Managerial Accounting UFC1 Pre assessment Complete Solution
Status: Passed
1.
Which feature of managerial accounting improves a company’s ability
... [Show More] to plan and control operations?
YOUR
ANSWER
CORRECT
ANSWER
It requires strict adherence to GAAP.
It allows comparability across businesses.
It provides earnings per share data.
It generates detailed information on product cost.
2.
Which statement describes period costs?
YOUR
ANSWER
CORRECT
ANSWER
They flow directly to the balance sheet as expenses.
They pertain to costs necessary to manufacture the product.
They flow directly to the current income statement as expenses.
They include direct materials, direct labor, and manufacturing overhead costs.
3.
A company has the following costs associated with a job:
Direct materials: $400
Directlabor: $450
Work in process: $950
Revenue from job: $1,450
Whatis the amount of overhead applied to this job?
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 2/27
YOUR
ANSWER
CORRECT
ANSWER
$100
$500
$600
$1000
4.
Management wants to assess how many units must be sold to earn a profit.
The most useful analysis will separate costs into which categories?
YOUR
ANSWER
CORRECT
ANSWER
Fixed and variable
Direct and indirect
Product and period
Controllable and not controllable
5.
A manufacturing company budgeted for $1,240,000 in manufacturing overhead and expected
400,000 directlabor hours. Actual overhead was $1,200,000, and actual directlabor hours were 390,000.
Was manufacturing overhead over- or underapplied and by how much?
YOUR
ANSWER
CORRECT
ANSWER
Overapplied by $9,000
Underapplied by $9,000
Overapplied by $40,000
Underapplied by $40,000
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 3/27
6.
Cost of goods manufactured equals $87,000 for the year. Finished goods inventory is $10,000 atthe
beginning ofthe year and $4,000 atthe end ofthe year. Beginning and ending work in process are $4,000
and $5,000, respectively.
How much is cost of goods sold for the year?
YOUR
ANSWER
CORRECT
ANSWER
$83,000
$87,000
$93,000
$97,000
7.
The following information relates to a company’s production activities for the month of October:
Estimated AmountsActual Amounts
Cost of directlabor $18,500 $19,000
Cost of maufacturing overhead$22,000 $24,000
Directlabor hours 900 920
Using directlabor hours as the allocation base, whatis the predetermined overhead rate?
YOUR
ANSWER
CORRECT
ANSWER
$20.56 per direct labor hour
$20.65 per direct labor hour
$24.44 per direct labor hour
$26.09 per direct labor hour
8.
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 4/27
The following amounts were reported by a company before adjusting its overapplied manufacturing
overhead of $48,000:
Cost of goods sold $730,000
Applied overhead $368,000
Actual overhead $320,000
Whatis the company’s cost of goods sold?
YOUR
ANSWER
CORRECT
ANSWER
$682,000
$778,000
$1,050,000
$1,098,000
9.
The manufacturing operations of a company had the following balances for the year:
Beginning BalanceEnding Balance
Raw materials $84,000 $91,000
Work in process$45,000 $59,000
Finished goods $28,000 $23,000
The company transferred $918,000 of completed goods out of work in process during the year. The
overhead is underapplied by $3,000.
Whatis the adjusted cost of goods sold for the year?
YOUR
ANSWER
CORRECT
ANSWER
$946,000
$926,000
$923,000
$920,000
10.
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 5/27
A company provides the following data for its process costing system:
Equivalent units for materials 10,000
Material costs for units in beginning inventory $20,000
Material costs for units started during the period $80,000
Conversion costs for units in beginning inventory $30,000
Conversion costs for units started during the period$80,000
Whatis the cost per equivalent unitfor materials ifthe weighted average cost method is used?
YOUR
ANSWER
CORRECT
ANSWER
$3
$8
$10
$11
11.
Whatis the emphasis of activity-based costing systems?
YOUR
ANSWER
CORRECT
ANSWER
Individual activities
Continuous production
Raw materials purchases
Department indirect cost rates
12.
