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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Controls and Regulations | 10–15% | - Internal control systems and principles
|
| Topic 2: Cost Systems | 20–25% | - Costing methods
|
| Topic 3: Financial Analysis | 45–50% | - Purpose and components of financial statements
|
| Topic 4: Profit Planning | 10–15% | - Cost-volume-profit (CVP) analysis
|
| Topic 5: Budgeting and Decision Making | 10–15% | - Master budget and components
|
Given the following information:
Pairs of shoes expected to be produced = 1,950,000
Pairs of shoes produced = 2,500,000
Overhead rate = $0.75
What is the amount of applied overhead?
Correct Answer: D 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
What does it mean if a company has a debt ratio of 101.5%?
Correct Answer: B 🗳️
A company presently uses traditional volume-based costing to allocate overhead to its products.
The following table provides information on two of the company's products:
Product A
Product B
Selling price
$8
$12
Direct material
$2
$3
Direct labor
$1
$2
Applied overhead
$3
$4
Gross margin
$2
$3
Overhead that would be applied to Product A would increase to $8 per unit after identifying cost pools and cost drivers, and the overhead applied to Product B would drop to $2 per unit .
How would this change in the way overhead is allocated affect the selling price of both products?
Correct Answer: C 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
A company's statement of cash flows includes the following cash transactions.
Sales = $1,250,000
Inventory purchase = -$750,000
Property and equipment purchase = -$280,000
Interest payment on long-term debt = -$25,000
Payment of wages = -$315,000
Payment of rent = -$40,000
Borrowing long-term debt = $200,000
Payment of cash dividends = -$15,000
Repurchase of treasury stock = -$40,000
Total cash flows = -$5,000
What is the total cash flow from investing activities?
Correct Answer: C 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
Which two examples represent financial statement errors?
Choose 2 answers.
Correct Answer: A,D 🗳️
Explanation: Only visible for TroytecDumps members. You can sign-up / login (it's free).
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