Question 1

The formula for a mixed cost is:

Accepted Answer

A) Y = b 
B) Y = m(X) 
C) Y = m(X)+ b 
D) Y = m(X)+ b(X) 
A) Y = b 
B) Y = m(X) 
C) Y = m(X)+ b 
D) Y = m(X)+ b(X)

Question 2

Which of the following activity bases would be the best cost driver for flour costs for a pizzeria?

Accepted Answer

A) Number of customers 
B) Hours of operation 
C) Number of employees 
D) Number of pizzas 
A) Number of customers 
B) Hours of operation 
C) Number of employees 
D) Number of pizzas

Question 3

Use the following to answer questions 
The TLC Motel, which uses the high/low method to estimate its total cost formula, gathered the following data for the first six months of its current fiscal year:
  
-The variable housekeeping cost per room rental is:

Accepted Answer

A) $14.36 
B) $10.13 
C) $ 9.06 
D) $ 9.00 
A) $14.36 
B) $10.13 
C) $ 9.06 
D) $ 9.00

Question 4

Which of the following is not information that a company should collect from a customer when it receive an order?

Accepted Answer

A) Address 
B) Inventory ordered 
C) Credit information 
D) How goods will reach the customer 
E) All of the above should be collected 
A) Address 
B) Inventory ordered 
C) Credit information 
D) How goods will reach the customer 
E) All of the above should be collected

Question 5

Delivery of goods is associated with which of the following process?

Accepted Answer

A) Revenue process 
B) Expenditure process 
C) Conversion process 
D) Evaluation process 
A) Revenue process 
B) Expenditure process 
C) Conversion process 
D) Evaluation process

Question 6

A document sent by the purchasing department to order a specific quantity of goods or services is called a:

Accepted Answer

A) Vendor invoice 
B) Purchasing report 
C) Purchase order 
D) Purchase requisition 
A) Vendor invoice 
B) Purchasing report 
C) Purchase order 
D) Purchase requisition

Question 7

Use the following to answer questions 
Bob's Bowlarama performed a linear regression analysis on the monthly cost of operating its concession stand, using the number of customers serviced as the cost driver. The results were as follows:
  
-The cost of operating the concession stand for a month in which the concession services 250 customers is estimated at:

Accepted Answer

A) $2,792.80 
B) $2,602.80 
C) $2,545.30 
D) $ 627.20 
A) $2,792.80 
B) $2,602.80 
C) $2,545.30 
D) $ 627.20

Question 8

Goods shipped from a seller's warehouse on April 10 using the terms FOB Shipping Point.On the way to the buyer's warehouse the truck hauling the goods wrecked and the
Goods were destroyed.Who will get the insurance check covering the loss?

Accepted Answer

A) The seller 
B) The buyer 
C) The seller and buyer split the loss. 
D) The delivery company. 
A) The seller 
B) The buyer 
C) The seller and buyer split the loss. 
D) The delivery company.

Question 9

Contrast the conversion process with the revenue/expenditure process.

Accepted Answer

The conversion process occurs within a m

Question 10

Match between columns
                        Premises: The span of operating activity that is considered normal for a company.
A revenue that changes in direct proportion to the change in activity.
How a cost reacts to change in the level of operating activity
A cost that does not change in total as the amount of activity changes
A cost that changes in direct proportion to the change in activity.
Basis that reflect the consumption or provision of resources.
A revenue that changes, but not proportionately, to a change in activity.
A cost that varies, but not proportionately, to a change in activity.
How a revenue reacts to a change in the level of operating activity.
A revenue that does not change in total as activity changes.

Accepted Answer

The Answer of Revenue Behavior and Activity Driver and Variable is...

Question 11

Which of the following is not a fixed cost?

Accepted Answer

A) President's salary 
B) Supervisor's salary 
C) Monthly rent of factory equipment 
D) Utility cost 
A) President's salary 
B) Supervisor's salary 
C) Monthly rent of factory equipment 
D) Utility cost

Question 12

The accounting department at Alaska Enterprises,Inc.is running low on office supplies.The accounting manager has asked you to obtain additional supplies.Describe all the steps necessary to arrange for the acquisition and payment for the supplies.Identify all documents that would be utilized during this process,as well as the person or department that would prepare the document.

Accepted Answer

The accounting clerk would prepare a pur

Question 13

Which of the following would not be collected from the customer when an order is received?

Accepted Answer

A) Type of inventory ordered 
B) Name of common carrier that will deliver the goods 
C) Price Quoted 
D) Delivery Date 
E) All of the above will be collected 
A) Type of inventory ordered 
B) Name of common carrier that will deliver the goods 
C) Price Quoted 
D) Delivery Date 
E) All of the above will be collected

Question 14

The customer service department at Mall Mart gathered the following data for the first six months of its fiscal year:
   Using the high/low estimation method:
a)Determine the cost estimation equation.
b)Estimate the total department costs during a month where 18,500
customers are serviced.
c)Estimate the total department cost during a month where 35,000 customers are
serviced.

Accepted Answer

(a)
$358,775 - $276,360 = $82,415
29,790

Question 15

Define the following terms as they relate to cost behavior,draw their graphical representation,and give an example of each: (1)fixed cost,(2)variable cost,and (3)mixed cost.

