管理会计online quiz2

Quiz 2 (Chapter 4-6) Solution问题1 _ need aggregate rather than detailed cost information. External users Internal users Both internal and external users Neither internal nor external users 问题2 _ is the part of the accounting system that measures costs for the purposes of management decision making and financial reporting. Cost determination Cost accounting Cost accumulation Cost summary 问题3 _ is not a direct cost of a furniture manufacturer. Paint for finished products Wood Glue Glass for tabletops 问题4 Where a specific product is the cost object, the hourly wages of assembly workers who work on only that product would be classified as a(n) _. direct, variable cost direct, fixed cost indirect, variable cost indirect, fixed cost 问题5 Cost-allocation base refers to the _. cost driver total costs to be allocated total allocated costs cost objectives 问题6 Costs are allocated for all the following purposes except to _. predict the economic effects of planning and control decisions obtain reimbursement determine inventory levels compute income and asset valuation 问题7 A manufacturing firm typically has _ inventory account(s). no one two three 问题8 Porky, Inc., started the year with $90,000 in direct materials. During the year, Porky Inc. purchased $535,000 in direct materials, and used $500,000 in materials. The direct materials inventory on the balance sheet is _. $35,000 $125,000 $90,000 $535,000 问题9 The following information was extracted from the accounting records of Lowe Company: The finished goods inventory was $0 at the beginning of the period and $30,000 at the end of the period. The cost of goods sold is _. 90,000 $113,000 $139,000 $147,000 问题10 Managers have greater confidence in the accuracy of costs of products and services reported by activity-based systems because _. activity-based systems are more expensive activity-based systems are more complex activity-based systems classify more costs as direct All of these answers are correct 问题11 In a decision-making process, the accountants primary role is _. making the decision collecting relevant information choosing the least costly alternative identifying all possible courses of action 问题12 Information is relevant if it is a(n) _. expected future cost or it differs among alternatives expected future cost and it differs among alternatives historical cost and it differs among alternatives expected future cost that differs from a past cost 问题13 Couch Company can produce either product A or product B. If Couch Company produces product A, expected direct material cost would be $24,000. If Couch Company produces product B, expected direct material cost would be $24,000. In choosing between these alternatives, the $24,000 direct material cost is _. relevant because it is an expected future cost relevant because it is a product cost irrelevant because it is an estimated cost irrelevant because it does not differ between alternatives 问题14 If perfectly accurate and relevant information is not available for decision making, the accountant should consider using information that is _. precise but irrelevant imprecise but irrelevant imprecise but relevant all of these answers are correct 问题15 Santa Company provided the following information regarding its only products kate boards.The manufacturing cost per unit by using the absorption approach is _. $13.00 $13.50 $14.75 $18.00 问题16 Colorado Company provided the following information regarding its only productice skates._ is the manufacturing cost per unit if the absorption approach is used. $28 $30 $36 $40 问题17 Missouri Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are $0.50 per unit and fixed costs are $0.50 per unit. Current monthly sales are 173,000 units. Gates Company has contacted Missouri Company about purchasing 20,000 units at $1.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. Missouri Companys change in profits if the order is accepted will be a _. $20,000 increase $20,000 decrease $10,000 increase $10,000 decrease 问题18 Each quarter Bluffs Company produces 30,000 units of a product that has variable costs of $70 per unit. Total fixed costs for the quarter are $990,000. A special order is received for 1,000 units at a price of $77 per unit. In deciding to accept or reject this special order, it is appropriate to consider the _. old fixed cost per unit of $33.00 difference between the offered price and the variable cost per unit new fixed cost per unit of $31.94 difference between the two fixed costs per unit, which is $1.06 问题19 Dakota Corporation has been producing and selling 42,000 hats a year. The Dakota Corporation has the capacity to produce 52,000 hats with its present facilities. The following information is also available:If a special order is accepted for 10,000 hats at a price of $25 per unit, net income would _. increase by $90,000 increase by $250,000 increase by $120,000 decrease by $24,000 问题20 Nebraska Company produces and sells 20,000 units at $20 per unit. Nebraska Companys product cost is calculated as follows: A total of 500 set-ups at a cost of $120 per set-up are required to produce the 20,000 units. Nebraska Company has received a special order to sell 5,000 units at $10 per unit. Nebraska Company has excess capacity available, but these 5,000 would require 60 set-ups. If Nebraska Company accepts the special order, Nebraska Companys net income will _. decrease by $5,000 increase by $20,000 increase by $5,000 increase by $2,800 问题21 Arkansas Corporation provided the following information regarding its only