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ACCT 434 Entire Course FOR MORE CLASSES VISIT www.acct434mart.com ACCT 434 Week 1-7 All Discussion Questions ACCT-434 Week 1 Quiz Activity Based Costing ACCT-434 Week 2 Master Budget Flexible Budgets ACCT-434 Week 3 Cost Behavior Decision Making Quality ACCT-434 Week 4 Midterm Exam ACCT-434 Week 5 Pricing Decisions Management Control Systems ACCT-434 Week 6 Customer Profitability Capital Budgeting ACCT-434 Week 7 Quality Control Inventory Management ACCT 434 Week 1 Quiz (New) ACCT 434 Week 2 Quiz (New) ACCT 434 Week 3 Quiz (New) ACCT 434 Week 4 Quiz (New) ACCT 434 Week 5 Quiz (New) ACCT 434 Week 6 Quiz (New) ACCT 434 Week 7 Quiz (New) ACCT 434 Midterm Exam (New) ACCT 434 Final Exam Set 1 ACCT 434 Final Exam Set 2 ACCT 434 Final Exam Set 3 ACCT 434 Final Exam Set 4 ACCT 434 Final Exam Set 5 ************************************************* ACCT 434 Final Exam All 5 Sets FOR MORE CLASSES VISIT www.acct434mart.com This Tutorial contains All 5 Sets of Final Exam, Details could be found on below mentioned links ACCT 434 Final Exam Set 1 ACCT 434 Final Exam Set 2 ACCT 434 Final Exam Set 3 ACCT 434 Final Exam Set 4 ACCT 434 Final Exam Set 5 ************************************************* ACCT 434 Final Exam Set 1 FOR MORE CLASSES VISIT www.acct434mart.com ACC 434 Final Exam 1. (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? (Points: 5) 2. (TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity? (Points: 5) 3. (TCO 2) Fixed overhead costs include: (Points: 5) 4. (TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April re collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70% of the next month's projected total sales. All purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase. Brenton's budgeted total cash receipts in April are (Points: 5) 5. (TCO 2) Financing decisions PRIMARILY deal with: (Points: 5) 6. (TCO 3) The cost components of an air conditioner include $35 for the compressor, $11.50 for the sheet


molded compound frame, and $80 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs? (Points: 5) 7. (TCO 3) Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms? (Points: 5) 8. (TCO 4) Sunk costs 9. (TCO 5) Throughput contribution equals revenues minus: (Points: 5) 10. (TCO 5) Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves: (Points: 5) 11. (TCO 6) What type of cost is the result of an event that results in more than one product or service simultaneously (Points: 5) 12. (TCO 6) Which of the following is a disadvantage of the physical-measure method of allocating joint costs? (Points: 5) 13. (TCO 7) Life-cycle costing is the name given to: (Points: 5) 14. (TCO 7) Each month, Haddon Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddon's monthly sales are $500,000. The markup percentage on full cost to arrive at the target (exisitng) selling price is (Points: 5) 15. (TCO 8) The costs used in cost-based transfer prices 16. (TCO 8) Division A sells soybean paste internally to Division B, which in turn, produces soybean burgers that sell for $5 per pound. Division A incurs costs of $0.75 per pound while Division B incurs additional costs of $2.50 per pound. Which of the following formulas correctly reflects the company's operating income per pound? (Points: 5) 17. (TCO 8) Transferring products or services at market prices generally leads to optimal decisions when 18. (TCO 9) To guide cost allocation decisions, the benefits-received criterion 19. (TCO 9) The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $20,000,000 bond issuance, the Electric Mixer Division used $14,000,000 and the Electric Lamp Division used $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year. What amount of interest costs should be allocated to the Electric Mixer Division? (Points: 5) 20. (TCO 10) The net present value method focuses on: (Points: 5) 21. (TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950,000. The investment is expected to generate $350,000 in annual cash flows for a period of four years. The required rate of return is 14%. The old machine can be sold for $50,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. (Points: 5) 22. ************************************************* ACCT 434 Final Exam Set 2 FOR MORE CLASSES VISIT www.acct434mart.com 1. (TCO 1) If products are alike, then for costing purposes (Points : 5) 2. (TCO 1) Ireland Company produces a special spray nozzle. The budgetedindirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 80,000. What is the budgeted indirect cost allocation rate for this activity? (Points : 5) 3. (TCO 2) Variable overhead costs include (Points : 5) 4. (TCO 2) Information


