DEVRY ACCT434 WEEK 3 QUIZ (SOLUTION 100%) - 78043

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Question 1.1.(TCO 3) McDevitt Company employs six individuals. They are each paid $30,000 salary per year. How would total costs of personnel be classified?(Points : 3) Variable Fixed cost within relevant range Mixed Variable cost within relevant range Question 2.2.(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?(Points : 3) y = 1.80 + 400X y = 400 + 1.80X y = 2.20 + 1,000X y = 1.00 + 400X Question 3.3.(TCO 3) Which cost estimation method uses a formal mathematical method to develop cost functions based on past data?(Points : 3) Quantitative analysis Industrial engineering Account analysis Conference Question 4.4.(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 20X2 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?(Points : 3) $799,000 $1,017,000 $896,000 $799,000 Question 5.5.(TCO 4) Feedback regarding previous actions may affect(Points : 3) implementation of the decision future predictions the decision model All of the above Question 6.6.(TCO 4) For decision making, a listing of the relevant costs(Points : 3) will help the decision maker concentrate on the pertinent data will only include future costs will only include costs that differ among alternatives All of the above Question 7.7.(TCO 4) Sunk costs(Points : 3) are relevant to all decisions have future implications are future costs are past costs Question 8.8.(TCO 4) Black Tool Company has a production capacity of 1,500 units per month, but production is only 1,250 units. The manufacturing costs are $60 per unit and marketing costs are $16 per unit. Doug Hall offers to purchase 250 units at $76 each for the next five months. Should Black accept the one-time-only special order if only absorption-costing data are available?(Points : 3) Yes, since operating profits will most likely increase No, since only the employees will benefit. No, the company will only break even Yes, good customer relations are essential Question 9.9.(TCO 5) The theory of constraints is used for cost analysis when(Points : 3) a manufacturing company produces multiple products and uses multiple manufacturing facilities and/or machines using a long-term time horizon operating costs are assumed fixed All of the above Question 10.10.(TCO 5) Keeping the bottleneck operation busy and subordinating all nonbottleneck operations to the bottleneck operation involves(Points : 3) keeping the bottleneck resource busy at least 90% of the time maximizing the contribution margin of the nonbottleneck operation having the workers at the nonbottleneck operation or machine improving their productivity. None of the above
Solution Description

Question 1.1.(TCO 3) McDevitt Company employs six individuals. They are each paid $30,000 salary per year. How would total costs of personnel be classified?(Points : 3)

Variable

Fixed cost within relevant range

Mixed

Variable cost within relevant range

Question 2.2.(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?(Points : 3)

y = 1.80 + 400X

y = 400 + 1.80X

y = 2.20 + 1,000X

y = 1.00 + 400X

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