Which common activity cost pool is driven by number of units produced?
YOUR
ANSWER
CORRECT
ANSWER
Units assembled
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 6/27
YOUR
ANSWER
CORRECT
ANSWER
Orders processed
Customers served
Employees engaged
13.
A company uses an activity-based costing system composed ofthree processes:tooling, processing, and
resources.
The company has the following firm-wide totals from its costing system:
Tooling Processing Resources
Driver quantity25 setups20,000 directlabor hours40,000 sq. ft.
Costs per pool $500,000$2,000,000 $800,000
Product D uses 3 setups, 3,000 directlabor hours, and 8,000 square feet.
Whatis the total overhead costthat should be assigned to Product D?
YOUR
ANSWER
CORRECT
ANSWER
$160,000
$300,000
$360,000
$520,000
14.
What are the relevant costs in the managerial decision-making process?
YOUR
ANSWER
CORRECT
ANSWER
Sunk costs
Historical costs
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 7/27
YOUR
ANSWER
CORRECT
ANSWER
Opportunity costs
Depreciation costs
15.
Which cost behavior pattern is depicted in the graph above?
YOUR
ANSWER
CORRECT
ANSWER
Fixed costs
Mixed costs
Variable costs
Sunk costs
16.
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 8/27
The accountant of a local retailer prepared the following income statementfor this month:
Sales revenue $600,000
Cost of goods sold $250,000
Gross margin $350,000
Less operating expenses
Selling expense $73,000
Administrative expense $65,000$138,000
Net operating income $212,000
The retailer sells its coats for $150 each. Selling expenses consist of a commission of $5 per coat plus fixed
costs. Each coat costs $62.50 from the distributor. Administrative expenses consist of a variable
component equalto 5% of sales plus fixed costs. In order to increase net operating income in the coming
year, managementis considering increasing advertising expenses.
What would be the total contribution margin reported on this retailer’s contribution formatincome
statement?
YOUR
ANSWER
CORRECT
ANSWER
$212,000
$300,000
$350,000
$550,000
17.
A merchandise company reported the following results for the year:
Number of units sold 1,000
Selling price per unit $400
Variable manufacturing costs per unit$120
Variable selling cost per unit $90
Total fixed selling costs $10,000
Variable administrative cost per unit $50
Fixed administrative costs $30,000
Whatis the contribution margin?
YOUR
ANSWER
CORRECT
ANSWER
$100,000
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 9/27
YOUR
ANSWER
CORRECT
ANSWER
$140,000
$280,000
$400,000
18.
A company sells a productfor $18 per unit. The variable costis $6 per unit. The company has fixed costs of
$42,000.
How many units mustit sell in order to break even?
YOUR
ANSWER
CORRECT
ANSWER
1,750
2,334
3,500
7,000
19.
A company reports the following annual information for a product:
Sales price $48 per unit
Variable costs $15 per unit
Fixed costs $150,000
Units produced and sold30,000 units
Ifthe sales price is increased to $50 per unit and nothing else changes, how much will netincome increase?
YOUR
ANSWER
CORRECT
ANSWER
$60,000
$900,000
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 10/27
YOUR
ANSWER
CORRECT
ANSWER
$1,050,000
$1,500,000
20.
A company reports the following annual information for its single product:
Sales price $48 per unit
Variable costs $15 per unit
Fixed costs $150,000
Units produced and sold30,000
If fixed costs decreased to $120,000, whatis the break-even pointin units?
Round up to the nearest whole unit.
YOUR
ANSWER
CORRECT
ANSWER
2,500 units
3,125 units
3,637 units
4,546 units
21.
Why does directlabor cost affectthe make-or-buy decision?
YOUR
ANSWER
CORRECT
ANSWER
It is an overhead cost.
It is an opportunity cost.
It is a mixed cost.
It is a variable cost.
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 11/27
22.
