CPA BEC Practice Test 2

True or False: In a quality control program, rework is categorized as an internal failure cost?

EFG Corp. invested in its Northwest regional plant that has a net book value of $300,000. EFG Corp has a hurdle rate of 10% and the division produces income of $50,000.

Calculate residual income:

Experimenting with different parameters and assumptions regarding a model and cataloging the range of results to view the potential outcomes is considered a:

Under absorption costing, product costs include:

1. Direct Labor
2. Raw Materials
3. Fixed Manufacturing Overhead
4. Fixed SG&A Expenses

ABC Corp. has budgeted sales of 7,550 units at $15 per unit. They achieved total sales of 6,500 units at $20 per unit.

Compute the selling price variance of ABC Corp.

Use the below facts to determine the price elasticity of supply:

Supply Jan. 31, 2021 = 500

Price Jan. 31, 2021 = $10

Supply Feb. 28, 2021 = 600

Price Feb. 28, 2021 = $11

________ are entities whose marketing service or delivery strategy provides training and related service delivery resources in exchange for a fee.

A balanced scorecard gathers information on multiple dimensions of an organizations performance and is defined by critical success factors. The four critical success factors are:

Calculate ABC Corp’s Net Profit Margin using the facts below:

Cost of goods sold $600,000

Gross Profit  $880,000

SG&A Expenses $320,000

Tax Expense -$20,000

The DuPont ROE calculation is: