Question 1

Common costs,those $\textbf{      not   }$  directly caused by the cost object are

Accepted Answer

A) Not relevant 
B) Non-differential 
C) Both not relevant and non-differential 
D) Neither not relevant nor non-differential 
A) Not relevant 
B) Non-differential 
C) Both not relevant and non-differential 
D) Neither not relevant nor non-differential

Question 2

Throughput contribution equals

Accepted Answer

A) Sales revenue less fixed costs. 
B) Sales revenue less product costs. 
C) Sales revenue less direct materials costs. 
D) Sales revenues less manufacturing overhead. 
A) Sales revenue less fixed costs. 
B) Sales revenue less product costs. 
C) Sales revenue less direct materials costs. 
D) Sales revenues less manufacturing overhead.

Question 3

According to the Theory of Constraints,all production should be subordinated to the bottleneck operation.

Accepted Answer

A) True 
 B)False

Question 4

Depreciation on a factory machine is an example of which of the following types of cost?

Accepted Answer

A) Variable cost 
B) Sunk cost 
C) Opport 
D) Period cost 
A) Variable cost 
B) Sunk cost 
C) Opport 
D) Period cost

Question 5

R&W Manufacturing Company produces men’s hiker shorts. The selling price of the shorts is $35. The following standard cost data per unit includes $7 direct material, $4 direct labor and $12 manufacturing overhead 50% variable, 50% fixed. R&W has received a special order for 200 at a price of $20 each. The only additional cost of accepting the special order is a sales commission of $1 per unit.  R&W has ample capacity to produce the special order without interrupting regular production.  Ignoring qualitative factors, should R&W accept the special order?

Accepted Answer

@#IMG-DLM&  
R&W should accept the speci

Question 6

Cabells,Inc.has two divisions - Electronics and Appliances.The divisions have provided the following financial information: 
   Cabells' executives are considering the elimination of the Electronics division.If the division is eliminated,the common fixed costs will remain unchanged.Given these data,should the Electronics division be eliminated? Why?

Accepted Answer

@#IMG-DLM& 
Cabells should eliminate the

Question 7

Ellis Dover is a scout for a Major League Baseball team based in Phoenix, Arizona.  Ellis needs to travel to Los Angeles, California on June 1 to perform a variety of professional functions prior to the team travelling to Los Angeles to play.  If Ellis flies, he could catch a 6 a.m. flight on June 1.  In order to perform all of his professional responsibilities, Ellis will need to spend the night and catch a flight on June 2nd to return to Phoenix.  If Ellis flies, he will need to rent a car for $38 per day.  To cover meals and other incidental expenses, Ellis will receive $45 per day per diem for each day he works out of town.  Flights between Phoenix and Los Angeles can be purchased for $89 one way.  
Phoenix is approximately 300 miles from Los Angeles, a 5-hour drive at speed limits permitted on the freeways connecting the two cities.  If he drives from Phoenix to Los Angeles, Ellis would need to leave the afternoon of May 31 and would be reimbursed $.50 per mile.  He would need to spend 2 nights in a hotel, the night of May 31 and the night of June 1.  He would return to Phoenix by car on June 2nd.  The hotel used by the team charges $160 per night.  What is the relevant cost of flying?

Accepted Answer

A)  $414 
B)  $254 
C)  $459 
D)  $504 
A)  $414 
B)  $254 
C)  $459 
D)  $504

Question 8

Variable costs associated with a segment's sales may $\textbf{     not    }$  always be avoidable.

Accepted Answer

A) True 
 B)False

Question 9

Incremental analysis helps decision makers to understand

Accepted Answer

A) The sunk costs involved in their decision. 
B) The impact of their choices. 
C) The classification of costs. 
D) None of these ans choices are correct. 
A) The sunk costs involved in their decision. 
B) The impact of their choices. 
C) The classification of costs. 
D) None of these ans choices are correct.

Question 10

Avoidable costs are those costs that

Accepted Answer

A) Are always variable. 
B) Are always fixed. 
C) Occur only with the implementation of a particular alternative. 
D) None of these ans choices are correct. 
A) Are always variable. 
B) Are always fixed. 
C) Occur only with the implementation of a particular alternative. 
D) None of these ans choices are correct.

Question 11

All variable costs are relevant and all fixed costs are irrelevant.

Accepted Answer

A) True 
 B)False

Question 12

The formula for computing the contribution per constrained resource is

Accepted Answer

A) Contribution margin per unit multiplied by the constrained resource per unit. 
B) Contribution margin per unit divided by the constrained resource per unit. 
C) Total contribution margin multiplied by the constrained resource per unit. 
D) Total contribution margin divided by the constrained resource per unit. 
A) Contribution margin per unit multiplied by the constrained resource per unit. 
B) Contribution margin per unit divided by the constrained resource per unit. 
C) Total contribution margin multiplied by the constrained resource per unit. 
D) Total contribution margin divided by the constrained resource per unit.

