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GB519: Measurement and Decision Making quiz

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Question;The goals of coordinating manufacturing processes, reducing the amount of inventory, and improving overall productivity is particularly important in a: (Points: 2) Standard cost system.Just-in-time system.Normal costing system.Activity based costing system.Total quality management system.2.Throughput margin is defined as sales less: (Points: 2) Direct labor costs.Direct material costs.Direct labor and material costs.Processing costs.Manufacturing costs.3.The theory of constraints (TOC) emphasizes which of the following? (Points: 2) Developing competitive constraints.Finding and eliminating design constraints.Removing bottlenecks from the production process.Improving overall production efficiency.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.5.The difference between the total actual sales revenue of a period and the total flexible-budget sales revenue for the units sold during the period is the: (Points: 2) Total flexible-budget variance.Sales volume variance.Selling price variance.Operating income flexible-budget variance.Operating income variance.6.The direct materials usage ratio for a given period is: (Points: 2) Defined as the ratio of quantity purchased to quantity used.Defined as the inverse of the materials quantity variance for the period.Entered into its own variance account at the end of the period.A useful indicator of performance by the manufacturing department.A useful indicator of performance of the purchasing department.7.An organization's overall management accounting and control system: (Points: 2) Includes the planning function.Is also referred as the organization's core performance-measurement system.Is separate from its operational control system.Includes nonfinancial, but not financial, performance measures.Focuses on strategic, not operational, control8.The difference between actual and standard cost caused by the difference between the actual number of resource-units used and the standard number of resource-units that should have been used for the output of the period is called the: (Points: 2) Controllable variance.Master budget variance.Flexible-budget variance.Quantity (or efficiency) variance.Price variance.9.The difference between the actual fixed overhead cost incurred during a period and the budgeted fixed overhead cost for the period is the: (Points: 2) Fixed overhead efficiency variance.Fixed overhead production-volume variance.Fixed overhead spending variance.Fixed overhead rate variance.10.Causes of random variances are beyond the control of management, and are most often found in: (Points: 2) Fixed costs.Commodity products exchanged in open markets.Wages and salaries.Depreciation charges.Specialized industries.11.Finding a single cost driver that changes in the same proportion as variable factory overhead costs is: (Points: 2) Simplified by breaking out the fixed portion of overhead cost.The first step in variable overhead cost assignment.Difficult but manageable using advanced statistical techniques.An important goal of effective cost system design.Virtually impossible because of the underlying nature of variable overhead costs.12.If inventories in a business using a standard cost system are insignificant, the firm would be justified (in a practical sense) by disposing of variances each year: (Points: 2) As an adjustment to the finished goods inventory only.As an adjustment to cost of goods sold only.As adjustments to both inventory accounts and the cost of goods sold for the period.As a special item (gain or loss) on the income statement for the period.13.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.$308.50.14.A company's flexible budget for 15,000 units of production showed sales of $48,000, variable costs of $18,000, and fixed costs of $12,000. The operating income in the master budget for 20,000 units is: (Points: 2) $8,000.$13,500.$24,000.$28,000.$30,000.15.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.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? (Points: 2) $210.$200.$190.$180.

 

Paper#51449 | Written in 18-Jul-2015

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