1. Which of the following would not change the return on investment? 1 A.

Decreasing sales revenue and expenses by the same percentage. B. Decreasing sales revenue and expenses by the same dollar amount. C. Increasing sales dollars and total assets by the same amount. D. Increasing sales revenue and expenses by the same percentage

2. Last year Monroe Companys divisional operating income was $315,000. The investment for the yea 1was $4,200,000. What is the return on investment? A. 7.750% B. 7.500% C. 5.000% D. 0.133%

3. The ________is the difference between the budgeted fixed manufacturing overhead and the fixed overhead applied to the actual output units produced (or standard input units allowed for actual output). efficiency variance spending variance volume variance yield variance

4. . Which of the following actions will not increase the return on investment? A. Increase sales B. Decrease invested capital C. Increase long-term liabilities D. Decrease costs 5. Nino Corporation conducted a study of the relationship between employee training costs and benefits. The company determined that it has break-even benefit level of $45,698 per year. This result indicates that Schiller should: A. Spend at least $45,698 per employee annually on employee training programs B. Invest in employee training programs if the benefits will be at least $45,698 per employee annually C. Generate at least $45,698 in additional sales for every $1 spent on employee training programs D. Expect to save $45,698 per year per employee on waste and efficiency

6. . Which of the following best describes a variable cost? A. Per unit cost decreases as activity increases and increases as activity decreases B. Total cost decreases as activity increases and increases as activity decreases C. Per unit cost remains the same regardless of activity D. Total cost remains the same regardless of activity . . Which of the following describes the formula for cost of goods manufactured? A. Direct materials used !lus direct labor !lus overhead minus beginning inventory of wor"# in#!rocess !lus ending inventory of wor"# in #!rocess B. Direct materials used !lus direct labor !lus overhead !lus beginning inventory of wor"# in# !rocess minus ending inventory of wor"# in# !rocess C. Beginning inventory of raw materials !lus !urchases of raw materials less ending inventory raw materials D. Beginning inventory of finished goods !lus !urchases of direct materials less ending inventory of finished goods $. . Through!ut costing% A. &easures only unit#level s!ending for direct costs of !roducts or services B. 'ncludes both committed and discretionary costs in the costs of !roducts or services C. 'ncludes both direct and indirect costs in the costs of !roducts or services D. 'ncludes only variable costs in the costs of !roducts or services

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Which of the following would be the first ste! in Activity#based management? A. 'dentify and classify the activities related to the com!any)s !roducts B. 'dentify o!!ortunities to enhance value#added activities and to reduce or eliminate non#value#added activities C. 'dentify activities as value#added or non#value added D. *core each activity as high or low value#added as !erceived by the customer

+,. . Which of the following statements is false? A. *ome firms have tried Activity#Based#Costing and found that their costs e-ceeded their benefits B. Activity#Based#Costing focuses on current !rocesses while Activity#Based# &anagement is concerned with im!roved !rocesses C. Activity#Based#Costing and Activity#Based#&anagement are sim!le and ine-!ensive to im!lement D. &any recent a!!lications of Activity#Based#&anagement have been in service de!artments of manufacturing firms rather than !roducing de!artments ++. . The contribution margin at the brea"even !oint A. 's .ero B. 's greater than variable costs C. 's less than total fi-ed costs D. /0uals total fi-ed costs +1. . At the brea"#even !oint of +23,, units2 variable costs are 46,2,,,2 and fi-ed costs are 45,2,,,. What would o!erating income be if +23,+ units are sold? A. 41, B. 46, C. 4(, D. 4+6, +5. . 7eyes Com!any !roduces a !roduct that sells for 43,. 8ariable manufacturing costs are 411 !er unit. 9i-ed manufacturing costs are 4 !er unit based on the current level of activity2 and fi-ed selling and administrative costs are 46 !er unit. A sales commission of +,: of the selling !rice is !aid on each unit sold. The contribution margin !er unit is% A. 41$ B. 415 C. 41+ D. 4+1

+6. . ;ou !urchased baseball tic"ets last month when your team was doing well. ;ou !aid 4 3 for the non#refundable tic"ets. The team is doing !oorly and a friend offered you 45, for the tic"et. The o!!ortunity cost of going to the game is A. 45, B. 463 C. 4 3 D. 4+,3 +3. 9aul" 'ndustries <9'= !roduces low cost digital cameras that sell for 4+,,. 9' re0uires a 13: return on sales. Currently feasible costs are 432+6,2,,, and a cost reduction of 466,2,,, is re0uired to meet their target. 9' assumes they will sell >>>>cameras. A. 6,2,,, B. 32,,, C. $32,,, D. ?one of the above