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APU ACCT300 Week 6 quiz 6

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Question;Question 1 of 20;5.0/ 5.0 Points;The amount of income that would result from an alternative;use of cash is called;A.differential;income.;B.sunk cost.;C.differential;revenue.;D.opportunity cost.;Answer Key;Question 2 of 20;5.0/ 5.0 Points;What is a bottleneck?;A.A narrow area in;the plant layout often causing the production process to slow due to the;inability of production workers to move the product from station to station;B.A manufacturing;strategy used to control the production process by minimizing or eliminating;excess inventory;C.The point in the manufacturing process where;demand for the product exceeds the ability to produce the product;D.All of these;describe a bottleneck in the production process;Answer Key;Question 3 of 20;5.0/ 5.0 Points;If fixed costs are $250,000, the unit selling price is $105;and the unit variable cost is $65, what I the break-even sales (in units)?;A.6,250 units;B.2,381 units;C.10,000 units;D.3,846 units;Answer Key;Question 4 of 20;5.0/ 5.0 Points;Hill Co. can further process Product O to produce Product P.;Product O is currently selling for $65 per pound and costs $42 per pound to;produce. Product P would sell for $82 per pound and would require an additional;cost of $13 per pound to produce. The differential cost of producing Product P;is $55 per pound.;A. True;B. False;Answer Key;Question 5 of 20;5.0/ 5.0 Points;Which of the following is not a cost concept commonly used;in applying the cost-plus approach to product pricing?;A.Total cost concept;B.Product cost;concept;C.Variable cost;concept;D.Fixed cost concept;Answer Key;Question 6 of 20;5.0/ 5.0 Points;Target costing is arrived at by;A.taking the selling price and subtracting;desired profit.;B.taking the selling;price and adding desired profit.;C.taking the selling;price and subtracting the budget standard cost.;D.taking the budget;standard cost and reducing it by 10%.;Answer Key;Question 7 of 20;5.0/ 5.0 Points;Only a single line, which represents the difference between;total sales revenues and total costs, is plotted on the profit-volume chart.;A. True;B. False;Answer Key;Question 8 of 20;0.0/ 5.0 Points;If the unit selling price is $50, the volume of sales is;$450,000, sales at the break-even point amount to $375,000, and the maximum;possible sales are $550,000, the margin of safety will be 2,000 units.;In;A. True;B. False;Answer Key;Question 9 of 20;0.0/ 5.0 Points;In using the total cost concept of applying the cost-plus;approach to product pricing, only profit is covered in the markup.;In;A. True;B. False;Answer Key;Question 10 of 20;5.0/ 5.0 Points;The point where the sales line and the total costs line;intersect on the cost-volume-profit chart represents;A.the maximum;possible operating loss.;B.the maximum;possible operating income.;C.the total fixed;costs.;D.the break-even point.;Answer Key;Question 11 of 20;5.0/ 5.0 Points;A cost that will not be affected by later decisions is;termed;A.historical cost.;B.differential cost.;C.sunk cost.;D.replacement cost.;Answer Key;Question 12 of 20;5.0/ 5.0 Points;A cost that will not be affected by later decisions is;termed;A.historical cost.;B.differential cost.;C.sunk cost.;D.replacement cost.;Answer Key;Question 13 of 20;5.0/ 5.0 Points;In cost-volume-profit analysis, all costs are classified;into the following two categories;A.mixed costs and;variable costs.;B.sunk costs and;fixed costs.;C.discretionary costs;and sunk costs.;D.variable costs and fixed costs.;Answer Key;Question 14 of 20;5.0/ 5.0 Points;The theory of constraints is a manufacturing strategy that;focuses on reducing the influence of bottlenecks on production processes.;A. True;B. False;Answer Key;Question 15 of 20;5.0/ 5.0 Points;The relative distribution of sales among the various;products sold by a business is termed as;A.business?s basket;of goods.;B.contribution margin;mix.;C.sales mix.;D.product portfolio.;Answer Key;Question 16 of 20;5.0/ 5.0 Points;In attempting to improve profitability when faced with a;bottleneck related to hours that is involved in the production of two or more;products, which of the following is most important for management to consider?;A.Contribution margin;per unit for each product;B.Time required for;each different product passing through the bottleneck;C.Selling price or;sales revenue generated by each product produced through the bottleneck;D.Contribution margin per bottleneck hour for;each product;Answer Key;Question 17 of 20;5.0/ 5.0 Points;When a business sells more than one product at varying;selling prices, the business?s break-even point can be determined as long as;the number of products does not exceed;A.two.;B.three.;C.fifteen.;D.there is no limit.;Answer Key;Question 18 of 20;0.0/ 5.0 Points;If employees accept a wage contract that decreases the unit;contribution margin, the break-even point will decrease.;In;A. True;B. False;Answer Key;Question 19 of 20;5.0/ 5.0 Points;If fixed costs are $750,000 and variable costs are 60% of;sales, what is the break-even point (in dollars)?;A.$1,875,000;B.$1,250,000;C.$1,666,667;D.$1,350,000;Answer Key;Question 20 of 20;0.0/ 5.0 Points;The product with the highest contribution margin per scarce;resource is the most profitable.;In;A. True;B. False;Answer Key

 

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