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 total direct labor hours to
allocate factory overhead, the materials handing cost allocated to projection TVs would
be:
A. $35,000
B. $45,000
C. $46,875
D. $51,923
Which of the following is/are part of activity-based management?
A. yes yes
B. no yes
C. no no
D. yes no
In a responsibility accounting system, costs are classified into categories on the basis
of
A. fixed and variable costs.
B. prime and overhead costs.
C. administrative and nonadministrative costs.
D. controllable and noncontrollable costs.
An organization plans to produce and sell 50,000 units. It actually produces and sells
45,000 units. Total costs would be expected to be below the planned level due to cost
A. consciousness.
B. control.
C. reductions.
D. behavior.
Budgeted sales for the first six months the year for Stewart Corporation are listed
below:
Stewart Corporation has a policy of maintaining an inventory of finished goods equal to
35 percent of the next month’s budgeted sales. How many units has Stewart Corporation
budgeted to produce in the first quarter of the year?
A. 18,350 units
B. 17,650 units
C. 22,000 units
D. 22,050 units
Management would generally expect unfavorable variances if standards were based on
which of the following capacity measures?
A. yes no no
B. no no no
C. no yes yes
D. yes yes no
A ____ is a document that reflects the revenues and/or costs that are under the control
of a particular manager.
A. quality audit report
B. responsibility report
C. performance evaluation report
D. project report
Cost-volume-profit relationships that are curvilinear may be analyzed linearly by
considering only
A. fixed and mixed costs.
B. relevant fixed costs.
C. relevant variable costs.
D. a relevant range of volume.
The JIT philosophy does not focus on
A. standardizing parts used in products.
B. eliminating waste in the production process.
C. finding the absolute lowest price for purchased parts.
D. improving quality of output.
When job-order costing is used, the primary focal point of cost accumulation is the
A. department.
B. supervisor.
C. item.
D. job.