ACC561 10 Final Questions A+ Work-6 - 23038

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21) Output measures of both resources and activities are _____.
A. variable activities
B. stages of production
C. fixed activities
D. cost drivers

22) If the sales price per unit is $100, the total fixed costs are $75,000, and the break even volume in dollar sales is $250,000, then the variable cost per unit is _____.
A. $30
B. $100
C. $75,000
D. $70

23) 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. $435,000
B. $1,023,529
C. $621,429
D. $1,450,000

24) Walnut Corporation 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 contribution margin per desk is _____.
A. $126
B. $108
C. $51
D. $195

25) _____ is a method of approximating cost functions.
A. Account analysis
B. Transaction analysis
C. Product analysis
D. Cost driver analysis

26) The _____ method of measuring cost functions is the least reliable.
A. multiple least squares regression
B. visual fit
C. simple least squares regression
D. high low

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

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

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

30) _____ 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. Transaction costing
B. Cost driver accounting
C. Transaction based accounting
D. Activity based costing

Solution Description

21) Output measures of both resources and activities are _____.
A. variable activities
B. stages of production
C. fixed activities
D. cost drivers

22) If the sales price per unit is $100, the total fixed costs are $75,000, and the break even volume in dollar sales is $250,000, then the variable cost per unit is _____.
A. $30
B. $100
C. $75,000