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NEW QUESTION 35
Which of the following is an example of an efficiency measure?
- A. The goal of becoming a leading manufacturer.
- B. The goal of increasing market share.
- C. The rate of absenteeism.
- D. The number of insurance claims processed per day.
Answer: D
Explanation:
The number of insurance claims processed per day is a typical measure used in a balanced scorecard. It relates to the critical success factor of productivity. This factor is based on an input-output efficiency) relationship. An organizational structure is efficient if it facilitates the accomplishment of organizational objectives with minimum resources and fewest unsought consequences. An efficient organizational structure maximizes output for a given amount of input. Thus, an efficiency measure compares input with output. Insurance claims processed per day relates output claims processed) to input a day's work).
NEW QUESTION 36
If the manufacturing company uses the FIFO first-in, first-out) method, the equivalent units for conversion costs in Department 2 for the current month would be:
- A. 85,200
- B. 86,600
- C. 72,500
- D. 74,000
Answer: D
Explanation:
The FIFO method distinguishes between work done in the prior period and work done currently. The total FIFO equivalent units equals the work done currently on beginning work-in-process, plus the work done on ending work-in-process, plus all units started and completed currently. Hence, total FIFO equivalent units equals 740001 10% x 14,000 units in BWIP) + 60% x 8,500 units in EWIP) + [100% 81,500 spoiled and transferred - 14,000 units in BWIP)] A company harvests, packs, and ships all of its own produce. The company operates three packing lines. A summary of completed inventory costs is as follows:
NEW QUESTION 37
Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered:
Activity Level -
Maintenance Cost
Month
Patient Days
January
5,600
$7,900
February
7,100
$8,500
March
5,000
$7,400
April
6,500
$8,200
May
7,300
$9,100
June
8,000
$9,800
If the cost of maintenance is expressed in an equation, what is the independent variable for this data?
- A. Patient days.
- B. Fixed cost.
- C. Variable cost.
- D. Total maintenance cost.
Answer: A
NEW QUESTION 38
When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:
- A. Prioritizing known risks.
- B. Reviewing organizational objectives.
- C. Observing and analyzing controls.
- D. Identifying risks to the organization's operations.
Answer: B
NEW QUESTION 39
An analysis of an entity's US $150,000 accounts receivable at year-end resulted in a US $5,000 ending balance for its allowance for uncollectible accounts and a bad debt expense of US $2,000. During the past year recoveries on bad debts previously written off were correctly recorded at US $500. If the beginning balance in the allowance for uncollectible accounts was US $4,700. What was the amount of accounts receivable written off as uncollectible during the year?
- A. US $2,200
- B. US $1,800
- C. US $2,800
- D. US $1,200
Answer: A
Explanation:
Under the allowance method, uncollectible accounts are written off by a debit to the allowance account and a credit to accounts receivable. The US $500 bad debts is accounted for by a debit to accounts receivable and a credit to the allowance account. The US $2,000 bad debt expense is also credited to the allowance account. The amount of accounts receivable written off as uncollectible is US $2,200 [$5,000 ending allowance $4.700 beginning allowan,.8 + $500 recoveries + $2,000 bad debt expense)].
NEW QUESTION 40
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