Question 1

Cost of a new machine is:

Accepted Answer

A) past cost. 
B) relevant. 
C) irrelevant. 
D) sunk cost. 
E) batch cost. 
A) past cost. 
B) relevant. 
C) irrelevant. 
D) sunk cost. 
E) batch cost.

Question 2

In which step of the decision-making process do managers reorganize operations to reduce costs?

Accepted Answer

A) Step 1: Modify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn. 
A) Step 1: Modify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn.

Question 3

What do managers do if the performance-evaluation model conflicts with the decision model?

Accepted Answer

The performance-eval

Question 4

There is no opportunity cost of using warehouse space and equipment for companies when there is no alternative use of the space and equipment.

Accepted Answer

A) True 
 B)False

Question 5

Decisions about whether a producer of goods or services will insource or outsource are called which of the following?

Accepted Answer

A) Insourcing. 
B) Outsourcing. 
C) Make-or-buy decisions. 
D) Full cost of the products. 
E) Business function costs. 
A) Insourcing. 
B) Outsourcing. 
C) Make-or-buy decisions. 
D) Full cost of the products. 
E) Business function costs.

Question 6

The managers at Wicker Basket Manufacturing Mart need to determine the contribution margin per machine-hour and the contribution margin per machine-hour to determine the product that maximizes the total contribution margin,and to determine which product to produce and sell.
   
Required
Compute the contribution margin per machine-hour and the total contribution margin for 200machine hours.Which basket earns the highest contribution margin? Which product maximizes total contribution margin?

Accepted Answer

The contribution margin per machine-hour

Question 7

Why do managers use decision models?

Accepted Answer

Managers use decision models to help the

Question 8

________ are outcomes that are difficult to measure accurately in numerical terms.

Accepted Answer

A) Quantitative factors 
B) Qualitative factors 
C) Decision situations 
D) Long-run implications 
E) Make-or-buy decisions 
A) Quantitative factors 
B) Qualitative factors 
C) Decision situations 
D) Long-run implications 
E) Make-or-buy decisions

Question 9

When a resource is constrained,how should managers choose which of the multiple products to produce and sell?

Accepted Answer

When a resource is constrained,managers

Question 10

The Channel Company manufactures television remotes for new flat screen televisions.The Brighton Manufacturing Company offered to sell Channel Company 260,000 units to program the remotes next year at $54 per unit.The managerial accountant reported the following expected costs:
   
Required:
Compute the expected cost per unit in each category to produce 260,000 units next year and the total expected cost per unit.Does the manager at the Channel Company have enough information to accept or decline the offer from the manager at Brighton Manufacturing Company? Why or why not?

Accepted Answer

Based on the computations,it appears tha

Question 11

Which of the following is not true about the theory of constraints?

Accepted Answer

A) Defines the measure of investments. 
B) Useful in both bottleneck and nonbottleneck operations. 
C) Used to maximize operating income. 
D) Defines the throughput margin measurement. 
E) not used to define the measurement of operating costs. 
A) Defines the measure of investments. 
B) Useful in both bottleneck and nonbottleneck operations. 
C) Used to maximize operating income. 
D) Defines the throughput margin measurement. 
E) not used to define the measurement of operating costs.

Question 12

Motorcycle Production Services produces miniature motorcycles.The company has two departments,the painting department and the sanding department.The painting department is constrained by the speed of the employees that operate the sanding machines.The employees that work in painting always receive late work from the employees in the sanding department.
Each employee works a seven-hour day.To relieve the bottleneck constraint,the manager at Motorcycle Production Services believes they can add an additional half-day shift to the sanding department.The manager believes they can begin work three and one-half hours earlier than the employees in the painting department,and all employees in each department can end their workday at the same time.
The manager expects to increase finished units produced each day by 180 units.All units produced can be sold and the managerial accountant reported that the cost of an increase in operating the sanding department by three and one-half hours each day is $1,400 and the contribution margin of the finished products is $12 each.Inventory carrying cost is $0.45 per day.
Required:
What is the total production per day if the manager adds the extra shift? Compute the change in the daily contribution margin if the manager implements the change.

Accepted Answer

A) 540.01;$3,583.14 
B) 550.05;$3,683.14 
C) 560.10;$3,783.14 
D) 570.15;$3,883.14 
E) 580.25;$3,993.14 
A) 540.01;$3,583.14 
B) 550.05;$3,683.14 
C) 560.10;$3,783.14 
D) 570.15;$3,883.14 
E) 580.25;$3,993.14

Question 13

Which of the following is not a quantitative factor?

