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ACCT 434 WEEK 3 QUIZ – DEVRY
ACCT 434 WEEK 3 QUIZ – DEVRY
1. (TCO 3) McDevitt Company employs six individuals. Each is paid $12.50 per hour. How would total costs of personnel be classified? (Points : 3)
2. (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? (Points : 3)
3. (TCO 3) Which cost estimation method may use time-and-motion studies to analyze the relationship between inputs and outputs in physical terms? (Points : 3)
4. TCO 3) Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X2 operations. Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager’s 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 were total fixed costs for 20X2? (Points : 3)
5. (TCO 4) A decision model involves (Points : 3)
6. (TCO 4) When using the five-step decision process, which one of the following steps should be done first? (Points : 3)
7. (TCO 4) Sunk costs (Points : 3)
8. (TCO 4) Black Tool Company has a production capacity of 1,500 units per month, but production is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 ACCT 434 Week 3 Quiz - DeVry per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are website available? (Points : 3)
9. (TCO 5) The theory of constraints is used for cost analysis when (Points : 3)
10. (TCO 5) Producing more nonbottleneck output (Points : 3)
1. (TCO 3) McDevitt Company employs six individuals. Each is paid $12.50 per hour. How would total costs of personnel be classified? (Points : 5)
2. (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? (Points : 5)
3. (TCO 3) Which cost estimation method analyzes accounts in the subsidiary ledger as variable, fixed, or mixed using qualitative methods? (Points : 5)
4. (TCO 3) Penny’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X2 operations: Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager’s salary per year $70,000; ACCT 434 Week 3 Quiz - DeVry 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 Penny’s expects to sell 3,000 units next year? (Points : 5)
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