Hipótesis y operacionalización de las variables

1. Standard cost can, if properly used, help motivate employees

2. A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency if the mix of workers used in the production process was more experienced than the normal mix

3. The expected annual capacity level has traditionally been used to compute the fixed overhead application rate?

4. A favorable volume variance increases absorption costing net income; it does not affect variable costing net income.

5. The variable costing format is often more useful to managers than the absorption costing format because costs are classified by their behavior.

6. CVP analysis relies on the assumptions that costs are either strictly fixed or strictly variable. Consistent with these assumptions, as volume decreases total variable costs and total costs decrease while fixed costs remain constant.

7. A managerial preference for a very low degree of operating leverage might indicate that a decrease in sales volume is expected 8. Payback period potentially ignores part of a project’s relevant cash

flows.

9. Payback method does not routinely rely on the assumption that all cash flows occur at the end of the period?

10.The payback method assumes that all cash inflows are reinvested to yield a return equal to zero

11.When using one of the discounted cash flow methods to evaluate the desirability of a capital budgeting project, the method of financing the project under consideration is not an important factor?

12.In capital budgeting, a firm’s cost of capital is frequently used as the discount rate

13. The net present value method assumes that all cash inflows can be immediately reinvested at the discount rate

14. The basis for measuring the cost of capital derived from bonds and preferred stock, respectively, is the after-tax rate of interest for bonds and stated annual dividend rate for preferred stock

15.The weighted average cost of capital that is used to evaluate a specific project should be based on the overall capital structure of the corporation

16.The weighted average cost of capital approach to decision making is not directly affected by the current budget for capital expansion 17.At a profitability index of 1.0, the NPV is 0, and the IRR equals the

discount rate used. If the PI is above 1.0, the NPV is positive and the IRR is higher than the discount rate used.

18.The profitability index is the ratio of the present value of cash flows to the original investment

19.The rate of interest that produces a zero net present value when a project’s discounted cash operating advantage is netted against its discounted net investment is the internal rate of return

20.Internal rate of return has been criticized because it might mistakenly imply that earnings are reinvested at the rate of return earned by the investment.

21.As the marginal tax rate goes up, the benefit from the depreciation tax shield increases

22.Fixed cost is relevant if it is avoidable

23.When a scarce resource, such as space, exists in an organization, the criterion that should be used to determine production is contribution margin per unit of scarce resource

24.A cost driver is defined as a causal factor that increases the total cost of a cost objective

25.Committed costs are governed mainly by past decisions that established the current levels of operating and organizational capacity and that only change slowly in response to small changes in capacity

26.Discretionary costs are those that management decides to incur in the current period to enable the company to achieve objectives other than the filling of orders placed by customers

27.If a firm orders raw materials in quantities larger than the optimum quantity obtained using the simple economic order quantity model in order to obtain a quantity discount, the company will experience carrying costs higher than ordering costs

28.One of the primary purposes of using a standard cost system is to provide a distinct measure of cost control.

29.Favorable variances are not necessarily good variances.

30.Whether the variance is favorable or unfavorable is irrelevant to a need of investigating it.

31.The sum of the material price variance and materials quantity variance is not meaningful.

32. The fixed overhead variance would be the same irrespective of the capacity or denominator used.

33.The fixed overhead volume variance is the least significant variance for control purposes. However, it is the most useful variance in evaluating plant utilization.

34.Fixed overhead costs are mostly incurred to provide the capacity to produce and are best controlled on a total basis at the time they are originally negotiated.

35.In a standard cost system, when production is greater than the estimated unit or denominator level of activity, there will be a favorable volume variance.

36.In analyzing factory overhead variances, volume variance is the difference between the budget allowance based on standard hours allowed for actual production for the period and the amount budgeted to be applied during the period.

37.The use of separate variable and fixed overhead rates is better than a combined rate because such a system is more effective in assigning overhead costs to products.

38.In a just-in-time inventory system, ideal standards become expected standards.

39.If a firm produces more units than it sells, absorption costing, relative to variable costing, will result in higher income and assets.

40.A firm presently has total sales of P100,000. If its sales rise by P1.00, its net income based on variable costing will go up more than its net income based on absorption costing.

41.A company could never incur a loss that exceeded its total costs.

42.At breakeven point the contribution margin equals fixed costs.

After the level of volume exceeds the breakeven point, the total contribution margin exceeds the total fixed costs.

43.As projected net income increases the degree of operating leverage declines.

44.A managerial preference for a very low degree of operating leverage might indicate that a decrease in sales volume is expected.

45.The time value of money is considered in long-range investment decisions by assigning greater value to more immediate cash flows.

46.For a project such as plant investment, the return that should leave the market price of the firm’s stock unchanged is known as the cost of capital.

46.Opportunity cost of capital is the highest rate of return that can be earned from the most attractive alternative capital project available to the firm.

47.If an analyst desires a conservative net present value estimate, he will assume that all cash inflows occur at year-end.

48.When a profitable corporation sells an asset at a loss, the after-tax cash flow on the sale will exceed the pre-tax cash flow on the sale.

49.Sensitivity analysis is an appropriate response to uncertainty in cash flow projections.

50.Relevant costs are anticipated future costs that will differ among various alternatives.

51.In a make or buy decisions, the opportunity cost of capacity could be considered to decrease the price of units purchased from suppliers.

52.Fixed costs are ignored in allocating scarce resources because they are unaffected by the allocation of scarce resources.

53.A linear programming model must have only one objective function.

54.Strategic planning as assumed by top management is stating and establishing long-term plans.

55.The master budget is a static budget because it is geared to only one level of production and sales.

56.The primary reason why managers impose a minimum cash balance in the cash budget is that it protects the organization from the uncertainty of the budgeting process.

57.Slack in operating budgets is greater when managers are allowed to participate in the budgeting process. Budget slack refers to intentional overestimate of expenses or underestimate of revenues.

58.Performance measurements and a reward system are part of motivational element of cost management system. Focus on cost control and assessing core competencies are part of informational element of cost management system.

59.A decentralized company grows very quickly than a centralized one.

60.In a decentralized company, transfer pricing system is designed to aid in the appraisal and motivation of managerial performance.

61.Responsibility accounting refers to an accounting system in which the operations of the business are broken down into reportable segments and the control function of sales manager or supervisor is emphasized.

62.The most valid reason for using something other than a full-cost based transfer price between units of a company is because a full-cost price does not ensure the control of full-costs of a supplying unit.

63. A cost classified according to its activity-related behavior is a fixed cost.

64. The distinction between direct and indirect costs depends on whether a cost can be conveniently and physically traced to a cost object under consideration.

65. An accounting system that focuses on transactions is a traditional accounting system.