pertaining to Brenton Corporation's sales revenue ispresented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000 Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 80% of the next month's projected total sales. All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase. Brenton's budgeted total cash receipts in March are (Points : 5) 5. (TCO 2)Budgeting provides all of the following except (Points : 5) 6. (TCO 3) For January, the cost components of a picture frame include $0.20for the glass, $0.85 for the wooden frame, and $0.60 for assembly. The assembly desk and tools cost $200. A total of 1,000 frames is expected to be produced in the coming year. What cost function best represents these costs? (Points : 5) 7. (TCO 3) Which cost estimation method uses a formal mathematical methodto develop cost functions based on past data? (Points : 5) 8. (TCO 4)Sunk costs (Points : 5) 9. (TCO 5) The theoryof constraints is used for cost analysis when (Points : 5) 10. (TCO 5) Producingmore nonbottleneck output (Points : 5) 11. (TCO 6) What type of cost is the result of an event that results in morethan one product or service simultaneously? (Points : 5) 12. (TCO 6) Which of the following is a disadvantage of the physical-measuremethod of allocating joint costs? (Points : 5) 13. (TCO 7) An understanding of life-cycle costs can lead to (Points : 5) 14. (TCO 7) Each month, Haddon Company has $300,000 total manufacturingcosts (20% fixed) and $125,000 distribution and marketing costs (75% fixed). Haddon's monthly sales are $600,000. ************************************************* ACCT 434 Final Exam Set 3 FOR MORE CLASSES VISIT www.acct434mart.com ACC 434 Final Exams 1. (TCO 1) a significant limitation of activity-based costing is the (Points: 5) 2. (TCO 1) Ireland Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 80,000. What is the budgeted indirect cost allocation rate for this activity? (Points: 5) 3. (TCO 2) Overhead costs have been increasing due to all of the following except (Points: 5) 4. (TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000 Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month is 80% of the next month's projected total sales. All purchases of inventory are on . ************************************************* ACCT 434 Final Exam Set 4


FOR MORE CLASSES VISIT www.acct434mart.com FINAL EXAM – D 1. (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? (Points: 5) 2. (TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity? (Points: 5) 3. (TCO 2) Fixed overhead costs include: (Points: 5) 4. (TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000 Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70% of the next month's projected total sales. All purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase. 5. (TCO 2) Financing decisions PRIMARILY deal with: (Points: 5) 6. (TCO 3) The cost components of an air conditioner include $35 for the compressor, $11.50 for the sheet molded compound frame, and $80 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs? (Points: 5) 7. (TCO 3) Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms? (Points: 5) 8. (TCO 4) Sunk costs: (Points: 5) 9. (TCO 5) Throughput contribution equals revenues minus: (Points: 5) 10. (TCO 5) Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves: (Points: 5) 11. (TCO 6) What type of cost is the result of an event that results in more than one product or service simultaneously (Points: 5) 12. (TCO 6) Which of the following is a disadvantage of the physical-measure method of allocating joint costs? ************************************************* ACCT 434 Final Exam Set 5 FOR MORE CLASSES VISIT www.acct434mart.com 1. (TCO 1) If products are alike, then for costing purposes (Points: 5) 1) If products are different, then for costing purposes: 1. (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? (Points: 5) 2. (TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the budgeted indirect cost allocation rate for this


