholders' expectations of company profits are affected bywhich of the following?

A. Historical company earnings
B. Industry risk
C. General economic conditions

D. All of the above

5. Mountaintop golf course is planning for the coming season.Investors would like to earn a 12% return on the company's$48,000,000 of assets. The company primarily incurs fixed costs togroom the greens and fairways. Fixed costs are projected to be$21,000,000 for the golfing season. About 410,000 golfers areexpected each year. Variable costs are about $15 per golfer. TheMountaintop golf course is a price-taker and won't be able tocharge more than its competitors who charge $102 per golfer. Whatprofit will it earn in terms of dollars?

A. $(21,000,000)
B. $14,670,000
C. $(14,670,000)
D. $26,970,000

6. The finance function at Morningstar Farms may be classifiedas a(n)

A. profit center.
B. revenue center.
C. cost center.
D. investment center.

7. Which of the following is/are relevant when deciding whetherto drive or fly home for semester break?

A. Wear and tear on yourvehicle.
B. Cost of the gasoline.
C. Cost of plane ticket.
D. All of these costs arerelevant.

8. Lasso Corporation manufactures a variety of appliances whichall use Part B89. Currently, Lasso manufactures Part B89 itself. Ithas been producing 10,000 units of Part B89 annually. The annualcosts of producing Part B89 at the level of 10,000 units includethe following:

Direct materials

$3.00

Direct labor

$8.10

Variable manufacturing overhead

$4.20

Fixed manufacturing overhead

$3.20

Total cost

$18.50

All of the fixed manufacturing overhead costs would continuewhether Part B89 is made internally or purchased from an outsidesupplier. Assume Lasso can purchase 10,000 units of the part fromthe Nadal Parts Company for $20.20 each, and the facilitiescurrently used to make the part could be used to manufacture 10,000units of another product that would have a $10 per unitcontribution margin. If no additional fixed costs would beincurred, what should Lasso do?

A. Make the new product and buy thepart to earn an extra $8.30 per unit contribution to profit.
B. Continue to make the part toearn an extra $6.80 per unit contribution to profit.
C. Make the new product and buy thepart to earn an extra $5.10 per unit contribution to profit.

D. Continue to make the part to earn an extra $8.10 per unitcontribution to profit.

9. A rolling budget is a budget that

A. is executed by uppermanagement.
B. extends 5-10 years into thefuture.
C. begins with zero for eachexpense and then adds amounts in.
D. is continuously updated, so thenext 12 months of operations are always budgeted.

10. Which of the following is not included inthe operating budget?

A. Budgeted income statement
B. Direct labor budget
C. Budgeted balance sheet

D. Sales budget

11. Panther Tire Corporation manufactures automobile tires.Panther Tire Corporation reported the following budgeted (standard)and actual information last quarter data:

Standard direct labor hours per tire

0.25

Standard rate per direct labor hour

$17.00

Actual direct labor hours

3,100

Actual total direct labor cost

$65,000

Actual number of tires produced

5,000

What is the direct labor efficiency variance for lastquarter?

A. $12,300 favorable
B. $31,450 favorable
C. $12,300 unfavorable
D. $31,450 unfavorable

12. The ________ budget is a component in a financialbudget.

A. budgeted cash budget
B. sales
C. production
D. budgeted balance sheet

1.( T or F ) An individual who directly owns real estate andearns net rental income for the tax year January 1 – December 31,2018 will have an effective tax rate of 29.6% on it.

2.( T or F ) Jumbo LLC, is treated as a partnership and is ownedby 50% by two individuals, Rod and Tom. Jumbo LLC acquired BighornCenter, an industrial rental property for $2 million and collectsrent from tenants. When Bighorn Center’s value increases to $3million, Jumbo refinances the debt and distributes $500,000 to bothRod and Tom. Rod and Tom treat the $500,000 as ordinary incomesubject to a 39.6% tax rate.

3.( T or F ) A gain resulting from the sale of REIT shares whenthat REIT is domestically controlled will not result in any U.S.federal income tax withholding for non-U.S. holders of the REITstock.

4.( T or F ) A general partnership can be taxed as a corporationif so elected under the check the box rules.

5.( T or F ) An individual investor can own 100% of a REIT.

6.( T or F ) Since dividends are not UBTI, a tax exempt investorwill not have UBTI on dividend income when debt is used to purchasethe stock that paid the dividend.

7.(T or F) An individual, who qualifies as a real estateprofessional, can treat a particular rental real estate activity asnon-passive even when that individual does not materiallyparticipate in the real estate activity.

8.(T or F) Withholding tax to non-US investors on interestincome and dividends may be reduced under the terms of atreaty.

9. Assume a building, owned by a REIT, increases invalue and the REIT that owns it sells the building for $120 millionand then makes a capital gain distribution to its shareholders.Which of the following is true regarding a U.S. individualinvestor's tax treatment:

A. The gain on the sale will be taxed at the ordinary income taxrate.

B. The gain on the sale will be taxed at the capital gain taxrate.

C. There is no tax on the net gain at the shareholder level.

D. The tax treatment is the same for the US investor as it isfor the foreign investor.

E. None of the above.

11. Provide the tax that would be applied for each ofthe following:

1. Withholding tax on passive-typeincome (interest, dividends, etc..) for non-US investors withrespect to US source income. _______________.

2. Tax imposed on a foreigncorporation based on a deemed distribution of US branchoperations____________________.

3. Withholding tax on US businessincome income that is effectively connected with a United Statestrade or business. ______________.

13. Which of the following would cause the largestproblem for an individual who wants to be taxed as a real estateprofessional (which one would be the most difficult to overcome ifan individual wanted to be treated as a real estateprofessional)?

A. The individual owns only rental real estate properties andspends all of his/her time managing them.
B. The individual works for herself as a commissioned real estatebroker and invests in one rental property on the side.

C. The individual works full time for a company that is activein a real estate trade or business (periodically requiringovertime) but has no ownership in the company.

D. The individual owns and operates a hotel where she spends2,000 hours per year and she also invests in a small portfolio ofrental real estate properties.

E. None of the above would cause problems for an individual tobe classified as a real estate professional.

14. What are the highest tax rates for each of thefollowing scenarios?

____. Operating income from a hotel earned by a foreigncorporation (excluding branch profits tax)

____. Interest income earned by a foreign corporationfrom a US borrower

____. Net rental income earned by an U.S. individual(exclude the passthrough deduction)

____. Capital gain earned by an U.S.individual

____. Interest income earned by a U.S.corporation

____. Capital gain earned by an U.S.corporation

____. Depreciation recapture on the sale of U.S. realestate (Section 1250 property) for an individual

____. Depreciation recapture on the sale of U.S. realestate (Section 1245 property) for an individual

15. Identify the following as "ECI" (effectivelyconnected income) or "Not ECI" (not effectively connected income)if earned by a foreign person:

________Rental income from an actively managed storage center inFlorida

________ Interest income from loans to non-U.S. corporateborrowers.

________ A gain on the sale of a shopping center located inBermuda.

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