The cost that will NOT continue if an onging operation is changed or deleted is known as: Select one: a. Avoidable cost b. Common cost c. Sunk cost d. Differential cost Question 2 Not yet answered Marked out of 6.67 Flag question Question text __________is an activity for which a seperate measurement is desired. Select one: a. cost objective b. cost accumulation system c. period cost d. product cost Question 3 Not yet answered Marked out of 6.67 Flag question Question text Rental cost at the Sawgrass Mall, which includes a flat rate per month plus 2% of gross sales, would be considered which pattern of cost behavior Select one: a. variable cost b. step cost c. mixed cost d. fixed cost Question 4 Not yet answered Marked out of 6.67 Flag question Question text Variable costs Select one: a. decrease in total as the cost-driver activity level increases. b. are fixed per unit and vary in total. c. are fixed in total d. vary per unit. Question 5 Not yet answered Marked out of 6.67 Flag question Question text If the sales price per unit is $125, the total fixed costs are $175,000, and the break-even volume in dollar sales is $450,000, then the variable cost per unit is Select one: a. $72.43 b. $68.22 c. $48.61 d. $76.39 Which of the following would not be a consideration in a make or buy decision? Select one: a. Excess capacity b. Unavoidable fixed costs c. Variable factory overhead d. Rental income from unused facilities Question 7 Not yet answered Marked out of 6.67 Flag question Question text The pricing strategy in markets that first determine the price at which a product will be sold and then a product is designed that can be produced at a low enough cost to provide an adequate profit margin is referred to as Select one: a. discriminartory pricing b. target costing c. predatory pricing d. full costing Question 8 Not yet answered Marked out of 6.67 Flag question Question text Wiley Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows: Direct Materials $12 Direct Labor $20 Variable factory overhead $16 Fixed factory overhead $ 8 Total Costs $56 The fixed factory overhead costs are not avoidable. Assume that Wiley Company can buy 10,000 units of the part from another producer for $60 each. The facilities currently used to make the part could be rented out to another manufacturer for $80,000 per year. Wiley Company should Select one: a. Buy the part as that would save $12 per unit. b. Buy the part as that would save $2 per unit. c. Make the part as that owuld save $12 per unit. d. Make the part as that would save $4 per unit. Question 9 Not yet answered Marked out of 6.67 Flag question Question text If you know the Intercept Value (a) in the equation Y=a + bX equals $14,250, you then know what information? Select one: a. Total variable costs b. Total contribution margin c. Total cost function d. Total fixed costs Question 10 Not yet answered Marked out of 6.67 Flag question Question text In the mixed-cost function, Y=$42,530+$5.42X, the X stands for? Select one: a. variable cost per unit of cost driver b. total cost c. total fixed cost d. number of units of the cost driver The current ratio provides a decision maker with insight into a firms: Select one: a. Current net income to assets b. Liquidity position c. Debt position relative to assets d. Cash flow from operating activities Question 12 Not yet answered Marked out of 6.67 Flag question Question text An example of a Discretionary Fixed cost would be which of the following? Select one: a. property rent payments b. salaries of senior managers c. planned new computers for the office d. equipment depreciation Question 13 Not yet answered Marked out of 6.67 Flag question Question text BOOM, Inc., manufacturers seels dynamite. A projected income statement for the expected sales volume of 3,000,000 cases is as follows: Sales $6,000,000 Variable expenses $3,000,000 Contribution margin $3,000,000 Fixed expenses 2,000,000 Before-tax profit $1,000,000 What dollar sales volume would be required to achieve $3,000,000 of before-tax profit? Select one: a. $7,500,000 b. $6,000,000 c. $12,000,000 d. $10,000,000 Question 14 Not yet answered Marked out of 6.67 Flag question Question text ___________is how the activities of an organization affect its costs. Select one: a. Cost Behavior b. Cost driver c. Volume-related cost drivers d. None of the selections Question 15 Not yet answered Marked out of 6.67 Flag question Question text If Tootsie wants to increase ROA, which of the following would accomplish this: Select one: a. Increase ROS Increase Turnover Yes No b. Increase ROS Increase Turnover No Yes c. Increase ROS Increase Turnover No No d. Increase ROS Increase Turnover Yes Yes Question 16 Not yet answered Marked out of 6.67 Flag question Question text Which of the following is a correct cost relationship? Select one: a. Depreciation is a discretionary variable cost b. Mfg Supervisor salaries is a fixed period cost c. Selling and Administrative costs are discretionary product costs d. Direct Material is a variable cost Question 17 Not yet answered Marked out of 6.67 Flag question Question text In problem 1-33, the analysis showed that advertising expense had a $2,500 unfavorable variance for the most recent accounting period. If management determined that this variance should be investigated more thoroughly because of its significance, such action would be an example of? Select one: