5/12/23, 9:02 PM
: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
Test 1 - Chapter 1-8
Sachu Divakaran (username: s_divakaran)
Attempt 1
Written: Mar 13, 2023 4:05 PM - Mar 13, 2023 4:56 PM
Submission View
Released: Oct 9, 2021 4:01 AM
Question 1
1 / 1 point
The bookkeeper receives all the labour timecards and calculates this week's payroll as follows: wages
due to employees, $4798.16, amount owed for social security, $657.00; Medicare, $169.50; SUTA,
$265.49; FUTA, $6.09; workers' compensation, $461.10; general liability insurance, $36.98;
employer-paid health insurance, $299.34. What amount will be charged to the Insurance Payable
account?
Answer:
797
Question 2
1 / 1 point
The calculation of depreciation for tax purposes will always be identical to the calculation of
depreciation for published financial statements and the calculation of billing amounts.
True
False
Question 3
1 / 1 point
Labour burden includes all costs paid by the employer, in addition to the wages.
True
False
Question 4
1 / 1 point
Match acronym with its meaning.
__2__ Canada Pension Plan
1. EI
__4__ Employer Health Tax
2. CPP
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
__1__ Employment Insurance
__3__
Workplace Safety and Insurance
Board
3. WSIB
4. EHT
5. RRSP
__5__ Registered Retirement Savings Plan
Question 5
1 / 1 point
The calculation for over-billing and under-billing is derived largely from the amount of
material wasted through scrap and theft.
jobs likely to be finished in a month.
earned profit.
care taken by the financial manager.
Question 6
1 / 1 point
Which of the following is true about cost control?
In a company that controls costs, financial data is available AFTER the opportunity to take
action on issues has passed
In a company that controls costs, purchased orders are not tracked because only cash
payments matter
In a company that controls costs, financial data is provided in a timely manner, giving time to
make corrections to plans
In a company that controls costs, the financial data shows where you WERE financially
instead of where you ARE or WILL BE
Question 7
1 / 1 point
The two general categories of employee, in terms of rate calculations, are
expensive and economical
internal and external
cash and direct deposit
hourly and salaried
Question 8
0 / 1 point
In which ledger where you will find a summary of accounts receivable as detailed in the accounts
receivable ledger?
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
Job cost ledger
Equipment cost ledger
General ledger
Heath Ledger
Question 9
1 / 1 point
What is the forecasted variance for cost code 2400 Sanitary Sewer in the above image?
$1,600 under run.
$800 under run.
$1,600 over run.
$800 over run.
Question 10
1 / 1 point
In a "Cash" basis accounting system, which of the following is true?
Revenue is recognized when cash is received.
Revenue is recognized when expenses are incurred.
There are no accounts receivable, only cash transactions.
Credit cards are not accepted.
Question 11
0 / 1 point
The best way for a project manager to ensure costs allocated to his or her project for equipment is
under control is to
to routinely ensure usage sheets are maintained for the equipment and that the cost
allocations to their project are reasonable and accurate and to hold the superintendent and
crew forepersons accountable for the efficient use of the assets.
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
to visit the site to inspect completed work (or possibly review progress reports) to verify the
work related to bills from a subcontractor is actually complete, and to verify that the
amounts billed match the sub-contracted values.
for the project manager to hold the superintendent and crew forepersons responsible for the
productivity and costs of their crew.
to start the procurement process with pre-approved purchase orders so the project manager
has the opportunity to review planned purchases and to ensure that the materials received
and the price billed match the value on the purchase order.
Question 12
1 / 1 point
The status for the tasks is shown as at the end of WEEK 6.
What is the total BCWP for the project at the end of WEEK 6?
39,750
28,750
31,050
Cannot determine.
Question 13
0 / 1 point
A labour burden calculation was performed for an employee. It was determined that the total cost of
employing this person is $27266.50. The employee will receive a $964.50 bonus. Their total wages
are $22422.00 of which $809.50 is pay for time off. Calculate the burden markup for this employee.
(ENTER YOUR ANSWER AS A 3 DIGIT DECIMAL)
Answer:
0.742
(0.321)
Question 14
1 / 1 point
Which of the following is NOT typically the responsibility of a financial manager?
