accounts data bank

Question # 00003263 Posted By: mac123 Updated on: 11/08/2013 12:27 PM Due on: 11/23/2013
Subject Accounting Topic Accounting Tutorials:
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51. During the sales life cycle, which is an example of what happens during the introduction phase?

A. Sales and price decline, as do the number of competitors.

B. Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline. C. Sales increase rapidly along with an increase in product variety.

D. Sales rise slowly as customers become aware of the new product or service. Product variety is limited. 52. During the sales life cycle, which is an example of what happens during the growth phase?

A. Sales and price decline, as do the number of competitors.

B. Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline. C. Sales increase rapidly along with an increase in product variety.

D. Sales rise slowly as customers become aware of the new product or service. Product variety is limited. 53. During the sales life cycle, which is an example of what happens during the maturity phase?

A. Sales and price decline, as do the number of competitors.

B. Sales continue to increase but at a decreasing rate. The number of competitors and product variety decline.

C. Sales increase rapidly along with an increase in product variety.

D. Sales rise slowly as customers become aware of the new product or service. Product variety is limited.

54. When comparing Activity-based costing (ABC) and the Theory of Constraints (TOC), the approach each method takes toward profitability analysis is:

A. TOC takes a short-term approach and ABC takes a long-term approach.

B. TOC takes a long-term approach and ABC takes a short-term approach.

C. Both TOC and ABC take a short-term approach.

D. Both TOC and ABC take a long-term approach.

55. Place the five steps in implementing a target costing approach in the proper order: 1 - Determine desired profit

2 - Use kaizen costing and operational control to reduce costs 3 - Determine the market price

4 - Use value engineering to identify ways to reduce product costs 5 - Calculate the target cost at market price less desired profit

A. 3,2,1,4,5.

B. 2,5,4,1,3.

C. 4,5,1,3,2.

D. 3,1,5,4,2.

E. 5,3,2,1,4.


56. Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC, concluded from market analysis that sales were dwindling for QC's standard three-foot chair due to aggressive pricing by competitors. QC's chairs sold for $550 whereas the competition's comparable chair was selling for $495. Winters determined that a price drop to $495 would be necessary to regain market share and annual sales of 10,000 chairs.

Cost data based on sales of 10,000 chairs:

The current cost per unit is:

A. $250.

B. $300.

C. $400.

D. $450.

E. $475.

57. Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC, concluded from market analysis that sales were dwindling for QC's standard three-foot chair due to aggressive pricing by competitors. QC's chairs sold for $550 whereas the competition's comparable chair was selling for $495. Winters determined that a price drop to $495 would be necessary to regain market share and annual sales of 10,000 chairs.

Cost data based on sales of 10,000 chairs:

The current profit per unit is:

A. $250.

B. $300.

C. $400.

D. $450.

E. $475.

58. Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC, concluded from market analysis that sales were dwindling for QC's standard three-foot chair due to aggressive pricing by competitors. QC's chairs sold for $550 whereas the competition's comparable chair was selling for $495. Winters determined that a price drop to $495 would be necessary to regain market share and annual sales of 10,000 chairs.

Cost data based on sales of 10,000 chairs:

If the profit per unit is maintained, the target cost per unit is:

A. $105.

B. $195.

C. $205.

D. $300.

E. $250.

59. In order to reduce costs so as to reach the desired target cost, Quality Chairs should also focus on reducing the cost of:

A. Direct materials.

B. Direct labor.

C. Machine setups.

D. Mechanical assembly.

60. Which of the following is a common form of value engineering in which the design team prepares several possible designs of the product, each having similar features with different levels of performance and different costs?

A. Cost analysis.

B. Variable design engineering.

C. Cost-based value engineering.

D. Functional analysis.

E. Design analysis.

61. Which of the following is a common type of value engineering in which the performance and cost of each major function or feature of the product is examined?


A. Cost analysis.

B. Variable design engineering.


C. Cost-based value engineering.

D. Functional analysis.

E. Design analysis.

62. A type of strategic pricing based on analytical methods is used to:

A. Optimally determine the best price.

B. Utilize knowledge of consumer behavior in setting price.

C. More accurately determine life cycle costs as a basis for setting price.

D. Employ improved design methods that reduce cost and improve price.

63. Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product.

If Johnson determines price using a 40% markup of full manufacturing cost, the price is:

A. $262.50

B. $306.00

C. $375.00

D. $364.29

E. $330.00

64. Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product.

If Johnson determines price so as to receive a desired return on assets of 15%, the price is:

A. $262.50

B. $306.00

C. $375.00

D. $364.29

E. $330.00

65. Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product.

If Johnson determines price using a desired gross margin percentage of 50%, the price is:

A. $262.50

B. $306.00

C. $375.00

D. $364.29

E. $330.00

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