Exam 14: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Woodruff Flowering Plants provides the following information for the month of May: What is the budgeted contribution margin per composite unit for the actual mix? (Round any intermediary calculations two decimal places.)

In cost allocation, R&D costs are used to ________.

The sales-mix variance will be unfavorable when which of the following occurs?

Archoid's Flowering Plants provides the following information for the month of May: What is the budgeted contribution margin per composite unit for the budgeted mix? (Round any intermediary calculations two decimal places.)

A shift towards a higher proportion of sales of products with a lower contribution margin per unit will most likely result in a(n) ________.

Woodruff Flowering Plants provides the following information for the month of May: For May, Woodruff will report a(n) ________.

To improve customer profitability, companies should track which of the following?

A price discount is the reduction in selling price below list selling price to encourage customers to purchase more quantities.

Which of the following is true of corporate-sustaining costs?

The sales-volume variance is subdivided into ________.

There are two elements that influence customer profitability - revenues and costs.

The sales-quantity variance results from a difference between ________.

How is value-engineering relevant to a well done customer profitability analysis, especially when an ABC system is utilized to calculate customer profits (or losses)?

Which of the following classifications would be the most relevant for the costs incurred to process orders?

Costs of displays at customer sites is an example of customer batch-level costs.

The Octova Corporation manufactures two types of vacuum cleaners: the ZENITH for commercial building use and the House-Helper for residences. Budgeted and actual operating data for the year 2017 are as follows: Required: Compute the sales-mix variance and the sales-quantity variance by type of vacuum cleaner, and in total. (in terms of the contribution margin)

How can a company's revenues and costs differ across customers?

Once a cost pool has been established, it should NOT need to be revisited or revised.

Segmenting customers as a result of customer profitability analysis would be done by which of the following groupings?

What might explain why some managers advocate fully allocating all costs, including corporate costs to distribution channels and to customers?