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
Make sure that project and general overhead costs are accurately tracked through the
accounting system
Ensure that a proper construction accounting system has been set up and is functioning
properly
Hold foremen accountable for staying within budget
Determine whether individual projects are over or undebilled
Question 15
1 / 1 point
Recording monthly depreciation of fixed assets
has no impact on the income statement.
results in an expense on the income statement and an increase to the accumulated
depreciation contra account on the balance sheet.
is recorded as revenue in an accrual based accounting system.
requires customer approval.
Question 16
1 / 1 point
In a "Accrual" basis accounting system, which of the following is true?
Revenues are accrued when the financial manager chooses.
Revenue is recognized when the company gains the right to receive revenue.
Profit is equal to increases in accounts receivable.
Owner's Equity is accrued when assets are liquidated.
Question 17
1 / 1 point
The four components of a typical cost code are
Job, Element, Cost ID, Cost Type
Project, Element, Cost Code, Cost Category
Job, Phase, Cost Code, Cost Type
Project, Phase, Cost Code, Cost Type
Question 18
0 / 1 point
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
In companies where jobs tend to be low complexity which part of the job cost code is commonly
omitted?
The cost code
The phase
The job or project number
The cost type identifier
Question 19
1 / 1 point
The gross profit margin or gross margin is the percentage of the revenues left after paying
construction costs and equipment costs and is a measure of ___________________.
how quickly a company pays it's bills.
what percentage of each dollar of revenue is available to cover general overhead expenses,
sales costs, taxes, and provide the company with a profit.
how quickly a company collects cash from it's customers.
Question 20
0 / 1 point
The bookkeeper receives all the labour timecards and calculates this week's payroll as follows: wages
due to employees, $42215.68, amount owed for CPP, $6229.35; EHT, $1408.86; EI, $750.18; WSIB,
$2156.33; general liability insurance, $429.93; employer-paid health insurance, $2850.60. What
amount will be charged to the Insurance Payable account?
Answer:
3280
(5437)
Question 21
1 / 1 point
Using the "Test 1 Balance Sheet" and "Test 1 Income Statement" files, determine the Quick Ratio for
Test 1 Inc.
1.88
1.32
1.09
1.64
Question 22
1 / 1 point
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
Which of the following is NOT one of the indicators that a company is in trouble as cited by The
Surety Information Office?
Ineffective financial management systems
Bank lines of credit always borrowed to the limit
Poor estimating and/or job cost reporting
An incomplete chart of accounts
Question 23
1 / 1 point
The job cost ledger
records detailed information about equipment expenditures.
tracks all company expenditures.
is a source of historic information when bidding new jobs.
should be kept in the applicable machinery to ensure it is kept up to date.
Question 24
1 / 1 point
Which of the following is NOT one of the warning signs of financial problems that the Surety
Information Office identified?
Poor estimating and/or job cost reporting
No comprehensive business plan
Ineffective financial management systems
Corruption
Question 25
The BCWS scheduled in the 8th week (only) of the project shown above is ________
2,875) The total BCWS for this project is ________
(39750, 39,750)
0 / 1 point
(2875,
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
Question 26
0 / 1 point
The bookkeeper receives all the labour timecards and calculates this week's payroll as follows: wages
due to employees, $4125.29, amount owed for social security, $580.10; Medicare, $193.79; SUTA,
$297.76; FUTA, $5.29; workers' compensation, $452.12; general liability insurance, $40.19;
employer-paid health insurance, $282.63. What amount will be charged to the Tax Payable account?
Answer:
5202
(1077)
Question 27
1 / 1 point
Which of the following statements about the Balance Sheet is false?
Assets + Liabilities = Owner's Equity
The balance sheet is a snapshot of a company's financial position at a point in time.
The balance sheet contains 3 main sections: Assets, Liabilities and Owner's Equity
The balance sheet reports the closing value of the accounts from the General Ledger as at
the close of a financial period.
Question 28
1 / 1 point
The status for the tasks is shown as at the end of WEEK 6.
What is the SPI of the project at the end of WEEK 6?
0.93
1.04
1.08
Cannot determine.
Question 29
1 / 1 point
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Which of the following statements is FALSE regarding the transaction shown in the above image?
Cash was paid to reduce liabilities.