Last year, a company spent $25 per unitto make widgets. This year, however,the cost has increased to $40
per unit. The company has recently learned it can buy widgets for $38 per unit.
Which differential cost should be considered for this make-or-buy decision?
YOUR
ANSWER
CORRECT
ANSWER
$2 per unit
$13 per unit
$15 per unit
$25 per unit
23.
A company manufactures bird feeders, which they normally sell for $30 each. The company compiles the
following information relating to the production of the bird feeders:
Plant capacity 280,000 feeders
Current production level200,000 feeders
Direct materials $9/unit
Hourly labor $6/unit
Variable overhead $3/unit
Fixed overhead $400,000
The company receives a requestfrom a large buyer to purchase 12,000 feeders at a reduced price.
Whatis the minimum price per unitthatthe company should charge for this order?
YOUR
ANSWER
CORRECT
ANSWER
$9
$15
$18
$20
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 12/27
24.
It costs a company $6 of variable costs to produce one flag, which normally sells for $20. A customer offers
to purchase 30,000 flags at $10 each. The company would incur special shipping costs of $1 per flag ifthe
order were accepted. The company has sufficient unused capacity to produce the 30,000 flags. The
company is currently profitable.
Ifthe special order is accepted, what will be the increase in netincome?
YOUR
ANSWER
CORRECT
ANSWER
$30,000
$90,000
$120,000
$300,000
25.
A company is deciding whether equipment currently in use should be replaced by new equipment.
Which information is relevantto this decision?
YOUR
ANSWER
CORRECT
ANSWER
The cost of the new equipment
The salvage value of the new equipment
The net book value of the new equipment
The annual depreciation of the new equipment
26.
A company is considering whether to eliminate a segment and has compiled the following information:
Proposal Analysis
Total
(existing)
Segment
(drop)
Proposed
(remaining)
Sales ($210/unit) $26,250 $13,125 $13,125
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 13/27
Proposal Analysis
Total
(existing)
Segment
(drop)
Proposed
(remaining)
Variable costs $10,500 $6,300 $ 4,200
Contribution margin$15,750 $6,825 $8,925
Fixed costs $11,100 $2,250 $8,850
Netincome $4,650 $4,575 $75
Should the company eliminate or keep the segment?
YOUR
ANSWER
CORRECT
ANSWER
Keep the segment since the segment's total avoidable expenses are $4,500
Eliminate the segment since unavoidable expenses are $2,250 of fixed costs
Eliminate the segment since the contribution margin of the segment is $1,725
less than total allocated expenses
Keep the segment since eliminating it will result in a $4,575 reduction in net
income compared to the existing business
27.
A company has the capacity to produce 20,000 units of its product per year. Itis currently only producing
13,000 units per year, with a sell price of $70 per unit. A customer has placed a special order for 6,500
units at $62 per unit. The incremental cost of accepting the special order is $382,000.
Should the company acceptthe special order?
YOUR
ANSWER
CORRECT
ANSWER
No, because the incremental contribution margin would be $32,000
No, because the incremental contribution margin would be $53,000
Yes, because the incremental contribution margin would be $21,000
Yes, because the incremental contribution margin would be $73,000
28.
A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for
$150,000 if manufactured further at an additional cost of $80,000.
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 14/27
What should this company do?
YOUR
ANSWER
CORRECT
ANSWER
Sell the inventory for $65,000 scrap value
Reclassify the inventory as a $80,000 bad debt expense
Hold the inventory at its $50,000 cost
Manufacture further and sell it for $150,000
29.
A company produces a productthat currently costs $8 in variable costs and $2 in fixed costs. It sells the
productfor $14. If processed further,the company will spend an additional $6 in variable costs and $2 in
fixed costs. Each unit would then be sold for $24.
Why would the company choose to process further?
YOUR
ANSWER
CORRECT
ANSWER
Incremental revenue will be $24/unit
Incremental profit will be $2/unit
Incremental fixed cost will be $4/unit
Incremental net income will be $6/unit
30.
