Exam 8: Using Accounting Information to Make Managerial Decisions
Exam 1: Accounting As a Tool for Management162 Questions
Exam 2: Cost Behavior and Cost Estimation169 Questions
Exam 3: Cost-Volume-Profit Analysis and Pricing Decisions166 Questions
Exam 4: Product Costs and Job Order Costing189 Questions
Exam 5: Planning and Forecasting201 Questions
Exam 6: Performance Evaluation: Variance Analysis198 Questions
Exam 7: Activity-Based Costing and Activity Based Management178 Questions
Exam 8: Using Accounting Information to Make Managerial Decisions188 Questions
Exam 9: Capital Budgeting171 Questions
Exam 10: Decentralizing and Performance Evaluation194 Questions
Exam 11: Performance Evaluation Revisited: a Balanced Approach171 Questions
Exam 12: Financial Statement Analysis169 Questions
Exam 13: Statement of Cash Flows163 Questions
Exam 14: Topic Focus: Process Costing70 Questions
Exam 15: Topic Focus Variable and Absorption Costing51 Questions
Exam 16: Topic Focus Standard Costing Systems44 Questions
Exam 17: Topic Focus Customer Profitability45 Questions
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Which of the following is not a short-term tactical benefit of outsourcing a company's operations?
(Multiple Choice)
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As products are made,capacity is used up.Managers must allocate the constrained resource to products so as to maximize the company's contribution margin.
Required:
a.List three limited resources that can constrain business operations.
b.How should managers determine the best way to allocate constrained resources among products or operations?
Unit 8-4,
(Essay)
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Which of the following terms indicate that costs are not directly caused by the cost object?
(Multiple Choice)
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Accepting special orders may produce additional revenues,but may also result in some negative consequences.Discuss the quantitative and qualitative factors that impact the decision to accept a special order.
(Essay)
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The Sarbanes Act of 1936 prohibits companies from engaging in price discrimination - that is,offering the same item to different customers at different prices.
(True/False)
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When a company continues to manufacture a product,but changes the geographical location of production,it is called
(Multiple Choice)
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All variable costs are relevant and all fixed costs are irrelevant.
(True/False)
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When multiple products share a constrained resource,the way to allocate the resource is to compute the
(Multiple Choice)
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Which of the following would be least likely classified as a direct cost of a business segment?
(Multiple Choice)
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The Inland Corporation manufactures 1,000 motors that are used in the production of its go-karts.Inland has been approached by an outside supplier that will sell the motor to Inland for $39 each.Inland's cost to manufacture each motor are as follows:
Direct material $25
Direct labor $8
Variable overhead $4
Fixed overhead $6
Total $43
All fixed overhead is unavoidable,and is allocated based on machine hours.The facilities that are used to manufacture the motors have no alternative uses.
Required:
a.Should Inland continue to manufacture the motors?
b.Would your answer change if Inland could lease the facilities previously used to produce the motors for $4,800 per year?
Unit 8-3,
(Essay)
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The segment margin is the contribution margin of a particular segment less any direct fixed costs.
(True/False)
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According to the theory of constraints,which of the following is not a step required to maximize and improve the performance of a value chain?
(Multiple Choice)
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Mountaineer,Inc.currently makes 6,000 pairs of weatherproof hiking boots each year.The boots sell for $119.Mountaineer has been manufacturing the boots and applying the weatherproofing as the final process before packaging.However,the company is concerned about the costs associated with the weatherproofing process.The company is concerned that the EPA will not approve of their disposal of the residue from the process,resulting in heavy monetary penalties.Mountaineer has found a manufacturing company that can waterproof the boots and package them at a cost of $18 each.If the company outsources the waterproofing and packaging of the boots,its insurance premiums will be reduced.Mountaineer's standard cost of the waterproofing and packaging process for one
(Essay)
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Calculations which show the additional impact of one alternative over another are referred to as
(Multiple Choice)
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Logan Corporation is considering a eliminating a department that has incurred losses over the past several years.The department has a contribution margin of $32,000 per year.The fixed costs charged to the department total $37,000.$15,000 of the fixed costs is avoidable.If the department is eliminated,what would be the effect on the corporation's operating income?
(Multiple Choice)
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Which of the following is not one of the top ten reasons companies outsource their operations?
(Multiple Choice)
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Costs that occur only with the implementation of a particular alternative are referred to as
(Multiple Choice)
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Gary Brown Manufacturing makes single kayaks,double kayaks,and lightweight competitive kayaks.The double kayak line has been showing losses for several years,and management is considering dropping the line.Recent income statements have been very similar to the following information which was prepared for the most recent year:
Of the fixed costs,$393,750 is common costs that have been allocated equally to each product line.What will total operating income be if Brown drops the double kayak line?

(Multiple Choice)
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