Which of the following are the two costs of failing to control quality?
A.prevention costs and appraisal costs.
B.appraisal costs and internal failure.
C.internal failure and external failure costs.
D.prevention costs and external failure costs.
Which of the following is the correct calculation of economic value added (EVA)?
A.Net Operating Profit Before Tax – [Weighted-Average Cost of Capital x (Total Assets
– Non-Interest-Bearing Debt)].
B.Net Operating Profit After Tax – [Weighted-Average Cost of Capital x (Total Assets –
Non-Interest-Bearing Debt)].
C.Weighted-Average Cost of Capital x [Net Operating Profit Before Tax – (Total Assets
– Non-Interest-Bearing Debt)].
D.Weighted-Average Cost of Capital x (Net Operating Profit After Tax – [Total Assets –
Non-Interest-Bearing Debt)].
Which of these is the perspective of the balanced scorecard that includes supplier
relationships and outsourcing?
A.financial perspective.
B.internal business and production process perspective.
C.learning and growth perspective.
D.customer perspective.
Competing investment projects where accepting one project eliminates the possibility
of taking the remaining projects is referred to as
A.common projects.
B.mutually exclusive projects.
C.joint projects.
D.opportunity costs.
Which term describes costs that a firm does not have to incur in the short run to operate
the business?
A.discretionary costs.
B.committed costs.
C.required costs
D.All of the answers are correct.
Ambros Company
In the Ambros Company, Division A has a product that can be sold either to outside
customers or to Division B. Information about these divisions is given below:
Refer to Ambros Company. The company uses the opportunity cost approach to transfer
pricing. What is the maximum transfer price in Case 2?
A.$75.
B.$74.
C.$68.
D.$58.
Which of the following statements is correct regarding capital investments?
A.Capital investments should be funded out of excess cash reserves.
B.Capital investments should have a positive internal rate of return.
C.Capital investments should achieve short-term objectives.
D.Capital investments should implement a company’s strategy.
Which of the following represents costs that have both a fixed and variable component?
A.curvilinear variable.
B.curvilinear fixed.
C.semi-variable.
D.semi-fixed.
Which of the following involves deciding which long-term investments to undertake
and how to finance them?
A.Operational planning.
B.Capital budgeting.
C.Investment planning.
D.Continuous budgeting.
Which of the following statements is true concerning economic value added (EVA)?
A.EVA alleviates the shortcoming of the return on investment measurement.
B.EVA calculates a percentage for comparison purposes.
C.EVA is required by the New York Stock Exchange.
D.EVA is the same as economic payback analysis.
Multiple-product profit analysis. Coney Island produces two types of hotdogs, chili
dogs and cheese dogs, with the following characteristics:
The total fixed costs for the company are $100,000.
Required:
a. What is the anticipated level of profits for the expected sales volumes?
b. Assuming that the product mix would be 75 percent chili and 25 percent cheese at
the break-even point, compute the break-even volume.
c. If the product sales mix were to change to four chili dogs for each cheese dog, what
would be the new break-even volume?
Which of the following is most likely to be considered a variable cost?
A.Depreciation on equipment.
B.The cost of labor used in production.
C.Insurance on the factory.
D.Rent on a storage facility.
In estimating order costs and carrying costs, only __________ costs matter.
A.controllable
B.differential
C.fixed
D.variable
The production price (spending) variance is the difference between which of the
following two costs?
A.Budgeted and applied costs.
B.Actual and budgeted costs.
C.Applied and actual costs.
D.Variable and budgeted costs.
The method of allocating joint costs used when product prices are not set by the market
(for example with heavily regulated companies) is called the
A.absolute quantities method.
B.physical qualities method.
C.physical quantities method.
D.regulation method.
To identify costs that relate to a specific product, what allocation base should be
chosen?
A.One that does not have a cause and effect relationship.
B.One that has a causal relationship.
C.One that considers variable costs but not fixed costs.
D.One that considers direct materials and direct labor but not factory overhead.