Exam 14: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Answer the following questions using the information below: The XTRA Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: -What is the budgeted sales-mix percentage for the Standard and the Super vacuum cleaners, respectively?

(Multiple Choice)

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Question 81

If a cost pool is homogeneous, the cost allocations using that pool will be the same as they would be if costs of each individual activity in that pool were allocated separately.

(True/False)

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Question 82

Companies that only record the invoice price can usually track the magnitude of price discounting.

(True/False)

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Question 83

To guide cost allocation decisions, the fairness or equity criterion is:

(Multiple Choice)

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Question 84

The materials yield variance will be unfavorable when:

(Multiple Choice)

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Question 85

More insight into the sales-volume variance can be gained by subdividing it into:

(Multiple Choice)

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Question 86

To guide cost allocation decisions, the benefits-received criterion:

(Multiple Choice)

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Question 87

Loss-causing customers:

(Multiple Choice)

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Question 88

Should a company allocate its corporate costs to divisions?

(Essay)

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Question 89

Answer the following questions using the information below: Woodruff Flowering Plants provides the following information for the month of May: -What is the budgeted contribution margin per composite unit for the actual mix?

(Multiple Choice)

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Question 90

Answer the following questions using the information below: The Hassan Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a $10,000,000 bond issuance, the Electric Mixer Division used $7,000,000 and the Electric Lamp Division used $3,000,000 for expansion. Interest costs on the bond totaled $750,000 for the year. -What amount of interest costs should be allocated to the Electric Mixer Division?

(Multiple Choice)

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Question 91

Aromatic Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March: Budgeted and actual fixed corporate-sustaining costs are $60,000 and $72,000, respectively. Required: a. Calculate the actual contribution margin for the month. b. Calculate the contribution margin for the static budget. c. Calculate the contribution margin for the flexible budget. d. Determine the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance in terms of the contribution margin.

(Essay)

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Question 92

Answer the following questions using the information below: Michelle's Flowering Plants provides the following information for the month of May: -For May, Michelle will report a(n):

(Multiple Choice)

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Question 93

Homogeneous cost pools lead to:

(Multiple Choice)

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Question 94

Which of the following illustrates a purpose for allocating costs to cost objects?

(Multiple Choice)

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Question 95

Answer the following questions using the information below: The Sarasota Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2012 were as follows: -What is the contribution margin for the flexible budget?

(Multiple Choice)

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Question 96

The Chair Company manufactures two modular types of chairs: one for the residential market, and the other for the office market. Budgeted and actual operating data for the year 2012 are: Required: Compute the following variances in terms of contribution margin: a. Compute the total static-budget variance, the total flexible-budget variance, and the total sales-volume variance. b. Compute the sale-mix variance and the sales-quantity variance by type of chair, and in total.

(Essay)

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Question 97

When the purpose of cost allocation is to provide information for economic decisions or to motivate managers and employees, the best criteria are:

(Multiple Choice)

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Question 98

Answer the following questions using the information below: The XTRA Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products: -What is the total sales-quantity variance in terms of the contribution margin?

(Multiple Choice)

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Question 99

Costs incurred to handle each unit sold would most likely be classified as a:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 170

If a cost pool is homogeneous, the cost allocations using that pool will be the same as they would be if costs of each individual activity in that pool were allocated separately.

Companies that only record the invoice price can usually track the magnitude of price discounting.

To guide cost allocation decisions, the fairness or equity criterion is:

The materials yield variance will be unfavorable when:

More insight into the sales-volume variance can be gained by subdividing it into:

To guide cost allocation decisions, the benefits-received criterion:

Loss-causing customers:

Should a company allocate its corporate costs to divisions?

Answer the following questions using the information below: Woodruff Flowering Plants provides the following information for the month of May: -What is the budgeted contribution margin per composite unit for the actual mix?

Answer the following questions using the information below: Michelle's Flowering Plants provides the following information for the month of May: -For May, Michelle will report a(n):

Homogeneous cost pools lead to:

Which of the following illustrates a purpose for allocating costs to cost objects?

When the purpose of cost allocation is to provide information for economic decisions or to motivate managers and employees, the best criteria are:

Costs incurred to handle each unit sold would most likely be classified as a:

The Accountants Role in the Organization

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

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