管理会计双语课程习题chapter

1、CH05MANAGEMENT ACCOUNTING INFORMATIONFOR ACTIVITY AND PROCESS DECISIONSTRUE/FALSE1.Sunk costs are never relevant costs for decision making.a.Trueb.False2.An example of a sunk cost is the amount of a guaranteed contract that has not yet been paid.a.Trueb.False3.Personal employee responses are not cri

2、tical considerations for the business decision maker.a.Trueb.False4.For decision-making, differential costs assist in choosing between alternatives.a.Trueb.False5.For a particular decision, differential revenues and costs are always relevant.a.Trueb.False6.A cost may be relevant for one decision, bu

3、t not relevant for a different decision.a.Trueb.False7.Avoidable costs should be evaluated when deciding whether to discontinue a part, product, product line, or business segment.a.Trueb.False8.In make-or-buy decisions, facility-sustaining support costs are unavoidable if the facility can be convert

4、ed to another use.a.Trueb.False9.For one-time-only special orders, flexible costs may be relevant but not capacity-related costs.a.Trueb.False10.Bid prices and costs that are relevant for regular orders are the same costs that are relevant for one-time-only special orders. a.Trueb.False11.When oppor

5、tunity costs exist, they are always relevant.a.Trueb.False12.Depreciation allocated to a product line is a relevant cost when deciding to discontinue that product.a.Trueb.False13.When replacing an old machine with a new machine, the book value of the old machine is a relevant cost.a.Trueb.False14.If

6、 a company is deciding whether to outsource a part, the reliability of the supplier is an important factor to consider.a.Trueb.False15.Sometimes qualitative factors are the most important factors in make-or-buy decisions.a.Trueb.False16.If a company is deciding whether to outsource a part, the relia

7、bility of the supplier is an important factor to consider.a.Trueb.False17.Outsourcing is risk-free to the manufacturer because the supplier now has the responsibility of producing the part.a.Trueb.False18.The central goal of the facility layout design process is to streamline operations to increase

8、operating income.a.Trueb.False19.In a process layout, batch production causes inventory costs. a.Trueb.False20.The reduction of setup costs makes smaller batch sizes more feasible.a.Trueb.False21.In batch processing, workers downstream can identify an upstream problem immediately.a.Trueb.False22.The

9、 theory of constraints focuses on long-term initiatives to increase operating income.a.Trueb.False23.A processing cycle efficiency (PCE) of 14% indicates better efficiency than a PCE of 50%.a.Trueb.False24.When using a just-in-time manufacturing, a problem anywhere in the system can stop all product

10、ion.a.Trueb.False25.Implementing a just-in-time inventory system requires a major cultural change for an organization.a.Trueb.False26.Global competition led to the development of international quality standards such as ISO 9000 2000 Standards. a.Trueb.False27.External quality problems are expensive

11、to fix.a.Trueb.False28.Experience shows that it is more expensive to prevent defects than to detect and repair them. a.Trueb.FalseMULTIPLE CHOICE29.Sunk costs: a.are relevantb.are differentialc.have future implicationsd.are ignored when evaluating alternatives30.A computer system installed last year

12、 is an example of: a.a sunk costb.a relevant costc.a differential cost d.an avoidable cost31.Costs that cannot be changed by any decision made now or in the future are:a.fixed costsb.indirect costsc.avoidable costsd.sunk costs32.For decision making, a listing of the relevant costs: a.will help the d

13、ecision maker concentrate on the pertinent datab.will only include future costsc.will only include costs that differ among alternativesd.should include all of the above33.Which of the following costs are NEVER relevant in the decision-making process?a.capacity-relatedb.historical costsc.relevant cos

14、tsd.variable costs34.When deciding to lease a new cutting machine or continue using the old machine, the following costs are all relevant EXCEPT the:a.$50,000 cost of the old machineb.$20,000 cost of the new machinec.$10,000 selling price of the old machined.$3,000 annual savings in operating costs

15、if the new machine is purchased35.In evaluating different alternatives, it is useful to concentrate on:a.flexible costsb.capacity-related costsc.total costsd.relevant costs36.Relevant costs of a make-or-buy decision include all EXCEPT:a.fixed salaries that will not be incurred if the part is outsour

16、cedb.current direct material costs of the partc.special machinery for the part that has no resale valued.material-handling costs that can be eliminated37.Which of the following would NOT be considered in a make-or-buy decision?a.capacity-related costs that will no longer be incurred b.flexible costs

17、 of production c.potential rental income from space occupied by the production area d.unchanged supervisory costs 38.Relevant costs in a make-or-buy decision of a part include: a.setup overhead for the manufacture of the product using the outsourced partb.currently used manufacturing capacity that h

18、as alternative usesc.annual plant insurance costs that will remain the samed.corporate office costs that will be allocated differently39.When deciding to accept a one-time-only special order from a wholesaler, management should do all of the following EXCEPT:a.analyze product costsb.consider the imp

