This quiz works best with JavaScript enabled. Home > Accounting > International Accounting > International Accounting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A firm earning a profit can increase its Return on Investment (ROI) by A) Increasing sales revenue and operating expenses by the same dollar. B) Decreasing sales revenue and operating expenses by the same percentage. C) Increasing investment and operating expenses by the same dollar amout. D) Increasing sales revenues and operating expenses by the same percentage. Show Answer Correct Answer: D) Increasing sales revenues and operating expenses by the same percentage. 2. Generally, individual departmental rates rather than a plantwide rate for applying factory overhead would be used if A) A company wants to adopt a standard cost system. B) A company's manufacturing operations are all highly automated. C) Manufacturing overhead is the largest cost component of its production cost. D) A company's manufacturing operations are basically labor based. E) The manufactured products differ in the resources consumed from the individual departments in the plant. Show Answer Correct Answer: E) The manufactured products differ in the resources consumed from the individual departments in the plant. 3. Factory depreciation is A) A prime cost and an inventoriable cost. B) A prime cost and a period cost. C) A conversion cost and an inventoriable cost. D) A conversion cost and a period cost. E) A discretionary cost. Show Answer Correct Answer: C) A conversion cost and an inventoriable cost. 4. FDI stands for A) Foreign Direct Investors. B) Financial Direct Investment. C) Foreign Distance Investment. D) Foreign Direct Investment. Show Answer Correct Answer: D) Foreign Direct Investment. 5. The Financial Budget process includes A) Cash budget. B) Capital expenditure budget. C) Budgeted statement of cash flows. D) Budgeted balance sheet. E) All of the above. Show Answer Correct Answer: E) All of the above. 6. The Eastern Division sells goods internally to Western Division of the same company. The quoted external price in industry publications from a supplier near Eastern is $ 200 per ton plus transportation. It costs $ 20 per ton to transport the goods to Western. Eastern's actual market cost per ton to buy the direct materials to make the transferred product is $ 100. Actual per ton direct labor is $ 50. Other actual costs of storage and handling are $ 40. The company president selects a $ 220 transfer price. This is an example of A) Market based transfer pricing. B) Full-cost based transfer pricing. C) Negotiated transfer pricing. D) Cost plus 20% transfer pricing. E) Variable cost-based transfer pricing. Show Answer Correct Answer: A) Market based transfer pricing. 7. The use of activity-based costing normally results in A) Substantially greater unit costs for low volume products than is reported by traditional product costing. B) Substantially lower unit costs for low volume products than is reported by traditional product costing. C) Decreased set-up costs being charged to low-volume products. D) Equalizing set-up costs for all product lines. E) Making pricing decisions more difficult. Show Answer Correct Answer: A) Substantially greater unit costs for low volume products than is reported by traditional product costing. 8. What is likely to be the source of accounting standards in common law countries? A) Tax law. B) Non-government entities such as the FASB. C) Federal and local legislatures. D) The International Accounting Standards Board. Show Answer Correct Answer: B) Non-government entities such as the FASB. 9. How are the concepts of professionalism, uniformity, conservatism, and secrecy classified in Gray's framework for accounting system development? A) Accounting values. B) Accounting systems. C) Institutional consequences. D) Cultural dimensions. Show Answer Correct Answer: A) Accounting values. 10. In developing comprehensive planning and control system, the best chronological order of significant components of the system is to develop A) Long range goals, strategic plan, performance reports. B) Long range goals, system of performance reports, budget and strategic plan. C) Long range profit plan, system of performance reports, budget and then goals. D) System of performance reports, strategic plan, long range goals and budget plan. E) Long range goals, strategic plan, budget and then establish a system of performance reports. Show Answer Correct Answer: E) Long range goals, strategic plan, budget and then establish a system of performance reports. 11. IASB refers to A) Indian Accounting Standards Board. B) International Accounting Standards Board. C) Indian Accounting System Board. D) International Accounting Standards Body. Show Answer Correct Answer: B) International Accounting Standards Board. 12. Which one of the following statements pertaining to the Return on Investment (ROI) as a performance measurement is INCORRECT? A) When the average age of the assets differs substantially across segments of a business, the use of ROI may not be appropriate. B) ROI relies on financial measures that are capable of being independently verified, while other forms of performance measures (e.g. nonfinancial performance measures) are subjet to manipulation. C) The use of ROI may lead managers to reject capital investment projects that can be justified by using discounted cash flow models. D) The use of ROI can make in undesirable for skillfull manager to take on trouble-shooting assignments such as those involving turning around unprofitable divisions. E) The use of ROI may include managers of highly profitable divisions to reject projects that, from the standpoint of the corporation, should be accepted. Show Answer Correct Answer: B) ROI relies on financial measures that are capable of being independently verified, while other forms of performance measures (e.g. nonfinancial performance measures) are subjet to manipulation. 13. Which of the following is considered a pervasive constraint by the FASB's conceptual framework? A) Cost. B) Conservatism. C) Timeliness. D) Verifiability. Show Answer Correct Answer: A) Cost. 14. Which of the following is not a problem caused by accounting diversity? A) Lack of qualified international auditors. B) Preparation of consolidated financial statements. C) Access to foreign capital markets. D) Comparability of financial statements. Show Answer Correct Answer: A) Lack of qualified international auditors. 15. An appropriate transfer price between two divisions of the Stark Company can be determined from the following date:Fabrication Division:Market price of subassembly $ 50Variable cost of subassembly $ 20Excess capacity (in units) 1, 000Assembling Division:Nuber of units needed 900What is the bargaining range for the two divisions? A) Between $ 20 and $ 50. B) Between $ 50 and $ 70. C) $ 50 is the only acceptable price. D) $ 20 is the only acceptable price. E) Between $ 20 and $ 35. Show Answer Correct Answer: A) Between $ 20 and $ 50. 16. A cost driver is defined as A) The largest cost in a manufacturing process. B) The significant factor in a development of a new product. C) An indirect cost that cannot be traced to a particular cost objective but is essential to business. D) A causa factor that increases or decreases the total cost of a cost object. E) A leading indicator for future performance. Show Answer Correct Answer: D) A causa factor that increases or decreases the total cost of a cost object. 17. The term that refers to past costs that have been incurred and are NOT relevant to any future decisions is A) Underallocated indirect costs. B) Incurred marginal costs. C) Sunk costs. D) Full absorption costs. E) Discretionary costs. Show Answer Correct Answer: C) Sunk costs. 18. In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers current period costs A) Only. B) Plus cost of beginning of work-in-process inventory. C) Less cost of beginning of work-in-process inventory. D) Plus cost of ending work-in-process inventory. E) Less cost of ending work-in-process inventory. Show Answer Correct Answer: A) Only. 19. Who is the father of accounts A) Alfred Marshall. B) Adma Smith. C) Luca Pacioli. D) KS Ayer. Show Answer Correct Answer: C) Luca Pacioli. 20. National Products is in the process of preparing a bid to produce meters for the federal government on a cost plus basis. While the company has produced meters for a number of years, it has only recently begun to produce meters for the government, as special equipment and processes are required to meet the government standards. In order to be competitive, the company must bid as low as possible but still make profit.The method of cost analysis that National Products should use to compute product cost is A) Learning curve analysis. B) Simple regression analysis. C) Multiple regression analysis. D) Decision tree analysis. E) Network analysis. Show Answer Correct Answer: A) Learning curve analysis. ← PreviousNext →Related QuizzesAccounting QuizzesInternational Accounting Quiz 1International Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 5International Accounting Quiz 6International Accounting Quiz 7International Accounting Quiz 8International Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books