ACCT 434 Week 3 - Cost Behavior Decision Making Quality - Quiz
1. Question: (TCO 3) Dougherty Company employs 20 individuals. Eight employees are paid $12 per hour and the rest are salaried employees paid $3,000 a month. How would total costs of personnel be classified?
2. Question: (TCO 3) For January, the cost components of a picture
frame include $0.35 for the glass, $0.65 for the wooden frame, and $0.80
for assembly. The assembly desk and tools cost $400. A total of 1,000 frames is expected to be produced in the coming year. What cost function best represents these costs?
3. Question: (TCO 3) Which cost estimation method uses a formal
mathematical method to develop cost functions based on past data?
4. Question: (TCO 3) Penny's TV and Appliance Store is a small company
that has hired you to perform some management advisory services. The
following information pertains to 20X8 operations: Sales (2,000
televisions) $900,000; Cost of goods sold $400,000; Store manager's
salary per year $70,000; Operating costs per year $157,000; Advertising
and promotion per year $15,000; Commissions (4% of sales) $36,000. What are the estimated total costs if Penny's expects to sell 3,000 units next year?
5. Question: TCO 4) The formal process of choosing among alternatives is known as a(n)
6. Question: (TCO 4) When using the five-step decision process, which one of the following steps should be done last?
7. Question: (TCO 4) Sunk costs
8 .Question: (TCO 4) Northwoods Incorporated manufactures rustic furniture. The
cost accounting system estimates manufacturing costs to be $90 per
table, consisting of 80% variable costs and 20% fixed costs. The company has surplus capacity available. It is Northwoods' policy to add a 50% markup to full costs. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style. Northwoods is invited to submit a bid to the hotel chain. What is the lowest price per unit Northwoods should bid on this long-term order?
9. Question: (TCO 5) Throughput contribution equals revenues minus
10. Question: (TCO 5) A machine has been identified as a bottleneck and
the source of the constraint for a manufacturing company that has
multiple products and multiple machines. One way the company can overcome the bottleneck is