activity? (Points: 5) 3. (TCO 2) Fixed overhead costs include (Points: 5) 4. (TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000 5. (TCO 2) Budgeting provides all of the following EXCEPT (Points: 5) 5. Budgeting is used to help companies: 5. (TCO 2) Financing decisions PRIMARILY deal with: (Points: 5) s 6. (TCO 3) The cost components of an air conditioner include $35 for the compressor, $11.50 for the sheet molded compound frame, and $80 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost function best represents these costs? (Points: 5) 7. (TCO 3) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods? (Points: 5) 8. (TCO 4) Sunk costs: (Points: 5) 9. (TCO 5) In the theory of constraints, the only direct costs are (Points: 5) 9. (TCO 5) Throughput contribution equals revenues minus: (Points: 5) 10. (TCO 5) Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves: (Points: 5) 11. (TCO 6) What type of cost is the result of an event that results in more than one product or service simultaneously (Points: 5) 12. (TCO 6) Which of the following is a disadvantage of the physical-measure method of allocating joint costs? (Points: 5) 13. (TCO 7) An understanding of life-cycle costs can lead to (Points: 5) 13. (TCO 7) Life-cycle costing is the name given to: (Points: 5) 14. (TCO 7) Each month, Haddon Company has $300,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (75% fixed). Haddon's monthly sales are $600,000. The markup percentage on full cost to arrive at the target (existing) selling price is (Points: 5) 14. (TCO 7) Each month, Haddon Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddon's monthly sales are $500,000. The markup percentage on full cost to arrive at the target (exisitng) selling price is 15. (TCO 8) The costs used in cost-based transfer prices (Points: 5) 15. (TCO 8) Transfer prices should be judged by whether they promote: (Points: 5) There is a mistake in number ************************************************* ACCT 434 Midterm Exam (New) FOR MORE CLASSES VISIT www.acct434mart.com Multiple Choice 10 9 Essay 4 Question 1. Question : (TCO 1) Which of the following is a sign that an ABC system may be useful? Question 2. Question : (TCO 1) Merriamn Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $400,000 10,000 hours Account billing lines $280,000 4,000,000 lines Account verification accounts $150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $880,000 How much of account verification costs will be assigned to Department A? Question 3. Question : (TCO 2) Budgeting provides all of the following EXCEPT Question 4. Question : (TCO 2) White planned to use $82 of material per unit but actually used $80


of material per unit, and planned to make 1,200 units but actually made 1,000 units. The sales-volume variance is Question 5. Question : (TCO 3) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods? Question 6. Question : (TCO 4) In evaluating different alternatives, it is useful to concentrate on Question 7. Question : (TCO 5) Which of the following is a relevant cost to be included in a make-or-buy decision? Question 8. Question : (TCO 5) Konrade's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned . ************************************************* ACCT 434 Week 1 Quiz (New) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 1) Production-cost cross-subsidization results from Question 2. Question : (TCO 1) The allocation of indirect costs in an activity-based costing system Question 3. Question : (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? Question 4. Question : (TCO 1) Undercosting a particular product may result in Question 5. Question : (TCO 1) The most likely example of an output unit-level cost is Question 6. Question : (TCO 1) Unit-level cost drivers are most appropriate as an overhead assignment base when Question 7. Question : (TCO 1) Activity-based management (ABM) includes decisions about all EXCEPT Question 8. Question : (TCO 1) The unique feature of an ABC system is the emphasis on Question 9. Question : (TCO 1) One department indirect-cost rate is sufficient when Question 10. Question : (TCO 1) Rumpole Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $100,000. The budgeted number of nozzles to be inserted is 25,000. What is the budgeted indirect cost allocation rate for this activity? ************************************************* ACCT 434 Week 1 Quiz Activity Based Costing (Devry) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 1) The average cost data are for In-Sync Fixtures Company's (a retailer) only two product lines, Marblette and Italian Marble. Marblette Italian Marble Purchase volume 20,000 1,000 Purchase cost per unit $50 $250