Question 13

Which of the following laws prohibits companies from offering the same item to different customers at different prices?

Accepted Answer

A) NAFTA 
B) Foreign Corrupt Practices Act of 1977 
C) Robinson-Patman Act of 1936 
D) Sarbanes-Oxley Act of 2002. 
A) NAFTA 
B) Foreign Corrupt Practices Act of 1977 
C) Robinson-Patman Act of 1936 
D) Sarbanes-Oxley Act of 2002.

Question 14

The segment margin is the contribution margin of a particular segment less any direct fixed costs.

Accepted Answer

A) True 
 B)False

Question 15

Unavoidable costs are incurred under all alternatives,thus they are always relevant.

Accepted Answer

A) True 
 B)False

Question 16

When a company accepts an outsourcing offer,managers must take specific action to eliminate the internal costs.

Accepted Answer

A) True 
 B)False

Question 17

When a company is outsourcing a process,resources are freed up so they can be put to another use.The alternative use is considered to be

Accepted Answer

A) An opport 
B) A sunk cost. 
C) A outsource windfall. 
D) None of these ans choices are correct. 
A) An opport 
B) A sunk cost. 
C) A outsource windfall. 
D) None of these ans choices are correct.

Question 18

Which of the following is $\textbf{   not    }$  a qualitative issue in a special order pricing decision?

Accepted Answer

A) Will accepting the special order require the hiring of extra workers or payment of overtime? 
B) Will accepting the special order result in the loss of regular customers? 
C) Will it generate a positive contribution margin? 
D) If the special order generates new business,will the customer purchase again at the regular price? 
A) Will accepting the special order require the hiring of extra workers or payment of overtime? 
B) Will accepting the special order result in the loss of regular customers? 
C) Will it generate a positive contribution margin? 
D) If the special order generates new business,will the customer purchase again at the regular price?

Question 19

When a company outsources a product,it is easier to control product quality than if the product is produced internally.

Accepted Answer

A) True 
 B)False

Question 20

In determining whether or not to eliminate a segment,differential costs are relevant to the decision.

Accepted Answer

A) True 
 B)False

Common costs,those $\textbf{ not }$ directly caused by the cost object are

Throughput contribution equals

According to the Theory of Constraints,all production should be subordinated to the bottleneck operation.

Depreciation on a factory machine is an example of which of the following types of cost?

Variable costs associated with a segment's sales may $\textbf{ not }$ always be avoidable.

Incremental analysis helps decision makers to understand

Avoidable costs are those costs that

All variable costs are relevant and all fixed costs are irrelevant.

The formula for computing the contribution per constrained resource is

Which of the following laws prohibits companies from offering the same item to different customers at different prices?

The segment margin is the contribution margin of a particular segment less any direct fixed costs.

Unavoidable costs are incurred under all alternatives,thus they are always relevant.

When a company accepts an outsourcing offer,managers must take specific action to eliminate the internal costs.

When a company is outsourcing a process,resources are freed up so they can be put to another use.The alternative use is considered to be

Which of the following is $\textbf{ not }$ a qualitative issue in a special order pricing decision?

When a company outsources a product,it is easier to control product quality than if the product is produced internally.

In determining whether or not to eliminate a segment,differential costs are relevant to the decision.

Accounting As a Tool for Management

Cost Behavior and Cost Estimation Summary of Questions by Objectives and Blooms Taxonomy

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

Filters

Exam 8: Using Accounting Information to Make Managerial Decisions

Common costs,those not \textbf{ not } not directly caused by the cost object are

Throughput contribution equals

According to the Theory of Constraints,all production should be subordinated to the bottleneck operation.

Depreciation on a factory machine is an example of which of the following types of cost?

Variable costs associated with a segment's sales may not \textbf{ not } not always be avoidable.

Incremental analysis helps decision makers to understand

Avoidable costs are those costs that

All variable costs are relevant and all fixed costs are irrelevant.

The formula for computing the contribution per constrained resource is

Which of the following laws prohibits companies from offering the same item to different customers at different prices?

The segment margin is the contribution margin of a particular segment less any direct fixed costs.

Unavoidable costs are incurred under all alternatives,thus they are always relevant.

When a company accepts an outsourcing offer,managers must take specific action to eliminate the internal costs.

When a company is outsourcing a process,resources are freed up so they can be put to another use.The alternative use is considered to be

Which of the following is not \textbf{ not } not a qualitative issue in a special order pricing decision?

When a company outsources a product,it is easier to control product quality than if the product is produced internally.

In determining whether or not to eliminate a segment,differential costs are relevant to the decision.

Accounting As a Tool for Management

Cost Behavior and Cost Estimation Summary of Questions by Objectives and Blooms Taxonomy

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

Filters

Common costs,those $\textbf{ not }$ directly caused by the cost object are

Variable costs associated with a segment's sales may $\textbf{ not }$ always be avoidable.

Which of the following is $\textbf{ not }$ a qualitative issue in a special order pricing decision?