How can a reliable budgeting system be identified?
YOUR
ANSWER
CORRECT
ANSWER
It facilitates the make-or-buy decision.
It provides for effective planning and control.
It provides data on earnings and savings trends.
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 15/27
YOUR
ANSWER
CORRECT
ANSWER
It provides information on historical borrowing and spending.
31.
A company has the following budgeted sales:
July $200,000
August $300,000
September$250,000
20% of the sales are for cash, and 80% are on credit. 25% ofthe credit sales are collected in the month of
sale, and 75% are collected the next month.
What are the total expected cash receipts during September?
YOUR
ANSWER
CORRECT
ANSWER
$250,000
$262,500
$275,000
$280,000
32.
The budget committee of a manufacturer has just completed its sales budget.
Which budget should be prepared next?
YOUR
ANSWER
CORRECT
ANSWER
Cash budget
Production budget
Selling expense budget
Merchandise purchase budget
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 16/27
33.
Which budgetis the basis for all other budgets created in the budgeting process?
YOUR
ANSWER
CORRECT
ANSWER
Cash budget
Sales budget
Production budget
Inventory purchases budget
34.
The following is a list of budgets in the master budget:
Balance sheet
Cash
Direct material
Directlabor
Ending inventory
Income statement
Manufacturing overhead
Production
Sales
General & administrative expense
Which type of budgetincludes depreciation on factory equipment?
YOUR
ANSWER
CORRECT
ANSWER
Sales budget
Direct labor budget
Manufacturing overhead budget
Production budget
35.
Which budgetis designed to evaluate changes in revenue and costs?
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 17/27
YOUR
ANSWER
CORRECT
ANSWER
Static budget
Flexible budget
Production budget
Selling expense budget
36.
A budget committee for a merchandising firm has just completed its sales budget. The committee knows
its budgeted beginning and ending inventory.
Which additional item from the sales budgetis needed to prepare the merchandise purchases budget?
YOUR
ANSWER
CORRECT
ANSWER
Sales price
Expected sales
Cash disbursements
Production efficiency
37.
Which budget uses the results calculated in the directlabor budget?
YOUR
ANSWER
CORRECT
ANSWER
Manufacturing overhead budget
Production budget
Sales budget
Cash budget
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 18/27
38.
Why is the sales budgetimportant?
YOUR
ANSWER
CORRECT
ANSWER
It drives multiple calculations in other budgets.
It forecasts industry performance.
It demonstrates how fast the company collects its receivables.
It tells external analysts the company’s future results.
39.
Where on a flexible budget would a user look for depreciation expenses?
YOUR
ANSWER
CORRECT
ANSWER
Fixed costs
Variable costs
Cost of goods sold
Contribution margin
40.
A company’s budgeted costs for 60,000 units are as follows:
Fixed manufacturing costs $30,000
Variable manufacturing costs$15.00 per unit
The company produced 50,000 units.
How much is the budgeted total manufacturing cost?
YOUR
ANSWER
CORRECT
ANSWER
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 19/27
YOUR
ANSWER
CORRECT
ANSWER
$775,000
$750,000
$780,000
$930,000
41.
A company’s planned activity level is 200,000 directlabor hours. Atthis level of activity,the company
budgeted the following manufacturing overhead costs:
Variable
Indirect materials: $174,000
Indirectlabor: $180,000
Factory supplies: $46,000
Fixed
Depreciation: $65,000
Taxes: $12,000
Supervision: $55,000
The company had 90,000 directlabor hours.
Whatis the total manufacturing overhead cost using a flexible budget?
YOUR
ANSWER
CORRECT
ANSWER
$312,000
$332,000
$400,000
$532,000
42.
A static budget, based upon production of 10,000 units, showed an estimated directlabor budget of
$30,000 and depreciation budget of $20,000. Directlabor costs are fully variable. The actual directlabor
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 20/27
and depreciation costs were $28,000 and $19,000 for 8,000 units.
