ACC 561 Final Exam DOCUMENT SOLUTION.Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?

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Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?

The group of users of accounting information charged with achieving the goals of the business is its

Which of the following financial statements is concerned with the company at a point in time?

The most important information needed to determine if companies can pay their current obligations is the

A liquidity ratio measures the

The convention of consistency refers to consistent use of accounting principles

Horizontal analysis is also known as

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

Vertical analysis is a technique that expresses each item in a financial statement

Process costing is used when

An important feature of a job order cost system is that each job

In a process cost system, product costs are summarized

An activity that has a direct cause-effect relationship with the resources consumed is a(n)

Activity-based costing

A cost which remains constant per unit at various levels of activity is a

The break-even point is where

Fixed costs are $600,000 and the contribution margin per unit is $150. What is the break-even point?

When a company assigns the costs of direct materials, direct labor, and both variable and fixed manufacturing overhead to products, that company is using

If a division manager's compensation is based upon the division's net income, the manager may decide to meet the net income targets by increasing production when using

An unrealistic budget is more likely to result when it

Seasons Manufacturing manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

Carter, Inc. can make 100 units of a necessary component part with the following costs:
Direct Materials $120,000
Direct Labor 20,000
Variable Overhead 60,000
Fixed Overhead 40,000

If Carter can purchase the component externally for $220,000 and only $10,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?