Question 1

Which of the following is not a qualitative issue that must be considered before reaching a decision to outsource?

Accepted Answer

A) Potential theft of intellectual property 
B) Quality of the outsourced product 
C) Number of employees to be terminated 
D) Reliability of the outsourced product 
A) Potential theft of intellectual property 
B) Quality of the outsourced product 
C) Number of employees to be terminated 
D) Reliability of the outsourced product

Question 2

Barber Manufacturing currently makes 2,000 high-end kaleidoscopes each year.Barber has been manufacturing all parts of the

Accepted Answer

@#IMG-DLM& Barber should continue to manufacture t

Question 3

A company can increase its throughput by which of the following actions? ww.Increasing sales
Xx)Decreasing costs
Yy)Either by increasing sales or decreasing costs
Zz)Neither by increasing sales nor by decreasing costs

Accepted Answer

The answer of A company can increase its throughput by...

Question 4

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?

Accepted Answer

A) Deciding how to exploit the constraint. 
B) Elevating the performance of the constraint. 
C) Determining customer demand. 
D) Both deciding how to exploit the constraint and elevating the performance of the constraint. 
A) Deciding how to exploit the constraint. 
B) Elevating the performance of the constraint. 
C) Determining customer demand. 
D) Both deciding how to exploit the constraint and elevating the performance of the constraint.

Question 5

Suppose you are trying to decide whether to rent an apartment across the street from campus or a nicer apartment one mile from campus in either case,you plan to keep your car for social outings.Indicate whether the following pieces of information are relevant or irrelevant to your decision.

Accepted Answer

The answer of Suppose you are trying to decide whether...

Question 6

When a customer requests a special order and the supplier has capacity constraints,reducing the special order is not normally an option.

Accepted Answer

A) True 
 B)False

Question 7

In deciding whether to eliminate a segment of a business,an important issue is the identification of common costs.Answer the following questions relating to common costs.
a.What is a common fixed cost?
b.Is a common fixed cost considered relevant?
c.Give two examples of common fixed costs.
d.What happens to common fixed costs if a segment is eliminated?

Accepted Answer

a.A common cost is a cost that is not di

Question 8

Impala Industries manufactures a component used by car manufacturers.Impala can produce 1,000,000 components per year.A foreign car manufacturer has approached Impala with an offer to purchase 120,000 components at price of $6 per

Accepted Answer

A) $2,710,000 
B) $2,410,000 
C) $2,650,000 
D) $4,760,000 
A) $2,710,000 
B) $2,410,000 
C) $2,650,000 
D) $4,760,000

Question 9

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 Unit 8-1, 
A) $414 
B) $254 
C) $459 
D) $504 Unit 8-1,

Question 10

Which of the following terms indicate general corporate cost incurred to support operations as a whole?

Accepted Answer

A) Allocated 
B) Assigned 
C) Common 
D) Variable 
A) Allocated 
B) Assigned 
C) Common 
D) Variable

Question 11

Vista Industries manufactures 75,000 digital cameras each year.Vista has been producing the lenses internally.However,late last year the company received an offer to produce the 150,000 lenses the company uses each year for a total contract price of $380,000.When Vista manufactures the lenses internally,direct materials cost $1.05 per lens,direct labor is $.65 per lens,and variable overhead is $.30 per lens.Vista's total overhead is $110,000.If the lens were purchased,$28,000 of fixed overhead could be avoided.What is the total relevant cost to produce the lenses internally?

Accepted Answer

A) $410,000 
B) $328,000 
C) $382,000 
D) $380,000 
A) $410,000 
B) $328,000 
C) $382,000 
D) $380,000

Question 12

Which of the following should not influence a manager's decision in deciding whether or not to close a division?
E)Qualitative factors
F)Allocated fixed costs
G)Allocated product costs h.Allocated variable selling expenses
Unit 8-5,

Accepted Answer

The answer of Which of the following should not influence...

Question 13

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 driving?

Accepted Answer

A) $755 
B) $505 
C) $415 
D) $428 Unit 8-1, 
A) $755 
B) $505 
C) $415 
D) $428 Unit 8-1,

Question 14

Sienna Company produces earrings,bracelets,and necklaces that are in high demand.Following is information for each of these products:   Sienna has 2,000 machine hours available each month.Demand for each item exceeds Sienna's capacity to produce the item.In order to maximize the company's total contribution margin,in what sequence should Sienna fill orders for the three products?

Accepted Answer

A) Necklaces first,then bracelets,then earrings 
B) Earrings first,then necklaces,then bracelets 
C) Bracelets first,then earrings,then necklaces 
D) Necklaces first,then earrings,then bracelets 
A) Necklaces first,then bracelets,then earrings 
B) Earrings first,then necklaces,then bracelets 
C) Bracelets first,then earrings,then necklaces 
D) Necklaces first,then earrings,then bracelets

Question 15

Which of the following is least likely to be a constrained resource? eee.Flour to make donuts
Fff)Beads to make necklaces
Ggg)Specialized equipment
Hhh)Fixed rent

Accepted Answer

The answer of Which of the following is least likely...

