GB519: Measurement and Decision Making quiz

The goals of coordinating manufacturing processes, reducing the amount of inventory, and improving overall productivity is particularly important in a: (Points : 2)

2.Throughput margin is defined as sales less: (Points : 2)

3.The theory of constraints (TOC) emphasizes which of the following? (Points : 2)

4.When a firm determines the desired cost for a product or service, given a competitive market price, in order to earn a desired profit, the firm is exercising: (Points : 2)

5.The difference between the total actual sales revenue of a period and the total flexible-budget sales revenue for the units sold during the period is the: (Points : 2)

6.The direct materials usage ratio for a given period is: (Points : 2)

7.An organization's overall management accounting and control system: (Points : 2)

8.The difference between actual and standard cost caused by the difference between the actual number of resource-units used and the standard number of resource-units that should have been used for the output of the period is called the: (Points : 2)

9.The difference between the actual fixed overhead cost incurred during a period and the budgeted fixed overhead cost for the period is the: (Points : 2)

10.Causes of random variances are beyond the control of management, and are most often found in: (Points : 2)

11.Finding a single cost driver that changes in the same proportion as variable factory overhead costs is: (Points : 2)

12.If inventories in a business using a standard cost system are insignificant, the firm would be justified (in a practical sense) by disposing of variances each year: (Points : 2)

13.Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" DVD player for a price of $250. It costs ECC $210 to make the player. ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220. ECC feels that it must reduce its price to $220 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 200,000 DVD players per year.



Irrespective of the competitor's price, what is EEC's required selling price if the target profit is 25% of sales and current costs cannot be reduced? (Points : 2)

14.A company's flexible budget for 15,000 units of production showed sales of $48,000; variable costs of $18,000; and fixed costs of $12,000. The operating income in the master budget for 20,000 units is: (Points : 2)

15.Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" DVD player for a price of $250. It costs ECC $210 to make the player. ECC's main competitor is coming to market with a new DVD player that will sell for a price of $220. ECC feels that it must reduce its price to $220 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 200,000 DVD players per year.

$210.

$200.

$190.

$180.