QUESTION 41
If a company s disaster recovery planning includes the use of a cold site the company will

QUESTION 42
A company s accounting department is run by only one accountant. Which one of the following can be implemented as a detective control?

QUESTION 43
Edward Pane is an external auditor who is seeking an understanding of the cash receipts process at his new client Pane decides to use a flowchart to analyze the operations for efficiency and control. Which one of the following statements is true with respect to the decision to use a flowchart for this purpose?

QUESTION 44
A company manufactures dining tables. The variable costs per unit are as follows.

Other costs are fixed and include advertising costs of $45,000 per year administrative costs of $55,000 annually and fixed manufacturing overhead of S250.000 per year based on Budgeted production of 10.000 dining tables There was no beginning inventory During the prior year, a total of 10.000 dining tables were manufactured, with 9 000 dining tables sold at $100 each Based on the above information what would be the cost of the ending finished goods inventory under absorption (full) costing?

QUESTION 45
Aeronautics Inc. has designed a new airplane that entails an extremely complex manufacturing process Upon reviewing the market Aeronautics’ management believes the price of the plane will need to be set below current manufacturing costs. Some on the management team have recommended stopping the project, however, the CFO believes that the plane will become profitable in the near future. The CFO most likely used which forecasting method?

QUESTION 46
Hill Corporation sola some of its accounts receivable including one from Custom Company, to Dale incorporated without recourse, Because of this transaction.

QUESTION 47
The purchasing team manager of a large car retailer is responsible for purchasing cars for the Pest price and managing his team’s payroll costs. Once the car is purchased the sales team manager is responsible for setting the prices. Which one of the following statements best describes the team s responsibilities’?

QUESTION 48
Marsalis Products Inc. manufactures and sells batteries and cables for computers. The latest information on the products and their costs is shown in the following table.

Note: 1 Fixed manufacturing cost of S1.500,000 per year is allocated to products based on the number of machine hours required to produce the product at a rate of S3 per machine hour.
Based on the information above, what is the annual amount of earnings before interest and taxes (EBIT)?

QUESTION 49
COSO’s Internal Control-Integrated Framework is the widely accepted internal control framework in the U S Five major Internal control components are Included in this framework Control environment consists of

QUESTION 50
What is the best type of accounting system control to help prevent improper manipulation of data and to ensure the continued, satisfactory use of the hardware and software?

QUESTION 51
A building materials retailer uses a LIFO method of valuing its inventory. The company has just introduced a new product. The following is the activity for the first month of this new product.
* Purchase of 3,000 units on the 2nd of the month at $5.00.
* Purchase of 6,000 units on the 12th of the month at $4.80.
* Purchase of 2,000 units on the 31st of the month at $5 60.
* Sales of the product were 4,000 units on the 20th of the month.
Using the periodic method, the ending value of the inventory would be

QUESTION 52
in times of declining prices using the Last-in First-Out (LIFO) cost flow assumption rather than the First-in, First-Out (FIFO) assumption will yield

QUESTION 53
Which one of the following best describes the difference between a normal costing system and an actual costing system?

QUESTION 54
The best way to illustrate the entire distribution of numerical data for a single variable is with a

QUESTION 55
The type of data anarytics mat seeks to identify the best action to take in oraer to achieve a desired result is

QUESTION 56
A company recently used 500 direct labor hours to manufacture ten units of a new product, if the company employs the cumulative average-time learning model with a 90% learning curve, the number of direct labor hours the company would expect to use to produce the next ten units of this product is

QUESTION 57
Trans Action inc. (TAI) is a multidivisional supplier of power train components to the automobile industry.
Following is selected information for the year just ended for each of the three divisions. Gear Axle and Housing.

The tai Board of Directors has decided to reward the employees or the divisions by allowing them to share in a bonus pool equal to S100.000 for each percentage point the return on investment (ROI) earned by their division exceeded the ROI of comparable firms as shown in the table below.

Rank the amounts in the bonus pools for the respective divisions from highest to lowest.

QUESTION 58
The master budget for a company contains me following production requirements.
Quarter 1- 50,000 units
Quarter 2 – 55,000 units
Quarter 3 – 45,000 units
Quarter 4 – 52,000 units
Each unit of product requires four pounds of direct material. The company has a policy to begin each quarter with an inventory of aired materials equal to 20% of that quarter’s direct material requirements The budgeted direct mate da I purchases for the third quarter would be