Questions from Managerial Accounting

Q: Which of the following is an external failure cost (quality)?

Which of the following is an external failure cost (quality)? a. Design reviews b. Retesting c. Rework d. Lost sales e. All of these.

Q: Which of the following represents environmental detection costs? a

Which of the following represents environmental detection costs? a. Depreciation on scrubbers b. Recycling products c. Disposing of toxic materials d. Carrying out contamination tests e. None of thes...

Q: An example of an environmental internal failure cost is a

An example of an environmental internal failure cost is a. cleaning up oil spills. b. damaging ecosystems from solid waste disposal. c. cost of operating scrubbers. d. measuring levels of contaminati...

Q: An example of a societal cost is a. medical

An example of a societal cost is a. medical care due to polluted air. b. recycling scrap. c. disposing of toxic materials. d. maintaining pollution equipment. e. All of these.

Q: Mac Ericson and Tammy Ferguson met at an IMA conference two months

Mac Ericson and Tammy Ferguson met at an IMA conference two months ago and began dating. Mac is the controller for Longley Enterprises, and Tammy is a marketing manager for Sharp Products. Longley is...

Q: Paul Golding and his wife, Nancy, established Crunchy Chips in

Paul Golding and his wife, Nancy, established Crunchy Chips in 1938. Over the past 60 years, the company has established distribution channels in 11 western states, with production facilities in Utah,...

Q: Pat James, the purchasing agent for a local plant of the

Pat James, the purchasing agent for a local plant of the Oakden Electronics Division, was considering the possible purchase of a component from a new supplier. The component’s purchase price, $0.90, c...

Q: Fuerza Inc. produces a protein drink. The product is sold

Fuerza Inc. produces a protein drink. The product is sold by the gallon. The company has two departments: Mixing and Bottling. For August, the bottling department had 60,000 gallons in beginning inven...

Q: Dr. Roger Jones is a successful dentist but is experiencing recurring

Dr. Roger Jones is a successful dentist but is experiencing recurring financial difficulties. For example, Jones owns his office building, which he leased to the professional corporation that housed h...

Q: Linda Ellis, division manager, is evaluated and rewarded on the

Linda Ellis, division manager, is evaluated and rewarded on the basis of budgetary performance. Linda, her assistants, and the plant managers are all eligible to receive a bonus if actual divisional p...