Which total amount should be shown in the flexible budgetfor directlabor and depreciation costs?
YOUR
ANSWER
CORRECT
ANSWER
$40,000
$43,000
$44,000
$50,000
43.
Paradigm Toys
Flexible Budget Performance Report
Budget Actual
Difference
Favorable (F)
Unfavorable (U)
Production in units 18,000 18,000
Directlabor
Directlabor hours (1 hour/unit)18,000 18,200 200 (U)
Directlabor costs ($20/hour) $360,000 $354,900 $5,100 (F)
Direct Materials
Quantity (.5/unit) 9,000 9,300 300 (U)
Dollars ($20/unit) $360,000 $375,000 $15,000 (U)
Variable costs
Indirect materials 720,000 700,000 20,000 (F)
Indirectlabor 324,000 288,000 36,000 (F)
Utilities 198,000 176,000 22,000 (F)
Total variable costs 1,242,0001,164,00078,000 (F)
Fixed costs
Depreciation 300,000 300,000 0
Property taxes 50,000 50,000 0
Supervision 120,000 120,000 0
Total fixed costs 470,000 470,000 0
Total costs 1,712,0001,634,00078,000 (F)
Whatis an explanation for the change in directlabor costs?
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 21/27
YOUR
ANSWER
CORRECT
ANSWER
YOUR
ANSWER
CORRECT
ANSWER
The company produced fewer units than budgeted.
The company used less direct labor in production.
The company’s supervision expense was unchanged.
The company used workers with less experience.
44.
Paradigm Toys
Flexible Budget Performance Report
Budget Actual
Difference
Favorable (F)
Unfavorable (U)
Production in units 18,000 18,000
Directlabor
Directlabor hours (1 hour/unit)18,000 18,200 200 (U)
Directlabor costs ($20/hour) $360,000 $354,900 $5,100 (F)
Direct Materials
Quantity (.5/unit) 9,000 9,300 300 (U)
Dollars ($20/unit) $360,000 $375,000 $15,000 (U)
Variable costs
Indirect materials 720,000 700,000 20,000 (F)
Indirectlabor 324,000 288,000 36,000 (F)
Utilities 198,000 176,000 22,000 (F)
Total variable costs 1,242,0001,164,00078,000 (F)
Fixed costs
Depreciation 300,000 300,000 0
Property taxes 50,000 50,000 0
Supervision 120,000 120,000 0
Total fixed costs 470,000 470,000 0
Total costs 1,712,0001,634,00078,000 (F)
Whatis an explanation for the change in direct materials costs?
YOUR
ANSWER
CORRECT
ANSWER
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 22/27
YOUR
ANSWER
CORRECT
ANSWER
The company used lower quality direct materials.
The company’s indirect labor changed.
The company’s production process was more efficient.
The company used fewer utilities.
45.
Jaunty Coffee Company
Flexible Budget Performance Report
Budget Actual
Difference
Favorable-F
Unfavorable-U
Production in units 32,000 32,000
Direct Labor
Directlabor hours (1 hour/unit)12,000 11,500 500 F
Directlabor costs ($15/hour) $180,000 $168,000 $12,000 F
Direct Materials
Quantity (2/unit) 24,000 23,200 800 F
Dollars ($30/unit) $360,000 $358,000 $2,000 F
Variable Costs
Indirect materials 180,000 215,000 35,000 U
Indirectlabor 119,000 109,000 10,000 F
Utilities 147,000 151,000 4,000 U
Total variable costs 446,000 475,000 29,000 U
Fixed Costs
Depreciation 80,000 80,000 0
Property taxes 10,000 10,000 0
Supervision 160,000 160,000 0
Total fixed costs 250,000 250,000 0
Total costs 1,236,0001,251,00015,000
What is an explanation for the company’s directlabor variance?
YOUR
ANSWER
CORRECT
ANSWER
The company’s workers were more productive.
