This quiz works best with JavaScript enabled. Home > Finance > Accounting > International Accounting > International Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Accounting Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a decision analysis situation, which one of the following costs is generally NOT relevant to the decision? A) Opportunity costs. B) Incremental costs. C) Historical costs. D) Differential costs. E) Avoidable costs. Show Answer Correct Answer: C) Historical costs. 2. A firm develops an annual cash budget in order to A) Support the preparation of its cash flow statement for the annual report. B) Ascertain which capital expenditure projects should be deferred. C) Determine the opportunity costs of alternative sales and production strategies. D) Minimize the cost of interim financing and avoid the opportunity costs of non-invested excess cash. E) Avoid long-term solvency problems. Show Answer Correct Answer: D) Minimize the cost of interim financing and avoid the opportunity costs of non-invested excess cash. 3. What term is used to refer to a cultural aversion to ambiguous situations? A) Masculinity. B) Individualism. C) Uncertainty avoidance. D) Power distance. Show Answer Correct Answer: C) Uncertainty avoidance. 4. Which one of the following may be considered an independent item in preparation of the annual master budget? A) Income statement. B) Balance sheet. C) Factory overhead budget. D) Ending inventory budget. E) Capital expenditure budget. Show Answer Correct Answer: E) Capital expenditure budget. 5. Hedging is used to reduce which kind of risk in international accounting? A) Political risk. B) Operational risk. C) Currency conversion risk. D) None. Show Answer Correct Answer: C) Currency conversion risk. 6. In countries such as the U. S., there is great demand for public disclosure of accounting information. What is the reason for this? A) Corporate management isn't trustworthy. B) Businesses rely heavily on financing through issuance of stock to the public. C) The American populace is better able to read financial statements than people in other countries. D) U.S. government officials are generally members of corporate boards of directors and can get all the information they require. Show Answer Correct Answer: B) Businesses rely heavily on financing through issuance of stock to the public. 7. A job order cost system uses a budgeted (predetermined) fixed factory overhead rate based on expected volume and expected fixed factory overhead cost. At the end of the year, underapplied fixed factory overhead might be explained by which of the following situations?Actual volume / Actual fixed factory overhead A) Less than expected / less than expected. B) As expected / less than expected. C) Greater than expected / less than expected. D) Less than expected / greater than expected. E) Greater than expected / greater than expected. Show Answer Correct Answer: D) Less than expected / greater than expected. 8. What is the major risk associated with accounting for international sales? A) Currency conversion. B) Goods stolen. C) Goods destroyed. D) All of above. Show Answer Correct Answer: A) Currency conversion. 9. Nike is a sport clothing manufacturer that produces and sells a wide variety of men's sportswear. Each production run is guided by a work order that details the direct materials required and the sequence of processes needed to complete and package the garment. The cost tracking system most suited for Nike's manufacturing environment is A) Operation costing (mixture of Job order and process costing). B) Process costing. C) Job order costing. D) Variable costing. E) Activity-based-costing. Show Answer Correct Answer: A) Operation costing (mixture of Job order and process costing). 10. Cardinal Company needs 20.000 units of certain part to use in its production cycle. The following information is availableCosts to Cardinal to make the part:Direct materials $ 4Direct labor $ 16Variable factory overhead $ 8Fixed factory overhead applied $ 10Full Costs $ 38Costs to buy the part from the Oriole Company are $ 36If Cardinal buys the part from Oriole instead of making it, Cardinal could not use the released facilities in another manufacturing activity. 60% of the fixed factory overhead applied will continue regardless of what decision is made. In deciding wheter to make or buy the part, the total relevant costs to make the part are: A) $ 640, 000. B) $ 560, 000. C) $ 760, 000. D) $ 400, 000. E) $ 720, 000. Show Answer Correct Answer: A) $ 640, 000. 11. Which of the following does not belong to financial innovation? A) Accounting for specific hedge products. B) Development of the international tax system. C) Measuring risk exposures. D) Identifying potential market risks. Show Answer Correct Answer: B) Development of the international tax system. 12. Which one of the following best identifies a profit center? A) The Information Technology Department of a large consumer products company. B) A large division (business unit) of a listed corporation (invested capital is high/low). C) The Production Operations Department of a small job-order shop company. D) A new car sales division for a large local auto agency. E) A staff department of a large company. Show Answer Correct Answer: D) A new car sales division for a large local auto agency. 13. In a process costing system, the weighted average method A) Is most appropriate when conversion costs, inventory levels and direct materials prices fluctuate. B) Is used when accuracy in current equivalent unit costs is important. C) Is simple to use because it takes into account only period costs. D) Is not appropriate when a standard cost system is used. E) Is most appropriate when a relatively wide variety of closely related standardized products are manufactured. Show Answer Correct Answer: D) Is not appropriate when a standard cost system is used. 14. In code law countries such as Germany, France, and Japan, tax law and accounting standards tend to be: A) Unrelated. B) More confusing than those in the U.S. C) Very different. D) Similar. Show Answer Correct Answer: D) Similar. 