19、act of the special order on future prices of their productsc.determine whether excess capacity is availabled.verify past design costs for the product40.When there is excess capacity, it makes sense to accept a one-time-only special order for less than the current selling price when:a.incremental rev

20、enues exceed incremental costsb.additional capacity-related costs must be incurred to accommodate the orderc.the company placing the order is in the same market segment as your current customersd.None of the above is correct.41.When deciding whether to discontinue a segment of a business, managers s

21、hould focus on:a.equipment used by the segment that could become idleb.reallocation of corporate costsc.how total costs differ among alternativesd.operating income per unit of the discontinued segment42.Costs are relevant to a particular decision if they:a.are flexible costsb.are capacity-related co

22、stsc.differ across the alternatives being consideredd.remain unchanged across the alternatives being consideredTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 43 THROUGH 46.Flowers-For-Everyone is considering replacing its existing delivery van with a new one. The new van can offer considerable savin

23、gs in operating costs. Information about the existing van and the new van follow:Existing vanNew vanOriginal cost$100,000$180,000Annual operating cost$ 35,000$ 20,000Accumulated depreciation $ 60,000-Current salvage value of the existing van$ 45,000-Remaining life10 years10 yearsSalvage value in 10

24、years$ 0$ 0Annual depreciation$ 4,000$ 18,00043.Sunk costs include:a.the original cost of the existing vanb.the original cost of the new vanc.the current salvage value of the existing vand.the annual operating cost of the new van44.Relevant costs for this decision include:a.the original cost of the

25、existing vanb.accumulated depreciationc.the current salvage value of the existing vand.the salvage value in 10 years45.If Flowers-For-Everyone replaces the existing delivery van with the new one, over the next 10 years operating income will:a.decrease by $180,000b.increase by $150,000c.decrease by $

26、150,000d.None of the above is correct.46.Should Flowers-for-Everyone replace the existing van with the new van? What are the savings or additional cost?a.Yes replace, net savings of $15,000b.Yes replace, net savings of $150,000c.No replace, additional costs of $120,000d.No replace, additional costs

27、of $30,000THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 47 AND 48.Jims 5-year-old Geo Prizm requires repairs estimated at $3,000 to make it roadworthy again. His friend, Julie, suggested that he should buy a 5-year-old used Honda Civic instead for $3,000 cash. Julie estimated the following costs fo

28、r the two cars:Geo PrizmHonda CivicAcquisition cost$15,000$3,000Repairs$ 3,000-Annual operating costs (Gas, maintenance, insurance)$ 2,280$2,10047.The cost(s) NOT relevant for this decision is(are):a.the acquisition cost of the Geo Prizmb.the acquisition cost of the Honda Civicc.the repairs to the G

29、eo Prizmd.the annual operating costs of the Honda Civic48.What should Jim do? What are his savings in the first year?a.Buy the Honda Civic; $9,780b.Fix the Geo Prizm; $5,518c.Buy the Honda Civic; $180d.Fix the Geo Prizm; $5,280THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 49 THROUGH 51.Konrades Eng

30、ine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows:Direct materials$ 40,000Direct labor10,000Flexible support costs30,000Capacity-related support costs 20,000 Total costs$100,000It is estimated that 10% of the capacity-re

31、lated support costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrades Engine Company has the option of purchasing the part from an outside supplier at $85 per unit.49.If Konrades Engine Company accepts the offer from the outside supplier,

32、 the monthly avoidable costs (costs that will no longer be incurred) total:a.$ 82,000b.$ 98,000c.$ 50,000d.$100,00050.If Konrades Engine Company purchases 1,000 TE456 parts from the outside supplier per month, then its monthly operating income will:a.increase by $2,000b.increase by $80,000c.decrease

33、 by $3,000d.decrease by $85,00051.The maximum price that Konrades Engine Company should be willing to pay the outside supplier is:a.$80 per TE456 partb.$82 per TE456 partc.$98 per TE456 partd.$100 per TE456 partTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 52 AND 53.Melodees Preserves currently mak

34、es jams and jellies and a variety of decorative jars used for packaging. An outside supplier has offered to supply all of the needed decorative jars. For this make-or-buy decision, a cost analysis revealed the following avoidable unit costs for the decorative jars:Direct materials$0.25Direct labor0.

