Acct 317 Quiz | Course Paper

Unlock access to all the studying documents.

View Full Document

Inventory management. Here are facts about inventory costs for Tops Shoes, a

retailer:

Required:

Prepare a table like Exhibit 7.14 in the text. Find the costs of ordering and carrying

inventory for each of the following number of annual orders: 40 orders, 50 orders, 60

orders.

(Tops Shoes; inventory management.)

ABC Company

ABC Company reports the following information for the most recent period when 2,750

units were produced.

Refer to ABC Company. Calculate the direct labor price variance.

A.$70 F

B.$200 U

C.$270 U

D.$130 U

Many contracts require ISO 9000 certification. The ISO 9000 are international

standards for

A.organization management.

B.operations management.

C.quality management.

D.financial management.

Which of the following is not one of the three critical success factors that relate to

meeting customer quality requirements?

A.Service

B.Quality

C.Throughput

D.Cost

Organizational policies, procedures, and performance measures should support accurate

estimations, and should consider the effect these factors have on planners when

evaluating which of the following?

A.capital investment projects.

B.raw material purchases.

C.hiring temporary labor.

D.indirect material purchases.

Java Gourmet Coffee

Java Gourmet Coffee reports the following data for April 2010 where 200,000 pounds

of roasted gourmet coffee beans were actually produced (note: standard costs do not

allow for any wastage), Actual:

Standard:

Refer to Java Gourmet Coffee. Calculate the direct materials efficiency variance.

A.$5,000 U

B.$10,500 U

C.$5,000 F

D.$10,500 F

How can a department manager’s salary be characterized?

A.direct cost of the department, but indirect to the units the department produces.

B.process cost of the department, but indirect to the units the department produces.

C.indirect cost of the department, but direct to the units the department produces.

D.variable cost of the department, but direct to the units the department produces.

Which interest rate is used by analysts when computing the present value of future cash

flows?

A.prime interest rate

B.Federal funds rate

C.discount rate

D.real rate

The basic cost flow equation is used by

A.independent auditors to perform reasonableness checks on the data they receive from

clients.

B.companies to check that the amount of inventory recorded on the books matches the

physical count of inventory.

C.independent auditors and companies to check for thefts or financial fraud.

D.All of the answers are correct.

A firm will develop a competitive advantage if it has which of the following traits?

A.longer new-product development time.

B.shorter new-product development time.

C.longer new-product research time.

D.shorter new-product research time.

The appropriate discount rate that analysts use in computing the present value of future

cash flows is composed of an increase reflecting the inflation expected to occur over the

life of the project. Thus,

A.the higher the expected inflation, the higher should be the discount rate.

B.the higher the expected inflation, the lower should be the discount rate.

C.the lower the expected inflation, the higher should be the discount rate.

D.all of the above.

Which of the following is the primary criterion for selecting a cost driver?

A.Causal relation.

B.Benefits received.

C.Reasonableness.

D.Fairness.

To help managers in their efforts to control overhead costs, managers and accountants

analyze overhead variances using the variable cost variance model by separating

variable overhead variances into

A.price and quality components.

B.economy and efficiency components.

C.price and efficiency components.

D.economy and effectiveness components.

Analysts use which of the following method(s) of cost estimation for decision-making?

A.Statistical regression analysis.

B.Account analysis.

C.Engineering estimation.

D.All of the answers are correct.

When is the flexible budget is prepared?

A.before the budget period begins.

B.after the budget period begins, but before it ends.

C.about half way through the budget period begins.

D.after the budget period ends.

The cost hierarchy can be used to organize cost information for decision-making.

Which cost ispart of the product cost hierarchy of expenses?

A.Capacity-sustaining.

B.Department-sustaining.

C.Plant-sustaining.

D.Employee-sustaining.

Biloxi Corporation

Refer to Biloxi Company. What are the total prevention costs?

A.$1,000,000

B.$1,500,000

C.$1,850,000

D.$2,000,000

During the joint production process, the costs incurred up to the splitoff point are

known as which of the following?

A.joint costs.

B.sunk costs.

C.fixed costs.

D.lost costs.

Mercken Industries

Mercken Industries is contemplating four projects: Project P, Project Q, Project R, and

Project S. The capital costs and estimated after-tax net cash flows of each mutually

exclusive project are listed below. Mercken’s desired after-tax opportunity cost is 12

percent, and the company has a capital budget for the year of $450,000. Idle funds

cannot be reinvested at greater than 12 percent.

Refer to Mercken Industries. Which project(s) will the company choose?

Why does Just-in-time requires total quality management?

How are service department costs allocated to production departments?

How is a budget a tool for planning and performance evaluation?