Shipments received 12 12 Hours used per shipment * 5 3 * These data were accumulated after a careful activity analysis. Currently, In-Sync Fixtures uses a traditional costing system with indirect costs allocated using purchased cost of goods as a basis. In-Sync Fixtures is considering refining the allocation of its receiving costs of $40,000. It realizes that the Italian Marble is heavier and requires more care than the Marblette but that the Marblette comes in larger volume. Which statement can be made using the results of the activity analysis performed by In-Sync Fixtures? 2. Question : (TCO 1) The allocation of indirect costs in an activity-based costing system 3. Question : (TCO 1) Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management? 4. Question : (TCO 1) A company produces three products; if one product is overcosted then 5. Question : (TCO 1) To set realistic selling prices 6. Question : (TCO 1) Different products consume different proportions of manufacturing overhead costs because of differences in all of the following EXCEPT 7. Question : (TCO 1) A well-designed, activity-based cost system helps managers make better decisions because information derived from an ABC analysis 8. Question : (TCO 1) Companies use ABC system information to 9. Question : (TCO 1) For service organizations that bill customers at a predetermined average rate, activity-based cost systems can help to 10. Question : (TCO 1) Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to


be inserted is 60,000. What is the budgeted indirect cost allocation rate for this activity? ************************************************* ACCT 434 Week 1-7 All Discussion Questions (Devry) FOR MORE CLASSES VISIT www.acct434mart.com Week 1 DQ1 ABC Journey Week 1 DQ2 Workout Room Week 2 DQ1 Flexible versus Static Budgets Week 2 DQ2 Workout Room Week 3 DQ1 Relevant Costs Week 3 DQ2 Workout Room Week 4 DQ1 Accounting for Primary Products Week 4 DQ2 Workout Room Week 5 DQ1 Pricing Decision Week 5 DQ2 Workout Room Week 6 DQ1 Evaluating Managers Week 6 DQ2 Workout Room Week 7 DQ1 Quality and Performance Week 7 DQ2 Workout Room ************************************************* ACCT 434 Week 2 Master Budget Flexible Budgets (Devry) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 2) Operating budgets and financial budgets 2. Question : (TCO 2) To gain the benefits of budgeting, ________ must understand and support the budget. 3. Question : (TCO 2) Which budget is not necessary to prepare the budgeted balance sheet? 4. Question : (TCO 2) A feature of a standard-costing system is that the costs of every product or service planned to be worked on during the period can be computed at the start of that period. This feature of standard costing makes it possible to


5. Question : (TCO 2) An unfavorable variance indicates that 6. Question : (TCO 2) Which of the following statements is true about overhead cost variance analysis using activity-based costing? 7. Question : (TCO 2) Overhead costs have been increasing due to all of the following except 8. Question : (TCO 2) Katie Enterprises reports the year-end information from 20X8 as follows: Sales (70,000 units) $560,000; Cost of goods sold 210,000; Gross margin 350,000; Operating expenses 200,000; Operating income $150,000. Katie is developing the 20X9 budget. In 20X9, the company would like to increase selling prices by 4%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted sales for 20X9? 9. Question : (TCO 2) Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 2008, through June 30, 2009. July 1, 2008 June 30, 2009 Raw material (note) 40,000 10,000 Work in process 8,000 8,000 Finished goods 30,000 5,000 (note) Three units of raw material are needed to produce each unit of finished product. If Hester Company plans to sell 600,000 units during the 2008-2009 fiscal year, the number of units it would have to manufacture during the year would be ************************************************* ACCT 434 Week 2 Quiz (New) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 2) Benchmarking is Question 2. Question : (TCO 2) To gain the benefits of budgeting, _____ must understand and support the budget. Question 3. Question : (TCO 2) Financial budgets include the Question 4. Question : (TCO 2) A flexible budget Question 5. Question : (TCO 2) A favorable variance indicates that Question 6. Question : (TCO 2) Performance evaluation using variance analysis should guard against Question 7. Question : (TCO 2) Overhead costs have been increasing due to all of the following except Question 8. Question : (TCO 2) Katie


