Question: Prepare a time diagram for the present

> Alyeska Services Company, a division of a major oil company, provides various services tothe operators of the North Slope oil field in Alaska. Data concerning the most recent year appearbelow: Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> What are the four steps in the planning and control cycle?

> If a company has a manufacturing cycle efficiency (MCE) of less than 1, what does it mean? How would you interpret an MCE of 0.40?

> What effect, if any, would you expect poor-quality materials to have on direct labor variances?

> Should standards be used to identify who to blame for problems?

> If the materials price variance is favorable but the materials quantity variance is unfavorable, what might this indicate?

> Who is generally responsible for the materials price variance? The materials quantity variance? The labor efficiency variance?

> Why are separate price and quantity variances computed?

> What is meant by the term management by exception?

> Distinguish between ideal and practical standards.

> What is a quantity standard? What is a price standard?

> What are some of the possible reasons that actual results may differ from what had been budgeted at the beginning of a period?

> What are the three major elements of product costs in a manufacturing company?

> What is a flexible budget and how does it differ from a static planning budget?

> What is a static planning budget?

> Why are there two stages of allocation in activity-based costing?

> What types of costs should not be assigned to products in an activity-based costing system?

> If fixed manufacturing overhead costs are released from inventory under absorption costing, what does this tell you about the level of production in relation to the level of sales?

> If the units produced and unit sales are equal, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?

> Are selling and administrative expenses treated as product costs or as period costs under variable costing?

> In all respects, Company A and Company B are identical except that Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain.

> Often the most direct route to a business decision is an incremental analysis. What is meant by an incremental analysis?

> What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP analysis?

> A number of terms that relate to organizations, the work of management, and the role of managerial accounting are listed below: Required: Choose the term or terms above that most appropriately complete the following statements. A term may be used more t

> What is meant by the margin of safety?

> What is meant by the term break-even point?

> What is meant by the term operating leverage?

> What is the contribution margin?

> What is the difference between ordinary least-squares regression analysis and multiple regression analysis?

> What is meant by the term least-squares regression?

> Give the general formula for a mixed cost. Which term represents the variable cost? The fixed cost?

> What is the major disadvantage of the high-low method?

> Does the concept of the relevant range apply to fixed costs? Explain.

> Classify the following fixed costs as normally being either committed or discretionary: a. Depreciation on buildings. b. Advertising. c. Research. d. Long-term equipment leases. e. Pension payments to the company’s retirees. f. Management development and

> John Olsen operates a stamping machine on the assembly line of Drake Manufacturing Company. Last week Mr. Olsen worked 45 hours. His basic wage rate is $14 per hour, with time and a half for overtime (time worked in excess of 40 hours per week). Required

> Managers often assume a strictly linear relationship between cost and volume. How can this practice be defended in light of the fact that many costs are curvilinear?

> What is meant by an activity base when dealing with variable costs? Give several examples of activity bases.

> What effect does an increase in volume have on— a. Unit fixed costs? b. Unit variable costs? c. Total fixed costs? d. Total variable costs?

> Assume that a company has two processing departments—Mixing and Firing. Prepare a journal entry to show a transfer of work in process from the Mixing Department to the Firing Department

> How many Work in Process accounts are maintained in a company that uses process costing?

> Only variable costs can be differential costs. Do you agree? Explain.

> Why is cost accumulation simpler in a process costing system than it is in a job-order costing system?

> The variable cost per unit varies with output, whereas the fixed cost per unit is constant. Do you agree? Explain.

> Under what conditions would it be appropriate to use a process costing system?

> Describe how the inventory accounts of a manufacturing company differ from the inventory account of a merchandising company.

> Mary Adams is employed by Acme Company. Last week she worked 34 hours assembling one of the company’s products and was idle 6 hours due to material shortages. Acme’s employees are engaged at their workstations for a normal 40-hour week. Ms. Adams is paid

> Do U.S. GAAP and IFRS differ in the ability of a company to recognize in net income the recovery of impairment losses of accounts and notes receivable?

> What are the key variables that influence a company’s investment in receivables? Describe the two ratios used by financial analysts to monitor a company’s investment in receivables.

> What is a deferred annuity?  

> Explain the relationship between Table 2, Present Value of $1, and Table 4, Present Value of an Ordinary Annuity of $1. TABLE 2 Present Value of $1 PV = nN 1.0% 15% 2.0% 2.5% 10% 4.0% 4.5% 6.0% 7.0% 9.0% 10.0% 11.0% 12.0% 20.0% 1 0.99010 O.98522 0.9

> Shackelford Corporation acquired a patent from its founder, Jim Shackelford, in exchange for 50,000 shares of the company’s nopar common stock. On the date of the exchange, the common stock had a fair value of $22 per share. Determine the cost of the pat

> What is the basic principle for valuing property, plant, and equipment and intangible assets acquired in exchange for other nonmonetary assets?

> What account is credited when a company receives donated assets? What is the rationale for this choice?

> Explain how property, plant, and equipment and intangible assets acquired through donation are valued.

> Explain the difference between an ordinary annuity and an annuity due.

> Explain how assets acquired in exchange for equity securities are valued.

> When an asset is acquired and a note payable is assumed, explain how acquisition cost of the asset is determined when the interest rate for the note is less than the current market rate for similar notes.