Accepted Answer

A fixed cost does not change in total as

Question 16

Veta Corporation purchased $14,650 in supplies from a vendor offering credit terms of 2/10,n/30.If Veta takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:

Accepted Answer

A) $14,650 
B) $14,621 
C) $14,357 
D) $13,185 
A) $14,650 
B) $14,621 
C) $14,357 
D) $13,185

Question 17

Which of the following is not part of the conversion process?

Accepted Answer

A) Machine set ups. 
B) Paying for the raw material used in production. 
C) Storing the raw material used in production. 
D) Storing finished manufactured goods until sold 
A) Machine set ups. 
B) Paying for the raw material used in production. 
C) Storing the raw material used in production. 
D) Storing finished manufactured goods until sold

Question 18

Decatron,Inc.purchased $76,500 of parts from a vendor who offered credit terms of 3/15,n/45.If Decatron takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:

Accepted Answer

A) $74,205 
B) $76,500 
C) $76,271 
D) cannot be determined from the information given 
A) $74,205 
B) $76,500 
C) $76,271 
D) cannot be determined from the information given

Question 19

Create your own data set that reflects an activity and its related cost.You must explain the basis of the relationship represented by the data.
Required:
Calculate a cost estimation ratio using the High/Low method
Calculate a cost estimation ratio and R2 using the regression method.

Accepted Answer

To create my own data set, I will use th

Question 20

Norton Corporation has purchased raw materials from a vendor and was offered credit terms of 2/10,n/30.Which of the following reflects these terms?

Accepted Answer

A) 20% discount (2/10)if paid within 30 days 
B) 2% discount if paid within 10 days 
C) 10% discount if paid within 30 days and 2% after 30 days 
D) 2% discount if paid between 10 and 30 days. 
A) 20% discount (2/10)if paid within 30 days 
B) 2% discount if paid within 10 days 
C) 10% discount if paid within 30 days and 2% after 30 days 
D) 2% discount if paid between 10 and 30 days.

The formula for a mixed cost is:

Which of the following activity bases would be the best cost driver for flour costs for a pizzeria?

Use the following to answer questions The TLC Motel, which uses the high/low method to estimate its total cost formula, gathered the following data for the first six months of its current fiscal year: -The variable housekeeping cost per room rental is:

Which of the following is not information that a company should collect from a customer when it receive an order?

Delivery of goods is associated with which of the following process?

A document sent by the purchasing department to order a specific quantity of goods or services is called a:

Goods shipped from a seller's warehouse on April 10 using the terms FOB Shipping Point.On the way to the buyer's warehouse the truck hauling the goods wrecked and the Goods were destroyed.Who will get the insurance check covering the loss?

Contrast the conversion process with the revenue/expenditure process.

Which of the following is not a fixed cost?

Which of the following would not be collected from the customer when an order is received?

Define the following terms as they relate to cost behavior,draw their graphical representation,and give an example of each: (1)fixed cost,(2)variable cost,and (3)mixed cost.

Veta Corporation purchased $14,650 in supplies from a vendor offering credit terms of 2/10,n/30.If Veta takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:

Which of the following is not part of the conversion process?

Decatron,Inc.purchased $76,500 of parts from a vendor who offered credit terms of 3/15,n/45.If Decatron takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:

Create your own data set that reflects an activity and its related cost.You must explain the basis of the relationship represented by the data. Required: Calculate a cost estimation ratio using the High/Low method Calculate a cost estimation ratio and R² using the regression method.

Norton Corporation has purchased raw materials from a vendor and was offered credit terms of 2/10,n/30.Which of the following reflects these terms?

Accounting and Business

Business Processes and Accounting Information

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 3: Operating Processes: Planning and Control

The formula for a mixed cost is:

Which of the following activity bases would be the best cost driver for flour costs for a pizzeria?

Use the following to answer questions The TLC Motel, which uses the high/low method to estimate its total cost formula, gathered the following data for the first six months of its current fiscal year: -The variable housekeeping cost per room rental is:

Which of the following is not information that a company should collect from a customer when it receive an order?

Delivery of goods is associated with which of the following process?

A document sent by the purchasing department to order a specific quantity of goods or services is called a:

Goods shipped from a seller's warehouse on April 10 using the terms FOB Shipping Point.On the way to the buyer's warehouse the truck hauling the goods wrecked and the Goods were destroyed.Who will get the insurance check covering the loss?

Contrast the conversion process with the revenue/expenditure process.

Which of the following is not a fixed cost?

Which of the following would not be collected from the customer when an order is received?

Define the following terms as they relate to cost behavior,draw their graphical representation,and give an example of each: (1)fixed cost,(2)variable cost,and (3)mixed cost.

Veta Corporation purchased $14,650 in supplies from a vendor offering credit terms of 2/10,n/30.If Veta takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:

Which of the following is not part of the conversion process?

Decatron,Inc.purchased $76,500 of parts from a vendor who offered credit terms of 3/15,n/45.If Decatron takes advantage of the discount,the amount paid to the vendor (rounded to the nearest dollar)will be:

Create your own data set that reflects an activity and its related cost.You must explain the basis of the relationship represented by the data. Required: Calculate a cost estimation ratio using the High/Low method Calculate a cost estimation ratio and R2 using the regression method.

Norton Corporation has purchased raw materials from a vendor and was offered credit terms of 2/10,n/30.Which of the following reflects these terms?

Accounting and Business

Business Processes and Accounting Information

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Create your own data set that reflects an activity and its related cost.You must explain the basis of the relationship represented by the data. Required: Calculate a cost estimation ratio using the High/Low method Calculate a cost estimation ratio and R² using the regression method.