ACC561 10 Final Questions A+ Work-10 - 23044

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21) Which of the following is not a cost driver of customer services costs?
A. Travel costs are not a cost driver of customer services costs.
B. Number of service calls is not a cost driver of customer services costs.
C. Hours spent servicing products are not a cost driver of customer services costs.
D. All of these answers are correct

22) Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor. If total fixed costs are $435,000, then the break even volume in dollars is _____.
A. $1,023,529
B. $621,429
C. $1,450,000
D. $435,000

23) If the sales price per unit is $100, the unit variable cost is $75, and total fixed costs are $150,000, then the break even volume in dollar sales rounded to the nearest whole dollar is _____.
A. $600,000
B. $150,000

C. $200,000
D. $1,500

24) Knothole Company sells desks at $480 per desk. The costs associated with each desk are as follows:
Direct materials     $195
Direct labor     126
Variable factory overhead     51
Total fixed costs for the period are $456,840. The break-even volume in dollars is _____.

A. $1,573,560
B. $2,030,400
C. $456,840
D. none of these answers is correct

25) _____ of approximating cost functions does not involve the analysis of past costs.

A. Visual fit analysis
B. Engineering analysis
C. High low analysis
D. least-squares regression

26) Managers should apply two principles to obtain accurate and useful cost functions. These principles are ____.
A. plausibility and reliability
B. reliability and validity
C. plausibility and believability
D. believability and validity

27) In relation to a cost function, the term reliability means_____.
A. whether the cost function conforms to a given mathematical model
B. how well the cost function predicts future costs
C. whether the costs and activities can be easily observed
D. how well the cost function explains past cost behavior

28) _____ is a name for a system that first accumulates overhead costs for each of the activities of an organization, and then assigns the costs of activities to the products, services, or other cost objects that caused that activity.
A. Cost driver accounting
B. Activity based costing
C. Transaction costing
D. Transaction based accounting

29) _____ need cost accounting systems.
A. Service organizations and nonprofit organizations
B. Manufacturing firms and service organizations
C. Manufacturing firms, service organizations, and nonprofit organizations
D. Manufacturing firms and nonprofit organizations

30) _____ is an example of the external financial reporting purpose of the cost management systems.
A. The product mix to optimize profitability
B. The cost of a manufacturing process
C. Budget reporting
D. The amount of inventory that should appear on the balance sheet


Solution Description

21) Which of the following is not a cost driver of customer services costs?
A. Travel costs are not a cost driver of customer services costs.
B. Number of service calls is not a cost driver of customer services costs.
C. Hours spent servicing products are not a cost driver of customer services costs.
D. All of these answers are correct

22) Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor. If total fixed costs are $435,000, then the break even volume in dollars is _____.
A. $1,023,529
B. $621,429
C. $1,450,000