Recalls are fairly common events for automobile manufacturers. The costs of recalling
and repairing a car create
A. yes yes no
B. yes yes yes
C. no yes no
D. yes no yes
Moore Company.
Moore Company uses a job-order costing system and the following information is
available from its records. The company has three jobs in process: #6, #9, and #13.
Direct material was requisitioned as follows for each job respectively: 30 percent, 25
percent, and 25 percent; the balance of the requisitions was considered indirect. Direct
labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is $33,000.
Other actual overhead costs totaled $36,000.
Refer to Moore Company. Assume the balance in Work in Process Inventory was
$18,500 on November 1 and $25,297 on November 30. The balance on November 30
represents one job that contains direct material of $11,250. How many direct labor
hours have been worked on this job (rounded to the nearest hour)?
A. 751
B. 1,324
C. 1,653
D. 2,976
A kanban plays an important role in
A. JIT.
B. EOQ.
C. ABC.
D. CPM.
The theory of constraints can
A. identify what limitations exist with raw material suppliers.
B. follows a methodology similar to linear programming.
C. be ignored since it assumes too many estimates in the production cycle.
D. show where bottlenecks exist and sets the limit of output to these bottlenecks.
Answer the following questions regarding economic value added (EVA):
a. What is it intended to do?
b. How is it measured?
c. How is the measurement different than that of RI?
d. Why is EVA a better performance measure of RI?
e. What is the major problem with using EVA as a long-term performance measure?
If a project’s profitability index is less than 1, the project’s
A. discount rate is above its cost of capital.
B. internal rate of return is less than zero.
C. payback period is infinite.
D. net present value is negative.
Which of the following is not a reason to use predetermined overhead rates?
A. to overcome the problems of assigning overhead to diverse types of products
B. to compensate for fluctuations in monthly overhead costs
C. to provide a means for assigning overhead during the period rather than at the end of
the period
D. to smooth out the amount of overhead cost assigned to products when monthly
production activity differs
Productivity is measured by the
A. total quantity of output generated from a limited amount of input during a time
period.
B. quantity of good output generated from a specific amount of input during a time
period.
C. quantity of good output generated from the quantity of good input used during a time
period.
D. total quantity of input used to generate total quantity of output for a time period.
Which is the best cost accumulation procedure to use for continuous mass production
of like units?
A. actual
B. standard
C. job order
D. process
Mistakes not eliminated by prevention costs may cause
A. no no
B. no yes
C. yes no
D. yes yes
Wright Company
Wright Company adds material at the start of production. The following production
information is available for September:
Refer to Wright Company. What are the equivalent units for conversion using the FIFO
method?
A. 118,360
B. 122,860
C. 123,860
D. 128,360