DeVry Chicago ACCT 434 Week 3 Cost Behavior Decision Making Quality MCQs

# DeVry Chicago ACCT 434 Week 3 Cost Behavior Decision Making Quality MCQs

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?Fixed cost within relevant rangeVariableMixedVariable cost within relevant range2. 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?y = 1.80 + 400Xy = 400 + 1.80Xy = 2.20 + 1,000Xy = 1.00 + 400X3. Question : (TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data?Quantitative analysisIndustrial engineeringAccount analysisConference4. Question : (TCO 3) Pennys 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 managers 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 Pennys expects to sell 3,000 units next year?\$799,000\$1,017,000\$896,000\$799,0005. Question : (TCO 4) The formal process of choosing among alternatives is known as a(n)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?Implementing the decisionEvaluation and feedbackChoose an alternativeObtain information7. Question : (TCO 4) Sunk costshave 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?\$63\$135\$90\$729. Question : (TCO 5) Throughput contribution equals revenues minusoperating 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 iseliminating 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