product tables:Assuming there is excess capacity, the effect of accepting a special order for 1,000 units at a price of $40.00 per table is that net income would _. increase by $40,000 increase by $11,250 decrease by $28,750 decrease by $10,000 问题22 In imperfect competition _. a firm will produce as many units as it can sell the price a firm charges will influence the quantity a firms cost exceeds a competitors costs a firms market share is less than a competitors market share 问题23 Michigan Industries budgeted the following costs for the production of its only product, golf balls, for the next fiscal year: Michigan Industries has a target profit of $50,000. _ is the target price. $125,000 $30,000 $175,000 $111,000 问题24 Chocolate Manufacturing is considering producing a new product. Chocolate Manufacturing expects to sell 15,000 units over the life of the product. Variable production costs and variable selling costs are estimated at $42 and $16 per unit, respectively. Annual fixed production and fixed selling costs are estimated at $15,000 and $5,000, respectively. Research and development costs are estimated at $184,000. _ is the total variable cost over the product life cycle. $204,000 $716,000 $870,000 $880,000 问题25 Opportunity cost _. is the contribution of the best alternative that is excluded from consideration applies to resources owned by the company is the cost of resources owned by the company all of these answers are correct 问题26 Beth is considering leaving her current position to open a coffee shop. Beths current salary is $56,000. Annual coffee shop revenue and costs are estimated at $250,000 and $200,000, respectively. _ is the outlay cost associated with the decision to open the coffee shop. $56,000 $200,000 $450,000 $40,000 问题27 Birch Company manufactures a part for its production cycle. The costs per unit for 5,000 units of this part are as follows:The fixed factory overhead costs are unavoidable. Spalding Corporation has offered to sell 5,000 units of the same part to Birch Company for $15 a unit. Assuming no other use for the facilities, Birch Company should _. buy from Scalding Corporation to save $1 per unit make the part to save $1 per unit buy from Scalding Corporation to save $3 per unit make the part to save $3 per unit 问题28 Copter Company currently produces a key part at a total cost of $210,000. Variable costs are $170,000. Of the fixed cost, $10,000 relate specifically to this part. The remaining fixed costs are unavoidable.Another manufacturer has offered to supply the part for $190,000. The facilities currently used to manufacture the part could be used to manufacture a new product with an expected contribution margin of $30,000. Alternately, the facilities could be rented out at $60,000. Given all of these alternatives, _ is Copters lowest net cost for the part. $170,000 $180,000 $190,000 $130,000 问题29 Match Company produces a part that is used in the manufacture of one of its products. The costs associated with the production of 5,000 units of this part are as follows:Of the fixed factory overhead costs, $72,000 are avoidable. Match Company has offered to sell 5,000 units of the same part to Match for $86.40 per unit. Assuming there is no other use for the facilities, Match Company should _. make the part to save $14.40 per unit buy the part to save $14.40 per unit buy the part to save the company $72,000 make the part to save $4.80 per unit 问题30 A key factor in a make-or-buy decision is _. whether or not there are idle facilities the amount of the sunk costs gain or loss on the disposal of equipment the total joint costs 问题31 Riverside Industries has three product lines, A, B, and C. The following information is available:Riverside Industries is thinking of dropping product line C because it is reporting a loss. Assuming Riverside drops line C and does not replace it, the operating income will _. increase by $2,400 increase by $600 decrease by $6,000 decrease by $9,000 问题32 San Bernardino Industries has three product lines, A, B, and C. The following information is available:Assuming product line C is discontinued and the space formerly used to produce product C is rented for $15,000 per year, operating income will increase _. $6,600 $9,000 $15,000 $14,400 问题33 In deciding whether to add or delete a product, service, or department, the depreciation associated with the custom-built equipment used to produce the product is an _ cost. avoidable fixed avoidable variable unavoidable fixed unavoidable variable 问题34 Watson Corporation manufactures two products, XX and YY. The following information was gathered:Assume Watson Corporation could produce and sell any mix of product XX and YY at full capacity. If product XX takes 50% longer to manufacture as product YY and only 120,000 hours of plant capacity are available, it is best for Watson to produce _. only XX either XX or YY, there is no difference an equal number of XX and YY only YY 问题35 Games Company manufactures two products, A and B. The following information was gathered:Games Company manufactures and sells three units of A for every two units of B. If the company sold 1,500 units of A, it would report operating income (loss) of _. $34,500 $22,500 $(25,000) $9,500 问题36 Phoenix Corporation has a joint process that produces three products: X, Y, and Z. Each product may be sold at split-off or processed further and then sold. Joint- processing costs for a year amount to $100,000. Other relevant data are as follows:Product Y _. should be processed further to increase profits by