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DEVRY ACCT434 WEEK 1 AND WEEK 2 QUIZ

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Question;(TCO 1) Production-cost cross-subsidization results from;allocating indirect costs to multiple;products.;assigning traced costs to each product.;assigning costs to different products using;varied costing systems within the same organization.;assigning broadly averaged costs across;multiple products without recognizing amounts of resources used by which;products.;Question 2. Question;(TCO 1) Building or plant;security is an example of;unit-level costs.;batch-level costs.;product-sustaining costs.;facility-sustaining costs.;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?;Pricing and product-mix decisions;Cost reduction decisions;Design decisions;Discretionary decisions;Question 4. Question;(TCO 1) Overcosting of a;product is MOST likely to result from;misallocating direct labor costs.;overpricing the product.;undercosting another product.;understating total product costs.;Question 5. Question;(TCO 1) The MOST likely;example of a batch-level cost is;utility costs.;machine repairs.;product-designing costs.;setup costs.;Question 6. Question;(TCO 1) Which method of;allocation probably best estimates actual overhead costs used? Why?;Single direct labor-hours cost driver because;it is best to allocate total costs uniformly to individual jobs.;Single direct labor-hours cost driver because;it is easiest to analyze and interpret.;Three activity-cost drivers because they best;reflect the relative consumption of resources.;Three activity-cost drivers because product;costs can be significantly cross-subsidized.;Question 7. Question;(TCO 1) Activity-based;management (ABM) includes decisions about all EXCEPT;pricing and product mix.;smoothing costs.;reducing costs.;improving processes.;Question 8. Question;(TCO 1) Activity-based costing;information;should be used when services place similar;demands on resources.;usually results in peanut-butter costing.;will yield inaccurate cost numbers when;products are similar.;may assist in improving product design and;efficiency.;Question 9. Question;(TCO 1) Products make diverse;demands on resources because of differences in all of the following EXCEPT;volume.;selling price.;batch size.;complexity.;Question 10. Question;(TCO 1) Dalrymple 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?;$0.50;$1.00;$1.50;$2.00;Instructor Explanation: $80,000 / 40,000 = $2.00;Chapter 5, Page 142-143;WEEK 2;QUIZ;(TCO 2) Operating budgets and financial budgets;have nothing to do with the master budget.;are prepared after the master budget.;combined, form the master budget.;are prepared before the master budget.;Question 2. Question;(TCO 2) The time coverage of a;budget should be;shorter rather than longer.;cover design through manufacture and sale of;the product.;guided by the purpose of the budget.;one year.;Question 3. Question;(TCO 2) Financial budgets;include the;administrative costs budget.;capital expenditures budget.;production budget.;marketing costs budget.;Question 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;maintain actual costs as an integral part of;the costing system.;use a simple recording system.;eliminate routine reports.;justify eliminating the budgeting process.;Question 5. Question;(TCO 2) A variance is;the difference between a budgeted amount and;a standard amount.;the gap between an actual result and a;benchmark amount.;the required number of inputs for one;standard output.;the difference between an actual result and a;budgeted amount.;Question 6. Question;(TCO 2) Which of the following;statements is true about overhead cost variance analysis using activity-based;costing?;Overhead cost variances are calculated for;output-unit level costs only.;Overhead cost variances are calculated for;variable manufacturing overhead costs only.;A four-variance analysis can be conducted.;Activity-based costing uses input measures;for all activities, resulting in the inability to do flexible budgets needed;for variance analysis.;I;Question 7. Question;(TCO 2) Fixed overhead costs;include;the cost of sales commissions.;property taxes paid on plant facilities.;indirect materials.;energy costs.;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?;$189,000;$196,560;$218,400;$210,000;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 450,000 finished units were to be manufactured during the;20x2-20x3 fiscal year by Hester Company, the units of raw material needed to be;purchased would be;1,350,000.;1,360,000.;1,320,000.;1,330,000.;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. ll 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;$448,000.;$437,000.;$431,600.;$328,000.;* Times are displayed;in (GMT-07:00) Mountain Time (US & Canada)

 

Paper#38170 | Written in 18-Jul-2015

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