Ultimate Vision Corporation
Ultimate Vision Corporation has two product lines: LCD televisions and projection
televisions. The company has budgeted the following production and overhead costs for
the upcoming year:
Refer to Ultimate Vision Corporation. If the company uses number of units produced to
allocate factory overhead, the materials handing cost allocated to LCD TVs would be:
A. $23,077
B. $28,125
C. $30,000
D. $45,000
The cost of receiving inventory is regarded as
A. an ordering cost.
B. a carrying cost.
C. a purchasing cost.
D. a cost of not carrying goods in stock.
Joint costs are allocated to joint products to
A. obtain a cost per unit for financial statement purposes.
B. provide accurate management information on production costs of each type of
product.
C. compute variances from expected costs for each joint product.
D. allow the use of high-low analysis by the company.
____ allows a company to accomplish a technology swap.
A. Data mining
B. Strategic alliance
C. Diversity
D. BPR
Which of the following would be classified as a non-financial critical success factor?
A. no no no yes
B. yes no no no
C. yes yes yes yes
D. yes yes no yes
Engaging in which of the following will result in radical changes being made to an
organization’s processes?
A. Continuous improvement
B. Benchmarking
C. Reengineering
D. Mass customization
An advantage of downsizing is
A. decreased costs in the long run.
B. layoffs.
C. one-time losses.
D. reduced communication.
Which ethical standard has been violated if an accountant fails to prepare financial
statements according to industry standards?
A. Competence
B. Confidentiality
C. Integrity
D. Credibility
A bill of material does not include
A. quantity of component inputs.
B. price of component inputs.
C. quality of component inputs.
D. type of product output.
Which of the following must be known about a production process in order to institute
a variable costing system?
A. the variable and fixed components of all costs related to production
B. the controllable and non-controllable components of all costs related to production
C. standard production rates and times for all elements of production
D. contribution margin and break-even point for all goods in production
Which of the following describes the effect on direct labor when management adopts
the JIT philosophy?
A. Each direct labor person performs a single task, thereby allowing that person to
reach his or her theoretical potential.
B. Because each person runs a single machine in a JIT environment, there are more
employees classified as direct labor.
C. The environment becomes more labor-intensive.
D. Machine operators are expected to run several different types of machines, help set
up for production runs, and identify and repair machinery needing maintenance.
For one product that a firm produces, the manufacturing cycle efficiency is 20 percent.
If the total production time is 12 hours, what is the total manufacturing time?
A. 15.0 hours
B. 60.0 hours
C. 12.0 hours
D. 2.4 hours
Transferred-in cost represents the cost from
A. the last department only.
B. the last production cycle.
C. all prior departments.
D. the current period only.
During which stage of the product life cycle will a company witness the highest
profit?
A. development
B. maturity
C. growth
D. decline
Relevant costs are
A. all fixed and variable costs.
B. all costs that would be incurred within the relevant range of production.
C. past costs that are expected to be different in the future.
D. anticipated future costs that will differ among various alternatives.
Non-financial performance measures (NFPMs) are better than financial measures in
that NFPMs
A. provide a better indication of customer satisfaction.
B. may better predict the direction of future cash flows.
C. directly measure how well an organization does those things that create shareholder
value.
D. all of the above
A series of activities that when performed together satisfy a specific objective is
referred to as a ____________________.
What are the principles of open-book management?
What are the two general rules that should be followed when computing a transfer
price?
Costs that cannot be conveniently traced to a cost object are known as
____________________ costs.
The three components of throughput are
_____________________________________________,
______________________________, and ___________________________________.