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1) tierney construction, inc. recently lost a portion of its financial records in an office
theft. the following accounting information remained in the office files:
direct labor cost incurred during the period amounted to 2.5 times the factory overhead.
the cfo of tierney construction, inc. has asked you to recalculate the following accounts
and to report to him by the end of tomorrow.
what should be the amount of total manufacturing cost?
a.$83,000
b.$94,000
c.$104,000
d.$75,000
2) the main objective of value chain analysis is to identify stages of the value chain
where the firm can:
a.justify increases in the price of the product or service
b.increase value to the customer or reduce cost in some way
c.outsource production to other producers
d.improve efficiency
3) which of the following would be the most appropriate cost driver to allocate factory
electricity costs to products?
a.machinery depreciation expense
b.machinery maintenance work orders
c.machinery down-time
d.machine hours
e.machine productivity
4) stephenson company's computer system recently crashed, erasing much of the
company's financial data. the following accounting information was discovered soon
afterwards on the cfo's back-up computer disk.
the cfo of stephenson company has asked you to recalculate the following accounts and
report to him by week's end.
what should be the amount of direct materials available for use?
a.$112,000
b.$183,000
c.$189,000
d.$204,000
5) the merchant manufacturing company has two service departments purchasing and
maintenance, and two production departments fabrication and assembly. the distribution
of each service department's efforts to the other departments is shown below:
the direct operating costs of the departments (including both variable and fixed costs)
were as follows:
the total cost accumulated in the assembly department using the step method is
(calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and
round all dollar amounts to the nearest whole dollar):
a.$104,500
b.$109,950
c.$124,050
d.$130,750
e.$136,500
6) which of the following contemporary management techniques requires a balancing of
multiple goals?
a.target costing
b.the theory of constraints
c.benchmarking
d.business process improvement
e.enterprise sustainability
7) which one of the following is not a recommendation for a successful implementation
of abc/m?
a.obtain support of management and personnel
b.complete an activity analysis
c.start with a relatively simple system
d.use abc/m on a job that will succeed
e.all of the above are features of successful abc/m implementations
8) when deciding whether to discontinue a segment of a business, managers should
focus on:
a.the amount of operating income per unit produced by the segment
b.the amount of contribution margin per direct labor hour in the segment
c.how corporate-level administrative costs would be redistributed if the segment were
eliminated
d.equipment from the segment that could go idle if the segment were discontinued
e.the total contribution margin generated by the segment relative to any traceable
(avoidable) fixed costs associated with the segment
9) in a local factory, employees are rewarded for finding new and better ways of
changing the way they work. this company is motivating its employees to use what
management technique?
a.benchmarking
b.activity-based costing
c.theory of constraints
d.continuous improvement
e.total quality management
10) defond company has a process costing system. all materials are introduced at the
beginning of the process in department one. the following information is available for
the month of january:
what are the equivalent units for the month of july if the company uses the fifo method?
a.option a
b.option b
c.option c
d.option d
e.option e
