Modern Principles of Economics 3rd Edition Cowen Solutions Manual.pdf

DOWNLOAD THE Test Bank for Principles of Cost Accounting 17th Edition
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CHAPTER 2: ACCOUNTING FOR MATERIALS
1. Anbeffectivebcostbcontrolbsystembshouldbinclude:
a. Anbestablishedbplanbofbobjectivesbandbgoalsbtobbebachieved.
b. Regularbreportsbshowingbthebdifferencebbetweenbgoalsbandbactualbperformance.
c. Specificbassignmentbofbdutiesbandbresponsibilities.
d. Allbofbthesebarebcorrect.
ANSWER: d
RATIONALE:
Anbeffectivebcostbcontrolbsystembshouldbincludebanbestablishedbplanbofbgoalsbandbobj
ectives,breportsbcomparingbbudgetedbgoalsbtobactualbperformance,bandbassignmentbofbsp
ecificbdutiesbandbresponsibilitiesbtoboperatingbpersonnel.
POINTS: 1
DIFFICULTY: Easy
LEARNINGbOBJECTIVES: PRIN.EDWA.16.1b-bIntroduction
ACCREDITINGbSTANDARDS:b AACSBbAnalytic
ACCT.AICPA.FN.03b-
bMeasurementbBUSPROG.03b-bAnalytic

IMA-InternalbControls
OTHER: Bloom's:bRemembering

2. Tobeffectivelybcontrolbmaterials,babbusinessbmustbmaintain:
a. Limitedbaccess.
b. Combinationbofbduties.
c. Safetybstock.
d. Nonebofbthesebarebcorrect.
ANSWER: a
RATIONALE:
Tobcontrolbmaterialsbabbusinessbmustbmaintainblimitedbaccess,bsegregationbofbduties,b
andbaccuracybinbrecording.
POINTS: 1
DIFFICULTY: Moderate
LEARNINGbOBJECTIVES: PRIN.EDWA.16.9b-bLO1:bRecognizebthebtwobbasicbaspectsbofbmaterialsbcontrol
ACCREDITINGbSTANDARDS:b AACSBbAnalytic
ACCT.AICPA.FN.03b-
bMeasurementbBUSPROG.03b-bAnalytic

IMA-InternalbControls
TOPICS: MaterialsbControl
OTHER: Bloom's:bRemembering

3. JanetbisbthebpurchasingbagentbatbFramecobManufacturing.b Herbdutiesbincludebvendorbselectionbandborderingbmaterials.b
Duebtobabrecentbeconomicbdownturnbandbresultingbcutbbacks,bJanetbhasbbeenbassignedbthebadditionalbdutybofbpreparingbrec
eivingbreportsbafterbcomparingbthebgoodsbreceivedbtobthebpurchaseborder.b Thisbisbanbexamplebof:
a. unlimitedbaccessbtobmaterials.
b. independencebofbassignedbfunctions.
c. misappropriationbofbassets.
d. ablackbofbsegregationbofbduties.
ANSWER: d
RATIONALE:
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,DOWNLOAD THE Test Bank for Principles of Cost Accounting 17th Edition
Vanderbeck
CHAPTER 2: ACCOUNTING FOR MATERIALS
BecausebJanet’sbjobbasbabpurchasingbagentbinvolvesbpreparingbthebpurchasebordersb
andbshebisbalsobcomparingbitemsbreceivedbtobthebpurchaseborders,btherebisbablackbofbsegr
egationbofbduties.bThisbincreasesbthebpotentialbforbthebmisappropriationbofbassets,bbut




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,DOWNLOAD THE Test Bank for Principles of Cost Accounting 17th Edition
Vanderbeck
CHAPTER 2: ACCOUNTING FOR MATERIALS
therebisbnotbenoughbinformationbgivenbtobdeterminebthatbabmisappropriationbhasbindeedboccurre
d.
POINTS: 1
DIFFICULTY: Challenging
LEARNINGbOBJECTIVES: PRIN.EDWA.16.9b-bLO1:bRecognizebthebtwobbasicbaspectsbofbmaterialsbcontrol
ACCREDITINGbSTANDARDS:b AACSBbReflectivebThinking
ACCT.AICPA.FN.03b-
bMeasurementbBUSPROG.06b-

bReflectivebThinkingbIMA-

InternalbControls
TOPICS: MaterialsbControl
OTHER: Bloom's:bAnalyzing

4. MarleybCompanybhiredbabconsultantbtobhelpbimprovebitsboperations.b Thebconsultant’sbreportbstatedbthatbMarley’sbin
ventoryblevelsbarebexcessivebandbcitedbseveralbnegativebconsequencesbtobMarleybasbabresult.b Whichbofbthebfollowingbco
nsequencesbwasbnotbcitedbinbthebreport?
a. Possiblebotherbusesbforbworkingbcapitalbnowbtiedbupbinbinventory
b. Productionbstoppagesbduebtobpartsbnotbbeingbavailable
c. Higherbpropertybtaxesbandbinsurancebcosts
d. Largebquantitiesbofbobsoletebmaterials
ANSWER: b
RATIONALE:
Itbisbimportantbtobmaintainbinventoriesbofbsufficientbsizebandbvarietybtobmeetbproductio
nbneeds.bHowever,bifbMarley’sbinventoriesbarebexcessive,bitbisblikelybthatbpartsbarebavailab
lebforbproduction,bbutbthebexcessbinventorybisbresultingbinbhigherbcostsbrelatedbtobholdingb
thosebitemsbsuchbasbpropertybtaxesbandbinsurancebandbpotentialblossesbfrombobsolesce
nceborbdeterioration.bFundsbinvestedbinbinventoriesbcouldbbebusedbforbotherbpurposes.
POINTS: 1
DIFFICULTY: Moderate
LEARNINGbOBJECTIVES: PRIN.EDWA.16.9b-bLO1:bRecognizebthebtwobbasicbaspectsbofbmaterialsbcontrol
ACCREDITINGbSTANDARDS:b AACSBbReflectivebThinking
ACCT.AICPA.BB.07b-
bCriticalbThinkingbBUSPROG.06b-

bReflectivebThinkingbIMA-

StrategicbPlanning
TOPICS: MaterialsbControl
OTHER: Bloom's:bAnalyzing

5. Thebdatabusedbtobcalculatebtheborderbpointbincludeballbofbthebfollowingbexcept:
a. thebcostsbofbplacingbanborder.
b. thebratebatbwhichbthebmaterialbwillbbebused.
c. thebestimatedbtimebintervalbbetweenbthebplacementbandbreceiptbofbanborder.
d. thebestimatedbminimumblevelbofbinventorybneededbtobprotectbagainstbstockouts.
ANSWER: a
RATIONALE:
Calculatingbanborderbpointbisbbasedbonbusage,bleadbtimebandbsafetybstock.bThebco
stbofbplacingbanborderbisbusedbinbdeterminingbthebeconomicborderbquantity.
POINTS: 1
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, DOWNLOAD THE Test Bank for Principles of Cost Accounting 17th Edition
Vanderbeck
CHAPTER 2: ACCOUNTING FOR MATERIALS
DIFFICULTY: Moderate
LEARNINGbOBJECTIVES: PRIN.EDWA.16.9b-bLO1:bRecognizebthebtwobbasicbaspectsbofbmaterialsbcontrol




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