Hello I have a few managerial accounting questions Im hoping someone can help ch
ID: 2420530 • Letter: H
Question
Hello I have a few managerial accounting questions Im hoping someone can help check over for me. thank you in advance!
1.) Salavge value :
a.) in theory is equal to the present value of the future value of cash flows of the asset
b.) should not be used to justify marginal investments - my answer
c.) is the prediction of what an asset could be sold for at the end of the time horizon
d.) all of the above
e.) none of the above
2.) As the interest rate used to discount futue cash flows is decreased, present value of the futurte cash inflows
a.) increases - my answer
b.) decreases
c.) stays the same
3.) The CMA deals primarly with internal reports for managment?
True - my answer
False
4.) The capital sales budget is closely tied to the
a.) sales budget
b.) purchases budget
c.) cash reciepts budget
d.) cash expenditure budget - my answer
5.) There is a fixed cost element in ending inventory using the variable costing approach.
a.) true
b.) false - my answer
6.) Which of the following companies in all likehood, is a process coster?
a.) paint manufacturer- my answer
b.) chair manufacturer
c.) boat manufacturer
d.) none of the above
7.) An oppurtunity cost is shown on the income statement?
a.) true
b.) false - my answer
8.) total fixed costs increase as production increases?
a.) true
b.) false - my answer
9.) Louis produces a product that requires 10 standard labor hours at $5/hr. If Louis produces 1,000 units and uses 10,000 direct labor hours, the labor efficiency variable is
a.) $10,000
b.) $50,000
c.) 0- my answer
d.) none of the above
10.) If prodcution equals sales and there are no begining or ending inventories
a.) variable costing gives a higher net income than absorption costing
b.) varaible costing gives a lower net income than absorption costing
c.) net income is the same under each assumption - my answer
d.) none of the above
Thank in advance!!!
Explanation / Answer
1.) Salavge value : c.) is the prediction of what an asset could be sold for at the end of the time horizon
2.) As the interest rate used to discount future cash flows is decreased, present value of the future cash inflows = a.) increases
3.) The CMA deals primarily with internal reports for management = TRUE
4.) The capital sales budget is closely tied to the d.) cash expenditure budget
5.) There is a fixed cost element in ending inventory using the variable costing approach = FALSE
6) companies in all likehood, is a process coster =b.) chair manufacturer
7.) An opportunity cost is shown on the income statement = FALSE
8.) total fixed costs increase as production increases = FALSE
9.) Louis produces a product that requires 10 standard labor hours at $5/hr. If Louis produces 1,000 units and uses 10,000 direct labor hours, the labor efficiency variable is c.) 0
10.) If production equals sales and there are no beginning or ending inventories = c.) net income is the same under each assumption
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