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Managerial Accounting Questions 11–15 (page: 4)

Updated On: 10-Feb-2026

The manager of Ladron Candies is deciding whether or not to invest in new equipment with a purchase price of $10,500 and a required rate of return of 7%. Given this calculation of the present value of cash inflows and outflows for the next three years, what should he decide, based on the internal rate of return?

  1. Reject the investment, because the internal rate of return cannot be determined with the information given.
  2. Reject the investment, because the internal rate of return is approximately 7% and results in a loss after three years.
  3. Accept the investment, because the internal rate of return is approximately 6% and results in a profit after three years.
  4. Accept the investment, because the internal rate of return is approximately 7%, which equals the required rate of return.

Answer(s): D



Archer Corporation manufactures coffee cups in the Midwest. Using this data, calculate the total current period manufacturing costs for the Schedule of Cost of Goods Manufactured for the year ending on December 31, 2021.



  1. $554,000
  2. $604,000
  3. $679,000
  4. $925,000

Answer(s): B



Which of the following employees of ABC Corporation is most likely to receive the report regarding the internal audit committee's control findings?

  1. Payroll clerk
  2. Plant manager
  3. Chief financial officer
  4. Managerial accountant

Answer(s): C



You are the newly hired manager of an individual restaurant chain.
Which of the following responsibilities for your responsibility center would you be evaluated on?

  1. Meeting cost budgets
  2. Investments in assets decisions
  3. Revenues, costs, and resulting profits
  4. Return on investment for shareholders

Answer(s): C



The accounting department for Aramai Inc. is preparing the cash flow statement for the current year. Using the select financial statement data below, what is Aramai's net income when converted to cash provided by operating activities, using the indirect method?

  1. $380,650
  2. $493,550
  3. $553,350
  4. $545,350

Answer(s): B



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