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DeVry Chicago ACCT 434 Week 3 Cost Behavior Decision Making Quality Graded Quiz 2014

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Question;Grading SummaryThese are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Date Taken: Question Type: # Of Questions: # Correct:Multiple Choice 10 Grade Details 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? Student Answer: Fixed cost within relevant range Variable Mixed Variable cost within relevant range 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? Student Answer: y = 1.80 + 400X y = 400 + 1.80X y = 2.20 + 1,000X y = 1.00 + 400X 3. Question: (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data? Student Answer: Quantitative analysis Industrial engineering Account analysis Conference 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? Student Answer: $799,000 $1,017,000 $896,000 $799,000 5. Question: (TCO 4) The formal process of choosing among alternatives is known as a(n) Student Answer: prediction model. alternative model. decision model. relevant model. 6. Question: (TCO 4) When using the five-step decision process, which one of the following steps should be done last? Student Answer: Implementing the decision Evaluation and feedback Choose an alternative Obtain information 7. Question: (TCO 4) Sunk costs Student Answer: have future implications. are ignored when evaluating alternatives. are differential. are relevant. 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. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Northwoods is invited to submit a bid to the hotel chain. What is the lowest price per unit Northwoods should bid on this long-term order? Student Answer: $63 $135 $90 $72 9. Question: (TCO 5) Throughput contribution equals revenues minus Student Answer: operating costs. direct material costs of goods sold. direct material costs minus operating costs. direct material and direct labor costs 10. Question: (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 Student Answer: eliminating idle time at the bottleneck operation. Extra staffing at the bottleneck would be a possibility, particularly if numerous manual type tasks were involved. concentrate on processing those parts or products that increase throughput contribution, not parts or products that remain in finished goods or spare parts inventories. solicit the opinions of the factory workers for ideas as to how the design of the manufacturing process can be simplified. All of the above

 

Paper#40437 | Written in 18-Jul-2015

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