> Explain the method generally used to allocate the cost of a lump-sum purchase to the individual assets acquired.

> Identify the costs associated with the initial valuation of a developed natural resource.

> Explain the difference between tangible and intangible long-lived, revenue-producing assets.

> Explain the difference between the successful efforts and the full-cost methods of accounting for oil and gas exploration costs.

> Describe how debits and credits affect temporary owners’ equity accounts.

> Identify the two exceptions to valuing property, plant, and equipment and intangible assets acquired in nonmonetary exchanges at the fair value of the asset(s) given up.

> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2015, are available in Connect. This m

> Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $20; selling price, $30; selling costs, $4. What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inv

> What is an annuity?

> Explain the retail inventory method of estimating ending inventory.

> What are the various levels of aggregation to which the LCNRV and LCM approaches can be applied?

> It is discovered in 2018 that ending inventory in 2016 was understated. What is the effect of the understatement on the following: 2016: Cost of goods sold Net income Ending retained earnings 2017: Net purchases Cost of goods sold Net income Ending retai

> Describe the accounting treatment for a change in inventory method other than to LIFO.

> What is the conventional retail method?

> On December 28, 2018, Tristar Communications sold 10 units of its new satellite uplink system to various customers for $25,000 each. The terms of each sale were 1/10, n/30. Tristar uses the gross method to account for sales discounts. In what year will i

> The following items appeared on the year-end trial balance of Consolidated Freight Corporation: cash in a checking account, U.S. Treasury bills that mature in six months, undeposited customer checks, cash in a savings account, and currency and coins. Whi

> For each of the following situations, (1) indicate whether you agree or disagree with the financial reporting practice employed and (2) state the accounting concept that is applied (if you agree), or violated (if you disagree). 1. Winderl Corporation

> Janice Dodds opens the mail for the Ajax Plumbing Company. She lists all customer checks on a spreadsheet that includes the name of the customer and the check amount. The checks, along with the spreadsheet, are then sent to Jim Seymour in the accounting

> Einhorn Industries believes it is not probable that Thaler Inc. will default on an account receivable, but given the possibility of default, Einhorn believes it will collect $30,000 less than the receivable’s current carrying value on Einhorn’s balance s

> Explain the difference between monetary and nonmonetary assets and liabilities.

> Refer to the situation described in BE 7–15. Assuming that the sale criteria are not met, describe how Logitech would account for the transfer. In BE 7–15 Logitech Corporation transferred $100,000 of accounts receivable to a local bank. The transfer was

> On December 1, 2018, Davenport Company sold merchandise to a customer for $20,000. In payment for the merchandise, the customer signed a 6% note requiring the payment of interest and principal on March 1, 2019. How much interest revenue will the company

> Singletary Associates has accounts receivable due from normal credit customers, and also has an account receivable due from a director of the company. Singletary would like to combine both of those receivables on one line in the current assets section of

> Refer to the situation described in BE 7–4. Answer the questions assuming that Tristar uses the net method to account for sales discounts. In BE 7–4 On December 28, 2018, Tristar Communications sold 10 units of its new satellite uplink system to various

> Is any special accounting treatment required for the assigning of accounts receivable in general as collateral for debt?

> If a company has accounts receivable from ordinary customers and from related parties, can they combine those receivables in their financial statements under U.S. GAAP? Under IFRS?

> Do U.S. GAAP and IFRS differ in how bank overdrafts are treated? Explain.

> Explain the primary functions of internal controls procedures in the accounting area. What is meant by separation of duties?

> Describe how debits and credits affect assets, liabilities, and permanent owners’ equity accounts.

> Define cash equivalents.

> Define the present value of a single amount.

> Identify the three items of information necessary to calculate the future value of a single amount.

> What would cause the annual interest rate to be different from the annual effective rate or yield?

> Explain compound interest.

> Define interest.

> Franklin Construction entered into a fixed-price contract to build a freeway-connecting ramp for $30 million. Construction costs incurred in the first year were $16 million and estimated remaining costs to complete at the end of the year were $17 million

> Kerianne paints landscapes, and in late 2018 placed four paintings with a retail price of $250 each in the Holmstrom Gallery. Kerianne’s arrangement with Holmstrom is that Holmstrom will earn a 20% commission on paintings sold to gallery patrons. As of D

> Dowell Fishing Supply, Inc., sold $50,000 of Dowell Rods on December 15, 2018, to Bassadrome. Because of a shipping backlog, Dowell held the inventory in Dowell’s warehouse until January 12, 2019 (having assured Bassadrome that it would deliver sooner if

> Assume the same facts as in BE 5-5 but that Tulane Tires reports under IFRS. How much revenue should Tulane recognize under IFRS? In BE 5-5 Tulane Tires wrote a contract for a $100,000 sale to the new Garden District Tour Company. Tulane onlyanticipates

> What are the two general criteria that must be satisfied before a company can recognize revenue?

> How does a company report deferred gross profit resulting from the use of the installment sales method in its balance sheet?

> Listed below are several statements that relate to financial accounting and reporting. Identify the accounting concept that applies to each statement. 1. SiriusXM Radio Inc. files its annual and quarterly financial statements with the SEC. 2. The preside

> Distinguish between the installment sales method and the cost recovery method of accounting for installment sales.