Enterprises reports the year-end information from 20X8 as follows: Sales (70,000 units) $560,000; Cost of goods sold 210,000; Gross margin 350,000; Operating expenses 200,000; Operating income $150,000. Katie is developing the 20X2 budget. In 20X2, the company would like to increase selling prices by 4%, and as a result expects a decrease in sales volume of 10%. All other operating expenses are expected to remain constant. Assume that COGS is a variable cost and that operating expenses are a fixed cost. What is budgeted cost of goods sold for 20X2? Question 9. Question : (TCO 2) Hester Company budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for the fiscal year of July 1, 20x2, through June 30, 20x3. July 1, 20x2 June 30, 20x3 Raw material (note) 40,000 10,000 Work in process 8,000 8,000 Finished goods 30,000 5,000 (note) Three units of raw material are needed to produce each unit of finished product. If Hester Company plans to sell 600,000 units during the 20x2-20x3 fiscal year, the number of units it would have to manufacture during the year would be Question 10. Question : (TCO 2) Information pertaining to Brenton Corporation's sales revenue is presented in the following table. February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales 300,000 400,000 280,000 Total Sales $460,000 $550,000 $400,000 Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70% of the next month's projected total sales. 11 purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase. Brenton's budgeted total cash payments in March for inventory purchases are ************************************************* ACCT 434 Week 3 Cost Behavior Decision Making Quality (Devry) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (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? 2. Question : (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? 3. Question : (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data?


4. Question : (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 20X8 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 are the estimated total costs if Penny's expects to sell 3,000 units next year? ************************************************* ACCT 434 Week 3 Quiz (New) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 1) ABC systems create Question 2. Question : (TCO 1) Merriamn Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $400,000 10,000 hours Account billing lines $280,000 4,000,000 lines Account verification accounts $150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $880,000 The above activities are used by Department A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters How much of the account billing cost will be assigned to Department B? Question 3. Question : (TCO 2) Examples of nonfinancial budgets include all of the following EXCEPT Question 4. Question : (TCO 2) Dalyrymple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $80,000. The budgeted number of nozzles to be inserted is 40,000. What is the budgeted indirect cost allocation rate for this activity? Question 5. Question : (TCO 3) The conference method estimates cost functions Question 6. Question : (TCO 4) Relevant costs of a make-or-buy decision include all of the following EXCEPT Question 7. Question : (TCO 5) With a constraining resource, managers should choose the product with the ________. Question 8. Question : (TCO 5) Konrade's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade's Engine Company has the option of purchasing the part from an outside supplier at $85 per unit. If Konrade's Engine Company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total Question 9. Question : (TCO 3) The cost components of an air conditioner include $35 for the compressor, $11.50 for the sheet-molded compound frame, and $80 per unit for assembly. The factory machines and tools cost is $55,000. The company expects to produce 1,500 air conditioners in the coming year. What cost


function best represents these costs? Question 10. Question : (TCO 4) Opportunity costs ************************************************* ACCT 434 Week 4 Midterm Exam (Devry) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO1) ABC systems create 2. Question : (TCO 1) Merriamn Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $400,000 10,000 hours Account billing lines $280,000 4,000,000 lines Account verification accounts $150,000 40,000 accounts Correspondence letters $ 50,000 4,000 letters Total costs $880,000 The above activities are used by Department A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters


1,600 letters How much of the account billing cost will be assigned to Department B? 3. Question : (TCO 2) A master budget 4. Question : (TCO 2) Dalyrymple Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $80,000. The budgeted number of nozzles to be inserted is 40,000. What is the budgeted indirect cost allocation rate for this activity? ************************************************* ACCT 434 Week 4 Quiz (New) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (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? Question 2. Question : (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? Question 3. Question : (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? Question 4. Question : (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 are the estimated total costs if Penny's expects to sell Question 5. Question : (TCO 4) A decision model involves Question 6. Question : (TCO 4) When using the five-step decision process, which one of the following steps should be done last? Question 7. Question : (TCO 4) Sunk costs Question 8. Question : (TCO 4) Northwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $90 per table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods' policy to add a 50% markup to full costs. Northwoods is invited to bid on a one-time-only special order to supply 100 rustic tables. What is the lowest price Northwoods should bid on this special order? Question 9. Question : (TCO 5) Piels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows. Direct materials $ 90,000 Direct labor 130,000 Variable factory overhead 60,000 Fixed factory overhead 140,000 Total costs $420,000 Of the fixed factory overhead costs, $60,000 is avoidable. Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the part is _____. If there are 600 machine-hours available per