15. Which of the following are not mamak area MSU A) Two restaurants were injured. B) Fariz Maju. C) Azra Forward. D) Al Ali Mago. Show Answer Correct Answer: B) Fariz Maju. 16. The 1993 study by Doupnik and Salter found that a cluster of Latin American countries indicated that the similarity of their accounting systems was related to: A) The effect of persistent inflation. B) The colonial influence of Spain. C) The colonial influence of the United States of America. D) A common currency. Show Answer Correct Answer: A) The effect of persistent inflation. 17. The difference between the selling price (Revenue) of a product and its total unit costs (COGS) represents the unit A) Gross profit. B) Net profit. C) Gross profit margin ratio. D) Contribution margin. Show Answer Correct Answer: A) Gross profit. 18. Prorating material (significant) over/underallocated factory overhead is necessary A) For external financial accounting and tax accounting purposes. B) To motivate managers to pay less attention to actual overhead costs. C) To encourage behaviour that will cause the build up of inventories and create "phantom" inventory profits. D) To demotivate budget personnel from determining a highly accurate allocation base. E) To demotivate managers from using Activity-based costing. Show Answer Correct Answer: A) For external financial accounting and tax accounting purposes. 19. If most of a country's business financing comes from families, banks, and the government what should we expect in terms of information disclosure to the public? A) Relatively little because the public isn't a major factor. B) A great deal of disclosure because it will be the only way for interested parties to learn about the company. C) Complete openness of accounting records. D) No disclosure at all. Show Answer Correct Answer: A) Relatively little because the public isn't a major factor. 20. The term "Class A Accounting" as it is used by the researcher Christopher Nobes refers to: A) Preferred accounting systems. B) The most efficient accounting systems. C) Accounting systems that primarily serve external shareholders. D) Accounting systems that were developed primarily for creditors and taxing authorities. Show Answer Correct Answer: C) Accounting systems that primarily serve external shareholders. 21. Job order costs are more useful for A) Estimating the overhead costs included in transfer prices. B) Determining inventory valuation using LIFO. C) Determining the cost of a specific project. D) Controlling indirect costs of future production. Show Answer Correct Answer: C) Determining the cost of a specific project. 22. In Gray's framework for accounting system development, the cultural dimensions of individualism, power distance, uncertainty avoidance and masculinity directly affect: A) Institutional consequences. B) Accounting values. C) External influences. D) Accounting systems. Show Answer Correct Answer: B) Accounting values. 23. A strategic business unit (SBU) has a relative high market share and a low market growth rate. According to the portfolio model for competitive analysis created by Boston Consulting Group, such an SBU is considered a A) Cash cow. B) Star. C) Dog. D) Question mark. Show Answer Correct Answer: A) Cash cow. 24. In a traditional budget the budgeted balance sheet is part of the operating budget. Correct? A) Yes. B) No. Show Answer Correct Answer: B) No. 25. The schedule of cost of goods manufactured of Gruber Fittings, shows the following balanced for its fiscal year end:Raw materials used in production $ 450, 000Direct manufacturing labor $ 280, 000Allocated manufacturing overhead $ 375, 000Ending work in process inventory $ 230, 000Cost of goods sold manufactured $ 1, 125, 000The value of the work-in-process inventory at the beginning of the fiscal year was: A) 250, 000. B) 625, 000. C) 230, 000. D) 210, 000. E) 20, 000. Show Answer Correct Answer: A) 250, 000. 26. A cultural preference for loosely knit social fabric rather than tightly knit social fabric is referred to by the term: A) Uncertainty avoidance. B) Individualism. C) Masculinity. D) Power distance. Show Answer Correct Answer: B) Individualism. 27. Which financial statement is provided by virtually all corporations worldwide? A) Statement of Changes in Non-current Assets. B) Balance Sheet. C) Statement of Cash Flows. D) Statement of Changes in Financial Position. Show Answer Correct Answer: B) Balance Sheet. 28. What is this logo? A) Jata negra. B) Civil Government. C) Royal Seal. D) None of above. Show Answer Correct Answer: A) Jata negra. 29. The average labor cost per unit for the first batch produced by a new process is $ 120. The cumulative average labor costs after the second batch is $ 72 per product. Using a batch size of 100 and assuming a learning curve continues, the total labor cost of four batches will be? A) $ 17, 280. B) $ 4, 320. C) $ 10, 368. D) $ 2, 592. E) $ 28, 800. Show Answer Correct Answer: A) $ 17, 280. 30. ..... is presented in the statement of financial position where a customer has paid an amount of consideration prior to the entity performing by transferring the related good or service to the customer. A) A contract Income. B) A contract liability. C) A contract Expenses. D) A contract Assets. Show Answer Correct Answer: B) A contract liability. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesInternational Accounting Quiz 1International Accounting Quiz 2International Accounting Quiz 3International Accounting Quiz 4International Accounting Quiz 6International Accounting Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books