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 23/27
YOUR
ANSWER
CORRECT
ANSWER
The company’s direct materials were of lower quality.
The company overused indirect labor.
The company’s utility bill was higher.
46.
A company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However,the plastic actually
cost $80 per yard. The company made 4,200 units. Total yards used for production were 3,960.
Whatis the material quantity variance?
YOUR
ANSWER
CORRECT
ANSWER
$19,200 favorable
$19,200 unfavorable
$19,440 favorable
$19,440 unfavorable
47.
A company provides the following data for material costs:
Standard cost per unit3 pounds at $2 per unit
Actual cost per unit 2.5 pounds at $3 per unit
During the month, 5,000 pounds of raw materials were purchased.
Whatis the direct material price variance?
YOUR
ANSWER
CORRECT
ANSWER
$5,000 favorable
$15,000 favorable
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 24/27
YOUR
ANSWER
CORRECT
ANSWER
$5,000 unfavorable
$10,000 unfavorable
48.
A company notices thatit has significant unutilized capacity and a rapidly rising fixed overhead volume
variance.
Which action should managementtake?
YOUR
ANSWER
CORRECT
ANSWER
Outsource production to other companies
Consolidate production facilities
Invest in more efficient production equipment
Increase the amount of direct labor used in production
49.
A company manufactures snowboards. The company has an unfavorable direct materials price variance
thatis rising considerably faster than its competitors.
Which action should managementtake?
YOUR
ANSWER
CORRECT
ANSWER
Improve plant labor efficiency
Review the standard quantity
Source new suppliers
Reduce material wastes
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 25/27
50.
Which inventory technique emphasizes lower inventory balances?
YOUR
ANSWER
CORRECT
ANSWER
Just-in-time manufacturing
Activity-based costing
Balanced scorecard
Lean manufacturing
51.
A company is concerned aboutthe working conditions in their suppliers’ factories in the developing world.
Which currenttrend in managerial accounting would supportthe consideration of working conditions of
employees?
YOUR
ANSWER
CORRECT
ANSWER
Lean manufacturing
Sarbanes-Oxley
Triple bottom line
Just-in-time inventory
52.
A large social media firm is considering how to use “big data” collected aboutits users.
Which currenttrend in managerial accounting will inform how this firm makes decisions aboutthis?
YOUR
ANSWER
CORRECT
ANSWER
Accounting ethics standards
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 26/27
YOUR
ANSWER
CORRECT
ANSWER
Balanced scorecard
Total quality management
Enterprise resource planning
53.
A large international energy company has determined thatit can achieve significantly lower costs by
reducing expenditures on safety and emissions control.
Which trend in managerial accounting will help inform this company’s decision?
YOUR
ANSWER
CORRECT
ANSWER
Lean manufacturing
Activity-based costing
Value chain analysis
Corporate social responsibility
54.
A small hair salon is evaluating its performance using the balanced scorecard method.
Which metric will appropriately measure the performance ofthe company from the customer
perspective?
YOUR
ANSWER
CORRECT
ANSWER
Percentage of appointments that are kept
Revenue per stylist
Continuing education hours per employee
Percentage of growth in sales
9/19/2018 WGU Student Portal | Coaching Report
https://my.wgu.edu/coaching-report/preassessment-report/v1/studentPidm/558070/assessmentCode/PEZO/testDate/1523149261 27/27
55.
An automobile manufacturer evaluates its performance using the balanced scorecard approach.
Which metric appropriately measures company performance from the internal process perspective?
YOUR
ANSWER
CORRECT
ANSWER
Number of warranty repairs
Brand value in their products
Stock price
Credit rating
56.
A business using the balanced scorecard technique has chosen to increase their emphasis on learning and
growth.
Where should they investtheir funding?
YOUR
ANSWER
CORRECT
ANSWER
Increasing employee compensation
Improving sales personnel’s customer relationships
Increasing the units produced per work hour
Creating management training programs
Accessibility Policy [Show Less]