Question;Kaplan Gb519 quiz 5Kaplan Gb519 quiz 5;1.Throughput margin is defined as;sales less: (Points: 2);Direct labor costs.;Direct material costs.;Direct labor and material costs.;Processing costs.;Manufacturing costs.;Question;2. 2.Henry Ford was an early pioneer in the use of: (Points: 2);the theory of constraints.;target costing.;life cycle costing.;just-in-time manufacturing.;Question;3. 3.During the sales life cycle, which is an example of what;happens during the introduction phase? (Points: 2);Sales and price decline, as do the number of competitors.;Sales continue to increase but at a decreasing rate. The number of competitors;and product variety decline.;Sales increase rapidly along with an increase in product variety.;Sales rise slowly as customers become aware of the new product or service.;Product variety is limited.;Question;4. 4.When a firm determines the desired cost for a product or;service, given a competitive market price, in order to earn a desired;profit, the firm is exercising: (Points: 2);Target costing.;Life cycle costing.;Variable costing.;Absorption costing.;Competitive costing.;Question;5. 5.For a direct material, which one of the following is the;difference between the actual and standard unit price of the direct;material multiplied by the actual quantity of the material purchased?;(Points: 2);Direct materials purchase price variance.;Direct materials volume variance.;Direct materials usage variance.;Direct materials flexible-budget variance.;Direct materials mix variance.;Question;6. 6.A "standard cost" is a predetermined amount (e.g.;cost) that: (Points: 2);Should be incurred under relatively efficient operating conditions.;Will be incurred for an operation or a specific objective.;Must occur for an operation or a specific objective.;Cannot be changed once it is established by management.;Is useful for planning and control but not inventory valuation purposes.;Question;7. 7.Which one of the following is the difference between the;actual hourly wage rate and the standard hourly wage rate, multiplied by;the actual direct labor hours worked during a period? (Points: 2);Total direct labor standard cost variance.;Direct labor efficiency variance.;Direct labor usage variance.;Direct labor flexible-budget variance.;Direct labor rate variance.;Question;8. 8.A flexible-budget variance measures the impact on short-term;operating profit of: (Points: 2);Changes in sales volume.;Changes in output during the period.;Differences in sales mix?budgeted versus actual.;Selling price and cost differences?actual versus budgeted.;Selling price, but not cost differences?actual versus budgeted.;Question;9. 9.In deciding whether to further investigate a variance, an;organization needs to weigh the costs of investigation against the: (Points;2);Ongoing time constraints.;Size of the variance.;Nature of the variance.;Difficulty of the investigation.;Anticipated benefits from the investigation.;Question;10. 10.Which of the following factors is not usually important when;deciding whether to investigate a variance? (Points: 2);Magnitude of the variance.;Trend of the variance over time.;Whether the variance is favorable or unfavorable.;Cost of investigating the variance.;Likelihood that the variance will recur in the future.;Question;11. 11.The difference between the total actual overhead cost;incurred during a period and budgeted total factory overhead for the actual;quantity of the cost driver used to apply overhead is equal to the: (Points;2);Total overhead spending variance.;Total overhead efficiency variance.;Factory overhead production-volume variance.;Total overhead rate variance.;Total overhead variance.;Question;12. 12.Which one of the following journal entries in a standard;cost system would be used to apply factory overhead costs to production?;(Points: 2);A debit to the factory overhead account, at standard cost.;A credit to the factory overhead account, at standard cost.;A debit to WIP inventory, at actual cost.;A credit to Finished Goods Inventory, at standard cost.;Question;13. 13.The following budget data pertain to the Machining;Department of Yolkenverst Co.;Maximum Capacity = 60,000 Units;Machine Hours/Unit = 2.5 Hours;Variable Factory O/H = $ 3.60 Per Machine Hour;Fixed Factory O/H =;$433,500;The company prepared the budget at 85% of the maximum capacity level. The;department uses machine hours as the basis for applying standard factory;overhead costs to production.;The standard fixed overhead application rate for the Machining Department;is: (Points: 2);$2.89 per machine hour.;$3.40 per machine hour.;$3.47 per machine hour.;$4.08 per machine hour.;$8.50 per machine hour.;Question;14. 14.Electronic Component Company (ECC) 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? (Points: 2);$280.00.;$292.50.;$299.00.;$308.50.;Question;15. 15.Bonehead Co. has the following factory overhead costs;Standard Overhead Applied to this Period?s;Production;= $72,500;Flexible Budget for Overhead Based on Output (Units Produced);= 65,000;Total Budgeted Overhead in the Master (Static);Budget;= 86,000;Actual Total Overhead Cost Incurred During the;Period;= 76,000;The total underapplied or overapplied factory overhead for Bonehead Co. for;the period is: (Points: 2);$4,000 underapplied.;$7,000 overapplied.;$10,000 overapplied.;$11,000 underapplied.;$14,000 underapplied.
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