Costs that donotrelate directly to a cost object are its
A.marginal cost.
B.indirect cost.
C.sunk cost.
D.target cost.
Marlow Company
The following information pertains to the three divisions of Marlow Company:
Refer to Marlow Company. What is the investment turnover for Division Z?
A.2.50
B.0.15
C.6.67
D.1.50
In planning its operations for next year based on a sales forecast of $3,000,000, Jan’s
Auto Company, Inc. prepared the following estimated costs and expenses:
Calculate sales dollars at the break-even point.
A.$1,125,000
B.$1,750,000
C.$2,000,000
D.$2,650,000
Which of the following is an example of customer activities in the product cost
hierarchy?
A.Plant management, building depreciation, rent, heating and lighting, market research,
and customer records.
B.Market research, customer records, and promotion.
C.Machine setups and quality inspections.
D.Energy to run machines and direct materials.
Which of the following would not be included as part of the periodic cash outflows
associated with an investment project?
A.savings for fixed and variable production costs
B.selling, general, and administrative expenditures
C.opportunity costs of undertaking this particular project.
D.expenditures for fixed and variable production costs.
When is a company is engaging in total quality management?
A.When the company has instilled a quality culture into the organization.
B.When the company’s products are in conformity with quality specifications.
C.When the company’s products meet industry standards.
D.When the company can effectively compete for a distinguished quality award.
Identify (a) the purpose of internal accounting controls and (b) the importance of record
keeping.
The cost structureof an organization refers to the which of the following?
A.proportion of fixed and variable costs to total costs.
B.proportion of total revenue to total costs.
C.proportion of profits to total costs.
D.None of the answers is correct.
Even if a firm shuts down, the firm still incurs some capacity costs called
A.committed costs.
B.programmed costs.
C.managed costs
D.All of the answers are correct.
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 actual amount paid for coffee.
A.$115,500
B.$105,000
C.$100,000
D.$ 95,500
What provides a systematic way for organizations to evaluate the processes that they
use to produce goods and services for their customers?
A.Cost-benefit analysis
B.Activity analysis
C.Process evaluation and review technique
D.Flow charting
The performance evaluation tools that assist in evaluating performance by integrating
financial and nonfinancial measures include which of the following?
A.PERT chart and balanced scorecard.
B.balanced scorecard and Pareto chart.
C.Pareto chart and control chart.
D.balanced scorecard.