Indicate which of the following costs are classified as mixed or step costs.
Which of the following might be measures of performance for a balanced scorecard?
a.Stock price
b.Sales revenue
c.Customer satisfaction
d.All of these answer choices are correct
A company that is interested in maximizing profits will instruct its sales force to
emphasize its
a. Products with the least non-value-added activities.
b. Oldest products.
c. Most profitable products.
d. None of these answer choices are correct.
City Retail sells two products: Standard and Deluxe. The company had sales of
$800,000 during the current year. The company ‘s contribution margin ratio was 40%
and total fixed costs totaled $300,000. Sales were $600,000 for Standard and $200,000
for Deluxe. Traceable fixed costs were $150,000 for Standard and $90,000 for Deluxe.
Variable costs were $360,000 for Standard and $120,000 for Deluxe. What is the
segment margin for the Deluxe product?
a. ($10,000)
b. $10,000
c. $20,000
d. $80,000
Measures that help predict a future result are referred to as
a. Lagging indicators
b. Earnings per share
c. Leading indicators
d. EVA
Brandon Consulting Company is headquartered in Atlanta and has branch offices in
Nashville and Birmingham. Brandon uses an activity-based costing system. The Atlanta
office has its costs for Administration and Legal allocated to the two branch offices.
Brandon has provided the following information:
How much of Atlanta’s cost will be allocated to Birmingham?
a. $174,500
b. $167,600
c. $209,500
d. None of these answer choices are correct.
Computer Basics offers three types of basic computer training: Office, Web Design, and
Programming. In the past, for every 20 students who sign up for training, 10 take the
Office, 6 take Web Design, and 4 take Programming. Compute Basics has calculated a
breakeven point of 1,200 courses. How many of the 1,200 courses will be Web Design?
a. 30
b. 60
c. 360
d. 600
SW Industries has the following information regarding its Raw Materials Inventory
account:
What is the cost of materials purchased by SW Industries during the month?
a. $255,300
b. $260,300
c. $370,300
d. $145,300
In making the decision about whether to accept a special order for pianos, which of the
following costs should be considered?
a. Relevant costs to produce the pianos
b. Relevant costs to sell the pianos
c. Both relevant costs to produce the pianos and relevant costs to sell the pianos
d. Neither relevant costs to produce the pianos nor relevant costs to sell the pianos
Breton Corporation ‘s Longboat division ‘s segment margin as a percentage of net sales
is 12% for the current reporting period. The division has net sales revenue of
$2,500,000. Operating assets were $800,000 at the beginning of the period and
$1,200,000 at the end. What is the division ‘s asset turnover?
a. 2.08
b. 2.8
c. 2.5
d. 3.13
Given a present value factor of 0.7921, assuming a 6% discount rate, the present value
of $16,000 payment received in 4 years is
a. $3,168
b. $12,674
c. $20,199
d. None of these answer choices are correct
An activity-based analysis that focused only on manufacturing overhead would
a. Not improve GAAP-based financial statements.
b. Would improve GAAP-based financial statements.
c. Would improve statement sent to the SEC by publicly-traded companies.
d. Both b and c.
Backyard Creations purchased 7,000 feet of copper tubing at a price of $2.70 per foot
and used 7,200 feet during the period. The standard price of the copper tubing was
$2.50 per foot. What is Backyard Creations’ direct materials price variance for the
period?
a. $1,400 favorable
b. $1,400 unfavorable
c. $540 favorable
d. $540 unfavorable
Grassi Company produces high definition television sets. The following information is
available for this product:
Grassi Company’s markup percentage would be
a. 30%.
b. 40%.
c. 60%.
d. 120%.