35、03Unit-related support costs0.10Batch-related support costs0.12Product-sustaining support costs0.22Facility-sustaining support costs0.28 Total cost per jar$1.0052.The relevant cost per jar is:a.$0.28 per jarb.$0.38 per jarc.$0.72 per jard.$1.00 per jar53.The maximum price that Melodees Preserves sho

36、uld be willing to pay for the decorative jars is:a.$0.28 per jarb.$0.38 per jarc.$0.72 per jard.$1.00 per jarTHE FOLLOWING INFORMATION APPLIES TO QUESTIONS 54 AND 55.Denly Company has three products, A, B, and C. The following information is available:Product AProduct BProduct CSales$60,000$90,000$2

37、4,000Flexible costs36,00048,00015,000Contribution margin24,00042,0009,000Capacity-realted costs: Avoidable9,00018,0006,000 Unavoidable6,0009,0005,400Operating income$ 9,000$15,000$ (2,400)54.Denly Company is thinking of dropping Product C because it is reporting a loss. Assuming Denly drops Product

38、C and does not replace it, operating income will:a.increase by $2,400b.increase by $3,000c.decrease by $3,000d.decrease by $5,40055.Assuming Product C is discontinued and the space formerly used to produce Product C is rented for $12,000 per year, operating income will:a.increase by $6,600b.increase

39、 by $9,000c.increase by $12,000d.increase by $14,40056.Which of the following does NOT need to be considered when evaluating a make-or-buy decision?a.savings from an alternative use of the production equipmentb.the original cost of the production equipmentc.the quality of the suppliers productd.the

40、reliability of the delivery schedule57.When making decisions:a.quantitative factors are the most importantb.qualitative factors are the most importantc.appropriate weight must be given to both quantitative and qualitative factorsd.both quantitative and qualitative factors are unimportant58.Employee

41、morale at Dos Santos, Inc., is very high. This type of information is known as:a.a qualitative factorb.a quantitative factorc.a differential factord.an opportunity cost59.Which of following are risks of outsourcing the production of a part?a.unpredictable qualityb.unreliable deliveryc.unscheduled pr

42、ice increasesd.All of the above are risks of outsourcing.60.Which of the following minimize the risks of outsourcing?a.the use of short-term contracts that specify priceb.the responsibility for on-time delivery is now the responsibility of the supplierc.building close relationships with the supplier

43、d.All of the above minimize the risks of outsourcing.61.When evaluating a make-or-buy decision, which of the following does NOT need to be considered?a.alternative uses of the production capacityb.the original cost of the production equipmentc.the quality of the suppliers productd.the reliability of

44、 the suppliers delivery schedule62.In _, all similar equipment or functions are grouped together.a.a process layoutb.a product layoutc.cellular manufacturingd.just-in-time production63.Characteristics of a process layout include:a.continuous processingb.long production pathsc.small amounts of invent

45、oryd.no work-in-process storage areas64.In _, equipment is organized to accommodate the production of a specific product.a.a process layoutb.a product layoutc.cellular manufacturingd.just-in-time production65.Characteristics of a product layout include:a.raw materials and purchased parts are deliver

46、ed directly to the production line where they are neededb.low-volume productionc.a U-shaped layoutd.small batches of unique products66.In _, the plant is organized into areas where all machines used to manufacture a group of similar products are close to each other.a.a process layoutb.a product layo

47、utc.cellular manufacturingd.just-in-time production67.Characteristics of cellular manufacturing include:a.a layout that is usually circular like a cellb.increasing the number of employees needed to produce a productc.individual areas for employees so each can work independently without interruptiond

48、.a flexible layout that can be easily adjusted to make a different product68.The theory of constraints:a.emphasizes long-term optimizationb.maintains that maximizing volume through production bottlenecks will increase operating incomec.helps managers make special one-time decisionsd.suggests that so

49、me component parts should be outsourced69.Constraints may include: a.the availability of direct materials in manufacturingb.linear square feet of display space for a retailerc.direct labor in the service industryd.All of the above are correct.THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 70 THROUGH

50、 74.Brauns Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply:Model XModel YModel ZSelling price$50$60$70Direct materials666Direct labor ($12 per hour)121224Variable support costs ($4 p

51、er machine-hour)488Fixed support costs10101070.Which model has the greatest contribution margin per unit?a.Model Xb.Model Yc.Model Zd.both Models X and Y71.Which model has the greatest contribution margin per machine-hour?a.Model Xb.Model Yc.Model Zd.both Models Y and Z72.If there is excess capacity

52、, which model is the most profitable to produce?a.Model Xb.Model Yc.Model Zd.both Models X and Y73.If there is a machine breakdown, which model is the most profitable to produce?a.Model Xb.Model Yc.Model Zd.both Models Y and Z74.How can Lisa Braun encourage her salespeople to promote the more profit

53、able model?a.Put all sales persons on salary.b.Provide higher sales commissions for higher priced items.c.Provide higher sales commissions for items with the greatest contribution margin per constrained resource.d.Both (b) and (c) are correct.75.High levels of inventory result in all EXCEPT:a.high m

54、oving, handling, and storage costsb.increased product obsolescence and damagec.increased financing costsd.idle facilities76.The implementation of just-in-time production results in all of the following EXCEPT:a.decreased cycle timesb.reduced amount of wastec.a slower pace for employeesd.structural changes