QUESTION 34
After a recent earthquake in a nearby city the board of directors of a company has requested a review of the company s disaster recovery plan Which of the following would be classified as a weakness in the company’s disaster recovery plan?

QUESTION 35
A company incurred the following selected costs In its manufacturing operations during the month.

QUESTION 36
in order for the IT manager in cnarge of a company’s disaster recovery plan to have complete planning documentation, he should ensure that the documentation includes all of the following except

QUESTION 37
Huaxia Manufacturing’s standard cost card for product GH1 includes the following:

During the month of June, Huaxia produced 12,300 units. The purchasing department purchased 30,400 yards of fabric for a total cost of $100,320. The production department used 25.300 yards of fabric in June. What is Huaxia’s direct materials price variance for the month of June?

QUESTION 38
A company has prepared the following pro forma income statements. It plans to sell 10,000 units in the current year and 11.500 units next year.

QUESTION 39
A manufacturing company is considering implementing activity-based costing. Which one of the following statements is a valid consideration when making this change?

QUESTION 40
GorCo anticipates 10% sales growth each month for the next three months, and plans to sell 120.000 units of finished goods In the first month. The company plans production so that ending inventory is equal to 5% of the next month’s budgeted sales On GorCo’s production budget for the second month the number of finished goods units to be produced would be

QUESTION 41
Redstone, inc’s budget indicated that it expected to sell 30.000 units of Product A and 90.000 units of Product B Budgeted unit contribution margins were $4 for Product A and $22 for Product B Redstone’s actual sales were 28.000 units of Product A and 72.000 units of Product B with actual unit contribution margins of $3 25 and S23 50. respectively. Redstone’s sales-mix variance was

QUESTION 42
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 43
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 44
Sullivan Company’s static Budget for the past year is shown below.

Sullivan actually sow 11.000.000 units throughout the year which was a quantity within its relevant range. The flexible budget net income that should be used to compare to actual results is

QUESTION 45
A corporation had foreign currency translation gains from converting the financial statements of its foreign operations into U.S dollars .How will these gains be reported on the corporation’s financial statements?

QUESTION 46
The best way to illustrate the entire distribution of numerical data for a single variable is with a

QUESTION 47
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 48
A company has two service departments Security and Human Resources and two operating departments Assembly and Finishing Cost data for these departments are shown below

To determine the full costs of conducting Business m the operating departments the company allocates service department costs to the operating departments Security costs are allocated based on the number of employees and Human Resources costs are allocated based on the number of Human Resources hours used using the step-down method, what amount of Security costs would be allocated to the Assembly department?

QUESTION 49
A company extracts data from existing data sets to identify customer patterns By doing this, the company is applying

QUESTION 50
Which one of the following is the most important factor in the successful implementation of a balanced scorecard?

QUESTION 51
Music Masters Inc. has three departments: Instrument Sales, Music Instruction and Recording Studio The three segments are staffed by different customer service personnel but share space and administrative staff Condensed income statement information follows.

Management wants to eliminate the Recording Studio because of its losses. Because of the configuration of the building it is doubtful the space could be sublet and none of the common fixed costs would be eliminated However, additional space allocated to either Instrument Sales or Music Instruction might increase revenue from those sources In making this decision, all of the following outcomes are correct except.

QUESTION 52
Life-cycle costing is most effective when used with products that have a

QUESTION 53
A company had 100.000 shares of common stock issued and outstanding at January 1. During the year, the company took the following actions:

QUESTION 54
A company has developed a core competency in data mining. Which one of the following best describes this core competency?

QUESTION 55
A manufacturing company is setting a standard number of labor hours for a product Management creates a draft standard and asks for employees’ feedback. Which one of the following statements best represents the type of standard that is being set?