Ans Doc148Y

CLICK HERE TO DOWNLOAD THIS ANSWER INSTANTLY

19) Which of the following is not a cost driver of customer services costs? A. Number of service calls is not a cost driver of customer services costs. B. All of these answers are correct C. Hours spent servicing products are not a cost driver of customer services costs. D. Travel costs are not a cost driver of customer services costs.

20) Which value chain function would include the cost of computer-aided design equipment and cost to develop the prototype of a product? A. The production function would include these costs. B. The marketing function would include these costs C. The distribution function would include these costs. D. The design of product, services, and processes function would include these costs.

21) Which value chain function would include depreciation on transportation cost? A. The distribution function would include depreciation on transportation cost. B. The marketing function would include depreciation on transportation cost C. The production function would include depreciation on transportation cost. D. The customer service function would include depreciation on transportation cost.

22) If the sales price per unit is $100, the unit variable cost is $75, and total fixed costs are $150,000, then the break even volume in dollar sales rounded to the nearest whole dollar is _____. A. $600,000 B. $150,000 C. $200,000 D. $1,500

23) Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor. If total fixed costs are $435,000, then the break even volume in dollars is _____. A. $1,450,000 B. $435,000 C. $621,429 D. $1,023,529

24) Walnut Corporation sells desks at $480 per desk. The costs associated with each desk are as follows: Direct materials $195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840. The contribution margin per desk is _____. A. $195 B. $126 C. $51 D. $108

25) _____ is a method of approximating cost functions. A. Cost driver analysis B. Account analysis C. Product analysis D. Transaction analysis

26) Managers should apply two principles to obtain accurate and useful cost functions. These principles are ____. A. plausibility and believability B. believability and validity C. reliability and validity D. plausibility and reliability

27) _____ of approximating cost functions does not involve the analysis of past costs. A. High low analysis B. least-squares regression C. Engineering analysis D. Visual fit analysis

28) _____ is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity. A. Activity based costing B. Transaction costing C. Transaction based accounting D. Cost driver accounting

29) The change from traditional costing to activity-based costing may reveal that _____. A. both high and low volume products are undercosted B. both high and low volume products are overcosted C. high volume products are overcosted D. low volume products are overcosted

30) _____ need cost accounting systems. A. Manufacturing firms, service organizations, and nonprofit organizations B. Manufacturing firms and nonprofit organizations C. Manufacturing firms and service organizations D. Service organizations and nonprofit organizations

31) A _____ gives the expected sales under a given set of conditions. A. sales forecast B. budget forecast C. sales prediction D. sales budget

32) _____ budgeting is when budgets are formulated with the active participation of all affected employees A. Shared B. Participative C. Financial D. Team

33) _____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix. A. Futuring B. Accounting C. Budgeting analysis D. Financial planning

34) Important factors considered by sales forecasters include all of the following except _____. A. the desired level of sales B. competitors’ activities C. past patterns of sales D. marketing research studies

35) Unit sales of Product A are currently 10,000, while unit sales of Product B are double those of Product A. The com¬pany’s sales forecast will be _____, assuming sales of Product A increase by 10% and those of Product B increase by 4,000 units. A. 11,000 and 22,000 units, respectively B. none of these answers is correct C. 10,000 and 20,000 units, respectively D. 11,000 and 24,000 units, respectively

36) A sales forecast is _____. A. the result of decisions to create conditions B. all of these answers are correct C. a prediction of sales under a given set of conditions D. the same as a sales budget that will generate a desired level of sales

37) The master budget quantifies targets for all of the following except _____. A. production B. cost driver activity C. sales D. markets

38) _____ probably would not be used as a measure of activity in a flexible budget. A. Number of direct labor hours worked B. Number of hours worked by salespeople C. Sales volume D. Number of machine hours used

39) _____ are components of a master budget. A. An operating budget and a financial budget B. A cash budget and an activity budget C. A strategic plan and an operating budget D. A continuous budget and a static budget

40) _____ is not a type of cost allocation. A. Reallocation of costs from service departments to production departments B. Reallocation of costs from production departments to service departments C. Allocation of costs to the appropriate organizational unit D. Allocation of costs of a particular organizational unit to products or services

41) The use of budgeted service department cost rates protects using departments from _____. A. all of these answers are correct B. service outages C. price fluctuations D. service department efficiencies

42) Cost allocation base refers to the _____. A. cost objectives B. total allocated costs C. total costs to be allocated D. cost driver

43) Murphy Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year: Maintenance Personnel Mixing Finishing Direct dept. costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32 If the step-down method of allocating costs is used and the Personnel Department is allocated first, then the amount of overhead that would be allocated from Personnel to Mixing is _____. A. $78,000 B. $63,000 C. $58,500 D. $31,500

44) Kevin Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year: Maintenance Personnel Mixing Finishing Direct dept. costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32 If the step-down method of allocating costs is used and the Personnel Department is allocated first, then the amount of overhead that would be allocated from Personnel to Finishing is _____. A. $105,000 B. $31,500 C. $72,000 D. $42,000

45) Gomez Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year _____. Maintenance Personnel Mixing Finishing Direct dept. costs $126,000 $84,000 $105,000 $175,000 Square footage 800 400 1,600 1,200 Number of employees 8 12 24 32 If the step-down method is used to allocate costs and the Maintenance Department is allocated first, the amount of overhead that would be allocated from Maintenance to Mixing is: A. $36,000 B. $42,750 C. $42,000 D. $63,000

46) _____ is (are) used for external reporting. A. Absorption costing and variable costing B. Direct costing C. Variable costing D. Absorption costing

47) _____ is another term for variable costing. A. Absorption costing B. Traditional costing C. Direct costing D. Full costing

48) In absorption costing, costs are separated into the major categories of_____. A. variable and nonmanufacturing B. fixed and variable C. manufacturing and fixed D. manufacturing and nonmanufacturing