week, how many rockers of each model should Jim Helmer produce to maximize profits? ************************************************* ACCT 434 Week 5 Pricing Decisions Management Control Systems (Devry) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 7) Major influences of competitors, costs, and customers on pricing decisions are factors of 2. Question : (TCO 7) The first step in implementing target pricing and target costing is 3. Question : (TCO 7) The markup percentage is usually higher if the cost base used is 4. Question : (TCO 7) An understanding of life-cycle costs can lead to 5. Question : (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computed by adding a 20% markup to full cost. How much should the selling price be per unit for 300,000 units? 6. Question : (TCO 8) A product may be passed from one subunit to another subunit in the same organization. The product is known as 7. Question : (TCO 8) Transfer prices should be judged by whether they promote 8. Question : (TCO 8) When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called 9. Question : (TCO 8) An advantage of using budgeted costs for transfer pricing among divisions is that 10. Question :


(TCO 8) The seller of Product A has no idle capacity and can sell all it can produce at $20 per unit. Outlay cost is $4. What is the opportunity cost, assuming the seller sells internally? ************************************************* ACCT 434 Week 5 Quiz (New) FOR MORE CLASSES VISIT www.acct434mart.com Question 1. Question : (TCO 7) When companies do not want to use market prices or find it too costly, they typically use _____ prices, even though suboptimal decisions may occur. Question 2. Question : (TCO 7) The price of movie tickets for opening day and the few days following compared to the price 6 months later is an example of Question 3. Question : (TCO 7) A product's markup percentage needs to cover operating profits when the cost base is Question 4. Question : (TCO 7) Life-cycle budgeting is particularly important when Question 5. Question : (TCO 7) Each month, Haddon Company has $275,000 total manufacturing costs (20% fixed) and $125,000 distribution and marketing costs (36% fixed). Haddon's monthly sales are $500,000. The markup percentage on full cost to arrive at the target (existing) selling price is Question 6. Question : (TCO 8) The benefits of a decentralized organization are greater when a company Question 7. Question : (TCO 8) The costs used in cost-based transfer prices Question 8. Question : TCO 8) When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called Question 9. Question : (TCO 8) When companies do not want to use market prices or find it too costly, they typically use _____ prices, even though suboptimal decisions may occur. Question 10. Question : (TCO 8) Division A sells soybean paste internally to Division B, which, in turn, produces soybean burgers that sell for $5 per pound. Division A incurs costs of $0.75 per pound and Division B incurs an additional cost of $2.50 per pound. Which of the following formulas correctly reflects the company's operating income per pound? ************************************************* ACCT 434 Week 6 Customer Profitability Capital Budgeting (Devry) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 9) To guide cost allocation decisions,the benefits-received criterion 2. Question : (TCO 9) A challenge to using cost-benefit criteria for allocating costs isthat 3. Question :


(TCO 9) The MOST likely reason for NOT allocating corporate costs todivisions include that 4. Question : (TCO 9)Identifying homogeneous cost pools 5. Question : (TCO 9) The Hassan Corporation has an electric mixer division and an electric lamp division. Of a $20,000,000 bond issuance, the electric mixer division used $14,000,000 and the electric lamp division used $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year. What amount of interest costs should be allocated to the electric lamp division? 6. Question : (TCO 10) All of the following are methods that aid management in analyzingthe expected results of capital budgeting decisions EXCEPT the 7. Question : (TCO 10) Assume your goal in life is to retire with $1.5 million. Howmuch would you need to save at the end of each year if interest ratesaverage 5% and you have a 25-year work life? 8. Question : (TCO 10) Thedefinition of an annuity is 9. Question : (TCO 10) A "what-if" technique that examines how a result will change ifthe original predicted data are not achieved or if an underlying assumptionchanges is called 10. Question : (TCO 10) Shirt Company wants to purchase a new cutting machine for itssewing plant. The investment is expected to generate annual cash inflowsof $300,000. The required rate of return is 12% and the current machine isexpected to last for four years. What is the maximum dollar amount ShirtCompany would be willing to spend for the machine, assuming its life isalsofour years? Income taxes are not considered. ************************************************* ACCT 434 Week 6 Quiz (New) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 9) To guide cost allocation decisions, the benefits-received criterion Question 2. Question : (TCO 9) Which cost-allocation criterion is superior when making an economic decision? Question 3. Question : (TCO 9) The MOST likely