a. accounting/budgeting difference perusal b. management oversight c. management by exception d. management of expenses Question 18 Not yet answered Marked out of 1.00 Flag question Question text Return on sales (ROS) provides managerial insight into: Select one: a. How much of each $1 of sales finds its way to net income b. How much markup is achieve on each sale over the cost of purchasing the item sold c. The contribution margin on each $1 of sales d. Is the same thing as return on equity Question 19 Not yet answered Marked out of 6.67 Flag question Question text As the level of activity decreases within the relevent range, Select one: a. total fixed cost increase. b. total variable cost increase. c. fixed costs per unit decrease. d. variable costs per unit remain unchanged Question 20 Not yet answered Marked out of 6.67 Flag question Question text Policy for an Intensive Care unit of the Plantation Hospital requires one nurse for every four beds. Policy also states Nursing Supervisors have no more than 6 direct reports at any time. Current capacity of the ICU is sixteen beds, with one supervisor. Plantation Hospital plans a new addition which will increase the capacity to thirty two beds. How many nurses and /or supervisiors must be employed under the proposed expansion? Select one: a. 8 nurses, 4 supervisors b. 4 nurses, 1 supervisors c. 8 nurses, 2 supervisors d. 8 nurses, 3 supervisors _________is one of the accountants primary roles in the decision-making process. Select one: a. Makeing the decision b. Providing emotional support c. Collecting relevant information d. Reporting irrelevant information Question 22 Not yet answered Marked out of 6.67 Flag question Question text As the cost driver activity level increases within the relevant range, Select one: a. Variable costs per unit increase b. Fixed costs per unit increase c. Total variable costs decrease d. Total fixed costs remain unchanged Question 23 Not yet answered Marked out of 6.67 Flag question Question text Management is considering purchasing a Model B300 machine to use in addition to the companys present Model B100 machine. This will increase the companys production and sales. The increase in volume will be large enough to require increases in variable manufacturing overhead, fixed and selling expenses and in general administrative overhead, but not in the fixed manufacturing overhead. Which of the following items would be considered relevant to the decision? Select one: a. Variable manufacturing overhead b. Depreciation Model B100 machine c. Both of the above d. None of the above Question 24 Not yet answered Marked out of 6.67 Flag question Question text A firm uses the DuPont approach to analyze its performance and plan for the future. If this firm seeksto increase ROE, it should do all of the following except? Select one: a. Increase return on sales b. Lower financial leverage c. Increase total asset turnover d. All of the above will increase ROE e. None of the above will increase ROE Question 25 Not yet answered Marked out of 6.67 Flag question Question text __________is the field of accounting that develops information for external decision makers such as stockholders, suppliers, banks, and government regulatory agencies. Select one: a. Tax accounting b. Auditing c. Financial accounting d. Management accounting Question 26 Not yet answered Marked out of 6.67 Flag question Question text The cafeteria department at Mercy Hospital has experienced the following costs and number of meals served from January through September of 200x: Month Cafeteria Costs Meals Served January $35,800 9,800 February 34,400 9,000 March 36,920 9,800 April 38,280 10,200 May 44,805 13,500 June 34,700 9,200 July 36,344 9,695 August 43,882 12,211 September 41,128 11,523 Using the gh-Low method, develop the cost funtion equation to predict Cafeteria Costs. It is: Select one: a. $10,733+$2.66X b. $630+$3.542X c. $5290+$6.371X d. $13,590+$2.31X Question 27 Not yet answered Marked out of 6.67 Flag question Question text A clerk prepares a monthly report comparing the actual phone bill with the expected (budgeted) phone costs and calculates a variance. This activity would be classified as Select one: a. Planning b. Attention Directing c. Problem Solving d. Scorekeeping Question 28 Not yet answered Marked out of 6.67 Flag question Question text Suppose a Super 8 motel has annual fixed costs applicable to its rooms of $3.5 million for its 400-room motel, average daily room rents $55, and average variable costs of $12 for each room rented. It operates 365 days per year. How much net income on rooms will be generated if the motel is half full throughout the entire year? Select one: a. $156,250 b. $(361,000) c. $315,150 d. $(175,425) Question 29 Not yet answered Marked out of 6.67 Flag question Question text The additional cost resulting from producing and selling one more unit of product is: Select one: a. Perfect competition cost b. Unit cost c. Marginal cost d. Product cost Question 30 Not yet answered Marked out of 6.67 Flag question Question text A dry cleaning company charges $1 to launder a mans shirt and $1.75 to launder a womens shirt. The owner acknowledges the cost to launder is not different and that women are 80% of his customers. This pricing policy is an example of Select one: a. best business practices b. discriminartory pricing c. predatory pricing d. cost plus pricing
