1. (TCO 3) Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified? (Points : 3)<\/p>\n
Fixed cost within relevant range<\/p>\n
Variable<\/p>\n
Mixed<\/p>\n
Variable cost within relevant range<\/p>\n
2. (TCO 3) For January, the cost components of a picture frame include $0.35 for the glass, $0.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. A total of 1,000 frames is expected to be produced in the coming year. What cost function best represents these costs? (Points : 3)<\/p>\n
y = 1.80 + 400X<\/p>\n
y = 400 + 1.80X<\/p>\n
y = 2.20 + 1,000X<\/p>\n
y = 1.00 + 400X<\/p>\n
3. (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? (Points : 3)<\/p>\n
Quantitative analysis<\/p>\n
Industrial engineering<\/p>\n
Account analysis<\/p>\n
Conference<\/p>\n
4. (TCO 3) Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X2 operations. Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager’s salary per year $70,000; Operating costs per year $157,000; Advertising and promotion per year $15,000; Commissions (4% of sales) $36,000. What was the variable cost per unit sold for 20X2? (Points : 3)<\/p>\n
$200<\/p>\n
$339<\/p>\n
$218<\/p>\n
$18<\/p>\n
5. (TCO 4) The formal process of choosing among alternatives is known as a(n) (Points : 3)<\/p>\n
prediction model.<\/p>\n
alternative model.<\/p>\n
decision model.<\/p>\n
relevant model.<\/p>\n
6. (TCO 4) For decision making, a listing of the relevant costs (Points : 3)<\/p>\n
will help the decision maker concentrate on the pertinent data.<\/p>\n
will only include future costs.<\/p>\n
will only include costs that differ among alternatives.<\/p>\n
All of the above<\/p>\n
7. (TCO 4) A computer system installed last year is an example of a(n) (Points : 3)<\/p>\n
avoidable cost.<\/p>\n
differential cost.<\/p>\n
relevant cost.<\/p>\n
sunk cost.<\/p>\n
8. (TCO 4) Black Tool Company has a production capacity of 1,500 units per month, but production is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are available? (Points : 3)<\/p>\n
Yes, since operating profits will most likely increase.<\/p>\n
No, since only the employees will benefit.<\/p>\n
No, the company will only break even.<\/p>\n
Yes, good customer relations are essential.<\/p>\n
9. (TCO 5) The theory of constraints is used for cost analysis when (Points : 3)<\/p>\n
a manufacturing company produces multiple products and uses multiple manufacturing facilities and\/or machines.<\/p>\n
using a long-term time horizon.<\/p>\n
operating costs are assumed fixed.<\/p>\n
All of the above<\/p>\n
10. (TCO 5) A machine has been identified as a bottleneck and the source of the constraint for a manufacturing company that has multiple products and multiple machines. One way the company can overcome the bottleneck is (Points : 3)<\/p>\n
eliminating idle time at the bottleneck operation. Extra staffing at the bottleneck would be a possibility, particularly if numerous manual type tasks were involved.<\/p>\n
concentrate on processing those parts or products that increase throughput contribution, not parts or products that remain in finished goods or spare parts inventories.<\/p>\n
solicit the opinions of the factory workers for ideas as to how the design of the manufacturing process can be simplified.<\/p>\n
All of the above<\/p>\n","protected":false},"excerpt":{"rendered":"
1. (TCO 3) Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified? (Points : 3) Fixed cost within relevant Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49886","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49886"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49886\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}