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Question;36. Ken;Yalters, the COO of FreshSkin, asked his cost management team for a product;line profitability analysis for his firm's two products -;Askin;and Bskin. The two products are skin care products that require a large amount;of research and development and advertising. He received the report below. Ken;concluded that Askin was the more profitable product, and that perhaps;cost-cutting measures should be applied to the Bskin product.;Seventy-five;percent of the research and development and selling expenses were traceable to;Askin.;Profit;before taxes for the Bskin product, per life-cycle income statements, is;A.;$175,000.;B.;$425,000.;C.;$522,500.;D.;$207,500.;E.;$332,500.;37. The;management accountant at Iang Manufacturing Co. collected the following data in;preparation for a life-cycle analysis on one of its products, a leaf blower;The stage of the;sales life cycle the product is determined to be;A.;Introduction.;B.;Growth;C.;Maturity.;D.;Decline.;E.;Withdrawal.;38.;Which of the following;is a theory of constraints (TOC) measure of product profitability that equals;price less materials cost, including all purchased components and materials;handling costs?;A.;Takt time.;B.;Throughput margin.;C.;Profitability margin.;D.;Price analysis.;E.;A;F.;B;G.;C;H.;D;39. The;management accountant at Jang Manufacturing Co. collected the following data in;preparation for a life-cycle analysis on one of its products, a leaf blower;The stage of the;sales life cycle the product is in is;A.;Introduction.;B.;Growth.;C.;Maturity.;D.;Decline.;E.;Withdrawal.;40.Bryan;Inc. produces a specialty top-quality juice machine. The product, the JM50;requires four processes to be completed. Specifically, these processes are;exterior construction, pulp filter insertion, painting, and packaging. Each;process is performed at separate workstations with different completion rates;Exterior;construction can manufacture 100,000 juicer exteriors per day. Pulp filter;insertion can install 25,000 filters every 6 hours.;Painting can;decorate 3,000 juicers every half hour. Packaging can package 5,000 juicers per;hour.;The plant operates 24/7;24 hours a day every day of the week.;How;many JM50 machines can Bryan Inc. manufacture per month (assume an average 30;day month)?;A.;4,320,000 juicers.;B.;3,600,000 juicers.;C.;3,000,000 juicers.;D.;3,200,000 juicers.;41. Bryan;Inc. produces a specialty top-quality juice machine. The product, the JM50;requires four processes to be completed. Specifically, these processes are;exterior construction, pulp filter insertion, painting, and packaging. Each;process is performed at separate workstations with different completion rates;Exterior;construction can manufacture 100,000 juicer exteriors per day. Pulp filter;insertion can install 25,000 filters every 6 hours.;Painting can;decorate 3,000 juicers every half hour. Packaging can package 5,000 juicers per;hour.;The plant;operates 24/7, 24 hours a day every day of the week. Which function(s) is/are;the bottleneck(s)?;A.;Exterior construction and pulp filter;insertion.;B.;Pulp filter insertion.;C.;Painting.;D.;Packaging.;E.;Exterior construction.;42. Bryan;Inc. produces a specialty top-quality juice machine. The product, the JM50;requires four processes to be completed. Specifically, these processes are;exterior construction, pulp filter insertion, painting, and packaging. Each;process is performed at separate workstations with different completion rates;Exterior;construction can manufacture 100,000 juicer exteriors per day. Pulp filter;insertion can install 25,000 filters every 6 hours.;Painting;can decorate 3,000 juicers every half hour. Packaging can package 5,000 juicers;per hour.;The plant operates 24/7;24 hours a day every day of the week.;What is the least amount;of monthly capacity you would have to add to the bottleneck(s) to shift the;bottleneck to a different process?;A.;2,000,001 juicers per month.;B.;600,001 juicers per;month.;C.;1,320,001 juicers per;month.;D.;50,001 juicers per;month.;43. Bryan;Inc. produces a specialty top-quality juice machine. The product, the JM50;requires four processes to be completed. Specifically, these processes are;exterior construction, pulp filter insertion, painting, and packaging. Each;process is performed at separate workstations with different completion rates;Exterior;construction can manufacture 100,000 juicer exteriors per day. Pulp filter;insertion can install 25,000 filters every 6 hours.;Painting;can decorate 3,000 juicers every half hour. Packaging can package 5,000 juicers;per hour.;The;plant operates 24/7, 24 hours a day every day of the week. What cost management;technique does this case illustrate?;A.;Target costing.;B.;Theory of constraints.;C.;Life-cycle costing.;D.;ABC analysis.;44.;Place the phases of the cost life cycle (value chain) in the correct order from;upstream to downstream activities.;A.;Manufacturing, R&D, Design, Customer;Service, Marketing & Distribution.;B.;Design, R&D;Marketing & Distribution, Manufacturing, Customer Service.;C.;Customer Service;Design, R&D, Manufacturing, Marketing & Distribution.;D.;R&D, Design;Manufacturing, Marketing & Distribution, Customer Service.;E.;Marketing;Distribution, Customer Service, Design, R&D, Manufacturing.;45.;Target cost can be defined as;A.;Manufacturing cost - sales price.;B.;Competitive price -;desired profit.;C.;Desired profit - market;price.;D.;Target price -;manufacturing cost.;46.;Which of the following is the speed at which units must be manufactured to meet;customer demand?;A.;Production time.;B.;Manufacturing time.;C.;Takt time.;D.;Throughput time.;47. Electronic;Component Company is a producer of high-end video and music equipment. ECC;currently sells its top of the line "ECC" DVD player for a price of;$250. It costs ECC $210 to make the player. ECC's main competitor is coming to;market with a new DVD player that will sell for a price of $220. ECC feels that;it must reduce its price to $220 in order to compete. The sales and marketing;department of ECC believes the reduced price will cause sales to increase by;15%. ECC currently sells 200,000 DVD players per year. Irrespective of the;competitor's price, what is EEC's required selling price if the target profit;is 25% of sales and current costs cannot be reduced?;A.;$280.00.;B.;$292.50.;C.;$299.00.;D.;$308.50.;48. Electronic;Component Company is a producer of high-end video and music equipment. ECC;currently sells its top of the line "ECC" DVD player for a price of;$250. It costs ECC $210 to make the player. ECC's main competitor is coming to;market with a new DVD player that will sell for a price of $220. ECC feels that;it must reduce its price to $220 in order to compete. The sales and marketing;department of ECC believes the reduced price will cause sales to increase by;15%. ECC currently sells 200,000 DVD players per year. What is the target cost;if target profit is 20% of sales and ECC must meet the competitive price of;$220?;A.;$168.50.;B.;$176.00.;C.;$184.25.;D.;$190.00.;49. Electronic;Component Company is a producer of high-end video and music equipment. ECC;currently sells its top of the line "ECC" DVD player for a price of;$250. It costs ECC $210 to make the player. ECC's main competitor is coming to;market with a new DVD player that will sell for a price of $220. ECC feels that;it must reduce its price to $220 in order to compete. The sales and marketing;department of ECC believes the reduced price will cause sales to increase by;15%. ECC currently sells 200,000 DVD players per year. Assuming sales and;marketing are not correct in their estimation and the volume of sales is not;changed and ECC meets the competitive price, what is the target cost if ECC;wants to maintain its same income level?;A.;$210.;B.;$200.;C.;$190.;D.;$180.;50.;Which of the following phases are included in the sales life cycle?;A. A;B.;B;C.;C;D.;D

 

Paper#45089 | Written in 18-Jul-2015

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