Question 16

Delta Airlines uses Wipro,an Indian company,to handle its customer service calls.This is an example of

Accepted Answer

A) offshoring. 
B) outshoring. 
C) outsourcing. 
D) offsourcing. 
A) offshoring. 
B) outshoring. 
C) outsourcing. 
D) offsourcing.

Question 17

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) do not occur only with the implementation of a particular alternative. 
A) are always variable. 
B) are always fixed. 
C) occur only with the implementation of a particular alternative. 
D) do not occur only with the implementation of a particular alternative.

Question 18

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 opportunity cost. 
B) a sunk cost. 
C) a outsource windfall. 
D) a fixed cost. 
A) an opportunity cost. 
B) a sunk cost. 
C) a outsource windfall. 
D) a fixed cost.

Question 19

ABC Company produces three products,Standard,Deluxe and Superior,with the following characteristics:   The company has only 1,500 machine hours available each period.If demand exceeds the company's capacity,in what sequence should orders for the three products be filled to maximize the company's total contribution margin?
Iii)Standard first,Deluxe second,Superior third
Jjj)Deluxe first,Standard second,Superior third
Kkk)Superior first,Standard second,Deluxe third
Lll)Standard first,Superior second,Deluxe third

Accepted Answer

The answer of ABC Company produces three products,Standard,Deluxe and Superior,with...

Question 20

Common costs,those 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.

Which of the following is not a qualitative issue that must be considered before reaching a decision to outsource?

Barber Manufacturing currently makes 2,000 high-end kaleidoscopes each year.Barber has been manufacturing all parts of the

A company can increase its throughput by which of the following actions? ww.Increasing sales Xx)Decreasing costs Yy)Either by increasing sales or decreasing costs Zz)Neither by increasing sales nor by decreasing costs

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?

Suppose you are trying to decide whether to rent an apartment across the street from campus or a nicer apartment one mile from campus in either case,you plan to keep your car for social outings.Indicate whether the following pieces of information are relevant or irrelevant to your decision.

When a customer requests a special order and the supplier has capacity constraints,reducing the special order is not normally an option.

Impala Industries manufactures a component used by car manufacturers.Impala can produce 1,000,000 components per year.A foreign car manufacturer has approached Impala with an offer to purchase 120,000 components at price of $6 per

Which of the following terms indicate general corporate cost incurred to support operations as a whole?

Which of the following should not influence a manager's decision in deciding whether or not to close a division? E)Qualitative factors F)Allocated fixed costs G)Allocated product costs h.Allocated variable selling expenses Unit 8-5,

Which of the following is least likely to be a constrained resource? eee.Flour to make donuts Fff)Beads to make necklaces Ggg)Specialized equipment Hhh)Fixed rent

Delta Airlines uses Wipro,an Indian company,to handle its customer service calls.This is an example of

Avoidable costs are those costs that

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

Common costs,those not directly caused by the cost object are

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

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

Which of the following is not a qualitative issue that must be considered before reaching a decision to outsource?

Barber Manufacturing currently makes 2,000 high-end kaleidoscopes each year.Barber has been manufacturing all parts of the

A company can increase its throughput by which of the following actions? ww.Increasing sales Xx)Decreasing costs Yy)Either by increasing sales or decreasing costs Zz)Neither by increasing sales nor by decreasing costs

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?

Suppose you are trying to decide whether to rent an apartment across the street from campus or a nicer apartment one mile from campus in either case,you plan to keep your car for social outings.Indicate whether the following pieces of information are relevant or irrelevant to your decision.

When a customer requests a special order and the supplier has capacity constraints,reducing the special order is not normally an option.

Impala Industries manufactures a component used by car manufacturers.Impala can produce 1,000,000 components per year.A foreign car manufacturer has approached Impala with an offer to purchase 120,000 components at price of $6 per

Which of the following terms indicate general corporate cost incurred to support operations as a whole?

Which of the following should not influence a manager's decision in deciding whether or not to close a division? E)Qualitative factors F)Allocated fixed costs G)Allocated product costs h.Allocated variable selling expenses Unit 8-5,

Which of the following is least likely to be a constrained resource? eee.Flour to make donuts Fff)Beads to make necklaces Ggg)Specialized equipment Hhh)Fixed rent

Delta Airlines uses Wipro,an Indian company,to handle its customer service calls.This is an example of

Avoidable costs are those costs that

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

Common costs,those not directly caused by the cost object are

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

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