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NEW QUESTION 45
Return on investment (ROI) is a performance measure that requires managers to respond to several factors that are under their Influence or control Decisions Intended to influence ROI are often from a short-term perspective and may conflict with the long-term objectives of the organization. This lack of goal congruence can be minimized by

A. using the two components of ROI (investment turnover and return on sales) instead of only ROI.B. requiring multiple-year measures of ROI and evaluating these results along with the residual incomes from the same periods.C. providing the manager with limitations on what can be used to influence the factors involved in computing the ROI.D. allowing different minimum returns for different investments.

Answer: B

 

NEW QUESTION 46
Personal Solutions manufactures nand-new personal computers and communications devices The company uses a Job-order costing system and applies manufacturing overhead to products on the oasis of machine hours The following estimates were used in preparing the predetermined overhead rate at the beginning of the year.

During the year, weak sales led to a reduction in production and a buildup or inventory Production records provided the following information.

Finished goods inventory included applied overhead of $100.000 while cost of goods sold included applied overhead of $300,000. There was no work-in-process inventory at year end how should the under-applied manufacturing overhead be handled at year end?

A. All of the under-applied manufacturing overhead should be earned over until the subsequent year and used to adjust the estimated predetermined rate for that yearB. $12.500 of the under-applied manufacturing overhead should be charged to finished goods inventory and S37.500 should be treated as a period costC. $12.500 of the under-applied manufacturing overhead should be charged to finished goods inventory and S37 500 should be charged to Cost of Goods SoldD. All of the under-applied manufacturing overhead should be charged to Cost of Goods Sold for the year.

Answer: C

 

NEW QUESTION 47
All of the following are limitations of teaming curve analysis except that

A. it is appropriate only for labor-intensive repetitive tasksB. the estimated learning rate might be unreliable because other factors could have caused the changeC. the learning rate is assumed to be constantD. the learning rate tends to be affected by seasonality in sales

Answer: D

 

NEW QUESTION 48
A company extracts data from existing data sets to identify customer patterns By doing this, the company is applying

A. diagnostic analysisB. descriptive analysisC. predictive analysisD. prescriptive analysis

Answer: B

 

NEW 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

A. policies and procedures that management has established to meet its objectives for financial reportingB. the actions, policies, and procedures that reflect the overall attitudes of top management directors and owners about internal controlC. management's ongoing and periodic assessment of the quality of internal control performance to determine if controls are operating as intendedD. management s identification and analysis of risks relevant to the preparation of financial statements according to generally accepted accounting principles

Answer: B

 

NEW QUESTION 50
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