Accepted Answer

A) Marketing costs. 
B) Employee morale. 
C) Cost of direct materials. 
D) Percentage of on-time flight arrivals. 
E) Reduction in new product-development time. 
A) Marketing costs. 
B) Employee morale. 
C) Cost of direct materials. 
D) Percentage of on-time flight arrivals. 
E) Reduction in new product-development time.

Question 14

There is no opportunity cost when:

Accepted Answer

A) other products are considered. 
B) there are other uses for the product. 
C) there are other alternatives. 
D) there are other uses for a product. 
E) there is no alternative use of the equipment or space. 
A) other products are considered. 
B) there are other uses for the product. 
C) there are other alternatives. 
D) there are other uses for a product. 
E) there is no alternative use of the equipment or space.

Question 15

Alps Incorporated,a supplier in Switzerland,offered to sell 300,000 toys to the American firm,International Toys,for 270,000 Swiss Francs.Assuming an exchange rate of 1.07 Swiss Francs,what qualitative and quantitative factors should the manager at International Toys consider prior to the purchase of the toys?

Accepted Answer

The manager at International Toys should

Question 16

In which step of the performance-evaluation model do managers perceive how peers judge post-performance decisions?

Accepted Answer

A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions about the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn. 
A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions about the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn.

Question 17

A ________ is the difference in total cost between two alternatives.

Accepted Answer

A) insourcing 
B) outsourcing 
C) make-or-buy decision 
D) business function cost 
E) differential cost 
A) insourcing 
B) outsourcing 
C) make-or-buy decision 
D) business function cost 
E) differential cost

Question 18

In which step of the decision-making process do managers compare predicted benefits?

Accepted Answer

A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn 
A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance,and Learn

Question 19

A formal method of making a choice that might involve both quantitative and qualitative analysis is ________.

Accepted Answer

A) sunk costs 
B) stockout costs 
C) carrying costs 
D) decision model 
E) economic order 
A) sunk costs 
B) stockout costs 
C) carrying costs 
D) decision model 
E) economic order

Question 20

The Lawn Corporation produces a part that is used in the manufacture of one of its products.The costs associated with the production of 10,000 units of this part are as follows:
 
The managerial accountant reported that $50,000 of the fixed factory overhead was avoidable.
The manager at Rapid Manufacturing Company offered to sell 15,000 units of the same product to the manager at Lawn Corporation at $40 per unit.Assuming the plant is available,should the manager make or buy the product?

Accepted Answer

A) Make the part to save $8 per unit. 
B) Buy the part to save $8 per unit. 
C) Make the part to save $20 per unit. 
D) Buy the part to save $20 per unit. 
E) Make the part to save $25 per unit. 
A) Make the part to save $8 per unit. 
B) Buy the part to save $8 per unit. 
C) Make the part to save $20 per unit. 
D) Buy the part to save $20 per unit. 
E) Make the part to save $25 per unit.

Cost of a new machine is:

In which step of the decision-making process do managers reorganize operations to reduce costs?

What do managers do if the performance-evaluation model conflicts with the decision model?

There is no opportunity cost of using warehouse space and equipment for companies when there is no alternative use of the space and equipment.

Decisions about whether a producer of goods or services will insource or outsource are called which of the following?

Why do managers use decision models?

________ are outcomes that are difficult to measure accurately in numerical terms.

When a resource is constrained,how should managers choose which of the multiple products to produce and sell?

Which of the following is not true about the theory of constraints?

Which of the following is not a quantitative factor?

There is no opportunity cost when:

In which step of the performance-evaluation model do managers perceive how peers judge post-performance decisions?

A ________ is the difference in total cost between two alternatives.

In which step of the decision-making process do managers compare predicted benefits?

A formal method of making a choice that might involve both quantitative and qualitative analysis is ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 9: Decision Making and Relevant Information

Cost of a new machine is:

In which step of the decision-making process do managers reorganize operations to reduce costs?

What do managers do if the performance-evaluation model conflicts with the decision model?

There is no opportunity cost of using warehouse space and equipment for companies when there is no alternative use of the space and equipment.

Decisions about whether a producer of goods or services will insource or outsource are called which of the following?

Why do managers use decision models?

________ are outcomes that are difficult to measure accurately in numerical terms.

When a resource is constrained,how should managers choose which of the multiple products to produce and sell?

Which of the following is not true about the theory of constraints?

Which of the following is not a quantitative factor?

There is no opportunity cost when:

In which step of the performance-evaluation model do managers perceive how peers judge post-performance decisions?

A ________ is the difference in total cost between two alternatives.

In which step of the decision-making process do managers compare predicted benefits?

A formal method of making a choice that might involve both quantitative and qualitative analysis is ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters