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##### DEVRY ACCT434 WEEK 3 QUIZ

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Question;Question 1.1.(TCO 3) McDevitt;Company employs six individuals. They are each paid \$30,000 salary per year.;How would total costs of personnel be classified?(Points: 3);Variable;Fixed cost within relevant range;Mixed;Variable cost within relevant range;Question 2.2.(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);y = 1.80 + 400X;y = 400 + 1.80X;y = 2.20 + 1,000X;y = 1.00 + 400X;Question 3.3.(TCO 3) Which;cost estimation method uses a formal mathematical method to develop cost;functions based on past data?(Points: 3);Quantitative analysis;Industrial engineering;Account analysis;Conference;Question 4.4.(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 are the estimated total costs if Penny's expects to sell 3,000 units next;year?(Points: 3);\$799,000;\$1,017,000;\$896,000;\$799,000;Question 5.5.(TCO 4) Feedback;regarding previous actions may affect(Points: 3);implementation of the decision;future predictions;the decision model;All of the above;Question 6.6.(TCO 4) For;decision making, a listing of the relevant costs(Points: 3);will help the decision maker;concentrate on the pertinent data;will only include future costs;will only include costs that differ;among alternatives;All of the above;Question 7.7.(TCO 4) Sunk;costs(Points: 3);are relevant to all decisions;have future implications;are future costs;are past costs;Question 8.8.(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);Yes, since operating profits will;most likely increase;No, since only the employees will;benefit.;No, the company will only break even;Yes, good customer relations are;essential;Question 9.9.(TCO 5) The;theory of constraints is used for cost analysis when(Points: 3);a manufacturing company produces;multiple products and uses multiple manufacturing facilities and/or machines;using a long-term time horizon;operating costs are assumed fixed;All of the above;Question 10.10.(TCO 5);Keeping the bottleneck operation busy and subordinating all nonbottleneck;operations to the bottleneck operation involves(Points: 3);keeping the bottleneck resource busy;at least 90% of the time;maximizing the contribution margin;of the nonbottleneck operation;having the workers at the;nonbottleneck operation or machine improving their productivity.;None of the above

Paper#37620 | Written in 18-Jul-2015

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