reason for allocating all corporate costs to divisions include that Question 4. Question : (TCO 9) Identifying homogeneous cost pools Question 5. Question : (TCO 9) The Hassan Corporation has an electric mixer division and an electric lamp division. Of a $20,000,000 bond issuance, the electric mixer division used $14,000,000 and the electric lamp division used $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year. What amount of interest costs should be allocated to the electric lamp division? Question 6. Question : (TCO 10) The capital budgeting method, which calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present using the required rate of return, is the Question 7. Question : (TCO 10) Assume your goal in life is to retire with $1 million. How much would you need to save at the end of each year if investment rates average 9% and you have a 15-year work life? Question 8. Question : (TCO 10) The net-present-value method focuses on Question 9. Question : (TCO 10) In situations in which the required rate of return is not constant for each year of the project, it is advantageous to use Question 10. Question : (TCO 10) The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950,000. The investment is expected to generate $350,000 in annual cash flows for a period of 4 years. The required rate of return is 14%. The old machine can be sold for $50,000. The machine is expected to have zero value at the end of the 4-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. ************************************************* ACCT 434 Week 7 Quality Control Inventory Management (Devry) FOR MORE CLASSES VISIT www.acct434mart.com 1. Question : (TCO 11)The four cost categories in a cost of quality program are 2. Question : (TCO 11) ________ is a formal means ofdistinguishing between random and nonrandom variation in an operatingprocess. 3. Question : (TCO 11) Which of the following is NOT one of the steps in managingbottlenecks under the theory of constraints? 4. Question : (TCO 11)Scrap is an example of 5. Question : (TCO 11) Regal Products has a budget of $900,000 in 20X6 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $60,000 in


variable costs. The new method will require $18,000 in training costs and $120,000 in annual equipment costs. Management iswilling to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units. Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $30,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3%of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failuresaverage 3% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories. How much will appraisal costs change assuming the new prevention methods reduce material failures by 40% in the appraisal phase? 6. Question : (TCO 12) Which of the following is NOT a major feature of a just-in-timeproduction system? 7. Question : (TCO 12)Quality costs include 8. Question : (TCO 12) Which of the following statements about theeconomic-order-quantity decision model is FALSE? 9. Question : (TCO 12) When using a vendor-managed inventory system to enhance thefeatures of supply-chain management, a challenging issue is 10. Question : (TCO 12) Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $40. There are no flag displays on hand butLiberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Liberty Celebrations does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year is ************************************************* ACCT 434 Week 7 Quiz (New) FOR MORE CLASSES VISIT www.acct434mart.com


1. Question : (TCO 11) Nonfinancial measures for internal quality performance include all but which of the following? Question 2. Question : (TCO 11) Which of the following is NOT a nonfinancial performance measure for customer satisfaction? Question 3. Question : (TCO 11) Which of the following is NOT one of the three main measurements in the theory of constraints? Question 4. Question : (TCO 11) Scrap is an example of Question 5. Question : (TCO 11) Regal Products has a budget of $900,000 in 20X3 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $60,000 in variable costs. The new method will require $18,000 in training costs and $120,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 150,000 units. Appraisal costs for the year are budgeted at $600,000. The new prevention procedures will save appraisal costs of $30,000. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 3% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $54 per failed unit. The company's average external failures average 3% of units sold. The new proposal will reduce this rate by 50%. Assume that all units produced are sold and there are no ending inventories. How much will appraisal costs change assuming the new prevention methods reduce material failures by 40% in the appraisal phase? Question 6. Question : (TCO 12) Which of the following categories of costs are important when managing inventories of goods for sale, according to the authors of the text? Question 7. Question : (TCO 12) The costs associated with storage are an example of which cost category? Question 8. Question : (TCO 12) Which of the following statements about the economic-order-quantity decision model is FALSE? Question 9. Question : (TCO 12) The _____ describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers. Question 10. Question : (TCO 12) Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $40. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty Celebrations has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Liberty Celebrations does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year is

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