The profit of $628 increased the owner's equity balance.
A portion of the payment was to cover interest on debts, the majority of the payment
reduced the principal amounts owing on the debts.
The net loss decreases the owner's equity balance.
Question 30
1 / 1 point
Which of the following is NOT typically a role of the financial manager related to cash flow
management
Matching the use of in-house labour and subcontractors to the cash available for use on a
project and ensuring that the company has sufficient cash to take on an additional project
Preparing an income tax projection for the company and preparing/updating annual cash
flwo projectsions for the company
Arranging for financing to cover the needs of the construction company
Ensuring only the most cost effective materials are selected for a project
Question 31
0 / 1 point
Which of the following are typical examples of committed costs? Select all that apply.
A purchase order that has been sent to an engineering firm for services to be rendered in
3 months.
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We plan to purchase $7,000 of miscellaneous construction materials over the next 6
months.
We expect a framing project in 3 weeks where our own employees will be used to take
400 hours.
A sub-contract is signed to have a foundation poured in six months for a recently awarded
job.
Our company received a bill for a dump truck rental.
Question 32
1 / 1 point
The degree of fixed asset newness measures, generally, ____________.
how new a company's assets are.
the best time of year to purchase new assets.
how much inventory the company has on hand.
Question 33
1 / 1 point
The following is a partial list of account balances found on Company XYZ's Balance Sheet:
Cash: 2000
Accounts Receivable: 8200
Equipment: 21000
Total Assets: 64000
Accounts Payable: 3300
Total Current Liabilities: 5500
Total Liabilities: 10500
And the following is a partial listing of Income Statement values also for Company XYZ:
Revenue: 17000
Equipment Expenses: 1000
Advertising Expenses: 1300
Total Expenses: 8500
Net Worth (Owner's Equity): 139000
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
For company XYZ, calculate the quick ratio using TWO DECIMAL PLACE accuracy.
Answer:
1.85
Question 34
1 / 1 point
Which of the following are NOT among the key principles to keep in mind when setting up internal
financial controls? Select all that apply.
Limit access to accounting information to only those who require it to perform their job
functions.
The PIDMAS principle.
Designated members of management should review transactions, reconciliations, receipts
and disbursements on an ongoing basis to ensure procedures are effective.
Be sure that a single person is able to place orders, receive materials and make payments for
transactions so work can happen quickly.
Maintenance of audit trails.
Separation of duties.
All assets must be tracked and accounted for.
Accounting should be performed regularly and consistently to ensure robust repeatable
procedures that prevent abuse.
Question 35
1 / 1 point
Which of the following account balances are increased by DEBIT entries?
Cash account
Revenue account
Advertising expense account
Owner's Equity Account
Question 36
1 / 1 point
The return on assets is a measurement of how close to original purchase price a company resells
used assets.
True
False
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
Question 37
0 / 1 point
The bookkeeper receives all the labour timecards and calculates this week's payroll as follows: wages
due to employees, $46328.90, amount owed for CPP, $6617.86; EHT, $1785.31; EI, $780.06; WSIB,
$2451.76; general liability insurance, $352.40; employer-paid health insurance, $3020.13. What
amount will be charged to the Accrued Payroll account?
Answer:
61336
(46329)
Question 38
0 / 1 point
Given the information above as at the/ end of WEEK 6, what is the estimated cost at completion
(ECAC) based
upon the CPI as at the end of WEEK 6?
39,750
38,182
29,825
8,357
Question 39
0 / 1 point
The quick ratio is a measurement of a company's ability to pay current (short-term) liabilities with
cash or other near cash assets - assets that can quickly be turned into cash. The quick ratio may also
be referred to as the _______.
sniff test.
rorschach test.
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: Test 1 - Chapter 1-8 - ACCT-6006-23W - Cost Control & Accounting (CPJ2) - Fanshawe College
acid test ratio.
full load test.
Question 40
1 / 1 point
According to the "Business Employment Dynamics Data: Survival and Longevity, II" study published
in Monthly Labor Review in 2007, what percentage of the 27,536 construction companies that were
launched in 1998 were still in operation in 2007?
50%
60%
70%
30%
Attempt Score: 29 / 40
Overall Grade (highest attempt): 29 / 40
Done
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